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IFAC PapersOnLine 55-39 (2022) 82–87

Harnessing
Harnessing the
the Benefits
Benefits of
of Micro
Micro Credentials
Credentials for
for Industry
Industry 4.0
4.0 and
and 5.0:
5.0:
Harnessing the Benefits
Skills
Harnessing the Benefits of Micro
Training
of Micro Credentials
and Lifelong
Credentials for Industry
Learning
for Industry 4.0
4.0 and
and 5.0:
5.0:
Skills
Skills
Harnessing the BenefitsTraining
Training
of Micro and
and Lifelong
Lifelong
Credentials Learning
Learning
for Industry 4.0 and 5.0:
SkillsBreda
Training and Lifelong
Walsh Shanahan Learning
*. John Organ**
SkillsBreda
Breda Walsh
Walsh Shanahan
Training and *.
*. John
John Organ**
Lifelong
Shanahan Learning
Organ**
Breda Walsh Shanahan *. John Organ**
*Department of Education, South East Technological University, Waterford, Ireland (Tel: +353-51-
*Department
*Department of of Education,
Education, South Breda
South East
Walsh
East Technological
Shanahan
Technological University,
*. John Organ**
University, Waterford,
Waterford, Ireland
Ireland (Tel:
(Tel: +353-51-
+353-51-
*Department of Education, South 302058; Email:
EastEmail: breda.shanahan@setu.ie)
Technological University, Waterford, Ireland (Tel: +353-51-
302058; breda.shanahan@setu.ie)
*Department 302058;
302058; Email:
EastEmail: breda.shanahan@setu.ie)
breda.shanahan@setu.ie)
**DepartmentofofEducation, AccountingSouth and Economics, Technological University,
South East Waterford,
Technological IrelandIreland
University, (Tel: +353-51-
(e-mail:
**Department
**Department of of Accounting
Accounting302058; and
and Economics,
Economics, South
South East
East Technological
Technological University,
University, Ireland
Ireland (e-mail:
(e-mail:
Email: breda.shanahan@setu.ie)
john.organ@setu.ie)
**Department of Accounting and Economics, South East Technological University, Ireland (e-mail:
john.organ@setu.ie)
john.organ@setu.ie)
**Department of Accounting and Economics, john.organ@setu.ie)
South East Technological University, Ireland (e-mail:
Abstract: Industry 4.0 has centered on ‘Digitalisation’ of the economy and Industry 5.0 will synchronise
john.organ@setu.ie)
Abstract: Industry 4.0 has centered on ‘Digitalisation’ of the economy and Industry 5.0 will synchronise
highly
Abstract:
Abstract: trained
Industry
Industryhumans 4.0
4.0 has with
has collaborative
centered
centered on technologies.
‘Digitalisation’
on ‘Digitalisation’ ofThe
of the Covid-19 and
the economy
economy pandemic
and Industryresulted
Industry 5.0 willin
5.0 will significant
synchronise
synchronise
highly
highly trained
trained humans
humans with
withwith collaborative
collaborative technologies.
technologies. The
The Covid-19
Covid-19 pandemic
pandemic resulted
resulted in significant
innow
significant
changes
highly in the
trained jobs
humans market withwith job
collaborativelosses and skills
technologies.gaps occurring in many sectors. There is a need
changes
Abstract: in Industry
the jobs 4.0
market has centeredjob on ‘Digitalisation’
losses and skills ofThe
gaps Covid-19
the economy
occurring in pandemic
and
many Industry
sectors. resulted
5.0
There insynchronise
willis significant
now aa need
changes
for in
upskilling the jobs
and market
lifelong with job
learning losses
to be and skills
consolidated gaps occurring
into the in many
workforce. sectors.
This paperThere is
outlinesnow the need
part
changes
highly
for in the and
trained
upskilling jobs
humans market
lifelong withwith job losses
collaborative
learning to be and skills gapsinto
technologies.
consolidated occurring
The in many
Covid-19
the sectors.
pandemic
workforce. This There
resulted
paper is
innow
outlines a need
significant
the
for upskilling and play
Micro-credentials lifelongin learning
joining to be consolidated
together the three maininto the workforce.
stakeholders: the This paper
learner, the higher the part
outlineseducation part
for upskilling
changes in the and
Micro-credentials jobsplaylifelong
market learning
with
in joining job to be and
losses
together consolidated gapsinto
skills main
the three the workforce.
occurring
stakeholders: in many This paper
sectors.
the learner, There
the outlines
is now
higher the part
a need
education
institution and
Micro-credentials
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Copyright
Keywords:
the currentand
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research The in
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Keywords: Micro-credentials, Higher Education, Life Long Learning, Employers, ECTS, Quality
(https://creativecommons.org
Keywords:
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Framework
research in of /licenses/by-nc-nd/4.0/)
universities, Higher
Qualifications, Education,
Digital
technological Life Long
Accreditation,
institutes Learning,
and Employers,
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worldwide. 5.0 Quality
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Keywords: Framework of Qualifications, Higher Education, Digital Life Long Learning,
Accreditation, Employers,
Industry ECTS,
4.0, Industry 5.0Quality
Assurance,
Assurance, Framework
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Keywords: Micro-credentials, of Qualifications,
Qualifications,
Higher Education, Digital
Digital LifeAccreditation,
Accreditation,
Long Learning, Industry
Industry 4.0,
4.0, Industry
Industry
Employers, ECTS, 5.0
5.0Quality
Assurance, Framework of Qualifications, Digital Accreditation, Industry 4.0, Industry 5.0
1. INTRODUCTION personalised, customised, high value, environmentally
1.
1. INTRODUCTION
INTRODUCTION personalised,
personalised, customised, high high value, environmentally
1. INTRODUCTION optimized, highcustomised,
quality products...” value, environmentally
(Doyle-Kent, 2021).
Industry 4.0 is concentrated on the ‘digitalisation’ of the personalised, optimized,
optimized, high high customised,
quality
quality
high value,
products...”
products...”
environmentally
(Doyle-Kent,
(Doyle-Kent, 2021).
2021).
Industry 4.0 is concentrated on the ‘digitalisation’ of the Recognising optimized, the
high dynamic
quality requirements for upskilling
(Doyle-Kent, and
2021).
economy
Industry supported
4.0 is 1. INTRODUCTION
by digital
concentrated computing
on the technologies.
‘digitalisation’ of the personalised,
Recognising dynamicproducts...”
thecustomised, high value,
requirements for environmentally
upskilling and
Industry 4.0
economy is concentrated
supported on the ‘digitalisation’
by digital computing technologies. of the Recognising reskilling in the
the workplace
dynamic involves
requirementsthree main
for stake holding
upskilling and
It is a
economy phenomenon
supported of
by digitalisation
digital computing that it is hugely
technologies. complex Recognising
optimized,inhigh
reskilling theworkplace
the dynamicproducts...”
quality requirements
involves three for
mainupskilling
(Doyle-Kent, and
2021).
stake holding
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It is a supported
4.0
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2405-8963 Copyright © 2022 The Authors. This is an open access article under the CC BY-NC-ND license.
with collaborative technology resulting in innovative,
Peer review under responsibility of International Federation of Automatic Control.
10.1016/j.ifacol.2022.12.015
 Breda Walsh Shanahan et al. / IFAC PapersOnLine 55-39 (2022) 82–87
2. MICRO-CREDENTIALS
2.1 Macro-Degrees and Micro-Credentials
Attaining a 3 or 4 year undergraduate degree, a macro-
credential, from a University is still regarded as a valued
attainment on the part of the individual and society at large. It
provides evidence of intelligence and study in the chosen
professional subject area. The macro-degree has long been
established in society as a prize often enabling the holder to
begin their careers in employment, entrepreneurship or further
study. Recognition of the degree is universally accepted where
learning outcomes are transparent through the Higher
Education (HE) programmes and the professional educational
standards are governed by educational authorities and
ministries in developed and developing countries.
However, there is overwhelming evidence that current models
of higher education will not be able to meet a growing demand
for a depth and breadth of new skills and competences across
multiple sectors, and importantly for the jobs of tomorrow. It
is predicted that 50% of all employees will need reskilling by
2025 and widely accepted that over the next decade “...new
technologies will reshape millions of jobs in the EU”
(European Commission, 2019, p.7).
Content-laden degrees are not always effective for adult
learners in today’s fast paced environment and employees also
need ‘just-in-time’ skills development that is immediately
applicable. This trend is likely to accelerate with the economic
crisis triggered by the COVID-19 pandemic. (Shapiro Futures
et al., 2020). This projection leaves industry, the employee and
higher education institutes with challenges which can be met
with the introduction of micro-credentials. These are offered
both online and through a blended approach and often based
on Massive Online Open Courses (MOOCs).
The European Commission (Shapiro Futures et al., 2020, p.10)
defines a micro-credential as ‘a proof of the learning outcomes
that a learner has acquired following a short learning
experience. These learning outcomes have been assessed
against transparent standards’. Examples of micro-
credentials can be obtained from providers such as Microsoft,
Coursera, FutureLearn and edX.
Courses leading to micro-credentials vary in terms of their
design and delivery (e.g. variations in their length and level of
workload, difficulty and work effort, the quality of the
descriptions of their learning outcomes and assessment
practices). Micro-credentials must include a concise summary
of critical information (e.g. title, learning outcomes,
description of content, type of assessment, quality assurance)
to ensure that information about micro-credentials is
transparent and informative, and that learners and employers
are well informed about exactly what micro-credentials
communicate about their holders. Characteristics are:
83
Table 1: Micro-credentials – common characteristics (Resei et al.,
based 2019)
Micro-Credentials – Common Characteristics
1 Limited length of learning activities – larger than a
single course but less than a degree
2 Labour market relevance: focus is on delivery of
specific knowledge, skills and competences useful
in the workplace
3 Wider societal impact: focus on lifelong learning
opportunities that are reasonably priced, short and
convenient to access.
2.2 Micro-credentials - Definition
Micro-credentials have existed in various forms for many
decades under different titles and descriptions. These micro-
awards have been used to mark recognisable achievements in
sports, recreation and the military with the awarding of medals,
badges, certificates etc. In the educational sector, Ehlers
(2018) states, the Latin root word for credential is ‘credence’
relating to credibility or belief. He writes that ‘Credibility in
terms of learning outcomes or achievements, is usually
associated with solid learning and assessment design, backed
by trusted, experienced educational organizations’ (Ehlers,
2018, p. 458). The term micro-credential is further confusing
as it can be used in different contexts and depend on who is
issuing them. Some micro-credentials can be called digital
badges, online certificates, alternative credentials, nano-
degrees or micro-masters. Kazin and Clerkin (2018, p.3)
assign this situation to the fact that the field is still ‘rapidly
evolving’ and constantly changing. However, the definition
outlined above by the European Commission is the description
to be used throughout this paper outlining the main criteria of
short courses, learning outcomes, open and transparent
assessment, and recognisable proof of learning. The added
features of portability and stackability are also features which,
whilst not mentioned in the definition, form a significant part
in the uptake and success of micro-credentials worldwide.
2.3 Definitions by standards and recognition
Employers and learners require validation and value to be
assigned to micro-credentials for them to be recognised within
the workplace and in society at large. Establishing this
recognition and value could be achieved if the micro-
credential adhered to the formal criteria of modules offered on
formal degree programmes, known as ‘credits’, which are on
the estimated and agreed time each learner must spend on a
designated element of study by the European Credit Transfer
and Accumulation System (ECTS). This system is used by 48
countries within the European Higher Education Area and is
based on national and internationally agreed values for
workloads involved in formal HE programmes following the
Bologna Process of 2019. Following a survey undertaken by
the EU Consultation Group on Micro-credentials the
deployment of ECTS can contribute to making the workload
of a micro-credential visible and part of the recognition
process (Larsen, 2020). Several experts from the group
signalled that a minimum of 5 ECTS would be a good number
84 Breda Walsh Shanahan et al. / IFAC PapersOnLine 55-39 (2022) 82–87
for a micro-credential short course to be compared to a formal
degree module where, dependent on national legal provisions,
the workload of lectures, seminars, projects, practical work,
work placement and individual study constitute workload
ranges from 1,500 to 1,800 hours in an academic year and
amount to a total 60 credits. (Shapiro Futures et al, 2020)
The micro-credential ecosystem where earners of credentials
can digitally store, share and build on their portfolio of
achievements is based on The Open Badge Infrastructure
(OBI) created by Mozilla, the McArthur Foundation and the
Gates Foundation. Since then it has been maintained and
updated by the IMS Global Learning Consortium which is one
purveyor of educational technology standards. The OBI
contains metadata of the credential which consists of who
earned the credential or badge, who issued the credential (by
name or institution), when was credential issued, details of the
work involved, alignment of the credential with outcomes,
standards or frameworks, and the actual work completed. The
last point being the most important to employers outlining
skills set obtained by the credential owner (Rimland & Rash,
2019).
If micro credentials are to be generally accepted as an
alternative credential either as a short stand-alone course or
part of newly designed HE programmes then the metadata
provided must be valid and visible to all. OEPASS (the Open
Education Passport project) funded by the EU Erasmus+
programme, outlines the micro metadata standards for EU
higher education leading to validation and recognition by the
employer. It encompasses the three main stakeholders: the
learner, the HE provider and the employer.
The following lists the Meta-Data Standards of MicroHE
(adapted from Ehrenreich et al., 2020)
Learner: Name; Date of Birth; ID
Evidence of Qualification: Publication Date; Modification
Date; Change/Additional Note.
Learning Experience: Title; Definition; Thematic Subject;
Mode of Study: Workload; Learning outcomes; Language.
Credit System: Title of Qualification/Credential; Thematic
Subject: Ways to Acquire; Credential type; Grade Acquired;
Number of Credits Acquired: Date of Issue
EQF level: NQF level.
Assessment Criteria: Grading scheme; Assessment method;
Value of Credit.
Formal (HEI): Name; Public key; Official Stamp;
Accreditation;
Employer: Recognition of credentials
2.4 Classifying Micro-credentials
Hudak and Camilleri (2018), through their work with the
MicroHE Consortium, reports a review of the micro-
credentials offered by the major platforms such as LinkedIn
Learning, Coursera, Atingi, Alison.com and EdX which states
there are essentially three types of courses that lead towards
micro-credentials. They differ in size, complexity and degree
of recognition and are Skill credentials, Micro-credential
modules and Short Learning Programmes (SLP).
2.4.1 Skill credentials typically involve 4-12 hours
of learning, are regarded as non-formal education, are not
quality assured by an external quality assurance assessor and
are linked to the acquisition of a specific competence. The
most common form of this skill credential is the Open Badge
credential. It is the most widely used inter operable open
standard for digital credentials and is the standard developed
by the Mozilla Foundation supported by Mozilla Backpack,
LinkedIn and Facebook for sharing credentials online. This
form of digital credential has been accepted by various
industry sectors such as IBM, Microsoft, Oracle and GED,
who have included open badges in their verified learning and
professional development programmes.
2.4.2 Micro-Credential Modules are typically
valued between 1-5 ECTS and are focused on academic skills.
They can form part of a degree programme or act as stackable
modules in diverse programmes. They represent 25-150 hours
of learning and are awarded within the context of formal
education. They include options for assessment and are
explicitly quality assured by external QA and are linked to the
acquisition of academic learning outcomes. Many but not all
MOOCs could be considered for inclusion in this category.
2.4.3 Short Learning Programmes (SLP) are a
form of micro-qualification formed by bundling short courses
together to form a set of micro-credentials that can be stacked
into a larger micro-credential or can remain as stand-alone
achievements. These SLPs can be used to advance careers
through access to certain professions e.g. from mechanical
technician to engineer. These SLPs allow a progression path to
lifelong learning and formal academic degree entry. They are
usually 150-1500 hours of learning, awarded within the
context of formal education (through HE institutes), are
explicitly quality assured and can be mapped to national and
international qualification frameworks. They are linked to
specific career paths and progression goals. (Hudak and
Camilleri, 2018)
The difference between the micro-credentials is dependent on
the following main factors: time spent learning, provision of
learning outcomes, successful completion of the programmes,
quality assurance recognition and pathways to further learning.
Whilst digital badges are acceptable in certain companies,
micro-credentials (of 5+ ECTS credits) are valued globally and
form part of academic qualification frameworks.
Oxley and van Rooyen (2021) add that reward, incentives and
a collaborative design with learners’ requirements increases
the uptake of micro-credentials amongst employees.
Participation and uptake form a major element in the
employee/employer relationship leading to the acquirement of
new skills and a progressive workforce.
2.5 Partnerships between Industry and Higher Education
Institutes
In designing programmes to include Micro-credentials Hudak
and Camilleri (2018) offer some recommendations to Higher
Education Institutes which benefit all three stakeholders – the
 Breda Walsh Shanahan et al. / IFAC PapersOnLine 55-39 (2022) 82–87
HE institutes, the employer and the learner (including future
learners).
Recommendation 1 - Micro-credentials should be
developed with partners from outside academia wherever
possible. Because micro-credentials are intended to highlight
specific skills and competencies, they should be created with
substantial input from industry partners and other employers.
Micro-credentials are most successful when they are
reflections of academy-industry partnerships.
Recommendation 2 - Micro-credentials should be
used to increase flexibility and innovation as they are smaller-
scale than full degrees, and micro-credentials have fewer
standardized requirements. Thus, micro-credentials often
more easily lend themselves to innovation. They can meet
market needs with responsiveness, agility, and dexterity.
Micro-credentials can take advantage of unique partnerships
and technology.
3. MICRO-CREDENTIALS THROUGHOUT THE WORLD
3.1 Micro-credentials – a global approach to new skills
acquisition
Efforts to return people back to work following the pandemic
has given rise to many governments aligning training and
reskilling with micro-credential engagement. To this end
Governments are investing huge capital resources to achieve
this goal.
3.1.1 Canada
In September 2021 the Provincial Government of Alberta,
Canada, announced a $5.6 million micro-credential initiative
for post-secondary institutions as part of a recovery plan to
help individuals re-skill or up-skill, and find new career
opportunities (Wiseman, 2021). In November 2020, the
Ontario Government announced a $59.5 million over three-
years for an online portal of micro-credential training
opportunities, to develop new programs, launch a public
awareness campaign, and implement a virtual passport
(Ontario Budget, 2020).
3.1.2 Ireland
In October 2020, Ireland’s government announced a major
initiative to develop a national micro-credential system. The
Government’s Human Capital Initiative (HCI) announced a
€12.3 million fund to be available for universities over the next
five years. The project MicroCreds involves seven universities
University College Dublin, University College Cork,
University of Limerick, Trinity College Dublin, Dublin City
University, NUI Galway and Maynooth University.
One of the major features of the project is the partnership with
learners and business representative organisations, private
sector companies and state bodies with responsibility for
skills. The focus is on changing the existing system of
engagement with university learning enabling learners to up-
skill, re-skill, return to employment or change careers (IUA,
2022)
85
3.1.3 Australia
In April 2020, the Australian Federal Government announced
a Covid relief package fund to assist re-employment initiatives
of 20,000 places on new short courses for those who were
unemployed or hoping to upskill (Duffy, 2020). By June of
that year the government announced plans to build a $4.3
million online micro-credentials market place following a
review of the Australian Qualifications Framework. Palmer
(2021) quotes a study from 2019 which found that there were
already 2.6 million people already enrolled in non-
qualification training courses to meet industry requirements in
the workplace such as emergency preparedness, health and
safety procedures, and authority to operate certain machinery
etc.
The report also stated that this training sector was largely a
private market with over 90% of these training and skills
requirements provided on a fee-for-service basis with largely
no government contribution.
3.1.4 European Union
As part of the EU Erasmus+ programme The European
Consortium of Innovative Universities (ECIU), consists of an
alliance of 12 universities from several countries within the
EU, and has undertaken the challenge of developing a system
of incorporating micro-credentials into existing Higher
Education frameworks. Their White Paper (Brown et al., 2020)
outlines the following criteria which are necessary to develop
a framework for innovation, creativity and social impact to
include micro-credentials based on:
 Definitions and Standards
 Quality Assurance
 Credit and Recognition
 Storage, Portability and Platforms
 Successful Uptake
This new framework is dependent on open and inclusive
collaboration between all stakeholders seeking to act as a
partnership between learners, employers and European
universities to meet the demands of the labour market and
introduce societal changes.
Other collaborations between universities and technological
institutes include ENHANCE, a consortium of technological
universities where Prof. Andrzej Krasniewsi, the lead in
‘Society Centred Education’ in the Warsaw University of
Technology, states that micro-credentials by their design are
completely inclusive and diverse, can be offered online to any
country in the world, do not require levels of previous
attainment to begin and are often pathways to lifelong learning
and increased quality of life (ENHANCE, 2022).
4. QUALITY ASSURANCE
One of the main elements of micro-credentials is quality
assurance. The above paragraphs have outlined the multitude
of micro-credentials as digital awards for achievements
offered in courses through different organisations most of
86 Breda Walsh Shanahan et al. / IFAC PapersOnLine 55-39 (2022) 82–87
which are ‘for-profit’ businesses and costs of courses can vary
from small to very large amounts of money. Along with these
micro-credential awards exist an array of assessment systems
and to that end different quality assurance methods. The
diversity of Quality Assurance (QA) systems ranges from (a)
National QA systems, (b) International QA systems (e.g. ISO
quality standards awards) (c) companies own quality systems
providing their own training programmes e.g. Microsoft
(Hudak and Camilleri, (2018).
Hudak and Camilleri’s (2018) definition of Quality Assurance,
supported by Annexe IV of the EQF, the European Standards
and Guidelines for Quality Assurance in Higher Education
(ESG) and the ISO 9000 family standards, covers four
categories of processes.
Internal Quality culture or quality assurance policy of an
organisation – internal everyday operations following quality
guidelines. Internal reviews – conducted with quality
management’s periodic checks. External review - conducted
by an independent organisation to review the internal quality
management system against an agreed set of standards.
External Organisation should be itself quality assured to
undertake the task of impartiality and correct application of
standards (Hudak and Camilleri, 2018).
With the diversity of quality standards being applied, or
advertised as applied, a general acceptance of many micro-
credentials as a truthful and honest acquisition of skill is open
to doubt and uncertainty on the part of the learner and the
employer. In higher education accreditation is an assured form
of QA and when granted to a programme assures standards are
met. Aligning HE standards to micro-credentials ensures the
standards of the institute are enforced and aligned with the
micro-credential. All higher education institutes’ policies and
procedures for delivery, assessment, grading and awarding of
qualifications are governed and agreed with educational
ministries in all countries and follow agreed National
Educational Frameworks (NEQ) such as the Irish
Qualification Framework (IQF) which ranges from school
entry at Level 1 to Post-Graduate Doctoral Level 10 (Quality
and Qualifications Ireland, 2021).
Assessment forms the essential component for inclusion in the
EQF. Ireland is one of three countries within the EU who have
the independent authority to include and authenticate their own
higher education programmes – the others are Norway and
Finland. This would mean that Ireland, Norway and Finland
can include quality assured micro-credentials into HE
programmes at a very early stage. (Brown et al., 2020). Other
European countries have a process which involves government
inclusion in programme offerings but according to President
of the European Commission Ursula Von der Leyen:
“The best investment in our future is the investment in our
people. Skills and education drive Europe’s competitiveness
and innovation. But Europe is not yet fully ready. I will ensure
that we use all the tools and funds at our disposal to redress
this balance.” (European Skills Agenda, 2020).
The prospect of a concerted effort to educate the European
workforce is the most effective way to ensure growth and
sustainability in Europe following the most destructive
pandemic of the last century.
According to the European Commission’s policy brief for
Industry 5.0 (European Commission, 2022) between 2008 and
2018, industry accounts for 20% of EU GDP (Eurostat, 2019)
and manufacturing provides 14.5% of added-value to the EU
economy (The World Bank, 2019). According to the European
Commission, Industry 5.0, the next transformative change to
occur in Europe, must have a ‘view of growth that is focused
on human progress and well-being based on reducing and
shifting consumption to new forms of sustainable, circular and
regenerative economic value creation and equitable
prosperity (European Commission, 2022).
5. CONCLUSIONS
The emphasis is on ‘human progress’ and the best possible
pathway to attain this progress is through education and
training, attaining new skills, upskilling existing work
practices and engaging in continuous lifelong learning. These
practices will enable the workforce to become creative and
innovative. Engagement with short learning experiences and
micro-credentials will enable the learners to have the
opportunity to build on a scaffolded, flexible, personal and
professional growth pathway. This pathway requires the three
stakeholders, the learner, the higher education institute and the
employer to collaborate and communicate the needs of society
and industry and work together to meet the challenges of the
next decades.
ACKNOWLEDGEMENTS
We gratefully acknowledge the support of the CONNEXIONS
grant from the South East Technological University, Ireland
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