Workforce Certificates, Certifications, Occupational Certifications, Occupational Licenses

Last Updated: Spring 2023

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Overview

Workforce certificates, certifications, occupational certifications, and occupational licenses are terms for credentials that prepare individuals for entry to the workforce. These terms are often confused. They are described by the U.S. Department of Labor as follows:

  • Certificates are completion-based and denote participation in a defined course of study. Certificates are often related to discrete skills within one or more industries or occupations (such as writing, leadership, etc.). Such certificates may have value and are occasionally required; however, they are typically not eligible to be counted towards the credential attainment indicator since they do not prepare individuals with the competencies required to perform a specific occupation. Examples include certificates for discrete skills such as general hygiene (handwashing), general safety, cardiopulmonary resuscitation (CPR), work readiness, and food-handling certificates.
  • Certifications attest to attainment of competence through a rigorous examination or demonstration, and may also have a work experience requirement. Certifications are usually considered to be more rigorous and indicate a higher level of competence or proficiency than a certificate. Certifications are often stackable with educational credentials and with other certifications, and are typically portable. Certifications issued by national industry or occupational/professional associations are typically portable, although there can be regional preferences for some certifications based on regional requirements or local business needs.
  • An occupational certification indicates that the individual has acquired the necessary competencies, including knowledge, skills, and sometimes, personal attributes, to perform a specific occupation. Occupational certifications are generally granted by third-party, non-governmental agencies and by companies (which may offer certification on use of their own products – software, hardware, or equipment); intended to set professional standards for qualifications; required to be renewed after a certain time period; voluntary (although state licensure boards and businesses may specify certification as part of licensing requirements); revocable– violation of standards or requirements can result in suspension or revocation of certification; based on standards that are not defined by government laws or regulations; set via a defensible, industry-wide process of job analysis or role delineation that results in an outline of required knowledge and skills; based on successful completion of an examination or assessment, which indicates mastery of competencies as measured against a defensible set of standards; predicated on a set amount of work experience or professional/practical experience. Many occupational certifications require work experience and can only be earned by stacking learning and work experiences and then taking a certification examination and submitting documentation of the pertinent work experience.
  • An occupational license is a credential awarded by a government agency that constitutes legal authority to do a specific job. Licenses are based on some combination of degree or certificate attainment, certifications, assessments, or work experience; are time-limited; and must be renewed periodically. Occupational Licenses are typically granted by Federal, state or local governmental agencies, or government-authorized boards; mandatory in the relevant jurisdiction;  intended to set professional standards and ensure safety and quality of work, such as medical licenses for doctors; required in addition to other credentials (e.g., educational degrees/credentials, certificate of completion of a registered apprenticeship); defined by laws, regulations, and administrative procedures; time-limited -- occupational licenses must be renewed based on meeting ongoing continuous learning or other requirements to maintain the license; violation of the terms of the license can result in legal action, including loss of the license.

The U.S. Department of Labor has identified a variety of public and private entities that issue recognized postsecondary credentials:

  • A state educational agency or a state agency responsible for administering vocational and technical education within a state.
  • An institution of higher education described in Section 102 of the Higher Education Act (20 USC 1002) that is qualified to participate in the student I-2 financial assistance programs authorized by title IV of that Act. This includes community colleges, proprietary schools, and all other institutions of higher education eligible to participate in federal student financial aid programs.
  • An institution of higher education that is formally controlled, or has been formally sanctioned or chartered, by the governing body of an Indian tribe or tribes.
  • A professional, industry, or employer organization (e.g., National Institute for Automotive Service Excellence certification, National Institute for Metalworking Skills, Inc., Machining Level I credential); or product manufacturer or developer (e.g., recognized Information Technology certifications, such as Microsoft Certified IT Professional (MCITP), Certified Novell Engineer, etc.) using a valid and reliable assessment of an individual’s knowledge, skills and abilities.
  • Employment and Training Administration’s (ETA) Office of Apprenticeship or a State Apprenticeship Agency.
  • A public regulatory agency, which awards a credential upon an individual’s fulfillment of educational, work experience, or skill requirements that are legally necessary for an individual to use an occupational or professional title or to practice an occupation or profession (e.g., Federal Aviation Administration aviation mechanic license, or a state-licensed asbestos inspector).
  • A program that has been approved by the Department of Veterans Affairs to offer education benefits to veterans and other eligible persons.
  • Job Corps, which issues certificates for completing career training programs that are based on industry skills standards and certification requirements.

Types/Examples

In the State of Minnesota, certain businesses contracting with the state are required to have a Workforce Certificate. Workforce Certificates require contractors to actively work to hire, train, promote, and retain people of color, Indigenous people, women, and/or people with disabilities to ensure that Minnesota’s workforce reflects Minnesota’s demographics. The Workforce Certificates are obtained through the Minnesota Department of Human Rights (MDHR) and are valid for four years.

Ivy Tech Community College of Indiana: Workforce certification validates quality instruction and curriculum, and provides a third-party measure of students’ technical skills. Employers benefit from simplification of the employee screening and selection process; greater employee knowledge and improved productivity; increased return on investment (ROI) by quantifying course outcomes. Employees benefit through improved and validated skills; improved employment/advancement opportunities and earning potential; enhanced professional credibility; earned college credit which can be applied toward a certificate or degree; differentiated skills during hiring process.

Thirdway: A pay-for-performance model in which students pay one-third of the cost and the state covers the next two-thirds: one when the student completes the program and the final third when the student completes a workforce certificate after the training (see Virginia’s New Economy Workforce Grant). 

Indeed, a worldwide employment website for job listings aggregates job listings from thousands of websites, including job boards, staffing firms, associations, and company career pages. Indeed identified 10 career certifications in demand in 2023: (1) Project management certifications, (2) Business analyst certification, (3) Supply chain certifications, (4) Marketing certifications, (5) Skilled trade certifications, (6) Human resources certifications, (7) Sales certifications, (8) Accounting certifications, (9) Computer network certifications, and (10) Health care certifications.

References

Definitions & Use of Key Terms & Concepts in Incremental Credentialing from Credential As You Go

Indeed. (March 2023). 10 In-Demand Career Certifications (And How To Achieve Them).

U.S. Department of Labor: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEN/2020/TEN_25-19_Attachment_1.pd

Virginia: New Economic Workforce Grant (2023)

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