Measuring Higher Education Outcomes: A Shift Towards Skills

The federal government has changed how it evaluates higher education outcomes. For the first time, programs participating in the federal student loan program will be accountable for their graduates’ earnings. This new approach, called the Student Tuition and Transparency System and Earnings Accountability rule, sets a basic standard. Earnings offer a convenient metric for initial assessment, but they do not capture long-term value.

The pace of change in technology and the economy highlights that preparing someone for a first job is inadequate. Employers are increasingly using skills-based hiring. A recent survey indicates that 70% of employers use this method. As job roles evolve, employers find reskilling and upskilling current workers more efficient. Tools to assess skills are improving, allowing both employers and learners to better demonstrate capabilities.

Despite advances in skills measurement, public discussion often centers on metrics like class time or initial earnings. This focus presents a chance to rethink quality measures in education. Instead of using wages alone to assess education value, mastery of skills should be emphasized. Traditional measures of college quality—like prestige or seat time—do not clearly indicate what graduates know.

Policymakers have used wage thresholds to evaluate college success, though these do not reflect skills. Not all valuable roles, such as those in education or liberal arts, come with high earnings. Now, with the ability to evaluate outcomes based on skills, competencies, and real-world application, there is no excuse for outdated measures.

The workforce’s rapid evolution requires clear understanding of worker capabilities. While automation affects some roles, skills can often be adapted within organizations. Prioritizing skills helps identify how abilities transfer across industries, unveiling new job opportunities.

In Alabama, healthcare employers needing processing technicians recruited metal equipment operators due to similar skill sets. Recognizing shared competencies expanded talent pools and opened new career paths.

Competency-based education programs are addressing these needs by clearly defining mastery before credentialing. Such programs deliver transparent and credible value, making skill verification easier for employers and providing accountability for institutions.

The future lies in a quality assurance model aligning credentials with modern economy demands. This model ensures clarity on competencies for learners and employers and assists states in verifying program efficacy.

Although the new federal standards signify progress, colleges and universities should aim beyond compliance. By ensuring their graduates possess key competencies, institutions can foster lifelong career success. Charla Long, president of the Competency-Based Education Network, emphasizes this commitment to doing good.