Alternative credentials are growing in popularity, according to research by the Society for Human Resource Management. It found that 45% of US workers have some form of alternative credential while nearly half of those who don’t, 49%, have considered earning one.
“Alternative credentials are key to uncovering untapped talent, especially when it comes to those job seekers who may not have the opportunity to build skills in a traditional way but have the competencies they need to succeed,” said Wendi Safstrom, president of the SHRM Foundation.
SHRM’s research describes alternative credentials as “any microcredential, industry or professional certification, acknowledgment of apprenticeship (registered or nonregistered), or badging that indicates one’s competencies and skills within a particular field.”
Such credentials don’t include academic degrees or required occupational licensures.
Alternative credentials can be more affordable, with 72% of US workers saying they are an affordable way to gain the skills or experience necessary to enter a new job, according to SHRM’s research. And 77% agree that having a job-relevant alternative credential increases or would increase their chances of being hired for a job.
Among employers, 87% of executives say alternative credentials bring value to the workplace. The research found 81% of supervisors and 90% of HR professionals said the same.
Alternative credentials make it easier for diverse talent to obtain employment, according to 81% of executives. Seventy-one percent of supervisors and 59% of HR professionals agreed.
However, only 32% of HR professionals whose organizations use applicant tracking systems say their ATS recognizes alternative credentials.
The research was funded with a grant by Walmart.
Surveys for the research included 500 US executives, 1,200 US supervisors (workers who supervise one or more employees), 1,129 HR executives and 1,525 US workers without direct reports.