The credential and micro-credential trend in postsecondary education offers an exciting opportunity: creating flexible, stackable pathways that support lifelong learning. When designed well, these pathways give learners meaningful on- and off-ramps throughout their careers.
But here’s the challenge: many credentials don’t live up to the promise.
A recent AEI and Burning Glass Institute study of over 1.1 million credentials found that only 12% had a positive return on investment (ROI). Similarly, research from Georgetown University’s Center on Education and the Workforce revealed that just 29% of middle-skill credentials (including associate’s degrees) led to high-paying occupations. Another 42% funneled learners into low-paying roles, while 28% offered no direct occupational match.
The key takeaway: the credential landscape is noisy and crowded, with many offerings failing to align with labor market needs. Without strong employer demand or clear training-to-job pathways, most credentials fail to deliver returns.
Clearly, we need a better way forward.
What Makes a Credential Valuable?
At its core, a credential’s value rests on one simple equation: The cost of obtaining the credential must be less than the income it helps generate.
If learners spend time and money on a credential that doesn’t improve their earning potential, the system has failed them. Unfortunately, too many credentials are developed in a vacuum — without employer input, real-world alignment, or consideration of ROI.
To unlock the true promise of stackable credentials, colleges and universities must collaborate closely with employers. Together, they can co-design programs that certify relevant skills, lead to stronger job outcomes, and ultimately increase economic mobility.
A Process for Building Valuable Credentials
As Michigan works toward its Sixty by 30 goal, here’s a practical framework for creating credentials that actually deliver for learners, employers, and colleges and universities:
- Determine the Need
Employers begin the process by identifying projected job openings. This ensures that training is tied to genuine workforce demand.
- Employers, particularly small and midsize, will likely need to work with each other and/or industry associations to reach a “critical mass” of need, making programs scalable and sustainable.
- Identify Skills Needed
Employers then need to determine the skills needed for the identified positions. It’s important to categorize the skills into industry-wide/general skills and company-specific items.
- Industry-wide/general skills (e.g., communication, teamwork, technical foundations)
- Company-specific skills (e.g., proprietary systems, internal processes)
Credential programs typically need to be focused on industry-wide/general skills to be sustainable and provide a credential that is portable for individuals.
- Crosswalk Skills with Learning Outcomes
Translate employer skill needs into measurable learning outcomes, bridging the gap between education and workforce readiness.
- Review Existing Credentials
Before creating new programs, assess what’s already out there. Do current credentials meet the need, or do gaps remain?
- Co-Design Curriculum
When new programs are necessary, co-develop content and assessments with employers. This ensures both relevance and buy-in.
- Support Instructor Development
Equip instructors to deliver high-quality programs by:
- Offering professional development opportunities
- Providing access to subject-matter experts from industry
- Create Student Opportunities
Build pathways that give students hands-on experience, such as:
- Internships and apprenticeships
- Project-based learning
- Networking and career development opportunities
Keeping the Bigger Picture in Mind
While stackable credentials and associate’s degrees can boost earnings, the bachelor’s degree remains the strongest driver of long-term economic mobility. Colleges and universities should embed credentials into degree programs and develop accurate career pathway maps so learners can see the bigger picture.
When designed with intention and employer input, credential programs become more than just marketing tools — they become powerful drivers of student success and institutional relevance at a time when the value of higher education is increasingly scrutinized.
Accrediting bodies are taking notice of the need to bring true value to credentials. The Higher Learning Commission now has its Credential Lab that is developing a quality assurance system for content providers that potential students can use when selecting a program. The Lab has a variety of resources available for planning and design.
For employers and higher education institutions seeking to develop credential programs that truly deliver value in Michigan, The Michigan Center for Adult College Success—together with our network of expert technical assistance partners—is here to help you turn that vision into reality.
The Center’s current MI-LEARN Design Lab is working with 12 institutions on designing innovative solutions for adult learner success, including credentials. For colleges and universities not participating in Design Lab, individual consultations are available. Visit our weekly Office Hours or email TheCenter@talentfirst.net to schedule an appointment.
