New Research Finds Credential Fluency Is Emerging as a Competitive Advantage in Hiring

Study by OneTen and the Burning Glass Institute examines how employers use non-degree credentials to compete in the race for skills

NEW YORK, March 3, 2026 /PRNewswire/ -- OneTen today released a new research report, Credential Fluency: The Hiring Advantage in the Race for Skills, produced in partnership with the Burning Glass Institute, that examines how non-degree credentials (e.g. boot camps, industry-wide certifications and vendor-specific badges) are used in hiring decisions and the advantages employers who apply them have over those who do not.

The research, which analyzes hiring patterns across more than 1,000 large U.S. employers, finds that as worker shortages persist and skills shift rapidly, a subset of employers is gaining a competitive edge through "credential fluency," defined as the ability to identify and validate credentials beyond degrees as strong signals of job-relevant skills for hiring decisions. This emerging capability supports skills-first hiring efforts which prioritize demonstrated skills and capabilities over traditional proxies such as four–year degrees. The report situates these findings within a labor market shaped by tightening labor supply, accelerating skill change, and AI-driven shifts in job requirements. As a result, technical skills now depreciate in months rather than years, elevating the value of current, validated signals of capability.

The analysis also highlights the growing complexity of the credential ecosystem. According to a recent report from the nonprofit organization Credential Engine, there are more than 1.85 million distinct credentials available from 134,491 providers today in the U.S., making it increasingly difficult for employers to evaluate which credentials signal real value, and move beyond degrees.

"Many companies express support for skills-based hiring. Translating that intent into consistent practice continues to be challenging," said Debbie Dyson, CEO of OneTen. "This report makes clear that credential fluency—knowing which credentials matter, and how to operationalize them—gives companies an undeniable competitive edge."

"The biggest barrier today isn't talent. It's translation," said Matt Sigelman, President of the Burning Glass Institute. "Many companies have made commitments to skills-based hiring, but their systems aren't able to recognize signals of work readiness other than degrees. However, our research has identified a set of employers making real progress. These firms are turning to a broader array of credentials and are building the infrastructure to identify and verify these signals, train talent acquisition teams, and hire with consistency."

The report also highlights measurable outcomes when skills-first hiring is supported by consistent credential recognition, including faster hiring cycles, improved early performance and better retention, reinforcing the role credentials play in translating skills-first intent into hiring performance.

Key Findings

• Talent shortages are increasingly shaped by employer screening practices: Even amid tightening demographics and labor force participation trends, many employers continue to rely on degrees as blunt screening tools, including for roles where degrees add limited predictive value. As a result, many qualified, credentialed candidates do not make it past automated screening.
• Credential-fluent firms are pulling ahead: A subset of employers, especially those that effectively link credentials to business-critical skills, consistently requests and hires based on non-degree credentials and sees measurable returns. Credential recognition and hiring effectiveness varies widely by firm – with the top 10% of firms hiring workers with credentials 11 percentage points more often for the same roles, compared to the bottom 10% of firms.
• Dropping degree requirements alone is not sufficient: Removing degree requirements alone is associated with only a two-percentage-point increase in the share of hires with non-degree credentials, and there is little correlation between advertising credentials and actually hiring for them. This gap between intent and execution helps explain why skills-based hiring often falls short in practice.
• Sector differences matter less than firm strategy: While healthcare employers request credentials most frequently and technology employers hire credentialed workers at higher rates, credential use varies dramatically by firm within the same industry, underscoring that outcomes are driven more by employer strategy and system design than by sector alone.
• Credential quality matters: Non-degree credentials support skills-based hiring decisions only when employers can distinguish those that serve as real signals of job-relevant skills. The research indicates that credential value varies, and that clearer alignment between credentials and role requirements is associated with stronger outcomes.

The findings carry important implications for employers navigating a labor market in which nearly 60% of the U.S. workforce does not hold a four-year degree yet increasingly hold non-degree credentials. When employers build systems to recognize validated skills more consistently, they'll expand their talent pools and access capability their competitors overlook.

Read the full report — Credential Fluency: The Hiring Advantage in the Race for Skills: how employers use non-degree credentials to compete for talent 

About the Burning Glass Institute

The Burning Glass Institute is a fully independent, nonprofit data laboratory that generates and mines novel datasets to construct innovative models, metrics, and benchmarks. Our insights boost economic mobility, drive worker and community prosperity, and bring new efficiency to how talent and opportunity connect. Signature initiatives include the American Opportunity Index and the Credential Value Index non-degree credential outcomes evaluation center.

About OneTen

OneTen is a nonprofit organization committed to unlocking opportunity for talent without four-year degrees. As a coalition, we work with leading CEOs and their companies to transform hiring and advancement practices through skills-first strategies and connect talent without traditional college degrees to in-demand jobs at America's top employers. OneTen is dedicated to closing the opportunity gap for all talent without traditional college degrees. By prioritizing skills over degrees, we can create greater economic mobility for talent while investing in America's workforce. Join us at OneTen.org , where one can be the difference.

SOURCE OneTen