As workforce requirements shift dramatically in an era of rapidly developing technology—including generative AI (GenAI), employers are shifting their focus from educational credentials to a focus on specific skills.
New data from Coursera’s 2025 Micro-Credentials Impact Report supports this shift and offers insights into how employers can develop a more skills-based focus for their talent acquisition and learning and development (L&D) efforts.
Micro-Credentials Are in Demand Among Employers…
Coursera’s research reveals how leading employers are embracing skills-based credentials (like professional certificates from Google, Microsoft, and AWS) leading to smarter hiring decisions and reduced training costs.
Adoption is dramatic. For example:
- 97% of employers are already using or exploring skills-based hiring.
- 90% say they’re willing to offer higher starting salaries to candidates with micro-credentials.
- 89% of employers who have hired candidates with micro-credentials say they saved on training costs for those hires—with most saving 10–30% annually.
…and Students
Students are also broadly expressing a preference for education that focuses on skills—not necessarily diplomas. And they’re most interested in gaining credentials to help them understand and effectively use new technology like GenAI.
Coursera reports that:
- 93% of students believe that GenAI training should be part of degree programs.
- Students are 2.5 times (89%) more likely to enroll in a degree if GenAI micro-credentials are offered.
But, despite their interest, only 17% of students have already earned a GenAI micro-credential.
This should be a wakeup call for both educators and business leaders. Both can play a role in providing employees with the GenAI skills they need to succeed in their workplaces today.
A Mandate for HR Leaders
HR leaders can play an important role here. They should consider:
- Developing skills-based job descriptions that have a focus on competencies, not just degrees.
- Consider offering higher compensation for employees with industry-recognized micro-credentials.
- Track training cost savings achieved by hiring candidates with relevant micro-credentials.
- Encouraging employees to pursue micro-credentials for career advancement.
As technology continues to have a major impact on companies and how work is done, both educational institutions and employers need to shift their focus from degree-based outcomes to skill-based outcomes—and, specifically, to ensuring that students and employees are better equipped with the knowledge of how to leverage GenAI.