Description

Digital credentials, learning and employment records (LERs), and “Skills First” talent management practices can serve as useful tools for addressing the workforce needs of small and mid-sized businesses (SMBs). While large employers are increasingly adopting skills-based hiring and talent development strategies, SMBs face unique challenges and opportunities in this shift. This report presents insights from a national survey and in-depth interviews with SMB leaders across six states, offering a closer look at their understanding of verifiable credentials, the perceived value of skills validation, and the key features they need in digital credentialing tools.

As the Skills First movement gains momentum, this research sheds light on how SMBs can leverage credentialing innovations to enhance workforce development, improve competitiveness, and navigate economic uncertainties. It highlights gaps in awareness and alignment while identifying opportunities for educators, employers, and policymakers to collaborate in designing scalable solutions that meet SMBs’ talent management needs. With early lessons and actionable insights, this report aims to prioritize and support ongoing learning and adaptation for organizations advocating for and implementing Skills First strategies at scale.