Skills Visibility: Why and How a Skills-Based Economy can be More Equitable

Author: Education Design Lab

Summary

The Education Design Lab’s report, “Skills Visibility: Why and How a Skills-Based Economy Can Be More Equitable”, discusses the need for a shift from degree-based to skills-based hiring and education systems. This transformation seeks to enhance economic mobility and equity, focusing on learners who have historically been excluded from the traditional education-to-work pipeline. The key themes of the report highlight how skills visibility can foster a more inclusive economy and workforce.

Introduction

The report begins by outlining the importance of skills in reshaping the relationships between three key stakeholders: learners, learning institutions, and employers. The movement towards a skills-based economy has been accelerated by the global COVID-19 pandemic and societal shifts, like the increased focus on racial equity after the killings of George Floyd and Breonna Taylor. The report advocates for a system that better connects learners’ skills with the needs of employers, reducing reliance on formal degrees.

Skills Visibility and the Talent Ecosystem

“Skills visibility” refers to making learners’ skills transparent and easily accessible to both learners and employers. The report defines four critical areas within the current talent ecosystem that need reinvention:

1. Learning Journeys – Making all formal and informal learning experiences count toward skills development.
2. Transcripts – Replacing traditional transcripts with more dynamic records that reflect both academic and life skills.
3. Resumes – Moving towards skill-based resumes that reflect a person’s abilities rather than degrees or job titles.
4. Job Postings – Creating job descriptions focused on the skills needed, rather than traditional qualifications like degrees.

The idea is to create a more virtuous circle of visibility where learning, credentialing, and employment opportunities align more closely with actual skills. This system promises to make it easier for individuals to transfer their skills between different sectors and jobs, providing more flexibility and economic opportunity.

Stakeholders and Their Roles

The report identifies five key groups who need to work together to implement skills visibility:

1. Learners – Expected to advocate for more flexible learning paths and ensure their skills are made visible.
2. Education Providers – Must shift from degree-based programs to flexible, stackable credentials that align with industry needs.
3. Employers – Need to adopt skills-based hiring practices and remove unnecessary degree requirements from job descriptions.
4. States and Governments – Should incentivise skills-based education and hiring practices through policy and infrastructure.
5. Technology Platforms – Companies building digital tools, like learner wallets and skills marketplaces, need to ensure their products are equitable and inclusive.

Design Criteria for an Equitable Skills-Based System

The report proposes six design criteria to ensure that the shift to a skills-based economy is equitable:

1. Open Access for All – Systems must be freely available and accessible.
2. Learners See Value – Tools should empower learners and offer clear pathways to employment.
3. Bias Mitigation – Employers need to actively combat bias in hiring practices.
4. Collaboration Between Employers and Educators – Both parties should work together to define skill requirements.
5. Portability of Skills – Skills should be transferable across industries and geographies.
6. Lifelong Advising – Learners need ongoing guidance throughout their careers.

Risks and Challenges

The report warns that if not done correctly, the skills-based economy could lead to further inequities. For example, unequal access to technology could widen gaps, and automated systems used in hiring might perpetuate biases. The challenge lies in ensuring the system works for all learners, particularly those from disadvantaged backgrounds.

Conclusion

The report ends by urging stakeholders to act quickly but thoughtfully in designing the new skills-based ecosystem. The goal is to put learners at the centre of this transformation while being mindful of the risks involved.