According to one recent study, about 70% of all corporate leaders say that they're already dealing with a critical skills gap within their organization.
Most of them say that it's having a negative impact on their business performance.
Believe it or not, this is a problem that is only going to get more concerning over time.
This is a big part of the reason why micro-credentials have become so popular over the last decade in particular.
Micro-credentials are short, stackable, and skills-based credentials that saw an enormous 95% increase in availability between 2021 and 2022 alone.
Things have gotten to the point where, if job seekers aren't already investing in them as a way to broaden their skills and make themselves look more appealing, employers are investing in them to help expand the skill sets of their existing workforce.
It's the latter part of the conversation that is particularly important to pay attention to, as there is no "one size fits all" approach to what you're doing.
By design, micro-credentials are incredibly malleable.
You can find them in financial literacy, food processing, youth aquaculture, computer programming, and everything in between.
Just because someone has a series of micro-credentials doesn't mean that it's the right set to take on the right challenge for your organization at exactly the right time.
That's why you need to make it a priority to measure the impact of micro-credentials on your organization.
While it's not necessarily difficult, it does require you to keep a few important things in mind along the way.
The Need for Measuring Micro-Credential Effectiveness
As stated, today's job market is evolving extraordinarily quickly and everyone from job candidates to businesses to educational institutions are struggling to keep up.
This is especially true within the context of something like artificial intelligence.
AI-powered tools are about to disrupt a huge number of industries that we cannot currently anticipate.
We're not yet totally sure what skills we'll need to fill when the dust settles - just that we will.
Obviously, that's not a scenario that traditional higher education is designed to keep pace with - but micro-credentials can.
For professionals who are seeking to enhance their expertise in specific areas to stand out on a job application or to make themselves more valuable in a position, there are few better options.
Yet at the same time, being able to measure the effectiveness of micro-credentials is of paramount importance because of the sheer potential of what you're talking about.
When implemented effectively, micro-credentials can see a massive return on investment.
Organizations can find a loyal army of employees not just with general skills, but that are practically customized from the ground up with the needs of that specific business in mind.
Is there a particular KPI that your business needs to focus on for long-term success?
Micro-credentials make it easier than ever to go out and find people who are trained in that particular area.
From that perspective, measuring the impact of micro-credentials is a great way to make sure you're getting a return on the money being invested.
From another point of view, it's also a way to create an environment built on accountability and an appreciation for continuous improvement, as well.
There's an old saying that reminds us that you can't improve that which you're not measuring.
If simply embracing micro-credentials is the definition of success as opposed to the outcome those micro-credentials unlock, you'll never be able to fully understand or appreciate the impact being made.
But by regularly evaluating the actual outcomes you're seeing, you can identify strengths and capitalize on opportunities for improvement.
If nothing else, this emphasis on measurement and continuous improvement makes sure that a business' investment in micro-credentials remains beneficial moving forward.
Establishing the Criteria for Success
If you want to know whether something was a success, you need to first define what "success" actually looks like in this context.
The impact of micro-credentials in your organization should be based in large part on your own specific needs.
What is it that you were trying to accomplish with micro-credentials that you couldn't do without them?
What benchmarks were you trying to hit that you couldn't on your own?
Were you successful in these efforts?
The answers to questions like these will tell you how effective micro-credentials truly were.
To that end, think of it all in the same way that you might a marketing strategy that you were creating.
Every step you take should have a clear purpose in mind.
Maybe you're trying to get a certain number of people to complete a course.
Perhaps you're trying to improve the targeted skills by a certain percentage.
It doesn't matter what your key metrics and performance indicators are, just that you define them at the outset of this process so that you're not left guessing later on.
Over time, you can start to take a step back and look at things from the perspective of how those newly acquired skills are being used in the workplace.
The impact of micro-credentials on performance will become quantifiable and, most importantly, relevant.
Again, it all goes back to those questions that you asked yourself in the beginning.
What was it that you needed to be able to do that you couldn't, so you turned to micro-credentials to make it possible?
Are you now able to do that?
You should also help make sure that your micro-credential program is properly aligned with industry standards to enhance its overall credibility and relevance.
This will validate not only the skill that someone is acquiring, but the amount of work they went through to get it.
It will also serve as the basis of a more fair comparison when looking at what others are doing outside of your organization as well.
Data Collection Methods and Tools for Micro-Credential Programs
It should also be noted that you need to make sure that your data collection methods are sound for that which you're trying to measure.
Once you know what you're looking for, you need to make sure the data you're getting is as insightful as you need it to be.
Never forget another old saying: "garbage in, garbage out."
Surveys and feedback forms can be key in terms of soliciting the opinions of employees and their direct supervisors.
You can begin to get a sense of how much employees think micro-credentials have helped, and what tangible benefits that supervisors and others in positions of leadership have observed.
Of course, you'll also want to pay close attention to the types of performance metrics and analytical tools that you're using across your entire enterprise.
Just know what you're looking at - is someone improving in a KPI because they're getting better at their job, or because they've expanded their skills via micro-credentials?
Understanding Qualitative Impact
No discussion of micro-credential effectiveness would be complete without diving into the qualitative impact, as well.
Many have reported that one of the biggest shifts they've seen after prioritizing micro-credentials comes by way of increased employee satisfaction and engagement.
Essentially, micro-credentials don't just make it easier to find better employees to fill available positions. It also helps you get more from the ones you already have.
From the point of view of employees, micro-credentials are a great opportunity for skill development that may fall in line with their career objectives.
They're a great way to show employees that you truly care about them and want to make sure they have the tools to succeed.
This helps them become more engaged with their job, which in turn makes it less likely that they'll go looking for another one.
More engaged and satisfied employees tend to be more productive on average, so you also get the added benefit of a revenue boost, too.
From a long-term perspective, micro-credentials can also be a great way to internally develop the types of leadership and soft skills that will be crucial for business environments moving forward.
As the events of 2020 taught us, the world can often change quickly and without warning.
You'll need strong leaders to survive that and if you wait until the disruptive event occurs to start looking, things aren't going to work out the way you'd hoped.
But if you start developing those leadership and soft skills now, you put yourself in the best possible position to be ready when that time does come.
That way, you'll be able to handle anything that life happens to throw at you.
The Future of Micro-Credential Metrics
Remember that relatively speaking, micro-credentials are still a fairly new concept.
They're still evolving as our understanding of our own needs do the same.
Because of that, micro-credentials metrics will likely change fluidly over time.
Advancements in things like artificial intelligence and data analytics will allow people to create more personalized learning experiences and to get real-time feedback.
Rather than selecting micro-credentials for what they think they'll need, there will be tools that can help eliminate the guesswork to create the perfect educational path for someone based on exactly what they want to accomplish.
Businesses will be able to use these same tools to enhance not only the relevance of micro-credential programs, but the effectiveness as well.
To put it another way, this is a situation where there are three entities at play: employees, employers, and the market itself.
The market is essentially a force of chaos - it is constantly changing and evolving.
Employees are trying to do what they must to make themselves as attractive as possible given that constantly evolving marketplace.
Employers are trying to put themselves in a position where they can adapt to virtually anything, regardless of the shape the marketplace takes.
They've both turned to micro-credentials to accomplish similar goals.
Micro-credential metrics will continue to make this all easier in the future.
In the End
At an organizational level, you need to see micro-credentials for what they are: an investment in your workers and an investment in the future of your business.
It's not just about padding someone's resume or making them look good on paper.
It's about identifying skills gaps that are holding you back and taking the action needed to fill them.
More than that, it's about capitalizing on an opportunity to fill those gaps faster and more effectively than the traditional education system was ever designed to accomplish.
But as is true with literally any other type of investment, you need to make sure you're getting what you're paying for.
This means establishing the criteria for success so that you know what objectives and benchmarks you need to hit at the beginning of the process.
This means making sure that you're using the right data collection methods and tools to properly contextualize those micro-credential programs in the first place.
It also requires you to make an effort to truly appreciate the qualitative impact of micro-credentials.
Dive deeper than just whether performance has increased.
What are micro-credentials doing to employee satisfaction?
What cultural shifts have you observed?
These are important questions to answer.
Beyond that, you also need to focus not just on where your business is, but where it's heading, to help proactively address any skills gaps that may develop down the road.
Many organizations are in a tricky situation right now because the industry evolved around them and only once it happened did they realize they have a problem.
Now, thanks to micro-credentials, they're able to fill those gaps - albeit after the fact.
Thankfully, micro-credentials can also prevent these types of situations from happening again... provided that you don't lose sight of where everything is headed.
Try to anticipate shifts in the marketplace and think about what skills you'll need to be successful in five or even ten years.
Use micro-credentials to make sure you have them before you need them so that you don't suffer any performance-related issues as a result.
Staying agile.
Remaining competitive in a dynamic global economy.
Being in a position to capitalize on opportunities as opposed to watching them pass you by.
These are goals that all organizations find important, regardless of industry.
With the right approach, they're also things that micro-credentials can certainly help you accomplish.
