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Importance of Industry-Developed Credentials Outcome Data

The Challenge: The Growing Demand for Industry-Developed Credentials Outcome Data

With recent changes in federal and state policies to support workforce development, demand for industry-developed credentials (i.e., certifications and certificates outside of academia) outcomes data is increasing. Many states have developed processes to approve industry-developed credentials using criteria such as whether the credential is aligned to high-wage or in-demand jobs, can be counted toward the attainment of a postsecondary certificate or degree, or can help an individual obtain employment or advance in the workforce. This data helps states determine which industry-developed credentials should be eligible for state funding or inclusion in education and workforce programs.

As such, industry associations and certification bodies need to evolve their data collection and sharing policies, as federal and state agencies, educational institutions, employers, and policymakers all seek evidence of outcomes, such as:

  • Wages and earnings
  • Employment
  • Career mobility
  • Cost of earning the credential compared to future job earnings

Data about who earns an industry-developed credential also helps policymakers answer questions, such as:

  • What is the alignment between the industry-developed credential and the workforce needs of a region or state?
  • How can state funding support training that helps individuals earn relevant industry-developed credentials?
  • What is the workforce demand for specific industry-developed credentials?
  • Which industry-developed credentials are valued by employers?
  • Which industry-developed credentials can lead to postsecondary certificates or degrees?

These insights can help credential issuers better understand and communicate the value of their credentials while supporting evidence-based decision-making across the workforce ecosystem.

A Solution: Participate in Data-Linking Initiatives and Improve Credential Information to Help Stakeholders Better Understand Impacts of Industry-Developed Credentials

Although there are efforts to gather data about the impacts of industry-developed credentials, there is not yet a complete, centralized source of data on their outcomes or impact. Administrative data-linking initiatives provide an opportunity to better measure the outcomes associated with industry-developed credentials by connecting credential information with education and workforce data sources.

As the administrative data-linking initiatives continue to evolve, policymakers may use AI tools as one approach to identify and evaluate credentials. Therefore, it is critical that industry-developed credential issuers improve the visibility and usability of their credentials by providing clear, easily-accessible, and machine-readable information about their credentials, including:

  • Job title alignment
  • Skills and competencies
  • Relevant Standard Occupational Classification (SOC) codes
  • Career pathways
  • Quality frameworks that were followed to develop the credential
  • Outcomes data
  • Employer recognition and value

By providing this data, credential issuers can help provide information that policymakers can use to make informed decisions about the credential’s relevance and value to employment opportunities and employer’s skill needs in their regions and states.

Our Role: Advancing the Collection and Use of Outcomes Data

Workcred, a division of ANSI, continues to be engaged in efforts to better understand industry-developed credential outcomes, and serves as a trusted partner helping states, credentialing bodies, educational institutions, employers, and other stakeholders better understand credential value. By bringing together expertise in credentials, workforce development, education, and public policy, the Workcred division helps stakeholders navigate a complex and rapidly evolving credentialing landscape and identify opportunities to support learners and workers.

Workcred advocates for industry credential issuers’ participation in initiatives focused on credential outcomes and to highlight the value that outcomes data can provide to credential issuers, policymakers, employers, and learners.

What We Offer

For Industry-Developed Credential Providers:

  • Understand the value of outcomes data
  • Explore participation in data-linking and outcomes initiatives
  • Communicate credential value to policymakers, employers, and learners
  • Navigate emerging federal and state policy developments

For States and Policymakers:

  • Provide expertise on industry-developed credentials
  • Support efforts to understand credential quality, value, and occupational alignment
  • Inform credential evaluation and workforce policy discussions
  • Help stakeholders better understand the industry-developed credential landscape

For Employers and Workforce Partners:

  • Facilitate conversations about workforce needs and credential value
  • Improve understanding of how industry-developed credentials support skills validation and career advancement
  • Promote stronger connections between workforce demand and credentialing programs

Learn More About Outcomes Data

Staff Contacts

Have a question or need help?

Dr. Talisa Jackson-Nguyen

Senior Manager

Phone:
202.331.3640

Email:
[email protected]