Spotlight on Skilled Credentials: Verifying Value for Competitive Hiring

As demand for specialized skills outpaces classical talent pipelines, the rise of credentials beyond degrees demands attention from hiring managers. Guillermo Corea, managing director of SHRM Labs, said, “Skilled credentials cover a wide range of qualifications including certifications, micro-credentials, badges, and apprenticeships that go beyond the traditional two- or four-year college or university degree.”

With over 967,700 unique credentials available as of 2020, up almost threefold from 334,114 just two years prior, qualified talent abounds beyond traditional pipelines. However, only about one-third of organizations leverage applicant tracking systems (ATSs) capable of recognizing such credentials, creating significant opportunity gaps. Research has shown that nearly 50% of U.S. workers now hold credentials — and millions more are considering them. Ensuring that hiring technologies and strategies recognize these qualified candidates now becomes vital. 

The rise of skilled credentials reflects broader shifts in talent development and career mobility. As linear education-to-workforce pathways provide more dynamic learning journeys tailored to individual interests and market demands, structured upskilling opportunities through credentials empower employers and candidates with clear mechanisms for signaling and assessing competencies. This democratization of qualifications beyond formal degrees unlocks talent across industries and expands inclusion for those unable to access traditional four-year programs.

Defining an Expansive Credentialing Ecosystem

Once niche, alternative learning pathways, credentials now encompass hundreds of thousands of programs, upskilling specialized competencies at a dizzying pace. But with exponential variety comes risks, as Corea noted: “This rise raises questions: How can we reliably verify that a candidate has earned a credential? Or what criteria should we use to identify credentials holding true value and trustworthiness?"

Edie Goldberg, president and Founder of E.L. Goldberg & Associates, sees blockchain networks that catalog credential legitimacy through transparency as part of the solution. However, changing hiring mindsets also plays a role.

As traditional pipelines narrow, the accelerating supply of credentials has the power to close urgent gaps — but only with intentional shifts in perspective. Optimizing the inclusion of qualified talent means evolving dated assumptions that formal degrees equate to capability. Instead, by mapping dynamic competencies from reputable credentials to roles, hiring practices can tap into overlooked talent pools brimming with strengths that meet needs.

Transforming Tech to Transcend Degree Dependence

What impedes credential inclusion? As Goldberg explained, “The problem with our technology is that most ATS systems are designed to screen for a college degree, not the skills that we have.” 

With less than 40% of U.S. professionals holding a four-year degree despite almost 70% of jobs requiring one, outdated hiring platforms bottleneck strategic talent attraction by filtering out capable candidates based on formalized education alone. With no mechanisms even present to record credentials beyond degrees, these qualified candidates become invisible regardless of their competencies.

Instead, Goldberg advocates for agile, skills-based platforms that map proficiencies to dynamic positions. This paradigm shift has the power to unlock overlooked talent, enhance workforce diversity, and align staffing with rapidly evolving demands. For HR to stay competitive, it is imperative to evolve outdated technologies.

Implementing Inclusive Credentialing Frameworks

How can practitioners empower skills-first hiring today? Goldberg advised the use of meticulous credential sourcing to ensure that reputable credentials from reputable providers are being sought. Trade groups detailing in-demand skills can serve as compasses when translating credentials into requirements.

Above all, dedicating resources to nurturing relationships with those offering credentials develops channels that connect emerging talent with opportunities they’re qualified for. Consider candidates from all backgrounds, and technology will soon follow with skills tracking to enrich opportunities on both sides.

Looking Ahead

What does the future hold for skills-based hiring practices as credentials continue proliferating? Goldberg sees promise: “By considering credentials rather than degrees, we gain access to more diverse talent pools to address hiring shortages.” 

Over two-thirds of credential-holders already believe such qualifications have advanced their careers. And with alternative learning offerings expanding more affordable upskilling opportunities will only accelerate credentials’ value in demonstrating in-demand abilities.

Just as critically, Goldberg urges that adaptation become the core of long-term success, saying that “skills are changing so much in the workplace.... We really need to widen pathways to talent.”

As automation, artificial intelligence, and other technologies rapidly reshape work, adaptability is no longer just a buzzword but now a business imperative. Only by continuously reskilling can employers access emerging competencies, allowing them to capitalize on change rather than become victims of it. Here, too, the credentialing ecosystem empowers perpetual transformation through scalable granular development pathways across organizations.

Prioritizing transferable competencies promises to expand possibilities for both employers and candidates eager to contribute. But realizing this promise requires evolving old frameworks that otherwise unfairly filter out qualified potential. Unlocking inclusive hiring means more than removing biased barriers — it requires designing proactive practices that seek out specialized capabilities from nontraditional sources. This turning of the talent funnel brings a competitive advantage to trailblazers redefining their talent acquisition strategies for the future.

Concluding Thoughts

With skills in increasing demand even as traditional pipelines shrink, the accelerating credentialing ecosystem can bridge urgent gaps — if hiring practices adapt. Through embracing reputable credentials, refining stack capabilities to account for evidence of competency beyond degrees, and nurturing relationships that break down access barriers, HR organizations can lead the future of work evolution rather than lose out. 

The first step? Recognizing that new frameworks will soon become essential drivers of competitive advantage as credentials continue to enlighten talent acquisition.

FAQs

What are skilled credentials?

Skilled credentials encompass competency-demonstrating micro-certifications, industry-validated badges, reputable trade association training certificates, and apprenticeship completions, which indicate attainment of in-demand abilities beyond or without traditional two- to four-year academic degrees.

Why are skilled credentials rising in prominence?

With specialized competencies changing rapidly across industries, credentials verify that candidates have developed contemporary practical skills that align with employer requirements in an evolving workplace — making them invaluable talent indicators.

How do you confirm credential legitimacy?

Consult industry associations and accrediting groups to highlight standards-aligned offerings. Where available, blockchain registers to chronicle detailed issuance criteria offer trusted authenticity confirmation.

What updates help hiring technologies embrace credentials?

Building mechanisms to ingest credentials as qualifications within existing systems like applicant tracking systems (ATSs) allows otherwise-hidden candidate potentials to be unlocked. Expanding requisition templates to facilitate skills-based matching further enables secure consideration.

How do you identify quality credentials?

Look for competency-demonstrating assessments from reputable bodies such as SHRM, governance groups documenting reliance, and providers requiring applied skills confirmation from issuance through renewal, which demonstrates enduring value.

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This article was written based on Episode 25 of the WorkplaceTech Spotlight. 

Thank you to Edie Goldberg, president and founder of E.L. Goldberg & Associates, for contributing to the conversation.