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Bridging the Skills Gap: Insights from the Non-Degree Credential Conversation

Missed the 2025 SxSwEdu conference? Catch the recording from the session "Closing the Outcomes Gap for Non-Degree Credentials" where leaders from education and workforce development discussed the role of non-degree credentials in today’s job market.

At the recent 2025 SxSwEdu conference, leaders from education, workforce development, and data analysis came together to discuss a crucial topic: the role of non-degree credentials in today’s evolving job market. Stacy Caldwell, CEO of Cred Lens, Steve Lee, CEO of SkillUp Coalition, and David Troutman, Deputy Commissioner for Higher Education in Texas, shared their perspectives on the challenges and opportunities surrounding these credentials.

Understanding the Non-Degree Credential Landscape

The discussion kicked off with an overview of the current landscape. Non-degree credentials, including workforce certificates, certifications, licenses, badges, and micro-credentials, are increasingly important for individuals seeking employment. With over 50 million Americans holding such credentials and the market growing rapidly, understanding their value and outcomes is more critical than ever.

However, gathering data on these credentials is a significant hurdle. Unlike traditional degrees, non-degree credentials come from a diverse range of issuers, making it challenging to track and assess their effectiveness. This lack of data creates uncertainty for both learners and employers.

SkillUp Coalition's Perspective: Time, Money, and Quality Matter

Steve Lee, CEO of SkillUp Coalition, brought a vital perspective to the conversation, emphasizing what truly matters to learners: time, money, and quality. “Worker learners don't give a darn about these fancy words like credentials,” Lee stated. “They only care about three things: time, money, and quality.” For SkillUp, a career navigation platform targeting individuals without a college degree, the challenge lies in ensuring the quality of the programs they recommend.

Lee highlighted the crucial role of quality data in helping learners make informed decisions. “How does a worker learner know that something is high quality?” he asked. “That’s a missing facet.” He praised the work of Cred Lens in building a national data trust to address this gap, noting that it’s essential for the 70 million “STARs” (Skilled Through Alternative Routes) across the country.

From a talent developer’s perspective, the same principles apply. Employers also care about time, money, and quality. They need to know that the training programs they invest in are effective and lead to tangible outcomes. Without reliable data, it’s challenging to assess program quality and make informed decisions.

The Importance of Validated Data: Texas Leads the Way

David Troutman shared Texas’ experience in creating a credential value methodology tied to outcomes data. He emphasized the importance of following students longitudinally and understanding the opportunity cost of education. By linking data across education and workforce agencies, Texas is working to provide greater transparency and ensure that credentials lead to real value.

Cred Lens: Building a National Data Trust

Stacy Caldwell introduced Cred Lens’ mission to build a national data trust for non-degree credentials. By gathering verified data from credential issuers and matching it to outcomes data, Creed Lens aims to provide clear and transparent insights into the effectiveness of these programs. This data will empower credential issuers to improve their offerings, inform learners, and support state-level initiatives.

Addressing the Challenges and Moving Forward

The panelists also touched on potential pitfalls, such as the risk of non-degree credentials becoming the “next MOOC” without ensuring quality. The panelists stressed the need for intentionality, alignment with workforce needs, and robust assessment to prevent this. They also discussed the role of employers in recognizing and valuing non-degree credentials, emphasizing the importance of validating and verifying skills.

Incentives for sharing data and the impact of economic cycles were also discussed. The panelists agreed that transparent data is crucial for building trust and ensuring the value of non-degree credentials, regardless of economic conditions.

SkillUp Coalition: Empowering Learners

SkillUp Coalition is committed to empowering learners by providing access to high-quality training and career navigation resources. As Steve Lee pointed out, SkillUp acts as a digital aggregator, connecting individuals to programs that can help them build skills and advance their careers. The insights shared in this webinar underscore the importance of our mission and the need for reliable data to guide learners toward successful outcomes.

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