The Emerging Growth of Non-Accredited Providers

Sean Gallagher, Ed.D.Executive Director & Executive Professor of Educational Policy

Northeastern University

@HiEdStrat

The Learning House CONNECT Higher Education Summit

June 4, 2019

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1. Value of educational credentials in hiring

2. “Alternative” and online credentials

3. Bootcamps

4. Employers as educators and credentialers

“Requested Educational Credentials” by Employers Note: Both “Required” and “Preferred” – Totals Exceed 100%

Source: BurningGlass LaborInsight, Full Year 2018

Today’s Economy is Increasingly Demanding Bachelor’s Degrees & Above

19%14%

4

54%

38%

or vocational

training

“Requested Educational Credentials” by Employers Note: Both “Required” and “Preferred” – Totals Exceed 100%

Source: BurningGlass LaborInsight, 2019 YTD

Today’s Economy Continues to Demand Bachelor’s Degrees & Above

19%14%

5

54%

39%

or vocational

training

Over the Last 5 Years, the Value of Educational Credentials in Hiring

Has Increased or Stayed the Same for Most Employers

48%increase

29%stayed the

same

23%decline

Relative change in the value of educational credentials compared to 5 years ago

Source: Educational Credentials Come of Age, Northeastern University, December 2018 (n=750) 6

63% increased

preferences because

“the skills needed for

these jobs have

evolved”

The Escalation in Educational Qualifications

is Driven by the Changing Nature of Work

Source: Educational Credentials Come of Age, Northeastern University, December 2018 (n=750) 7

A Post-Baccalaureate World

64% of employers agree

“the need for

continuous

lifelong learning will

demand higher levels

of education and

more credentials”

Source: Educational Credentials Come of Age, Northeastern University, December 2018 (n=750) 8

Non-institutional Postsecondary Providers on the Rise

Source: Northeastern University, “The Innovation Imperative” Survey, 2014

69% “would consider”

hiring a candidate

with credential from

a non-institutional

provider

(2014)

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Online &

“Alternative”

Credentials

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11Source: U.S. Department of Education, “Adult Training and Education: Results from the National Household Education Surveys Program of 2016,” September 2017

27%any non-degree

credential

18%professional

license

6%certification

8%postsecondary

certificate

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Work-Based & “Alternative” Credentials Increasingly in Focus

Alternative Credential Attainment among U.S. Adults

*Percentages do not reconcile since categories can overlap

A Big Bang: the Emergence of “Alternative” Credentials

New Types of

“Certificate”

Microcredentials

Nanodegrees™*

Microdegrees™*

Micromasters™*

etc.

Digital Badges

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Employer Awareness and Understanding of

Microcredentials is Still Relatively Low

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15% of HR leaders have hired an individual with a microcredentialSource: Educational Credentials Come of Age, Northeastern University, December 2018 (n=750)

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Employer Acceptance of Online Credentials Has Trended Steadily Higher Over Time

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Prefer hypothetical candidate w/ online degree

Adams & DeFleur (2005)

2%

Online degrees viewed “favorably”

SHRM (2010)

34%

Online degree “similar quality” to traditionalNortheastern (2013)

40%

Online degree “similar quality” to traditionalNortheastern (2014)

48%

“Interested” in hiring CBE* program grad

Franklin & Lytle (2015)59%

61%Online credential

generally equal quality Northeastern (2018)

The Evolving Credentialing Landscape

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Hiring Leaders’ Perspective: What Attributes Signal “Quality?”

Importance of Credential Issuer Attributes in Signaling Quality

Source: Educational Credentials Come of Age, Northeastern University, December 2018 (n=750)

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New Quality Assurance Entities (QAEs) are DevelopingMany spawned by EQUIP; Program rather than institutional focus; outcomes-oriented

• CHEA “Quality Platform”• Standards; student outcomes; self-evaluation; external review• Expert team evaluation; periodic re-exam; transparency of results

• Designed for both accredited and non-institutional providers: market-driven, data-centric framework

• Organized around learning and assessment; completion rate; placement rate; earnings; stakeholder satisfaction

• Extension of College Credit Recommendation Service

• ANSI-CAP certificate (“credential”) accrediting program• ASTM E2659-09, “Standard Practice for Certificate Programs”

• Typically pilots - business models still emerging

• Regional Accreditors following closely but not yet active

• Continued point of Federal policy discussion (see: HEA/NegReg)

Bootcamps

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Employers’ Views on Bootcamp Grads: Positive and Evolving

Source: Indeed

2017 Indeed survey of 1,000 HR managers and technical recruiters

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Sustained Consumer Interest in Bootcamps

Source: Google Trends, May 30, 2019

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A Sizeable and Maturing Bootcamp MarketSource:

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700students to

date

5locations

+ virtual

26master’s

degrees that

articulate data

analytics

course credit

10%of graduates

stacking into a

master’s since

FY18

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The Bootcamp Market and Model: Key Themes

• Alignment with a unique job market need / “skills gap”

▪ Still an alternative pipeline

• Design principles

▪ Competency orientation, employer engagement

▪ Acceleration and modularization

▪ Clear ROI and innovative financing models

• Higher education core competencies

▪ Partnerships with enabling companies

▪ Growing linkage to academic credit and credentials

Employers as

Educators &

Credentialers

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“Skills-Based Hiring” & Talent Analytics May Change the Game

24%formal

effort

underway

39%exploring

or

considering

Source: Northeastern University national employer survey of hiring leaders, September 2018 – publication TBD (n=750)25

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Many Employers Emerging as Recognized Credential Issuers

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• “New collar jobs” initiative

• 1.7 million badges issued to date in 195 countries

• Higher engagement and performance for badge-holders within IBM

• Creation of a global talent supply chain

IBM’s Digital Badges

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IBM Digital Badge Advanced Standing

IBM Associate

Project

Manager

1 course

or 4 Quarter Hours

(PJM 5900)

IBM Advisory

Project

Manager

1 course

or 4 Quarter Hours

(PJM 5900)

IBM Senior

Project

Manager

2 courses

or 7 Quarter Hours

(PJM 5900 & PJM 6000)

IBM Executive

Project

Manager

3 courses

or 10 Quarter Hours (PJM 5900,

PJM 6000, & 1 PJM Elective)

• Masters of Science in Project Management

• Masters of Science in Leadership with a concentration in Project Management

• Masters of Science in Program and Project Portfolio Management

• Masters of Science in Corporate and Organizational Communication with a concentration in Project Management

Northeastern CPS Credentials

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Google’s IT Certificate

• Designed by Google, hosted on Coursera

• 60,000 learners have enrolled

• Hiring consortium of employer partners

• Strong outcomes to date

• Partnerships with community colleges

• Articulation with Northeastern

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Concluding Points

• Skills longevity and lifelong learning

• Faster pace of competition

• Blurring boundaries

• Industry validation andwork-based learning

• Partnerships and intermediaries

• Shifting policy and regulatory architecture transformative

• Focus on outcomes and transparency

• Blending and “omnichannel” delivery

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Sean Gallagher, Ed.D.sr.gallagher@northeastern.edu

617-373-5756@HiEdStrat

Center for the Future of Higher Education & Talent Strategy

http://www.northeastern.edu/cfhets

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Discussion