Unlocking Career Potential: How Micro-Credentials Are Revolutionising Higher Education and Lifelong Learning

Abstract

Micro-credentials (MCs) emerged as a powerful tool to advance employability and lifelong learning while opening opportunities for diverse career directions for individuals. They are generally short programmes and have a specific focus on developing complementary skills in a particular area of interest for the learner. This paper presents a critical narrative review exploring the transformative potential of micro-credentials, which provide targeted, flexible, and accessible pathways for skill development and career advancement. It examines how micro-credentials bridge the gap between traditional education and modern industry demands and recognises the importance of collaborative efforts between higher education and industry in identifying and sometimes even co-designing relevant micro-credential programmes. Additionally, the paper analyses the impact of micro-credential programmes on non-traditional learners and discusses the mechanisms to ensure the quality and credibility of such programmes. The findings highlight four key thematic areas, revealing that micro-credentials serve as flexible, inclusive tools that enhance employability, support institutional innovation, and promote lifelong learning.

1. Introduction

Higher education served as a foundation for knowledge dissemination and professional development for individuals over centuries. Historically, higher education evolved with a religious rationale, focusing on scholarly activities to prepare clergy members (Oza & Japee, 2020). Access was limited to certain segments of the community, as literacy was not widespread. However, this landscape underwent significant transformation alongside the development of human civilisation as the demand for experts in diverse fields emerged. As a result, many centres for higher education arose in various regions across the globe to produce skilled scholars and qualified professionals to meet national and international needs. These institutions also began to prioritise fostering a research-oriented culture and enhancing quality of life.

Traditionally, higher education relied on lengthy academic programmes, requiring students to spend years excelling in them. However, meeting these demands has become increasingly challenging due to the dynamic nature of the modern workforce. The workforce now requires continuous learning and upskilling due to the rapid advancement of technology and the constant redefinition of workforce-required skills.

In response, the institutions recognised the growing need to develop specific skills and prioritise professional growth and renewal (Hall-Ellis, 2016; McGreal & Olcott, 2022). This recognition prompted them to explore alternative pathways, such as micro-credentials (MCs), to fulfil the educational and professional qualifications demanded by the workforce. The need for such pathways accelerated during the recent pandemic, which provided momentum for the rapid implementation of micro-credentials worldwide (Wheelahan & Moodie, 2021; Coetzee, 2024).

The definition of micro-credentials varies, and there is no universal agreement on the term (Brown et al., 2022). According to Oliver (2019), micro-credentials are certifications of assessed learning that fall short of formal qualifications. In contrast, the European Commission (2020) defines them as evidence of learning outcomes acquired through short-term educational experiences. Galindo et al. (2024) describe micro-credentials as competency-based, research-driven, personalised, on-demand, and shareable, utilising badging technology to issue digital certifications that validate proficiency in specific skills or skill sets. The OECD (2024) defines micro-credentials as structured learning activities that result in a credential recognising a specific skill, validated through assessment. Although MCs’ definitions vary significantly depending on the user and context (Brown et al., 2022), most agree that they represent an organised learning activity associated with a credential (OECD, 2021).

Even though MCs are not a brand new idea (Bideau & Kearns, 2022; Olcott, 2022), several variables contributed to their continued popularity within higher education. As Olcott (2022) suggests, competition and economic factors are at the core of this micro-credential reprioritisation. Similarly, this expansion has been driven by the growing demand for ongoing skill development through reskilling and upskilling (Kato et al., 2020). One of the most influential factors in the proliferation of MCs is rapid digitalisation, which makes it feasible to lower unit costs of in-person education and training (Woods & Woods, 2023; Wheelahan & Moodie, 2021) while enhancing accessibility and enrolment (Woods & Woods, 2023). In addition, micro-credentials significantly reduced students’ debt burdens and time investment (Coetzee, 2024). On the one hand, they provide a flexible way to validate adult learning, bridging the gap between formal education and training (Bideau & Kearns, 2022). By offering certifications at various levels (diploma, bachelor’s, or higher), micro-credentials cater to both personal and employer needs (Hall-Ellis, 2016), making education more accessible to a diverse range of learners. Moreover, MCs emerged as powerful tools for enhancing employability and fostering lifelong learning.

Educational practitioners believe that the credentials revolution evolved rapidly and will continue introduce numerous new competency-based credentials that fit into the continuum of degrees and certificates (Olcott, 2022). MCs have many unique advantages over standard degrees, including differences in cost, duration, and structure. Typically, they are shorter in duration or workload (Walsh, 2021), more focused in terms of skills, competencies, or subject matter covered through a series of lessons or modules (Ralston, 2021), and more adaptable in terms of curriculum and delivery than a conventional degree programme (OECD, 2024). These factors increased the appeal of micro-credentials for individuals, aligning with the public mission of universities to provide high-quality, learner-focused, and innovative education and training (Futures et al., 2020).

To better understand the role of micro-credentials in this evolving context, this study conducts a critical narrative literature review, synthesising current research, policy documents, and conceptual perspectives from 2015 to 2024. Within this background, the article delves into the evolution and rise of micro-credentials as a response to these evolving needs within the realm of higher education. Further, it examines the factors driving this shift and how micro-credentials emerged as a valuable complement to traditional degrees. MCs offer flexible and accessible programmes for skill acquisition, empowering individuals to navigate the dynamic job market and institutions to remain relevant in this evolving educational ecosystem. Guaranteeing the quality and credibility of such programmes will also be examined in this article.

2. Background: The Rise of Micro-Credentials

Micro-credentials, which provide flexible, skill-focused learning opportunities, have become a breakthrough in higher education, rooted in the open education resources (OER) concept launched by UNESCO in 2002 (Woods & Woods, 2023). Internationally, the concept of micro-credentials emerged from the need to verify up-to-date knowledge in fields such as teacher education and IT (Devedzic & Jovanovic, 2015). In literature and general usage, the term “micro-credential” is defined as an umbrella term covering a variety of competencies, including “nano-degrees”, “micro-master competencies”, “certificates”, “licenses”, and “approvals” (UNESCO, 2018), “alternative credentials/competencies” (Kušić et al., 2022), “badges: digital badges, open badges, or, virtual badges” (Varadarajan et al., 2023). However, these short, focused programmes offer flexible, accessible learning opportunities to equip individuals with specific, in-demand skills for the modern workforce (OECD, 2021; Ralston, 2021).

According to Kušić et al. (2022), the concept of micro-credentials is fundamentally an improvement on 21st-century skills and employability, as opposed to employment, which is based on the idea of lifelong learning and personal learning paths chosen by the individual, along with the implications of that choice. Micro-credentials are a compact and flexible alternative to traditional diplomas or certificates. They validate specific skills or competencies through certifications, nanodegrees, micro-masters, digital badges, and professional memberships (Milligan & Kennedy, 2017). Upon the completion of the programme, learners are awarded digital badges. Therefore, in the realm of higher education, micro-credentials offer a flexible and accessible way for learners to acquire new knowledge and competencies, often without the commitment of a full degree programme. Furthermore, micro-credentialing has been recognised as an effective approach for defining and validating the competencies that postsecondary institutions equip students with (Gauthier, 2020).

Several factors, including the increasing demand for specialised skills, the evolving nature of work, and the need for lifelong learning drive, caused this shift from traditional learning to micro-credentials. The rapid evolution of the labour market and the need to align formal education and training with industry demands have been significant drivers in the advancement of micro-credentials (Bideau & Kearns, 2022). Among these factors, the most prominent is the effort to establish a sustained recovery from the COVID-19 crisis in both social and economic contexts. To support innovations in higher education, the development of micro-credentials—a rapid way to reskill and/or upskill—was considerably accelerated (Tamoliune et al., 2023).

As the traditional university degree faces increasing scrutiny for its high cost (Horton, 2020) and limited relevance to the modern job market (Brown et al., 2022), micro-credentials are emerging as a viable alternative. Young people and adults increasingly seek alternative ways of achieving success (Horton, 2020). The European approach to micro-credentials primarily focusses on two main groups: university students and adult learners. The goal is to provide more adaptable and modular learning options, as well as inclusive learning formats (Kušić et al., 2022). Moreover, MCs offer a targeted approach to skill development that addresses the gap between academic learning and real-world needs. This gap was further highlighted and exacerbated by the pandemic, leading to increased demand for micro-credentials (Reedy et al., 2021).

Apart from that, universities are facing declining student enrolment, especially after the COVID-19 pandemic. As a result, universities have been driven to expand their reach to non-traditional student populations and international learners in remote regions through micro-credentials (McGreal & Olcott, 2022). Moreover, the growing popularity of micro-credentials, coupled with the widespread availability of digital learning resources such as e-books, online tutorials, and video courses, along with the rapid expansion of online learning platforms, profoundly reshaped global learning opportunities (Gauthier, 2020; Orman et al., 2023).

Another reason for the popularity of learning in micro-credentials is their rapid development and flexible structure, which aims to meet a broader range of learners’ needs. Additionally, offering learners greater flexibility in selecting when, where, and how they engage with instruction, while maintaining affordability, expands access to a diverse range of social groups across various age demographics (European Commission, 2020). Yilik (2021) found that participants often mentioned accessibility as a key advantage of remote MC courses. They believed that remote access made these programmes more convenient for students working part-time or attending university, allowing them to acquire necessary skills while balancing their other commitments. These participants recognised the future value of these skills and their potential to enhance their career prospects upon graduation.

While micro-credentials focus on addressing specific skill gaps in the job market, such as digital literacy and data analytics, higher education institutions and private organisations utilise credential programmes to elevate their institutional profile and attract a diverse student population (Pawilen et al., 2022). For instance, numerous widely recognised certifications are directly tied to specific manufacturers’ software, hardware, or operating systems. Major technology companies, such as Microsoft and Cisco, offer certification programmes to validate individuals’ proficiency in their products. The MCSA certification, for example, attests to expertise in Windows operating systems, while the CCNA certification recognises proficiency in networking technologies.

Instead of focusing on expanding brand names, micro-credentials provide significant advantages to higher education institutions by being cost-effective. They help reduce expenses related to materials production, facility usage, and employee training, while also saving valuable time (Ghasia et al., 2019; OECD, 2021). Additionally, by fostering stronger partnerships with industry, higher education institutions can introduce micro-credentials as a lucrative new business model (Brown et al., 2022) which generates additional revenue. Although a lack of consensus and knowledge regarding micro-credentials poses a significant challenge to their coherent implementation across higher education systems (OECD, 2021), their adoption is steadily increasing. For example, under the Every Student Succeeds Act, numerous U.S. states incorporated micro-credentials into their teacher professional development initiatives (Hunt et al., 2020). Additionally, Australasian universities have seen a 20% increase in institutions with micro-credentialing policies since 2019 (Selvaratnam & Sankey, 2021). Recognising these benefits, countries such as the Philippines also incorporated micro-credentials into their education systems (Pawilen et al., 2022).

Micro-credential courses attract a diverse range of participants, including university students, educators, and lifelong learners, all seeking to further their education and enhance their skills (Yilik, 2021; Hunt et al., 2020). Students value micro-credentials as flexible, student-centred learning opportunities that can develop 21st-century skills and enhance employability (El Mawas & Muntean, 2018; Varadarajan et al., 2023). Additionally, they emphasise the importance of openness and transparency in participatory learning practices, fostering collaborative environments and peer-learning communities (Varadarajan et al., 2023). University students in particular see micro-credentials as a way to improve their job prospects after graduation (Yilik, 2021) or to advance their careers (Fisher & Leder, 2022). This demonstrates that micro-credentials challenge the traditional, long-term model of degree-based education creating opportunities for more flexible and engaging learning approaches. Additionally, micro-credentials enable small-scale experimentation with emerging trends in instructional approaches, technologies, and strategies, as well as innovations in operational practices and programme offerings (OECD, 2021). By offering a valuable tool for pedagogical innovation (Devedzic & Jovanovic, 2015) and experimentation, micro-credentials provide higher education institutions with a strategic opportunity to adapt to the changing needs of learners and employers (McGreal & Olcott, 2022).

3. Materials and Methods

Our critical review relies exclusively on online databases of published work related to micro-credentials. The study is structured around specific research questions formulated at the outset. To ensure a robust selection of high-quality sources, our search extended to peer-reviewed journal articles, conference papers, full-text reports, and authored blog posts.

Regarding the publication timeframe, we considered materials from 2015 onward, with a specific focus on micro-credential-related resources published between 2017 and 2024. We examined text titles, abstracts, and full texts from reputable scholarly and multidisciplinary databases, including Google Scholar, JSTOR, Taylor & Francis Online, Elsevier, and official institutional websites, to identify relevant sources. Both empirical and theoretical studies were incorporated into the selection process.

A diverse set of key terms and phrases guided the review, including “Micro-credentials”, “Micro-credentials and lifelong learning”, “Micro-credentials and employability”, “Micro-credentials and assessments”, “Micro-credentials and higher education”, “Micro-credentials and quality assurance”, and “Micro-credential frameworks.” Additionally, reference sections of selected sources were analysed to identify further relevant materials.

The search initially yielded 426 articles. A detailed examination of the titles, abstracts, content, and duplicate entries led to the exclusion of 374 articles that did not meet the inclusion criteria. Finally, 68 research articles and sources were selected for analysis. The chosen resources were systematically examined and categorised into four sections, aligning with the research questions, to derive meaningful conclusions. A summary of this can be found in Table 1.

What key factors are driving the increasing adoption of micro-credentials in higher education and lifelong learning?

How can institutions effectively ensure the quality, credibility, and widespread recognition of micro-credentials in the evolving job market?

What challenges and opportunities arise in implementing micro-credential programmes, and what strategies can be employed to address these issues?

What are the potential impacts of micro-credentials on individual learners, educational institutions, and broader societal dynamics?

4. Results

This section organised into subheadings for clarity. It presents a clear and concise summary of the findings, offers an in-depth interpretation of the results, and outlines the key conclusions derived from the analysis.

4.1. Unlocking Employability Skills

Through the use of digital technologies, micro-credentials provide a flexible, efficient, and affordable method for gaining new skills and knowledge. This alternative approach to traditional education and training gained significant traction, especially among younger generations. As Hickman (2015) noted, millennials often prefer short-format, focused credentials over full degrees to meet their professional development needs. The short duration of these programmes accommodates both the business and personal schedules of the learners, making the training more manageable to complete. Hence, the learners can keep up with the rapid pace of change in skill needs (OECD, 2024). Micro-credentials emerged as a valuable complement to formal degrees, particularly in response to the growing demand for advanced cognitive skills in the workplace, thus enhancing employability (Bell, 2017; Bughin et al., 2018; Oliver, 2019). However, micro-credentials are typically tailored to meet specific industry needs, often emphasising practical skills over foundational academic knowledge (Oxley & van Rooyen, 2021). In line with this, the American Association of Community Colleges (2016) highlights that micro-credentials allow students to demonstrate specific, industry-recognised competencies. When combined with a traditional degree, these skills make learners more attractive to employers and better equipped to succeed in the workplace.

Additionally, micro-credentials provide a more inclusive and accessible means for learners to gain recognition for their skills and competencies (Galindo et al., 2024). By recognising abilities that may not be reflected through their traditional degree qualifications, micro-credentials can help individuals better align their careers with their skills and experience, ultimately boosting employability. Supporting this further, Bruguera et al. (2024) state that micro-credentials can be effective tools for upgrading both hard and soft skills. Stakeholders also indicated that employers value industry-related practical skills and experience more than traditional academic qualifications (Gauthier, 2020). Likewise, the findings of Tomlinson and Anderson (2020) and Thi Ngoc Ha et al. (2024) converge on the idea that micro-credentials significantly enhance employability. They emphasise the role of micro-credentials in equipping less experienced graduates with the necessary skills and providing a pathway for reskilling and upskilling disadvantaged individuals in the labour market. Yilik (2021) found that micro-credentials significantly improve employability, with graduates holding these qualifications having higher chances of securing jobs. Zou et al. (2024) further support this, demonstrating that micro-credential learning enhances students’ perceived employability. By participating in these programmes, students can explore diverse career options, gain valuable insights into the job market and education system, acquire relevant qualifications, and develop comprehensive plans. These findings underscore the strong link between micro-credentials and perceived employability, influenced by social, academic, and cultural factors.

Micro-credentials can serve as a valuable complement to university degrees in the job market. As noted by Maina et al. (2022), micro-credentials play a crucial role in bridging the gap between higher education and the workforce, especially in developing countries. By offering a digital record of students’ achievements, micro-credentials enable job seekers to effectively showcase their practical skills and competencies to potential employers. This provides employers with a clearer picture of a candidate’s suitability for a specific role (Claxton, 2015). Employers view micro-credentials positively, as they can streamline the hiring process by providing clear evidence of a candidate’s skills. Additionally, micro-credentials signal a commitment to ongoing professional development (Bruguera et al., 2024). These features of micro-credentials can enhance employability and employee retention. Governments acknowledged the growing necessity for adult learners to remain competitive in the workforce by continuously upskilling and reskilling. In response, they implemented regulations and developed initiatives to expand access to relevant learning opportunities (Selvaratnam & Sankey, 2021).

As a result, employers overwhelmingly support the implementation of micro-credentials to enable job applicants to demonstrate their skills and facilitate a more efficient hiring process. Thi Ngoc Ha et al. (2024) point out that micro-credentials benefit employers directly by supporting their service and revenue. Subsequently, this enhances the employability of individuals and enables employers to identify the most qualified candidates. The financial stability students receive as a reward for completing micro-credentials is another motivating factor. Changing careers (Thi Ngoc Ha et al., 2024) to secure better income is often an expectation of learners after obtaining mirco-credentials. In terms of stability and financial gains, those specially with technical degrees and additional certifications (micro-credentials) frequently earn more than individuals with just a degree (Gallagher, 2016). Another reason for the prominence of micro-credentials in the technology sector is the rapidly changing skill landscape and the emergence of skill gaps in the workforce (OECD, 2024). As a result, micro-credentials are widely utilised in technical disciplines and professional development programmes to enhance specialised skills and workforce readiness (Fisher & Leder, 2022). Recognising the benefits of micro-credentials, employers are urging academic institutions to implement these programs. This shift calls for a move away from traditional academic models toward a more skills- and competency-driven approach that effectively addresses the skills gap (Brown et al., 2022; Santally et al., 2024).

Overall, micro-credentials play a crucial role in boosting employability by offering individuals a concrete means of showcasing specific skills and competencies to potential employers. Micro-credentials offer flexible, targeted learning opportunities that empower learners to upskill and reskill, boosting their competitiveness in the job market. Moreover, they help bridge the gap between academia and industry, ensuring that graduates possess the practical skills required to thrive in the workplace. By recognising and validating non-traditional learning experiences, micro-credentials empower learners to showcase their abilities, advance in their professional lives, and continue their education.

4.2. Lifelong Learning

Lifelong learning is a concept that dates back centuries ago, but it has been emphasised as a necessity of modern society for adapting to change and building a better future. Traditional education models, where individuals acquire a degree and then enter the workforce, are becoming increasingly outdated. Hence, lifelong learning has become a necessity and gained popularity among the public (Pawilen et al., 2022). With the rapid pace of technological advancement and the emergence of new industries, there is a continuous demand for individuals to update their skills and knowledge. A robust culture of lifelong learning is crucial to ensure that individuals acquire the knowledge, skills, and competencies necessary to succeed in society, thrive in the job market, and excel in their personal lives.

Micro-credentials have become essential tools for promoting lifelong learning, enabling individuals to upskill and reskill to remain competitive in the rapidly changing job market (Bideau & Kearns, 2022). Short-term, flexible learning opportunities that lead to micro-credentials offer an expanded range of skills development and learning pathways, embedding a culture of lifelong learning within higher education. In recent years, the demand for continuous learning has grown significantly (Orman et al., 2023). Micro-credentials are among the most effective provisions for lifelong learning (Desmarchelier & Cary, 2022) and continuous professional development as the credential ecosystem continues to evolve to meet the latest needs of society (Galindo et al., 2024).

The European approach to micro-credentials emphasises lifelong learning and employability. The Common Micro-Credential Framework (CMF), introduced by the European MOOC Consortium (EMC) in 2019, supports this by providing shorter, high-quality courses that can either contribute to earning traditional degrees or help individuals enhance their professional skills (Bideau & Kearns, 2022; Šarčević, 2024). A Canadian Employers’ National Survey 2021 revealed that micro-credentials could be a valuable tool for training, employee retention, and broader lifelong learning initiatives (Brown et al., 2022). Participants in Hidalgo and Jiménez’s (2023) study highlighted a significant demand for micro-credentials, particularly in the context of lifelong learning and ongoing professional development. Nonetheless, micro-credentials remain a novel idea in many countries and are still in the process of development. By validating newly acquired skills and keeping learners up to date with industry standards, micro-credentials contribute to employee development and retention (Galindo et al., 2024). This confirms that micro-credentials promote lifelong learning by providing a structured way to acquire new skills and knowledge throughout one’s career. They enable individuals to adapt to changing industries and technologies, ultimately enhancing their employability and career prospects.

Micro-credentials are learner-centred tools that can be transferred, combined, and accumulated into larger units or full degrees. Additionally, they enable learning activities to be more effectively tailored to the individual needs of each learner (Kušić et al., 2022). The manageable nature of micro-credentials encourages a culture of continuous and comprehensive learning (Oliver, 2019). Working professionals are particularly drawn to the focused learning offered by micro-credentials, which unbundle traditional higher education degree curricula. For busy adults, micro-credentials offer a level of flexibility that traditional two-year and four-year degree programmes cannot match. These focused, career-oriented credentials require less time to complete, making them a more affordable option for individuals seeking rapid career advancement (Ralston, 2021).

In addition, micro-credentials provide modular and inclusive learning options, making education accessible to diverse learners, including those from non-traditional backgrounds and learners of all ages (Bideau & Kearns, 2022). By promoting lifelong learning, micro-credentials empower individuals to continuously acquire new skills and knowledge (Kato et al., 2020). Furthermore, micro-credentials offer targeted training for various groups of non-traditional students (Kato et al., 2020), bridging the gap between standard higher education programmes and the skills demanded by the labour market (Maina et al., 2022). By verifying acquired skills, micro-credentials enhance learners’ employability (Maina et al., 2022). Therefore, they function as a bridge between education and employment, facilitating a seamless integration of learning and work experiences (Saray & Ponte, 2019; Desmarchelier & Cary, 2022) while catering to the needs of diverse learners.

In the modern environment, micro-credentials become an essential part of lifelong learning, enabling individuals to adjust to the constantly changing demands of the labour market. They further facilitate a smooth transition between learning and work experiences by validating acquired skills and information, improving employability, and bridging the gap between education and job. Therefore, micro-credentials must be embraced as a fundamental component of lifelong learning programmes.

4.3. Assessment and Quality Assurance

The conceptualisation of micro-credentials differs significantly across countries. This lack of a unified understanding was also noted by Kiiskilä et al. (2022). Furthermore, many countries lack specific laws or guidelines for micro-credentials, making it challenging to regulate their quality (Hidalgo & Jiménez, 2023). Therefore, establishing robust, internationally recognised standards for the assessment and quality assurance of micro-credentials is crucial to ensuring their credibility and value within the higher education sector. As Oliver (2019) notes, the rapid growth of micro-credentials resulted in confusion and uncertainty for students, employers, and providers. Therefore, the certificates obtained through micro-credentials must be at an academic level and verifiable.

The criteria used to define the size of micro-credentials differ across universities, industries, and government organisations (Varadarajan et al., 2023). For instance, New Zealand views micro-credentials as standalone skill-based courses outside the traditional tertiary education system (Hartnett, 2021), whereas Malaysia considers them potential preparatory courses for diploma or degree programmes in higher education institutions (Ahmat et al., 2021). Moreover, some countries, such as Spain, specifically mention micro-credentials in their national laws. Others, such as Sweden, include micro-credentials under existing quality assurance frameworks without explicitly naming them (Hidalgo & Jiménez, 2023). Countries such as Hungary integrate them into higher education, and others, such as Estonia, primarily use them for workplace learning in adult education (EAEA, 2023). On the whole, there is no universal agreement on what a micro-credential is and what quality standards it should meet.

While multiple certifications can showcase a diverse skill set, maintaining consistent standards for micro-credentials is crucial for employer recognition. As both academic institutions and private entities award micro-credentials without a unified framework, initiatives are underway to develop a common framework for ensuring the quality of micro-credentials (Brown et al., 2022). For example, the European Common Micro-credential Framework (CMF) has set standards to evaluate programmes for micro-credential eligibility, ensuring quality and relevance (Šarčević, 2024). Similarly, the Malaysian Qualifications Agency (MQA) has established guidelines for implementing micro-credentials in Malaysia. These guidelines emphasise digital delivery, certification, and internal university management while adhering to MQA standards (Eltahir et al., 2023). This ensures the quality, accreditation, and recognition of micro-credentials in the Malaysian higher education system.

Another important aspect is programme designing, which should prioritise clear learning outcomes aligned with current and future national and international industry needs. Encouraging peer review of micro-credential programmes to identify areas for improvement, establishing internal quality assurance processes to monitor and improve the quality of micro-credentials, and engaging external quality assurance agencies (OECD, 2024) to review and validate micro-credential programmes are essential factors within the quality assurance framework.

To ensure the quality of micro-credential programmes, it is crucial to establish robust assessment and quality assurance practices, considering industry demand, educational requirements, and the learning environment (Pawilen et al., 2022). However, challenges exist in the successful implementation of micro-credentials, such as a lack of standardisation and quality assurance mechanisms (Zhang & West, 2020). Additionally, concerns regarding the quality and recognition of micro-credentials, especially those offered online (Varadarajan et al., 2023), and insufficient understanding among organisations and individuals of what micro-credentials are and how they can be used effectively (Hidalgo & Jiménez, 2023), further hinder their widespread adoption. To address these challenges, it is essential to establish robust quality assurance mechanisms and promote the recognition of micro-credentials by employers and academic institutions.

Building trust and credibility for micro-credentials among employers and learners remains one of the most significant challenges (OECD, 2024). Micro-credentials necessitate the demonstration of subject matter expertise through rigorous assessments (McGreal & Olcott, 2022). To ensure the credibility and validity of these qualifications, it is essential to employ reliable and robust assessment and evaluation methods. As Santally et al. (2024) point out, traditional assessment models may not be entirely suitable for evaluating the practical skills and competencies often associated with micro-credentials. To address this, alternative assessment approaches, such as those offered by accredited institutions, can help build employer confidence in the value of micro-credentials.

The Australian micro-credential framework report (Desmarchelier & Cary, 2022) emphasises assessment to verify the achievement of the learning outcomes of micro-credentials. To ensure transparency, the specific assessment methods used should be clearly outlined. Online assessment in micro-credentials presents challenges, as their implementation necessitates careful consideration of both the assessment methods and the authentication process. Evaluations may focus on individuals, groups, institutions, or specific programmes, each requiring distinct approaches to ensure accuracy and reliability (Zlatović et al., 2015). Determining appropriate assessment methods for individual, group, institutional, or programme-level evaluations is vital. As well as diverse assessment strategies, performance-based assessments, knowledge-based assessments, self-assessment, and peer assessment should be employed as required. Taking this into consideration, Gauthier (2020) argues that micro-credentials should be based on project-based learning to ensure that learners demonstrate real-world skills and competencies. This approach helps to maintain consistency in the value and quality of micro-credentials across different institutions and industries. By focusing on project-based learning, micro-credentials can better equip learners with the practical skills needed for success in the workplace. Similarly, both Sambell et al. (2019) and Gooch et al. (2022) stress the significance of authentic assessment as an emerging high-impact practice in enhancing both learners’ learning experiences and their employability.

A critical aspect of online assessments for micro-credentials is the recognition and validation of these credentials. To be valuable to both learners and employers, micro-credentials must be widely recognised and valued. This distinction sets them apart from informal learning programmes (Oliver, 2019, p. 1). To address this, the Australian Micro-credential Framework Report (Desmarchelier & Cary, 2022) recommends stating assurance of quality when a regulated standard has not been applied by the issuing authority.

Earning nationally or internationally recognised micro-credentials demonstrates that an individual met the qualification standards set by the relevant institution or organisation (Orman et al., 2023). To further enhance the recognition and uptake of micro-credentials, training providers and governments should collaborate to deliver high-quality, quality-assured programmes (OECD, 2024). Collaboration with employers to ensure the recognition of micro-credentials and actively soliciting feedback from learners are also essential to enhance the quality and relevance. Furthermore, providing comprehensive support services to learners that encompasses technical assistance, academic guidance, and career counselling is essential for fostering trust in micro-credential programmes.

5. Discussion and Conclusions

Micro-credentials offer flexible, accessible, and affordable learning experiences that recognise and validate skills acquired through formal and informal learning. They allow learners to personalise their learning journey according to their needs and interests while addressing specific skill gaps and career goals. The online delivery of programmes makes them accessible to a wide range of learners, regardless of their location or schedule, while enabling learners to incrementally build upon their knowledge and skills over time. While micro-credentials can boost employability and career progression, they are not a one-size-fits-all solution for inclusivity, lifelong learning, or job opportunities. Nevertheless, they can be a valuable tool in certain situations to address these challenges. For instance, the European approach underscores the importance of using micro-credentials strategically within a comprehensive framework for lifelong learning and skills development (Bideau & Kearns, 2022).

To fully realise the potential of micro-credentials, several challenges need to be addressed by stakeholders, including low awareness of micro-credentials, scepticism about their value, the limitations of short study duration, competition from in-house training, high costs, the diversity of learners’ backgrounds, and difficulties in gaining industry recognition (Thi Ngoc Ha et al., 2022; Thi Ngoc Ha et al., 2024). Additionally, some participants in Yilik’s (2021) study confirmed that holding an MC is still less prestigious than a formal certification (a conventional university degree), while others worry about the lack of social interaction and social skill development in MC programmes. Moreover, many people who participate in MCs worry that relying solely on MCs for their career path could lead to bias and unfair treatment.

Micro-credentials have the potential to strengthen economic security and broaden employment opportunities for marginalised groups (Galindo et al., 2024). However, their recognition and status vary widely across different countries. As Oliver (2021) points out, although micro-credentials hold significant promise in education, they are still relatively new, and their value and recognition are not yet fully established in all contexts. While many countries acknowledge micro-credentials as a tool to enhance employability, fewer recognise them for academic advancement or further study (Kušić et al., 2022). The status of micro-credentials remains unclear in many countries, as they are frequently seen as either an alternative to or a supplement for traditional qualifications such as degrees. Additionally, the term “micro-credential” lacks widespread understanding among educators, employers, and the general public (Corcoran, 2021). The lack of a clear, consistent definition for micro-credentials hinders their effective design, implementation, and the perceived value they hold for both learners and stakeholders (Bideau & Kearns, 2022). Varadarajan et al. (2023) highlighted two primary challenges hindering the widespread adoption of micro-credentials: low public awareness and the difficulty of traditional educational institutions in adapting to the rapid pace of change necessitated by these innovative approaches. They cautioned that privatizing micro-credential offerings could potentially tarnish their reputation.

To overcome the challenges and capitalise on the opportunities presented by micro-credentials, higher education institutions can utilise them to enhance student learning, improve workforce readiness, and stimulate educational innovation. For example, to equip STEM graduates with essential soft skills for the modern workforce, McGunagle and Zizka (2020) suggest incorporating micro-credentials from behavioural sciences into STEM degree programmes. This is because STEM graduates frequently lack crucial soft skills such as communication, adaptability, and leadership. In addition, the multiple intelligences theory suggests that individuals possess diverse learning styles. By understanding this, educators can create micro-credentials (MCs) that cater to various learning preferences, thereby enhancing engagement and motivation. Selvaratnam and Sankey (2021) also advocate for the use of the credential transparency description language (CTDL), which utilises standardised terms recognised by search engines and credential issuers, as a means to substantially enhance the overall quality of teaching and learning experiences (Eltahir et al., 2023).

Furthermore, the successful adoption of micro-credentials (MCs) relies on collaboration among a range of stakeholders, including governments, industries, educators, and students (Varadarajan et al., 2023; Selvaratnam & Sankey, 2021). Higher education institutions (HEIs) are central to fostering these interactions and are instrumental in shaping the future development and impact of MCs. To effectively support learners, employers, and government agencies, HEIs can adopt strategies such as introducing interdisciplinary courses and aligning curricula with industry needs (Woods & Woods, 2023). When designing MC programmes, it is essential to consider factors such as accessibility, relevance, and the development of practical skills (Ghasia et al., 2019; Selvaratnam & Sankey, 2021). By prioritising these aspects, HEIs can ensure the meaningful impact of MCs on learner outcomes and societal needs.

Author Contributions

Conceptualisation, K.A.A.G.; methodology, S.C.P.D. and K.A.A.G.; formal analysis, S.C.P.D.; investigation, S.C.P.D. and K.A.A.G.; resources, K.A.A.G.; writing—S.C.P.D. and K.A.A.G.; project administration, K.A.A.G. All authors have read and agreed to the published version of the manuscript.

Conflicts of Interest

The authors declare no conflict of interest.

Footnotes

Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

Table

Table 1

Summary of source characteristics.

No	Author(s) and Year	Publication Type	Geographic Focus	Methodological Design	Summary
1.	Ahmat et al. (2021)	Journal article	Malaysia	Challenges and opportunities	Explores the opportunities and challenges of implementing micro-credentials in Malaysian higher education, emphasising institutional readiness, digital platforms, and alignment with labour market needs.
2.	American Association of Community Colleges (2016)	Policy document	USA	Policy recommendation	How micro-credentials and other credentialing strategies can align with workforce needs and allow students to demonstrate industry-recognised competencies.
3.	Bideau and Kearns (2022)	Journal article	Europe	Policy review	Proposes a unified European framework to support employability and lifelong learning through micro-credentials.
4.	Bruguera et al. (2024)	Journal article	Spain/Europe	Employer survey	Analyses employer views on the value of soft skills and their development via online micro-credentials.
5.	Bell (2017)	Journal article	USA	Theoretical/conceptual	Proposes integrating third-party certification into MBA programmes to enhance value and innovation.
6.	Beverley (2022)	Policy brief	Global/UNESCO	Conceptual/definition review	Calls for a global, shared definition of micro-credentials to aid international understanding and recognition.
7.	Brown et al. (2022)	Journal article	Europe	Qualitative synthesis	Provides an internal and external critique of micro-credentials, outlining benefits and limitations.
8.	Bughin et al. (2018)	Industry report	Global	Forecasting/trends analysis	Analyses the impact of automation on skill needs, supporting micro-credentials as a flexible learning response.
9.	Claxton (2015)	Opinion piece/report	UK	Commentary	How embodied cognition challenges traditional educational models and suggests more integrated ways of teaching and learning.
10.	Coetzee (2024)	Report/commentary	South Africa	Commentary	Micro-credentials as a flexible and accessible alternative to traditional tertiary education.
11.	Corcoran (2021)	Monograph	Australia	Critical commentary	Outlines ten systemic problems facing micro-credentials including recognition and fragmentation.
12.	Desmarchelier and Cary (2022)	Journal article	Australia	Policy analysis	Argues for equity-focused implementation of micro-credentials in Australian higher education.
13.	Devedzic and Jovanovic (2015)	Journal article	Serbia	Conceptual/technical design	Develops a comprehensive framework for designing open badges as the foundation of micro-credentials.
14.	EAEA (2023)	Policy report	Estonia/Hungary/Sweden	Comparative analysis	The diverse national approaches to micro-credentials in adult education.
15.	Eltahir et al. (2023)	Journal article	Malaysia	Educator survey	Examines how multiple intelligences theory is used in micro-credentials by Malaysian educators.
16.	El Mawas and Muntean (2018)	Conference paper	Europe	Applied research	Supports lifelong learning by proposing 21st-century skills development via micro-credentials.
17.	European Commission (2020)	Official policy report	Europe (EU)	Policy report	Proposes a European-level quality and recognition system for scalable, portable micro-credentials.
18.	Fisher and Leder (2022)	Journal article	New Zealand	Case analysis	Assesses effectiveness and vocational alignment of micro-credentials in New Zealand’s education system.
19.	Futures et al. (2020)	White paper	Global	Forecasting/policy commentary	Explore the institutional drivers and barriers influencing the development and delivery of micro-credentials across European higher education institutions.
20.	Galindo et al. (2024)	Research report	Global/USA	Employer survey and review	Explores how micro-credentials empower individuals and organisations in workforce and talent development.
21.	(Gallagher, 2016)	Book	USA	Narrative review/policy analysis	Explores the evolution of university credentials and their alignment with employer expectations.
22.	Gauthier (2020)	Journal article	USA	Employer survey	Examines employer trust in micro-credentials and the need for standardisation in hiring contexts.
23.	Ghasia et al. (2019)	Journal article	Tanzania	Exploratory qualitative study	Explores perceptions of micro-credentials in Tanzanian higher education and their potential for skill development.
24.	Gooch et al. (2022)	Journal article	UK	Empirical study	Explores how digital micro-credentials can transform education, retraining, and lifelong learning
25.	Hall-Ellis (2016)	Journal article	USA	Conceptual	Proposes a framework for stackable micro-credentials.
26.	Hartnett (2021)	Report	New Zealand	Policy commentary	Analyses digital badge usage in New Zealand HE with focus on student motivation and perceptions.
27.	Hidalgo and Jiménez (2023)	Journal article	Spain/Europe	Policy analysis	The role of external quality assurance (EQA) in the context of micro-credentials across the European Higher Education Area.
28.	Hickman (2015)	Industry report	USA	Workforce design analysis	Designs learning programmes tailored for millennials, highlighting the role of micro-credentials.
29.	Horton (2020)	News/editorial	UK	Commentary	Explores whether micro-credentials could become viable alternatives to traditional degrees.
30.	Hunt et al. (2020)	Journal article	USA	Conceptual	Supports use of micro-credentials for personalised, flexible professional development.
31.	Kato et al. (2020)	Working paper	OECD Countries	Policy review	Describes global emergence of alternative credentials and their implications for formal education.
32.	Kiiskilä et al. (2022)	Conference paper	Finland/Europe	Descriptive/feature analysis	Examines design and usability features of micro-credential platforms in higher education.
33.	Kušić et al. (2022)	Conference paper	Europe (Croatia)	Theoretical	Explores whether micro-credentials improve or fragment higher education, raising concerns about coherence and equity.
34.	Lantero et al. (2021)	Policy report	Europe	Policy mapping	Reviews how micro-credentials align with Bologna Process goals for recognition and mobility.
35.	Maina et al. (2022)	Journal article	Europe	Framework proposal	Develops a methodology for micro-credentialing employability skills in higher education.
36.	McGreal and Olcott (2022)	Journal article	Canada/USA	Case analysis/review	Frames micro-credentials as a strategy for institutional change and innovation in digital learning.
37.	McGunagle and Zizka (2020)	Journal article	Europe	Proposal/empirical discussion	Highlights a skills gap between what universities provide and what industries demand, calling for curriculum reforms and stronger university-employer collaboration.
38.	Milligan and Kennedy (2017)	Policy paper	Australia	Conceptual	Examines digital credentialing as a flexible and relevant alternative to conventional degrees.
39.	Thi Ngoc Ha et al. (2022)	Systematic literature review	Global	Systematic review	Systematic review showing micro-credentials as a mutually beneficial tool for learners and institutions.
40.	Thi Ngoc Ha et al. (2024)	Journal article	Vietnam/Asia-Pacific	Employer survey	Investigates employer perspectives on what enables micro-credentials to be effective.
41.	Oxley and van Rooyen (2021)	Student rerspective study	Australia	Student survey	Provides insights into student perceptions of how micro-credentials help career development.
42.	Olcott (2022)	Journal article	USA	Conceptual/strategic proposal	Presents micro-credentials as a means for institutional change and strategic realignment.
43.	Oliver (2021)	Policy/concept paper	Australia	Learner value framework	Proposes a value framework for learners to evaluate and select micro-credentials based on personal and career goals.
44.	Oliver (2019)	Report/white paper	Australia	Framework development	Presents practical strategies for making micro-credentials effective for learners, employers, and providers.
45.	Orman et al. (2023)	Journal article	Turkey	Higher ed policy perspective	Analyses reflections on micro-credential usage in HE, emphasizing institutional strategy and learner engagement.
46.	OECD (2021)	Policy paper	OECD Countries	Comparative policy review	Outlines innovations, types, and rationales for micro-credentials across OECD countries.
47.	OECD (2024)	Official report	OECD Countries	Mixed methods/policy focus	Examines how micro-credentials and skills-based hiring address tech talent shortages in a post-pandemic context.
48.	Oza and Japee (2020)	Report	Global/India	Conceptual review	Outlines the historical development of higher education, providing background for understanding the shift toward credentials.
49.	Pawilen et al. (2022)	Journal article	Philippines	Curriculum model proposal	Proposes a curriculum design model for implementing micro-credentials in Philippine educational institutions.
50.	Pollard and Vincent (2022)	Journal article	Global	Post-digital perspective	Presents micro-credentials as a counter-narrative to postdigital education, critiquing their neoliberal framing.
51.	Ralston (2021)	Journal article	USA	Conceptual	Offers a Deweyan critique of the rise of micro-credentials, questioning their impact on democratic and holistic education.
52.	Reedy et al. (2021)	Journal article	Australia	Empirical study	Explores the impact of COVID-19 on academic integrity and online exams, indirectly supporting micro-credential design.
53.	Santally et al. (2024)	Journal article	Mauritius	Survey-based empirical study	Assesses views of education and industry leaders on the adoption and effectiveness of micro-credentials.
54.	Sambell et al. (2019)	Journal article	UK	Assessment review	Discusses how assessment methods can be optimised for engagement, with implications for micro-credential formats.
55.	Šarčević (2024)	Journal article	Europe	Policy gaps/recommendations	Critiques the current European approach to micro-credentials and calls for more inclusive policy structures.
56.	Saray and Ponte (2019)	Conference paper	Australia	Design-based case study	Describes the evolution of micro-credentials in the context of personalised digital learning environments.
57.	Selvaratnam and Sankey (2021)	Journal article	Australasia	Policy review	Integrates findings on micro-credential adoption across Australasia, identifying practical implementation strategies.
58.	Tamoliune et al. (2023)	Systematic review	Europe	Systematic review	Systematic review identifying trends, benefits, and challenges in micro-credential use across education sectors.
59.	UNESCO (2018)	Policy report	Global	Policy analysis	Analyses the cross-border recognition challenges and opportunities of digital credentials.
60.	Tomlinson and Anderson (2020)	Journal article	UK	Theoretical/conceptual	Examines the role of graduate and employer perceptions in shaping employability, relevant to credential signaling.
61.	Varadarajan et al. (2023)	Systematic review	Global	Systematic review	Systematic review mapping micro-credential opportunities and stakeholder concerns across education and industry.
62.	Walsh (2021)	Conference presentation	UK	Commentary	Emphasises the promise of micro-credentials in supporting flexible learning and employability.
63.	Wheelahan and Moodie (2021)	Journal article	Australia	Policy analysis	Bernsteinian analysis highlighting risks of curriculum fragmentation due to micro-credentialing trends.
64.	Woods and Woods (2023)	Journal article	Australia	Conceptual analysis	Discusses both challenges and strategic advantages of using micro-credentials in higher education settings.
65.	Yilik (2021)	Journal article	Turkey	Student survey	Micro-credentials as valuable tools for enhancing employability and skill acquisition.
66.	Zhang and West (2020).	Journal article	USA	Instructional design framework	Proposes a competency-based instructional design approach to microlearning for professional development.
67.	Zlatović et al. (2015)	Journal article	Croatia	Educational assessment	Demonstrates how online assessments enhance learning. strategies, relevant to micro-credential effectiveness.
68.	Zou et al. (2024)	Journal article	China	Explanatoryresearch	Examines the influence of micro-credential learning on students’ perceived employability.

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