The Evolution of Hiring: What managers know about, think about and are doing with microcredentials

Some organizations have opened the door to consideration of microcredentials by reducing degree requirements for roles. However, evidence shows that simply changing policies does not necessarily change hiring behaviors. Recent research found that 45% of firms removing degree requirements from job postings showed no significant difference in the share of non-baccalaureate hires, while 20% showed a decrease in hires without degrees. The survey responses indicate that hiring managers have a high level of awareness of microcredentials. However, they appear to value them more as a sign of a candidate’s ambition, discipline, or learning mindset rather than a measure of specific skill competence. Managers express much lower confidence in their ability to signal specific skills. This perception might be due to the fact that microcredentials currently serve primarily as supplements to degrees. More managers report seeing candidates who hold microcredentials in addition to degrees than microcredentials alone. In addition, there is still a lack of trust in microcredential validity. To bolster managers’ confidence in microcredentials, it is crucial to align them accurately with job roles, which involves assessing their quality, rigor, content, and relevance. Companies should be encouraged and empowered to process information about microcredentials and develop perspectives on which are the most salient for their specific needs.