Competency-based micro-credentials are reshaping the way learners gain recognition for their skills and increasing access to postsecondary credentials and opportunities, particularly for historically and systematically excluded learners. They offer a quick, affordable, and flexible way to reskill or upskill, enhancing career preparation and employability. They also make skills visible that are not represented in standard higher education degrees, leading to better career alignment and employability.

To support such an inclusive credential, the Digital Promise micro-credential initiative advocates for policies supporting the widespread adoption of micro-credentials and offers the most comprehensive micro-credential library through its platform. The Digital Promise micro-credential initiative leads the field with a research-backed, equity-focused framework that has been adopted across the industry. As a nonprofit, Digital Promise focuses on supporting historically and systematically excluded learners, positively impacting the digital learning ecosystem and aiming to scale their platform for all ages.

What Are Competency-Based Micro-credentials?

The credential ecosystem has evolved significantly through macro-credentials and micro-credentials. Macro-credentials are college/university degrees and college and graduate certificates, while micro-credentials are a type of digital credential that verifies competency in a specific skill or set of skills (Brown, Mhichil, Beirne, & Mac Lochlainn, 2021; Tinsley et al., 2022). According to UNESCO (2022), a micro-credential “is a record of focused learning achievement verifying what the learner knows, understands or can do; includes assessment based on clearly defined standards and is awarded by a trusted provider, has standalone value and may also contribute to or complement other micro-credentials or macro-credentials, including through recognition of prior learning; and meets the standards required by relevant quality assurance” (p. 6).

By recognizing and verifying a skill or set of skills, a learner can stand out amongst others. The Council of Chief State School Officers (2020) adds, “A micro-credential is a competency-based certification of a discrete skill.” A micro-credential is earned when the learner successfully demonstrates competency via an assessment of the specific skill. This assessment requires the learner to implement the new skills in a workplace setting and show evidence of this implementation. Micro-credentials use the representation of a digital badge to provide details about the earning process, such as criteria and evidence.

Micro-credentials are usually offered online and can be earned asynchronously. A micro-credential can be standalone or sometimes stacked with others to demonstrate a higher level of understanding, depending on the offerings. Micro-credentials are offered and adopted by educational institutions, organizations, and companies.

The definition of micro-credentials can vary, depending on who uses the term and in what context. In this eBook, micro-credentials are not a learning or training program, but rather, they represent the ability to apply learning and knowledge. They recognize and certify specific skills and competencies no matter how people acquire them—through different types of formal and informal learning, work, and life experiences. Micro-credentials are competency-based, on-demand, personalized, shareable, research-backed, individually assessed by a subject matter expert, and awarded based on the successful demonstration of a skill. Micro-credentials are awarded as digital badges containing secure metadata that adhere to the 1EdTech Open Badges standard. Micro-credentials are not learning or training programs like courses or MOOCs, they are not completion-based or time-based, and they are not prescribed “sit and get.” For example, an educator can earn the micro-credential Integrating Computational Thinking into Curriculum, by demonstrating how they support students in using computational thinking to develop understandings of ideas central to a discipline. This competency is focuses directly on the skill, and not the method by which the skill or knowledge was acquired.

To learn more about this topic, please read the chapters “The Role of Micro-credentials in the Credential Ecosystem” and “The Relationship between Digital Badges and Micro-credentials.”

Designing Quality Competency-Based Micro-credentials

Digital Promise’s framework takes a more rigorous approach to design high-quality micro-credentials that assess and recognize the application of specific skills and competencies. Learners submit evidence to demonstrate their competency, and they receive a digital badge if the issuing organization determines that the evidence meets the criteria outlined in the rubrics.

The table below shows where competency-based micro-credentials sit in the recognition and assessment space. There are two types of assessment: The one that assesses learning and knowledge and the one that recognizes skills. Digital credentials can be the proof or display for either one (e.g., an electronic diploma proves the completion of the degree in assessing learning and knowledge; a digital certificate proves that the earners show competency after a coding bootcamp where their skills were recognized). In digital credentials, there are digital badges or micro-credentials that test and verify knowledge, and there are competency-based micro-credentials that recognize skills—which is the concept that this eBook focuses on.

As technology has spurred innovation and new capabilities, the educational landscape has also evolved. Historically, recognition for learning and skills were fairly standard, however, increased participation in postsecondary education has led to changes. As a result, learning programs may combine many of these elements and also issue multiple types of credentials to recognize learners.

Understanding Credential Types: Digital vs. Traditional

Digital Credentials recognize achievements in learning and knowledge. Digital badges can be issued for completion, attendance, or participation. They are issued by the organization to the learner/earner, and can be shared as verified badges using the Open Badges standard.

Traditional Credentials are paper records or electronic transcripts issued for completion. They most often issue institutional credits and feature standardized assessments. Examples of digital credentials are those used for post-secondary degrees, apprenticeships/internships or practicums.

While standard macro-credential programs are criticized for their cost, time constraints, and lack of alignment with employment needs, micro-credentials are gaining momentum for their focus on specific, in-demand skills, affordability, and flexibility.

The terms “micro-credential” and “badge” are often used interchangeably since digital badges often represent micro-credentials. According to Education Design Lab (2023), a micro-credential is the “learning/earning experience,” and a digital badge is the “technology used to display it.” Digital badges are electronic images containing embedded metadata to recognize, display, and share information about a learner’s skills and knowledge. However, digital badges are not always connected to a micro-credential. They are used to recognize achievements in formal and informal learning experiences, such as attending or presenting at a conference, making progress in coursework, or gamified learning—not necessarily tied to the recognition of specific skills.

To learn more about this topic, please read the chapters “How Micro-credentials Can Unlock Success for Learners” and “National Trends: The Shifting Micro-credentials Policy Map.”

Micro-credentials for Competency-Based Educational Innovation

Micro-credentials disrupt postsecondary pathways by offering ways to verify competencies gained through prior learning, on-the-job training, and lived experiences. Micro-credentials allow learners to get recognized for their skills by proving their competence through assessments. The assessment requires implementing the skill as evidence of competency. After completing the assessment, learners receive a micro-credential that they can share with higher education institutions and employers. The digital badge of the micro-credentials contains metadata, including evidence of their skills. This approach to skill recognition is reshaping how learners access and demonstrate skills in their careers. It also increases access to postsecondary credentials, particularly for historically and systematically excluded learners because it broadens opportunities to gain recognition for skills regardless of when and where they were developed.

Micro-credentials are a more inclusive and accessible option for learners to gain recognition for their skills and competencies. With over 71,000 credentials that exist on the Credential Registry (including diplomas, badges, certificates, apprenticeships, certifications, licenses, and degrees of all types and levels), a fraction of the logged 71,000 credentials are micro-credentials (Credential Engine, 2022). Micro-credentials are reshaping how we recognize and measure competence today. By offering a quick way to reskill or upskill, they provide affordable, flexible, and personalized credentialing options compared to standard higher education degrees, enhancing career preparation, employability, and lifelong and life-wide learning opportunities.

Digital Promise’s micro-credentials are grounded in competency-based education (Brown, 2019). Competency-based education (CBE) focuses on the learner’s ability to acquire and demonstrate specific skills. Competency-based micro-credentials are based on research depicting the importance of competency to the learner and require the learner to demonstrate their competence in a skill. Digital Promise’s Competency-Based Assessment Framework emphasizes principles like impact, equity, access, and language to ensure inclusiveness and relevance (Brown, 2019).

To learn more about this topic, please read the chapters “Disrupting Postsecondary Pathways Using Micro-credentials,” “Using Micro-credentials to Assess Competency-Based Education,” and “Micro-credentials Designed for Today’s Higher Education Learners.”

Micro-credentials for Employment Innovations

In the workforce, micro-credentials are seen as a solution to rapid industry changes, allowing employees to demonstrate critical skills quickly. Micro-credentials personalize skill recognition by making visible skills not represented in standard higher education credentials, leading to better career alignment and employability. Due to their accessibility, affordability, and flexibility, micro-credentials help reduce inequities that historically and systematically excluded learners face. Employers value micro-credentials as they help narrow down the pool of candidates and verify specific skills needed to be successful for a position (Catalano & Doucet, 2013). Organizations are incorporating micro-credentials into their professional development programs to enhance productivity and offer employees opportunities for career-aligned skills development. Some of these organizations include Meta, IBM, AWS, Google, and Netflix, and they are using micro-credentials “to bridge talent gaps and create opportunities for learners who are oftentimes left behind by the high barriers to access that traditional education presents” (Agarwal, 2022).

To learn more about this topic, please read the chapters “How Micro-credentials are Meeting the Needs of the Workforce” and “The Power of Professional Development: How to Use Micro-credentials as an Organization.”

Micro-credentials and AI for Future Skills

As we look ahead, proponents of micro-credentials wonder about the role artificial intelligence (AI) will play in assessment. Assessing skills and competencies is crucial in micro-credentialing, but using AI for assessments, especially competency-based work, is currently not the best practice (Bubeck et al., 2023). While AI has made strides in natural language processing, it needs more specific contextual understanding and subject matter expertise for accurate evaluation. AI’s assessment capabilities are limited to pattern recognition and statistical analysis. Despite being useful, human assessors remain indispensable for fair and accurate evaluations.

Still, we remain optimistic about the potential of AI within competency-based micro-credentialing. As we learn more about how to leverage this technology, we are confident that we will discover applications for AI that enhance equitable access and attainment to high-quality micro-credentials without compromising quality and trust.

To learn more about this topic, please read the chapter “Leveraging AI to Support Competency-Based Assessments.”

This eBook focuses on various critical aspects essential for comprehending micro-credentials. It begins by presenting Digital Promise’s definition of micro-credentials, followed by describing the position and role of micro-credentials in the credential ecosystem. The exploration extends to the value micro-credentials offer to learners, higher education institutions, and the workforce. Lastly, the implications of AI to micro-credentials and national trends on micro-credentials are introduced. Overall, this eBook serves as a comprehensive resource accessible to all interested in understanding micro-credentials.