In today’s competitive job market, I’ve seen a huge boom in skills credentials—everything from digital-marketing certificates to online courses in artificial intelligence.
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With over 700,000 different nondegree credentials available in the U.S., more and more workers are turning to them to bolster their résumés. However, a new study suggests that most of these programs deliver few, if any, material returns.
The study, from the nonprofit Burning Glass Institute, is one of the most comprehensive analyses I’ve seen on the topic. It found that just one in eight nondegree credentials delivered notable pay gains within a year of completion. This is a sobering statistic for workers investing significant time and money into these programs.
🔬 What the Data Reveals
The research compared over 65 million American workers’ career histories since 2009, looking at those who received a credential versus similar workers who didn’t. The results were surprising. Even some certificates from elite institutions and for in-demand skills showed little immediate payoff. For example, a \$13,760 Project Management Graduate Certificate from Harvard Extension School didn’t generally lead to a pay increase compared to peers without it.
So, which credentials actually count? The study identified 2,000 top-performing credentials that made a real difference. Workers who earned one of these saw an average pay increase of about \$5,000 extra a year. Many of these successful certificates were in fields like nursing, radiology, and other medical areas where credentials are highly valued and labor is in high demand.
🤔 How to Approach Getting a Credential
This data doesn’t mean all certificates are worthless, but it does mean I need to be strategic. The study suggests that these courses are often better for acquiring new skills and demonstrating learning rather than serving as a golden ticket to a new career. Not every credential-seeker is after an immediate raise; some get them because their employer pays, and the skills could be useful later.
My advice, based on the report, is to start by reading job postings for the position you want. Identify the specific, in-demand skill set required, whether it’s data analysis or social-media marketing. As one successful certificate-holder noted, the goal was to “build a set of skills that I can put on a résumé,” not to rely on the name of the certificate itself. For those interested in tech, for example, a course in Python coding essentials could be a practical choice.
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