Late last year, the Commission for Higher Education (CHE) provided an update on the State of Higher Education in Indiana, noting that Indiana now ranks 5th in the nation in the number of Hoosiers who have earned short-term credentials. This high ranking shouldn’t be a surprise. For several years, state leaders have encouraged credentials and certificates to increase skills and improve job prospects.
Ascend Indiana is committed to ensuring all Hoosiers and all employers are equipped to thrive in Indiana’s evolving economy. Given this, we engaged RAND Corporation to understand outcomes for Hoosiers who earned short-term credentials.
RAND’s recently released report—Examining Short-Term Credentials and Student Outcomes in Indiana—shows that many short-term credentials lead to increased earnings and further educational attainment. While this is good news, a closer look at RAND’s findings shows that there is still work to be done.
First, it should be noted that the universe of short-term credentials is complex. Indiana has a wealth of data on credit-bearing certificates awarded by colleges to students who complete a specific course of study. Students can earn these during high school and post-secondary studies and as adults in other learning environments. Short-term credentials also include industry-recognized certificates and credentials associated with skills development programs, such as a Commercial Driver’s License. Data on those skills-based certificates is limited in Indiana – like in nearly all states; that is why RAND focused its two-year study on credit-bearing credentials.
What RAND found, and where Indiana leads, is in the number of students who earned a certificate then proceeded to earn additional credentials, known as “stacked credentials.” More than 70% of Indiana’s certificate-earners obtained additional credit-bearing certificates—either another certificate or an associate or bachelor’s degree.
One program that has led Hoosiers to stack credentials is the Indiana College Core (ICC), which was introduced in 2014 to facilitate the transfer of general education coursework into degree programs. RAND found that almost 80% of ICC earners have pursued an associate or bachelor’s degree.
In addition to studying credential stacking, RAND noted that over the last 10 years, there has been a 500% increase in the number of credit certificates earned. The RAND study also showed, on average, Hoosiers made $28,720 annually over the six years that followed certificate completion. While this is, on average, a 20% increase over pre-certificate earnings, few would argue that it is a good wage. While RAND’s study did not examine the long-term earnings of those who stacked short-term credentials, it stands to reason that as individuals pursue further education, their earnings increase.
It’s heartening to have this RAND report as a guide as Ascend implements its new strategic plan, which focuses its work on ensuring Hoosiers have pathways to rewarding careers. We can see clear benefits of ICC, but there are many holes remaining in our data. We need to understand skills-based certificate outcomes. We need to amplify the message so that students, parents and others are aware of the role short-term certificates play in future education and the workplace. And we need to make sure Hoosiers have access to information about the outcomes they can expect as credentials are earned.
Brad Rhorer is the President and CEO of Ascend Indiana. The RAND study was funded through a grant from the Richard M. Fairbanks Foundation.
