Fragmentation Is Holding up Usefulness of Credentials

exploding shards of glass

Adoption of credentialing in the workforce continues to be a challenge because the system is so fragmented, according to a new report from Third Way. The think tank has identified two big hurdles: First, the hiring managers who need to review the credentials don't always get the right information to do valid comparisons, since every credential seems unique. And second, students don't own enough of their data to be able to hand off complete records. As a result of these obstacles, people can't share their credentials with prospective employers, employers may not trust the validity of the credentials and there's no way to connect the various streams of credentials acquired throughout life for pursuing "further education or moving up the career ladder," as "Hurdles to Connected Credentials" explained.

The report, written by Policy Advisor Kelsey Berkowitz, suggested that without a "DNA" or "standard language" to describe any particular credential, there's no way to establish exactly what competencies a credential-holder could be expected to have or what jobs a worker could be expected to do.

Even where organizations are developing "competency frameworks" to delineate the skills a given occupation requires, those efforts can compound the confusion, the report noted. After all, wrote Berkowitz, "There are over 1,000 competency frameworks," including those created for specific industries, each of which can be thought of as its own language.

As an example of early work underway, the report referenced the T3 Innovation Network, a joint project of Lumina Foundation and the U.S. Chamber of Commerce. "The goal is to produce a common way of describing credential data so it can be easily shared, understood and compared throughout the credentialing ecosystem," Berkowitz wrote. Currently, those efforts are being piloted.

It doesn't help, she added, that "credentials are stuck in the era of fax machines," and more specifically the era of paper. When somebody finishes a program of study, he or she typically "receives a paper credential instead of a digital one that could be easily shared online" and that could provide "richer information," including links to e-portfolios to show mastery of learning.

While digital badges do exist, these are inadequate because they don’t offer evidence of competency in the same way other types of credential attainment — such as degrees — do.

Here too there are "nascent efforts" to develop a digital infrastructure where credentials could be stored, shared and displayed. Berkowitz cited the work being done by the American Association of Collegiate Registrars and Admissions Officers and the National Association of Student Affairs Professionals, with support from Lumina Foundation. These organizations are developing a "comprehensive learner record," a digital replacement for the traditional transcript. There's also a consortium of universities that are working on a "digital envelope" that could be shared across institutions and that could become a standard "for issuing, storing, displaying and verifying credentials."

The "lack of a 21st century credentialing infrastructure" is preventing people from sharing a "comprehensive picture of their learning experiences with employers and training institutions," Berkowitz concluded. While this report offered no solutions that could be implemented at a federal or state level, a future paper will, she said.

The current report is openly available on the Third Way website.

About the Author

Dian Schaffhauser is a former senior contributing editor for 1105 Media's education publications THE Journal, Campus Technology and Spaces4Learning.

Featured

  • The AI Show

    Register for Free to Attend the World's Greatest Show for All Things AI in EDU

    The AI Show @ ASU+GSV, held April 5–7, 2025, at the San Diego Convention Center, is a free event designed to help educators, students, and parents navigate AI's role in education. Featuring hands-on workshops, AI-powered networking, live demos from 125+ EdTech exhibitors, and keynote speakers like Colin Kaepernick and Stevie Van Zandt, the event offers practical insights into AI-driven teaching, learning, and career opportunities. Attendees will gain actionable strategies to integrate AI into classrooms while exploring innovations that promote equity, accessibility, and student success.

  • illustrated university campus with modern buildings, glowing binary code streaming straight and dynamically from multiple directions, integrated into the architecture, surrounded by stylized trees, grass, and walkways

    3 Ways Institutions Can Become Data-Driven Organizations

    Faced with declining enrollments and changing demographics, colleges and universities must make use of data and analytics to better serve students.

  • NVIDIA DGX line

    NVIDIA Intros Personal AI Supercomputers

    NVIDIA has introduced a new lineup of AI-powered computing solutions designed to accelerate enterprise workloads.

  • digital network with glowing blue and red lines, featuring multiple red arrows shifting in different directions

    Report: Attackers Change Tactics as Ransomware Payoffs Decline

    Attackers are changing tactics as they collect less money from ransomware payoffs, according to a new report from Chainalysis, a blockchain analytics firm.