Credential Transparency: Judging Return on Investment for Higher Education and Workforce. Sketching a New Conservative Education Agenda

Companies are facing a persistent and growing skills gap, which has been exacerbated by the tight labor market. Employers use industry certifications, college degrees, boot camps, and badges to measure job skills, but until recently it was impossible to compare certifications or degree attainment. This paper describes credential transparency and its benefits--how it provides specific details on a credential program's length, cost, competencies, skills provided, level of mastery targeted, earnings potential, and employment outcomes, and allows individuals to compare credentials to see which is more likely to result in a preferred career or higher wages. The federal government has taken steps to promote the use of credential transparency and currently 26 states are engaged in important work around its use, allowing them to measure return on investment, align credential offerings with economic needs, and support the creation of digital transcripts and learning and employment records.