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A review of the current discourse and strategies surrounding micro-credentials within higher education institutions

Education and Learning

Higher education institutions play a crucial role in promoting lifelong learning and employability skills. However, empirical evidence on micro-credentialing methodologies and their development in educational settings is scarce. To address this gap, this study aims to shed light on the current discourse on micro-credentials and the strategies surrounding micro-credentialing developments within the HEI context by reviewing empirical studies conducted between 2022 and 2024 from a stakeholder perspective. This study offers both practical and pedagogical insights, encouraging higher education institutions (HEIs) to collaboratively develop roadmaps, curricula, and learning environments. This collaborative approach is essential as various stakeholders address the evolving societal demands related to employability.

Recent trends in the high cost of higher education, employer concerns about graduate skills and competencies, and student frustrations about the lack of job opportunities have all been catalysts for universities, independent credentialing agencies, and leaders of national qualification reference frameworks to rethink the broader credentials continuum (McGreal & Olcott, 2022, p.19).

Given current global challenges, micro-credentials can advance the equity agenda, bringing accessible and affordable focused learning and skill building to vulnerable communities (Oliver, 2023). In enabling achievement of the United Nations Sustainable Development Goal of Quality Education (SDG4), including ‘relevant skills and decent work’ and lifelong learning (United Nations, 2015), micro-credentials are increasingly promoted as a new and more flexible way of recognising knowledge, skills, and competencies.

Public policies for effective micro-credential learning

Various initiatives clearly underline the importance of engaging with micro-credentials considering the competing drivers of lifelong learning and employability in the European context, such as the European Commission’s Council Recommendations in Micro-Credentials for lifelong learning and employability (2022), Cedefop’s (2024) in-depth research on evolving qualification systems in Europe, together with the Organization for Economic and Cooperative Development ’s (OECD, 2023) paper to support the development of a micro-credential ecosystem. Following the policy given by the European Higher Education Area (EHEA, 2022), also known as Bologna Process, 48 countries, institutions and stakeholders continuously adapt their higher education systems making them more compatible and strengthening their quality assurance mechanisms. Moreover, at the national level, Finland’s Ministry of Education and Culture (OKM, 2023) is preparing a national framework for micro-credentials to meet the needs of multiple stakeholders and educational institutions in the country. This will create a more unified, recognisable, and reliable way of acquiring and demonstrating competence from higher education institutions.

This study offers both practical and pedagogical insights, encouraging higher education institutions (HEIs) to collaboratively develop roadmaps, curricula, and learning environments.

E³UDRES² Alliance (Engaged and Entrepreneurial European University as Driver for European Smart and Sustainable Regions) originates from the European Commission’s European University Initiative. It consists of high portion of universities of applied science within the consortium and it has a strong regional focus across Europe. At the regional level, Jyväskylä University of Applied Sciences (Jamk) as a member of the E³UDRES² Alliance, is deeply embedded with the European universities to top-level education and adding to research and innovation activities solutions to social challenges as well as continuing to serve as example for higher education institutions.

A European Approach to micro-credentials

The Council of the European Union adopted (2021) a recommendation on a European approach to micro-credentials for lifelong learning and employability as it seeks to support the development, implementation and recognition of micro-credentials across institutions, businesses, sectors and borders. For the purposes of this recommendation European Commission defined micro-credentials as follows:

“Micro-credential’ means the record of the learning outcomes that a learner has acquired following a small volume of learning. These learning outcomes will have been assessed against transparent and clearly defined criteria. Learning experiences leading to micro-credentials are designed to provide the learner with specific knowledge, skills and competences that respond to societal, personal, cultural or labour market needs. Micro-credentials are owned by the learner, can be shared and are portable. They may be stand-alone or combined into larger credentials. They are underpinned by quality assurance following agreed standards in the relevant sector or area of activity”. (2021, p.13-15.)

The Council recommendation also stressed that all working-age adults to accumulate and preserve individual training entitlements over time, and use them for eligible, quality assured training, guidance, and validation in their interest and at their initiative (Martin & van der Hijden, 2024). Considering European HEIs and E³UDRES² Alliance, the common definition for micro-credentials is vital to ensure the quality assurance in the European higher education context.

Despite of the European Approach to definition of micro-credentials, there is no consensus in the literature regarding the term micro-credentials, which is seen as a key barrier to progress towards a trusted skills currency (European Commission, 2020). The varied definitions and taxonomies under it are commonly used synonymously or interchangeably, including ‘digital badges’, ‘alternative competency’, ‘digital competency’, ‘nano-degrees’, ‘digital certificates’, ‘micro-masters’, ‘MOOCs’, or ‘short (online) courses’ (Kato et al., 2020). Discourses based on micro-credentials has been categorised such as “short-cycle education and training, smaller fractions of competence, credits in a digital format, and digital open badges as micro-credentials for learning and recognition” (Bauer, 2020,9) Consequently, micro-credentials can be academic certificates awarded by educational institutions, or professional (industrial) certificates awarded by professional bodies, or they could be micro-certifications such as short courses, boot camps, or digital badges (Cirlan & Loukkola, 2020). Meanwhile, Oliver, (2022, p.6) provides the following [global] definition in the context of UNESCO:

“A micro-credential is a record of focused learning achievement verifying what the learner knows, understands or can do; includes assessment based on clearly defined standards and is awarded by a trusted provider, has standalone value and may also contribute to or complement other micro-credentials or macro-credentials, including through recognition of prior learning and meets the standards required by relevant quality assurance.”

Regardless of, or perhaps because of these varied terminologies, micro-credentials are not well understood by employers (Kato et al., 2020). It is thus important to guarantee increased transparency to ensure trust in the value of micro-credentials, so that their portability and recognition across borders can become a reality (European Commission, 2020).

Higher education’s engagement with micro-credentials

A broad spectrum of policy papers, initiatives and academic research emphasizes the competing drivers for employability, lifelong and continuous learning remain to fore of the why higher education institutions should engage with micro-credentials.

Society’s increasing demands for university-level short-term training with a clear focus on employability can be best met by higher educational institutions (HEIs), which are the key providers of micro-credentials, and well placed to drive innovation in this area (Microbol, 2021). From a global perspective, micro-credentials should be focused on the business economy and technology disciplines (Patra & Mendez, 2023). Micro-credentials have been widely used in re-skilling, upskilling, and skill development in the labour market, providing advantages for improvement in professional career paths.

Recent research emphasises the competing drivers of employability and lifelong learning (Tamoliune et al., 2023). However, integrating micro-credentialing skills into higher education curricula requires academic institutions to overcome the knowledge transfer paradigm in favour of active learning models and authentic assessment scenarios, combining both academic knowledge, and workplace skills. Consequently, many questions have been raised regarding micro-credentials and their applicability, quality assurance, and inclusion in formal education settings, especially in the context of higher education institutions (Varadarajan et al., 2023).

Certain commentators fear that such a transformation might lead to the commercialisation of higher education, bringing about a ‘moral hazard’ (Ralston, 2021, p. 95). Others note that micro-credentials are nothing but marketing hype and learning innovation theatre (Wheelahan & Moodie, 2022), which has seen effects of disassembling higher education curricula and degree programs for greater efficiency and profitability, and to reorient the university curriculum towards vocational training (Ralston, 2021).

Micro-credentials can be disruptive to traditional higher education systems, that is they require significant changes in HEIs curriculum design and delivery, and in collaboration among multiple stakeholders including educational institutions, employers and policymakers. Thus, developing and maintaining high-quality micro-credential programs and their methodological innovation and assessment can be resource-intensive process for higher education institutions and their partners.

A snapshot of recent empirical research on micro-credential learning and methodologies developed in the context of HEIs

The systematized review (Booth, Sutton, & Papaioannou, 2021) aims to provide a quick snapshot of recent empirical research on micro-credential learning and micro-credential methodologies developed in the context of HEIs (Arksey & Malley, 2005) using structured literature review methodology (SLM) (Tranfield et al., 2003) to develop insights into micro-credentialing methodology. Thus, the systematized method was applied as it is appropriate when the research is conducted by only one researcher and the literature search uses one database.

The research question was as follows: What experience do higher education institutions (such as universities, universities of applied sciences, and polytechnics) have with micro-credentialing developments and implementing micro-credentialing methodologies into learning study courses.

The literature search on micro-credentials in the context of higher education was conducted using the ProQuest database and limited to literature (scientific peer-reviewed articles) published between 2022 and 2024 (until 18th of August 2024). In the screening of articles, only empirical studies that examined the experiences of HEIs such as universities (traditional universities, applied sciences, and polytechnics) with micro-credentials, learning, and methodology frameworks were included.

The inclusion criteria were as follows: 1) Scientific studies published between the period 2022-2024. This timeframe was chosen to focus on the latest and current literature on micro-credentials; 2) Studies conducted in a higher education context; 3) Empirical studies on HEI experiences with micro-credentials; 4) Focus on micro-credentialing methodologies (i.e., methods designed for enhancing employability skills and life-long learning) and developments integrated in learning environments); 5) Peer-reviewed articles; and 6) Written in English. The exclusion criteria were as follows: 1) Conceptual and literature review articles, and research conducted in laboratory environments; 2) Articles in which micro-credentialing methodologies were not presented; 3) Articles not related to the context of higher education; and 4) Articles that focused on other private or commercial education providers.

In the first phase, the ProQuest database was searched for studies published between the years 2022-2024. The search terms were ‘micro-credentials’, ‘higher education’, ‘higher education institutions’, ‘applied sciences’, ‘polytechnic’, ‘methodologies’, ‘experiences’, ‘business education’, and ‘management education’. The search was applied to the titles, abstracts, and keywords of the articles. Further, using multiple Boolean combinations of the search terms, the electronic search strategy for ProQuest (Eric) commenced with the significant terms ‘micro-credentials’, ‘higher education’, and ‘methodologies’. As an example of these: micro-credentials and higher education institutions, micro-credentials and methodologies, micro-credentials AND “higher education” AND experiences.

The selection process followed the standard approach of the PRISMA guidelines (Page & Moher, 2017). The search results and abstracts were screened for relevance based on the set criteria: At the identification phase 137 articles were identified through database searching, and 51 articles were screened for duplicates resulting that 86 articles remained which were then reviewed more profoundly, and in the second phase of the study, based on the author’s reading of keywords and article summaries, articles that met the exclusion criteria mentioned above were removed (62 articles). In the final phase of the review, the full-text content of the remaining 24 articles was assessed for eligibility. At this stage, 18 full text-articles articles were excluded because they did not meet the inclusion criteria mentioned above. The remaining 6 articles hence formed the final dataset of this review.

This review examined six selected studies published between 2022 and 2024 (until 18th of August) comprising empirical research on micro-credentials and their methodological development. The studies included multiple methods, such as case studies, qualitative and quantitative methods, mixed methods, as well as methods applicable for developing frameworks, pedagogical innovations, or workshop-type methods used in project management.

The reviewed scholarly articles were Casadesus et al., 2023; Kiiskilä et al., 2023; Kumar et al., 2022; Maina et al., 2022; Scott et al., 2024; Sharma et al., 2024. They were published in scientific journals classified as levels 1 and 2 by the Finnish Publications Forum (JUFO) encompassing high quality research on the field of study. A summary of the key findings highlights the opportunities such as strengthening employability skills in hybrid learning environments, extending the learning environment beyond conventional settings, recognition and portability (shared understanding and standardization of micro-credentials in the studied educational settings), and micro-credentialing methodologies, quality frameworks and accreditation implementation.

Challenges, such as equity and inclusion of education (digital divide, access to digital environments), consistency, quality and credibility: potential employers may distrust the credentials linked to formal recognition, and resource-intensive process, involving substantial workload and resources for evaluations and reviews conducted by higher education institutions (HEIs) partners, external reviewers for quality assurance, and institutions developing micro-credentials and competency frameworks. Further, challenges in collaboration with multiple stakeholders in national and global higher education ecosystem to create transparent and standardized quality assessment systems for micro-credentials were also stressed. Next, the key themes of the reviewed articles are discussed below.

Micro-credentials and lifelong learning

Strengthening employability skills in hybrid learning environments

The themes of micro-credentialing methodologies and employability skills were discussed in all the articles reviewed. The work of Maina et al. (2022) showcases their Employability Skills Micro-Credentialing (ESMC) methodology as a promising approach for supporting learners in their transition from academia to the workplace. In addition, Maina et al. (2022) found all stakeholders (students, lecturers, and employers) to view the project outcomes positively, and agreed on the capacity of the methodology to support learners in the identification of personal strengths and the development of career plans. According to Maina et al. (2022), the ESMC methodology allows lecturers to broaden their understanding of the relationships between higher education and the business sector, and sustain the visibility, transparency, and reliability of the recognition process. The future deployment of the methodology is expected to increase employment opportunities for graduates. Moreover, Maina et al. (2022) added that micro-credentialing methodology and the involvement of employers in students’ academic journeys are generally perceived as challenging endeavours that entail rethinking educational practices, academic curricula, and lecturers’ professional development.

Similarly, Casadesus et al. (2023) reported that upskilling and reskilling delivered through short learning programs are crucial to ensuring adaptability and employability in the marketplace, offering a key opportunity to continue building bridges between education and professional training systems. Meanwhile, multiple stakeholders stressed the increasing global demand for skill-powered education driven by evolving job market need, and micro-credentials were seen as a vital competency currency globally, catering to both beginners and experienced professionals (Sharma et al., 2024).

The importance of learners’ self-learning abilities and motivation for continuous learning in acquiring new skills most likely to benefit from micro-credentials. Kiiskilä et al., (2023) in turn, stressed the need for discussions between HEIs and industry to better understand the skills gap currently faced, and to prepare future employees for work. The study suggests the importance of maintaining the industry-related problems for learners to solve. Stressing the effectiveness of micro-credential programs in enhancing teacher practice and student outcomes, Scott et al. (2024) noted that micro-credentials are a potential route for keeping teachers up to date with the best practices for literacy teaching because of their ability to provide targeted and flexible professional development opportunities.

Extending the learning environment beyond conventional settings

The reviewed studies were unanimous in their agreement that in the realm of micro-credentials, the learning environment should extend beyond conventional settings, particularly when fostering lifelong learning, not only breaking monotony, but also, as Sharma et al. (2024) pointed out, inspiring active engagement among learners and educators. According to the Sharma et al. (2024), blended learning saves time, encourages learners’ self-discipline, and opens avenues for working professionals to pursue courses for upskilling and re-skilling, ultimately advancing their careers. However, it is more feasible to offer micro-credentials for postgraduate or executive programs, where a higher level of confidence, self-motivation, and self-discipline tends to prevail. Despite these positive sentiments, this raises the issue of learners with less technological capabilities and whether micro-credentials would replicate and widen existing inequities.

According to Sharma et al. (2024), designing and offering specific courses as advanced online programs with industry partnerships enhances micro-credentials’ credibility, while learners benefit from industrial training and exposure, reinforcing the practical applicability of acquired skills. University lecturers seemed to be vital influencers in student learning experiences, as they could adopt a blended approach by incorporating both online and offline components. Continuous professional development is essential for lecturers to adapt their teaching methods to an evolving learning environment.

Scott et al.’s work (2024) demonstrated learning in an online setting (Moodle), where learners experienced how online learning platforms provided flexible and accessible avenues for professional development. As a result, learners valued the practical resources available on the platform, and emphasised a preference for practical materials over theoretical discussions. Learners found the course to create strengthening pedagogical experiences than in their previous undergraduate training, or on-the-job Professional Learning and Development (PLD). Learners’ negative experiences were largely related to workload, support, and access to or inadequacy of resources.

In turn, Kumar et al. (2022) analysed the micro-credentials online-course ‘Instructional Design’, at the Universiti Sains Malaysia (USM) for the Bachelor of TESOL (Teaching English to Speakers of Other Languages) undergraduates and observed that learners had an overall positive perception of the use of micro-credentials, and moreover positively shaped their identity as aspiring educators who embrace technology for teaching and learning.

Sharma et al. (2024) addresses micro-credentials from a stakeholders’ perspective in fostering lifelong learning. Creating a new learning environment is essential for integrating micro-credentials and inspiring active engagement between learners and educators. Integrating micro-credentials into extracurricular activities such as hackathons, boot camp workshops, and industry-partnered projects enhances student morale and personality development. According to Sharma et al. (2024), this approach enriches their skillsets and fosters a deeper understanding of the practical applications of micro-credentials within specific professional contexts.

Micro-credentialing methodologies, quality assurance and recognition, and accreditation implementation

Kiiskilä et al. (2023) reported on their experiences from the European Consortium of Innovative Universities (ECIU) project, which is a pilot offering micro-credentials in a higher education context, with various learning opportunities for learners following pedagogical guidelines and quality frameworks set by the HEIs. However, some prospective employers may distrust credentials such as digital badges, as they can be issued by any organisation. Further, from the administrators’ viewpoint, authentication and verifiability were equally important, using methods like strong electronic seal or blockchain. The importance of quality assurance and recognition of micro-credentials was generally acknowledged in the reviewed empirical studies.

Casadesus et al. (2023) in turn, present an initial and challenging methodology for the ex-ante assessment of short learning courses (SLPs) that will be recognised as micro-credentials. Among the concerns regarding the validity of the proposed evaluation methodology are the difficulties inherent in this type of assessment, such as the qualifications of students who access the programs, the balance between the academic and professional characteristics of the teachers concerned, and the need to meet supranational requirements, such as the National Qualification Framework (NQF) in each region, or the European Standards and Guidelines for Quality Assurance (ESGs) in the Common Framework for Micro-credentials in the European Higher Education Area (EHEA). Challenges include the importance of quality assessment for all stakeholders’ viewpoints, as well as the resource intensiveness; the financial and human costs of this initiative are high.

Sharma et al. (2024) provides a global perspective on micro-credentials from India (South Asia), Nigeria (sub-Saharan Africa), the United Arab Emirates (Asia/Middle East), and the United Kingdom (Western Europe).The authors stressed the importance of partnerships between higher education institutions and government bodies as well as many online learning platforms as they are significant enablers of collaborative programs to enhance the value of micro-credentials by offering flexibility, rich content, and access to quality education.

Conclusion

This review showcases both the opportunities and challenges of micro-credentials from the perspectives of higher education institutions and their stakeholders. Micro-credentials offer significant advantages in terms of flexible and accessible ways of gaining and demonstrating skills, career advancement, and inclusivity. However, they also present challenges such as standardisation, quality, equity, recognition, and implementation, which need to be addressed to fully realise their potential. Addressing these challenges requires collaboration with multiple stakeholders in national and global higher education contexts to create transparent and standardised systems for users.

The studies reviewed follow the progress that Europe has taken on an EU strategic approach, the Lisbon Recognition Convention or recognition of previous learning, the Bologna Process, the European Higher Education Area, and in terms of the European Qualifications Framework and European Higher Education Area (EHEA).

Higher education institutions can use micro-credentials to offer innovative and relevant program to meet the evolving needs of students and employers.

From the HEIs’ perspective, ensuring the quality and credibility of micro-credentials requires robust assessment methods and clear standards. Thus, the absence of a common definition and standardised criteria for micro-credentials can lead to confusion and inconsistency in their recognition and value for stakeholders, not to mention portability of micro-credentials across different regions and institutions. In terms of equity and inclusion, there is a risk that micro-credentials could exacerbate existing inequalities if access to digital resources and learning opportunities is not equitably distributed or addressed. It is also worth noting that not all employers may recognize or value micro-credentials equally, which can limit their effectiveness.

Higher education institutions can use micro-credentials to offer innovative and relevant program to meet the evolving needs of students and employers. However, micro-credentials can be disruptive to traditional higher education systems; that is, they require significant changes in HEIs curriculum design and delivery, and significant collaboration among multiple stakeholders, including educational institutions, employers, and policymakers. Thus, developing and maintaining high-quality micro-credential programs and their methodological innovation and assessment can be resource-intensive for higher educational institutions and their partners.

This study was limited to a small number of empirical studies reviewed by one author using only one database, ProQuest. As this review was only a snapshot of the micro-credentialing landscape, more empirical studies are welcomed from the universities of applied sciences and their stakeholders’ perspective.

This review offers both practical and pedagogical insights, encouraging higher education institutions (HEIs) to collaboratively develop roadmaps, curricula, and learning environments. This collaborative approach is essential as various stakeholders address the evolving societal demands related to employability.