Higher Ed Chats
May 28th, 2024
18 minutes
Can Microcredentials Save Higher Education
The conversation opens with a straightforward provocation: higher education used to drive the economy, but it doesn't anymore. "It's breaking away from that all or nothing model and acknowledging the fact that the university isn't driving the economy anymore," Fong tells host Scott Miller. "It's the economy that's pulling higher education with it in terms of AI and automation." That's the frame for everything that follows.
One of Fong's most striking arguments is about market size. The traditional addressable market for US higher education, roughly 15.1 million 18-year-olds, is shrinking due to the demographic cliff. But there are 200 million+ adults in the US with or without degrees, including 40.4 million people who started college and never finished. Institutions chasing a contracting pool of 18-year-olds while ignoring that 200-million-person opportunity aren't facing a microcredential problem. They're facing a strategy problem.
The episode also gets into employer relationships, and this is where it gets uncomfortable for a lot of institutions. Fong's team at UPCEA surveyed 537 employers and found that university-employer "partnerships" often aren't what they appear to be. "You ask any college or university, do you work with employers? And they say, yes, they do. But when you drill down deeper, are they really working with them on their terms?" Advisory boards stacked with alumni and donors are a common substitute for genuine curriculum co-creation, and employers notice.
There's a third thread worth following: the learner-centered web problem. UPCEA scored 100 member institution websites and came up with an average of 56.8 out of 100, with most sites built around the institution's structure rather than how learners actually search and decide. Reaching non-traditional students with microcredential offerings requires infrastructure (marketing, inquiry pathways, digital UX) that most universities haven't built yet.
Fong also addresses the recognition gap honestly. Applicant tracking systems don't consistently read digital badges or certificates today. But millennial managers are more receptive to alternative credentials than previous generations, and that shift in workforce composition is already underway.
Hear the full conversation with Jim Fong on Higher Ed Chats Episode 9 to get his framework for repositioning an institution's credential portfolio, the equity case for certificate pathways (Fall 2023 NSC data shows enrollment growth is being driven by certificate entrants and community colleges), and why universities have a credibility advantage over Coursera and boot camps that most aren't using.
Who’s in the episode?
Jim Fong
Scott Miller is the host of Keystone Higher Ed Chats and the Executive Director of Keystone's international division, bringing over 11 years of EdTech experience to conversations about global education.
After graduating from DePauw University, living and working in different cultures showed him that stepping outside your comfort zone doesn't just broaden your horizons; it reshapes them entirely. That belief in the transformative power of international experiences brought Scott to Keystone in 2010, where he's spent over a decade (and counting) helping higher education institutions reach students worldwide.
On Keystone Higher Ed Chats, Scott speaks with thought-leaders in the industry about what he's most passionate about: how education changes lives, how cultural experiences broaden perspectives at any age, and how Keystone's mission—connecting students with their ideal higher education institution—makes those life-changing moments possible.
Timestamps & Takeaways
Timestamps
00:00
Introduction: Scott Miller and Jim Fong set the stage
03:19
Defining microcredentials and the 120-credit problem
03:36
Why the economy is now pulling higher education, not the other way around
05:14
Demographic cliff, pandemic acceleration, and automation pressures
05:23
The structural misalignment: why degrees can't keep pace with economic change
06:54
Stackable credentials: letting students work while earning toward a degree
08:16
UPCEA's 537-employer research study and the nomenclature problem
10:42
Are university–employer partnerships real or ceremonial?
14:18
ATS systems, digital badge recognition, and the SHRM research
15:08
Millennial managers and the generational shift in credential acceptance
16:44
UPCEA/Search Influence website audit: 56.8 out of 100
19:49
The market-expansion thesis: 200 million adults vs. 15 million 18-year-olds
22:17
Fall 2023 NSC data: certificates, community colleges, and equity
23:44
Closing thoughts and where to find Jim Fong's research
Takeaways
Reframe your addressable market from 15 million to 200 million learners
Jim Fong's core argument is blunt: US institutions are competing over roughly 15.1 million traditional-age students, and that pool is shrinking. Shift the lens to 200 million+ adults with or without degrees (or the 40.4 million "some college, no degree" population), and the enrollment deficit largely disappears. Institutions serious about growth need to operationalize this shift by building program portfolios, marketing, and admissions processes that actually serve adult learners.
Audit whether your employer partnerships are genuine or ceremonial
UPCEA surveyed 537 employers and found consistent confusion around credential terminology. But the deeper problem is that most university "employer partnerships" don't hold up on inspection. As Fong put it, when you drill down, the relationships usually trace back to advisory boards stacked with alumni and donors rather than practitioners co-developing curriculum. Ask your team: are employers shaping what you teach, or signing their names to a board roster? The honest answer determines how much credibility your credential programs carry.
Build stackable pathways so learners don't face an all-or-nothing choice
The 120-credit bachelor's degree isn't dead, but it's losing its monopoly on credentialing. Fong's recommendation is to unbundle it: stack certificates and microcredentials that carry credit value toward a full degree. This lets working adults build skills incrementally, re-engage with education without abandoning employment, and accumulate a credential portfolio that's readable to both employers and transfer institutions.
Score your own website against learner needs, not institutional priorities
UPCEA and Search Influence scored 100 member institution websites at an average of 56.8 out of 100, finding that most sites are built around the institution's structure rather than the prospective learner's questions. Enrollment teams should run a learner-centered audit: does your program page answer what a 35-year-old career-changer actually wants to know (cost, time commitment, employment outcomes) before asking them to request information?
Plan for ATS recognition as a transitional problem, not a permanent barrier
Applicant tracking systems don't consistently read digital badges or non-degree certificates today, and that's a real friction point. But Fong's take is that this is time-bound. Millennial managers are already more open to credentials earned online, and as that cohort moves into hiring authority, institutional skepticism toward microcredentials will soften. Don't let a transitional infrastructure gap become the reason your institution avoids building credential programs.
Use your quality brand to compete where boot camps and platforms can't
Coursera, LinkedIn Learning, and coding boot camps can produce certificates quickly. What they can't easily replicate is the regional accreditation, quality assurance infrastructure, and institutional credibility that universities carry. Fong's argument is that this brand advantage is transferable to microcredentials, but only if institutions actually build the programs. Sitting on the sideline doesn't protect that advantage; it just gives ground to platforms with better learner-centered UX.
Certificate pathways are an equity strategy, not just an enrollment strategy
Fall 2023 National Student Clearinghouse data showed that undergraduate enrollment growth was driven by community college entrants and certificate holders. Research also shows that people of color and low-income learners engage with higher education more through certificate pathways than through traditional degree entry. If your institution hasn't built accessible, stackable certificate programs, it's not just leaving enrollment on the table. It's underserving the populations most likely to benefit from what you offer.
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