Eliminating degree requirements from job postings does not guarantee an employer will broaden their workforce. Indeed, according to Burning Glass Institute research cited by Northeastern University scholars, 45% of firms that removed these rules did not end up hiring many non-degree holders.
The team at Northeastern wanted to understand why, and began by examining hiring managers’ attitudes toward microcredentials, which are competency-based recognitions for skills-based programs that take less time than a degree to complete.
We talked to Dr. Amanda Welsh, professor of practice in the university’s College of Professional Studies, about their findings, which are highlighted in new report, “The Evolution of Hiring: What Managers Know About, Think About and Are Doing with Microcredentials.”
The conversation offers several recommendations for employers who want to create a more inclusive hiring process.
CKF: One of the report’s observations is that technology has made it easier for people to apply for more jobs. To cast a wide net. Hiring managers receive more applications, but those applicants aren’t necessarily qualified, or even interested. How do microcredentials cut through clutter?
Welsh: Technology has done incredible things for hiring, but it’s also brought on this unintended consequence of too much information flowing through. Hiring managers are really struggling with that noise. They’re overwhelmed. Microcredentials offer a clear signal of capability or competency. They show a specific focus and, for applicants, are a great way to communicate to an employer that, “Hey, I’ve got exactly what you’re looking for.”
As a job seeker, microcredentials also give you the chance to expand your skillset on a continuous basis. You can engage in lifelong learning, so your application reflects not only what you did as perhaps a younger person, but the knowledge you’ve accrued as your career has gone on. Microcredentials are a strong signal of the completeness of the journey you’re on.
CKF: Is there something double-edged about that, however? Your report cites research that found, on its own, the decision to drop degree requirements does not necessarily open the hiring process. You determined one reason for that outcome is that hiring managers view microcredentials as an add on to, not replacement for, degrees.
Welsh: Yes, our interpretation of what hiring managers told us is that they’re aware of microcredentials — they understand there is such a thing and they’re considering whether candidates have them — but they’re using microcredentials as a signal of learning mindset, ambition, or discipline. They’re not really looking carefully at what the credential is and what it’s communicating, specifically, in terms of skills. So, when you think about the potential of microcredentials to cut through the noise, that’s not yet being realized. Microcredentials are not being presented to hiring managers as tools for the hiring process. That will take effort and work.
CKF: Before we get to what that work is, can you tell me how you view microcredentials? Are they a replacement for degrees?
Welsh: We didn’t address that question in our report. We’re agnostic about it. What we see as an opportunity is to get crisp about what degrees signal to employers in terms of capabilities. Once we do that work, we can open alternate pathways that may be more viable for, or more relevant to, other people or other disciplines while still signaling to employers that a person has the skills they need for a particular job.
CKF: Okay, so tell us about the work. What needs to happen for hiring managers to see microcredentials as an indicator or specific skills and, potentially, an alternative to a degree?
Welsh: One reason microcredentials are not yet seen as alternatives is the range of credentials is so broad. For example, I run workshops with HR leaders and at one point I ask everyone to name the microcredentials they’ve earned, and we list them on a whiteboard. By the end, the board is covered. These are all HR professionals — a fairly homogenous group — and still there is little commonality. These leaders quickly start to empathize with their hiring managers.
Our diagnosis of the appropriate next step is for HR leaders and individual companies to research the microcredential space and identify exemplar microcredentials relevant for their workforce. The reason we put the burden on the company and do not propose some sort of top-down approach is that every company has its own philosophy. It has its own focus of operation, its own set of priorities, and it’s really incumbent upon the individual company to understand the microcredentials that are most relevant to their work.
CKF: That makes sense. Is there anything learning providers, trade associations, nonprofits, or others in the ecosystem can do to support that work, though?
Welsh: Yes, what is helpful is in humanizing the impact of microcredentials. Hiring managers and HR leaders have told us that, in terms of understanding the quality or applicability of a credential, knowing who else has earned that certificate is very helpful. Professional associations can help by humanizing the type of learner who goes after a credential and put the credential in the context of a career journey. This information is essential for helping hiring managers and HR leaders parse the meaning of specific microcredentials. Learning providers can also assure that the information they include in the descriptions of their digital credentials offer this kind of context as well.
CKF: When it comes to rewriting job descriptions, do you have any advice for firms that have removed degree requirements that could help them attract a wider pool of qualified and interested applicants?
Welsh: I don’t think job descriptions that just say give me these six skills are going to be helpful because managers still have to evaluate competency. You still need some sort of evidentiary base and I don’t see that going away. So, what we really want to determine is what maximizes an employer’s opportunity to hire someone without a degree. There are some simple things employers can do like use gender neutral language and reduce jargon, but the biggest thing that helps is proactively putting microcredentials in your job description.
Additionally, if there’s crisper vocabulary about the skills that are needed, it leads to a deeper conversation between an applicant and hiring manager. If an employer says, I want A and B, the applicant now understands the vocabulary, and it also makes them think about what else they can deliver. I’ve not only got A and B, but I also bring this other skill or aptitude to the table. It’s really just about giving people the ability to peel the onion back from loose proxy measures to something that’s more specific.
Finally, our research found managers who themselves have earned a microcredential are more open to candidates who with microcredentials. If employers support their managers in earning microcredentials, it could signal to managers that these non-degree options hold value and reduce the risk in hiring someone who doesn’t fit some sort of traditional notion of eligibility. It also means employers will get more specific about what they are looking for!
CKF: Are there any industries where hiring managers have gotten good at deciphering microcredentials? What can we learn from them?
Welsh: Certainly, and what we’ve found is really interesting. Industries that have traditionally been more white collar and have required more education are, in fact, the ones embracing these alternatives pretty actively.
One industry is information services. When we ask people in that industry, “Do you think a degree prepares someone better than a microcredential?” they say yes. Yet, there’s actually a higher level of microcredential hiring in IT than in other industries. There are two reasons for this, I think. One is that the industry is looking for very specific skills and a microcredential is, of course, a good signal of a specific skill. The second is that there are a lot of microcredential providers in this space, so it’s easy for learners to find an opportunity. Managers see more candidates with these alternate kinds of credentials.
CKF: Let’s end with a quotation from a hiring manager your team interviewed. This person said, “It doesn’t matter if you have a four-year degree, or you just have a high school diploma. It’s all about the knowledge of the person.” How does adopting a mindset that honors each person’s ability to contribute help both employers and applicants?
Welsh: When employers can get crisp what they’re looking for, it results in a more capable and potentially impactful worker in their company. The benefits are tremendous. There’s also research that suggests a skills-based approach to hiring and talent management results in higher retention and deeper loyalty. To the degree employers can be clearer about what success looks like and stop relying on proxies, it will be less frustrating for potential employees. It’s very disheartening for applicants when employers rely on proxies when that person can objectively evaluate a job description and know they have the potential to contribute. The ability to be clearer about what is valued allows people to recognize value in themselves and to present that value to others in a much more straightforward and productive way.
This interview was edited for length and clarity.
