Enter micro-credentials. While higher education and human resources experts all have slightly different interpretations of what they are, many agree that the concept has emerged in response to the skills gap caused by new technologies. Essentially, micro-credentials are bite-sized chunks of education, whether an online course, bootcamp certificate or apprenticeship from a traditional university, specialty provider or online learning platform like Coursera, EdX or Udacity.

Many individuals already use micro-credentials to broaden their skillsets. Still, some have suggested that in the future, a prospective employee might be able to ‘stack’ these credentials together in place of a university degree. The idea is that it would be more accessible and provide a more affordable – perhaps more targeted – path into employment.

Digital transformation and the growing skills gap

Simon Nelson, CEO of FutureLearn, a UK-based learning platform that partners with universities to provide massive open online courses (MOOCs), believes that micro-credentials arose out of three global “macro trends”. One is the rapidly growing demand for high-quality tertiary education in developing societies, while the second is the digital transformation that has taken place in many industries. This change is “exacerbating the traditional skills gap”, says Nelson, and universities aren’t providing the training for the “range of new skills that are in high demand”. The third factor is the digitisation of the higher education sector, he adds. It’s no longer enough to obtain a degree; having a career now requires people to upskill continuously, yet “people can’t take the time out of their lives to attend physical establishments”.

Sean Gallagher, the founder and executive director of Northeastern University’s Center for the Future of Higher Education and Talent Strategy, says that global economic expansion in the technology fields has “really highlighted the fact that there is a gap between the supply of people in the workforce coming out of university with skills and credentials to fill the gaps employers are looking for”. This isn’t unique to developed markets like the US and the UK; such gaps can be seen in the Malaysian education system, for example, as well as Latin American economies like Colombia.