Leveling Up the High School Experience: Credentials of Value in College and Career Pathways Policy 

As states strive to prepare students for the demands of the modern workforce, the importance of industry-valued credentials has never been more apparent. These credentials, when aligned with high-demand, high-skill, high-wage (H3) occupations that can stack into additional opportunities, serve as a bridge between education and employment, ensuring that learners are equipped with the skills and knowledge that employers genuinely value.  

Why Credentials of Value Matter 

Despite the growing emphasis on career readiness, fewer than 20% of credentials earned in K–12 programs are aligned with employer demand or meet a basic wage threshold of $15 per hour.  

This disconnect is more than just a missed opportunity; it’s a potential waste of time and resources for learners and education systems. Credentials that don’t lead to viable employment opportunities fail to open doors for students, leaving them unprepared for the realities of the job market and potentially dead-end opportunities.  

Ensuring that state credential and program offerings are closely aligned with the needs of the workforce is not just a policy priority—it’s an economic necessity. When learners earn credentials that are valued in their state’s unique labor market, everyone benefits: students gain access to meaningful careers, employers find skilled workers and states strengthen their economies. 

Lessons Learned

Since launching Credentials Matter in 2018, ExcelinEd has learned three important lessons that shape our work in credentials.  

1. Not all credentials are created equal. It’s critical to differentiate between the credentials that matter most to employers and those that have little or no currency in the labor market or with postsecondary training. Start with employers first.​ 
2. Some sectors are more heavily credentialed than others. Industry sectors like advanced manufacturing, IT, and healthcare feature a range of valued credentials. Other sectors like business and finance, agriculture, and retail do not. Knowing when to promote or offer an industry credential vs. a postsecondary credential can help providers navigate these sector dynamics. Find the right balance.​ 
3. Data and results are critical to understanding return on investment (ROI). Without collecting data on credential attainment and connecting it to broader learner and pathway outcomes, it is impossible to know how well they are working for learners. Commit to transparency. 

How Successful States Are Leading the Way 

Over the last decade, credentials have become an increasingly important element of a high-quality pathway for students, along with work-based learning, college acceleration, and career and technical education.  

Several states have taken proactive steps to strengthen the credential landscape both to align their credentialing systems with workforce demands and ensure that the credentials promoted and earned have value for students. The success stories from leading states demonstrate that with clear definitions, regular review processes, robust data collection, effective communication, sustainable funding and curriculum alignment, it is possible to create a system where every credential earned has real value. 

Some strategies that states have implemented: 

1. Clear Definitions and Criteria: Successful states have developed aligned and clear definitions for what constitutes a credential of value for K–12 students and tiered the credentials based on their alignment to statewide priorities and wage thresholds. Indiana is the first state to pioneer this definition across K-12 and postsecondary credentials. This alignment is achieved through close collaboration with business and industry leaders, ensuring that the credentials offered meet real-world demands. 
2. Data Collection and Transparency: Effective data collection, evaluation and public reporting are critical components of a successful credentialing system. Leading states collect data on K-12 and postsecondary credential attainment. This transparency helps inform policy decisions and ensures that students are being guided toward the most valuable credentials. 
3. Regular Review and Revision: To keep pace with evolving workforce needs, these states have codified processes for the regular review and revision of promoted and earned credentials. This ongoing evaluation ensures that the credentials remain relevant and valuable and states can tailor supports such as funding or professional development where needed.  
4. Clear Communication: Successful states understand the importance of communicating the value of credentials across sectors and to various audiences. Whether through public information campaigns or targeted outreach to students and parents, these states make sure that everyone understands the importance of earning industry-valued credentials. 
5. Sustainable Funding: Recognizing the cost barriers that can prevent students from pursuing high-value credentials, these states have secured recurring funding for promoted K–12 credentials. This funding covers learner fees and provides financial incentives to reward schools when students earn credentials that align with high-demand, higher-wage occupations. 
6. Regular Curriculum Review: Finally, these states regularly review their Career and Technical Education (CTE) curriculum and standards to ensure alignment with identified industry credentials. This ensures that students are learning the skills they need to succeed in their chosen fields. 

Spotlight on Tennessee: Are Available Credentials Aligned with Employer Demand?

Tennessee has prioritized industry credentials as a strategy to ensure students are prepared for success in college and career. 

Yet there is little public information about which industry credentials students are earning—and whether those credentials are valued by employers for hiring, career advancement, and wage advantages. Last year, ExcelinEd partnered with Lightcast on a research project to find out what’s working and where there are areas for improvement.  

The “Tennessee Industry Credential Analysis” report examines the alignment between industry credentials earned by students in Tennessee and the demands of the state’s labor market. It underscores the importance of credentials in preparing individuals for the evolving job market, noting that by 2031, 63% of jobs in Tennessee will require some form of postsecondary education. 

To understand how well industry credentials are serving both students and employers, the project explored three key questions:  

1. How do Tennessee’s promoted industry credentials align with employer demand?  
2. How do the industry credentials earned by Tennessee students align with employer demand?  
3. Which of Tennessee’s promoted and earned industry credentials are requested by employers for higher-wage, in-demand jobs (statewide and regionally)?  

What the Tennessee Research Found

The short story: There’s a mismatch between what’s offered and what’s in demand.  

Tennessee has a robust history of engagement with industry credentials, but the majority of this work occurs at the state agency level and is not formally codified in statute.  

Tennessee Findings 

• K-12 has strong data collection, but postsecondary does not have a statewide process. ExcelinEd had to request data from each community college and Tennessee College of Applied Technology (TCAT).  
• There are hundreds of promoted industry credentials (credentials located on the “list” of what is available to students) but most are not requested by employers. These gaps also exist at the regional level. Note: employers also need to do a better job of signaling what they value.  

• Over half of the credentials earned register demand but most of them are general career readiness (for example OSHA-10).  

Across K-12 and postsecondary only 13% of the industry credentials earned are licenses and certifications that are requested by employers for higher-wage jobs . An additional 40% of credentials earned are general career readiness credentials that register some employer recognition (e.g., OSHA-10, Microsoft Word, Basic First Aid, etc.)–but these assessments of basic skills are usually not the reason someone will get a job. A striking 56% of all credentials earned are not demanded by Tennessee Employers.  This finding brings up the larger question of how states define and message credentials to students.  

• Many industry credentials linked to jobs with higher wages are very undersupplied (i.e. too few students earn them). The top 5 credentials demanded (such as commercial driver’s license and forklift certification) are high-wage, but not enough students are earning them to meet the demand.  

The Pathway Forward in Tennessee: ExcelinEd Recommendations

The ExcelinEd analysis offers several recommendations to enhance the alignment between education and workforce needs in Tennessee: 

Strengthen Credentials Infrastructure 

1. Conduct a return-on-investment analysis of K-12 and postsecondary workforce programs to assess learner outcomes and inform future programming.  
2. Formalize a pathways governance structure responsible for developing a shared vision for high quality pathways and credentials of value across agencies.  
3. Align policies, accountability, and funding to the list of tiered credentials of value. Prioritize the largest incentives for higher-value postsecondary and industry credentials.  
4. Establish a statewide definition and methodology to identify and verify H3 occupations. Require all agencies to adopt this definition, methodology, and H3 occupation list throughout their policies, priorities, and reporting. 

Ensure Credentials are of “Value”  

1. Collect student-level data on all postsecondary and industry credentials. Include this information in the TNDATA dashboards so that all stakeholders understand the long-term outcomes associated with each credential.  
2. Create a single tiered list of K-12 and postsecondary industry valued credentials.  
3. Codify a cross-agency, cross-sector (i.e., employers) framework and ongoing process to identify and evaluate postsecondary and industry credentials.  
4. Clearly communicate the value of credentials using tiers that are consistent across agencies and systems. Identify pathways with stackable credentials that are guaranteed through statewide articulation agreements. 

Encourage Employer Signaling  

1. Continue to engage with employers, urging them to include the credentialing organization and full name of the credential in job postings.  
2. Encourage employers to more clearly specify whether credentials are required or preferred. 

By implementing these recommendations, Tennessee can strengthen the alignment between its educational offerings and the evolving demands of the labor market, ultimately benefiting both students and employers.