Microcredentials Are Expanding Higher Education’s Value

Is the microcredential, an emerging and relatively new form of educational recognition, challenging the traditional degree, or does it enhance the overall value proposition of higher education institutions? Over the past decade, social and economic uncertainty has prompted many to reconsider whether the degree remains worth the time and expense, particularly in light of concerns about its return on investment.

Although the data continues to demonstrate that a degree provides a lifetime economic premium, an increasing number of learners are seeking options that cost less, can be completed more quickly, and lead directly to well-paying jobs. Microcredentials, designed to impart and verify job-related skills, are becoming an appealing alternative. Employers, for their part, are seeking clearer assurances that educational programs are producing individuals capable of contributing productively from the outset.

Recent enrollment trends underscore this growing interest. According to the National Student Clearinghouse, fall enrollment rose 4% in community colleges, 1.9% in public four-year institutions, and 0.9% in private four-year institutions. Most notably, enrollment in short-term microcredentials increased by 7.6%, suggesting significant momentum for microcredential pathways.

Microcredentials originated from earlier initiatives such as digital badges, Comprehensive Learner Records (CLRs), and Learner Employment Records (LERs). They are discrete, skills-focused learning programs with targeted objectives. In 2022, UNESCO’s Towards a Common Definition of Microcredentials provided essential clarity, distinguishing between macro-credentials (degrees, diplomas, certificates, licenses) and microcredentials, which address specific sets of learning outcomes in a narrow field over a shorter duration.

The American Association of Collegiate Registrars and Admissions Officers (AACRAO) likewise categorized microcredentials as “alternative credentials,” further advancing institutional understanding around their governance and processes.

When first introduced, microcredentials caused some confusion regarding terminology. As Susan D’Agostino observed, the landscape included numerous overlapping terms - reskilling, upskilling, digital badges, certificates, licenses, digital credentials—resulting in little consensus, particularly within higher education.

As institutions have continued refining definitions and structures, greater clarity has emerged. According to Syracuse University’s College of Professional Studies, microcredentials in education are “a powerful alternative to traditional academic degrees,” offering flexibility, affordability, and practical skill development. At the same time, degrees continue to provide depth of disciplinary knowledge and theoretical grounding.

The University of Arizona emphasizes that digital badges function as artifacts, similar in purpose to diplomas, signifying verified proficiency in specific skills that can enhance job market prospects. Many institutions now incorporate microcredentials into certificate programs, highlighting specialized skills mastered along the way.

HigherEdJobs, a leading resource for career information in higher education, describes microcredentials as a flexible means of acquiring new skills and creating pathways into further academic study. From the employer perspective, candidates with specialized, demonstrable knowledge are increasingly attractive.

The University of Colorado Boulder stands out as a leader in the microcredential space. Now approaching its tenth year, the university hosts The Badge Summit, a national gathering focused on digital credentials and innovations in the field.

Dallas College, offers another instructive example. As described by Sharon Manna, Dean of Marketable Skills in Digital Badging, the College examined existing classroom practices and applied established skills frameworks to identify the marketable skills students were already developing. Students may then apply for digital recognition of these skills to strengthen their personal narratives and support career readiness. Dallas College is also participating in the LER Accelerator project, aimed at helping institutions design programs that articulate explicit, market-relevant skills.

More broadly, several national initiatives are reinforcing the importance of skills-based approaches like microcredentials. The U.S. Chamber of Commerce and its T3 Innovation Network advocate for clearer articulation of competencies within educational programs. The LER Accelerator similarly encourages institutions to document both microcredentials and broader learning achievements in ways that communicate workforce readiness. In addition, Credentials As You Go is a movement focused on developing a nationally adopted, incremental credentialing system that recognizes learning across degrees, certificates, industry certifications, licenses, badges, and microcredentials.

These developments reflect what Bryan Penprase has described as a “Cambrian explosion” of microcredentials, fueled by rapidly evolving learner needs and industry expectations. His recent analysis in Forbes highlights the accelerating pace of innovation surrounding skills-based learning pathways.

A significant area of recent advancement involves assessment and validation of microcredentials. ETS (Educational Testing Service) has launched an initiative designed to help students document not only academic knowledge but also durable skills through the issuance of a skills-based transcript. Brandeis University and California State University will pilot this work.

At the same time, the IEEE, the world’s largest technical professional organization, has begun certifying microcredential providers. Its collaboration with the University of Southern California supports the development of stackable, skills-based microcredentials for semiconductor cleanroom technician training. These types of assessment and certification efforts have the potential to elevate both the credibility and perceived value of microcredentials across sectors.

Alternative credentials such as microcredentials are becoming an increasingly prominent part of the educational landscape. They expand access by offering programs that are practical, flexible, and affordable—particularly for learners pursuing continuing education—while strengthening higher education by recognizing specific knowledge and practiced skills that may not be fully captured in traditional academic structures.

Microcredentials tend to serve immediate, targeted purposes, whereas degrees offer comprehensive preparation and long-term promise. As institutions expand these offerings, platforms like Stellic can help support their implementation by simplifying the intake of prior learning and transfer credit, tracking multiple credentials, and presenting a more coherent view of learner progress across degrees, certificates, and microcredentials.