The skills gap between what universities teach their graduates and what industry needs has become significant. Many students leave university with theoretical knowledge but lack practical experience and the ability to demonstrate job-specific competencies quickly.
Graduates who have skills and experience need a credible way to validate their expertise, particularly in durable skills, to potential employers and demonstrate that their qualifications align with industry standards.
To address this divide, partnerships between industry and higher education institutions offer students opportunities to share industry knowledge and durable skill development via digital credentials. Unlike traditional degrees, digital credentials allow potential employers to verify skills and students to showcase these skills via social platforms for recruitment.
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Industry is key in driving this demand. More than half of human resource directors believe credentials will play an important role in future hiring practices, according to a 2020 survey of Northwest Ohio employers. When hiring for an entry-level position, 68 per cent of employers would prefer to hire a college graduate who also has a digital credential. This highlights the growing recognition of digital credential value in the job market.
Credentials, offered as digital badges and certificates containing metadata describing context, process and verifiable knowledge, have emerged to evidence the competencies required for workplace success and enhance employability. These include technical skills (data science or artificial intelligence, for example), professional skills (such as communication and leadership), project management and industry-specific knowledge.
How partnerships validate skills through digital credentials
Successful partnerships illustrate the value of co-developing digital credentials and offer insight for other institutions. When universities have long-term relationships with business and industry based on joint interest in upskilling current and future employees, they may decide to partner to offer digital credentials. The process begins by establishing agreed upon values and objectives. Once desired skills are identified, higher education institutions work with the industry partner to repurpose or develop courses that lead to meaningful credentials. Industry partners offer valuable subject matter and skills expertise to support the academic content. For the partnership to be effective, clarity of expectations and roles, commitment to collaboration, and communication are critical.
These are examples of short courses and credentials developed by industry and US university partners:
- Siemens Digital Industries Software and the University of Colorado Boulder, Pennsylvania State University and Georgia Institute of Technology: Siemens’ digital credential partnership with UC Boulder provides learners with strategies and tools to integrate sustainability into engineering practices and everyday life. The online, asynchronous credential, offered upon completion of nine courses, is available globally through Coursera. The credential provides the opportunity to earn credits by enrolling in UC Boulder and completing additional assessments, making it stackable into a master’s degree. Design for the Circular Economy (sustainable operations pathway) is the first credential to be recognised by ABET’s Recognition of Credentials Standards. In Siemens’ Career Ready series, a four-course microcredential created in collaboration with Penn State, students learn about business fundamentals, inclusive teaming, project management and smart manufacturing. Siemens is also working with Georgia Tech on a collaborative credential that expands on their existing partnership around aerospace, digital twins and simulation.
- IBM and Northeastern University: IBM has collaborated with Northeastern to offer digital badges for data science and cybersecurity. These badges are designed to be stackable, allowing learners to build skills progressively, demonstrate proficiency and potentially qualify for future graduate degree programmes and certificates.
- Universities offer credentials aligned to NACE Career Competencies: University of North Florida, the university system of Maryland and Purdue University offer digital credentials to students who have demonstrated competencies in durable skills such as teamwork, critical thinking and communication.
Frameworks and quality standards for digital credentials
As digital credentials become more prevalent, industry competency frameworks and quality standards are needed. ABET, a global quality assurance agency, is among the bodies addressing this issue, and ABET’s recognition of the Siemens credential is an example of how quality-assurance standards can identify credentials in which society can be confident. Needs also exist for greater employer awareness and the availability of a technological infrastructure to support credentials, such as digital wallets and verification applications. The Digital Credential Consortium is working with leading universities to provide support for a trusted, distributed and shared infrastructure that will become the standard for issuing, storing, displaying and verifying academic credentials digitally.
Partnerships between industry and higher education, supported by digital credentials, offer a promising solution to the employment skills gap. By aligning verifiable competencies with industry needs, collaborators can ensure learners have the skills needed in a modern workforce. Recognised credentials can enhance employability and promote lifetime learning, making them a valuable tool in the job market. Industry-focused credentials allow candidates to highlight skill sets to potential employers, reducing uncertainty associated with hiring. Digital credentials also enable individuals who may not have access to traditional educational pathways to display skills acquired over time.
Employers benefit from understanding the verified learning associated with digital credentials. Higher education institutions benefit from offering shorter, more affordable and highly relevant professional education opportunities to offset declines as a result of fewer traditionally aged college learners and concerns over the high costs associated with higher education. As credential partnerships evolve, they offer the potential to transform the landscape of higher education and industry with an innovative and effective way to prepare and upskill tomorrow’s workforce.
Veronica M. Godshalk is associate dean of learning systems in the College of Lifetime Learning at Georgia Institute of Technology. Janelle Simmonds is the global enablement lead for academic and future workforce strategy at Siemens Digital Industries Software.
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