Struggling to hire? Don’t overlook alternative credentials

Long gone are the days of traditional resumes and cover letters. In this new, post-pandemic workforce, employers will need to be open to new and innovative means of understanding employees’ skill sets and qualifications.

More workers are turning to alternative forms of credentials to showcase their job skills, according to new research by the Society for Human Resource and Management and Walmart. Nearly half of U.S. workers say they have some form of an alternative credential, and among those who don’t, 49% have considered earning one.

“Alternative credentials are key to uncovering untapped talent, especially when it comes to those job seekers who may not have the opportunity to build skills in a traditional way but have the competencies they need to succeed,” said SHRM Foundation President Wendi Safstrom in a press release.

Read More: To get women back to work, throw out your resume requirements

Alternative credentials refers to any credential, professional certification, acknowledgment of apprenticeship or badge that indicates a worker’s skills within a field, according to the research. The most common types of alternative credentials held by employees are training certificates (52%), course completion certificates (48%) and industry or professional certifications (38%).

“A majority of executives, supervisors and HR professionals believe that including alternative credentials in hiring decisions can actually improve overall workplace diversity,” Safstrom said.

For example, when employers recruit using a “skills-based” hiring process instead of basing their decisions off of resumes, the number of women hired into senior roles increases by almost 70%, according to new research conducted by recruiting platform Applied. And in the tech industry, coding and programming bootcamps are already considered to be acceptable forms of education for top jobs.

Read more: Ditching 4-year degree requirements may solve the tech industry’s labor shortage

Seventy-two percent of workers agree that alternative credentials are an affordable way to gain the experience necessary to enter a new job, the research found. And 77% agree that those programs and certificates would increase their chances of being hired.

But despite their benefits, not enough companies have created systems to utilize alternative credentials. Forty-five percent of HR professionals surveyed say their organization uses automated prescreening tools to review job applicant resumes, but only a third of those say their systems recognize alternative credentials.

“Alternative credentials can enable learning for workers, whether they are gaining new skills or refining old ones, and provide a pathway to a more diverse talent pool for employers,” Sean Murphy, director of opportunity at Walmart, said in a press release. “[The] research clearly shows a demand for credentials, but also uncovers the need for more transparency in their development and use, as well as a need for setting the standard for quality.”