Utilizing Data to Evaluate Skills-Based Practices and Non-Degree Credentials: NGA’s Intersectional Policy Lab

On August 27-29, the NGA Center's Postsecondary team brought together two project cohorts-the Data and Non-Degree Credentials Learning Community and the Skills in the States Community of Practice-in Minneapolis. The goal of this convening was to map out ways in which governors' offices can meaningfully connect strategies focused on hiring based on skills with the rapid development of non-degree credentials. The agenda highlighted state innovation in career-connected pathways and policy focusing on data-driven strategies, collaboration, and skill development to meet evolving labor market demands. Together, these conversations underscored the importance of integrating data, technology, partnerships, and credential quality to shape a future-ready workforce.

Over two days, attendees from 24 states and territories were able to explore these policy issues through numerous workshops and peer-to-peer discussions, mapping out how impact and outcomes can be accelerated through the strategic connection of the skills and credential policy conversations.

Day One

On the first day of NGA's Intersectional Policy Lab (IPL), attendees participated in sessions focused on the data infrastructure needed to support the integration and evaluation of non-degree credentials into their state level data systems. The content emphasized advancing state data systems to better capture, connect, and use outcomes data to inform policy and practice. Conversations blended state innovations, industry perspective, and practical frameworks to surface diverse state and territory views and prototype data and non-degree credential policy framework approaches.

Incorporating Scaled Outcomes in Advanced State Data Systems

The opening sessions set the tone for the convening by highlighting both the opportunities and complexity states and territories face in building advanced data systems and strong industry partnerships. While funders and states are eager to validate skills directly, employers often still rely on credentials as a proxy for specific skills, revealing the tension between moving beyond degrees and non-degree credentials operating as an intermediary. Attendees also heard that improved data connections depend on addressing major barriers, including legal hurdles and the difficulty of sharing data even within a state, let alone across states. At the same time, IBM and Google speakers underscored the importance of aligning state systems with industry-driven skills development efforts, reinforcing the need for collaboration between policymakers and employers.

The State of State Longitudinal Data Systems - Creating the Connections and Driving Policy

The stage-setting session on Statewide Longitudinal Data Systems (SLDS) provided attendees with a strategy for understanding what makes data systems resilient and future-ready, emphasizing their role in research, transparency, and real-time service to learners, workers, and policy makers. Speakers underscored the importance of starting small by identifying foundational data elements, leveraging existing systems, and using Workforce Pell as both a compliance tool and an opportunity to capture needed credential and outcomes data. Attendees learned that trust, governance, and legislative mandates were critical for breaking down siloes and enabling cross-agency collaboration, with states like New Jersey and Kentucky highlighted as models. A key takeaway was that states should prioritize a few focused, policy-relevant questions to guide design choices and ensure meaningful progress.

Framework Spotlights

NGA took a unique approach to prepare attendees for their policy framework development and featured short presentations from the National Skills Coalition, the Postsecondary Employment Outcomes Coalition, and the National Conference of State Legislatures. These practitioners represent leading national organizations and technical assistance providers focused on data and non-degree credentials. Their presentations provided sample roadmaps for how states and territories could define quality in non-degree credentials, and how states can leverage postsecondary employment data for policy and practice.

Defining Quality in Non-Degree Credentials

During this session, attendees explored practical strategies for assessing and verifying durable skills beyond traditional certifications. Participants discussed how public labor exchanges or private platforms such as LinkedIn could help address inefficiencies by allowing employers to browse credentials and gain insights into skill attainment. They recognized the wide variation in industry certification bodies and the importance of having access to accessible, transparent information, noting tools like Credential Engine and emerging AI capabilities as promising ways to process and unlock skill data at scale. The conversation emphasized that states need to define the right questions to identify and assess durable skills, even those not captured in certifications, and to build systems capable of measuring these skills reliably.

Using Data to Shape Non-Degree Credential Quality Assurance Policy

The following workshop built directly on insights from earlier sessions, providing attendees the opportunity to apply what they had learned about SLDS, credential quality, and skills. Participants engaged in hands-on exercises to design prototype frameworks, identify priority criteria and data sources, and explore how longitudinal data and data from alternate sources could inform state policies and funding decisions. Key discussion points included the importance of cross-agency collaboration to align workforce development efforts, recognizing and valuing non-degree credentials for employers, and creating stackable career pathways. Attendees explored ways to keep job classifications and workforce policies flexible, link credentials to wage and outcome data, and use funding and policy support to maximize returns for states and residents. Attendees identified a few ways they could advance this work, such as by developing co-branded credential repositories, advocating for legislative autonomy, establishing workforce councils, and collaborating with industry to identify recognized credentials.

Day Two

Day two of NGA's Intersectional Policy Lab brought together employers, public sector leaders, and education and workforce experts to examine the ongoing shift toward skills-based practices. Conversations centered on the opportunities and challenges of signaling, assessing, and validating skills, as well as the profound ways AI is reshaping work. The discussions revealed both promising momentum and challenges that must be addressed to ensure skills-first strategies deliver on their transformative potential.

Employers and Workers: A Disconnect on Skills

Research from the National Skills Coalition (NSC) underscored a critical gap: while workers increasingly see credentials as essential to advancing their careers, many small and midsized employers place higher value on prior work experience and internal assessments than on formal credentials. This misalignment leaves workers frustrated and undercuts the promise of credentials as meaningful signals of ability. Closing this gap will require stronger employer-education partnerships, clearer competency mapping, and more structured opportunities for credential-holders to gain paid, on-the-job experience that employers trust.

Skills-Based Transformation: Employers' Priorities and Pain Points

A panel led by Business Roundtable highlighted why employers are embracing skills-based practices and what it takes to make them stick. Panelists shared how organizations are increasingly shifting away from degree requirements, emphasizing demonstrated skills for hiring and advancement, and relying on executive leadership and HR to champion a skills-first culture. Success is being measured through outcomes such as improved retention, career progression, and reduced hiring costs. Despite this progress, significant challenges remain, including validating skills internally, updating technology systems, and ensuring equitable access. Panelists ended by emphasizing that starting with small, incremental steps can help build lasting momentum and drive broader systemic change.

AI and the Future of Work

Partners from Boston Consulting Group presented on the scale of disruption ahead: up to 92 million U.S. jobs could be reshaped by AI, with 60% of the workforce needing upskilling within the next 2-5 years. AI is driving multi-layered changes, from daily tasks to entire roles and macro-level workforce dynamics, placing public sector agencies at a crossroads where the urgent challenges of disruption are matched by opportunities to enhance efficiency and employee engagement. They stressed that to meet these shifts, states must prioritize upskilling through creativity, collaboration, AI literacy, and data interpretation, while forming cross-agency task forces, developing transition plans, piloting responsible AI guidelines, and building sector-specific hubs for the future of work. Panelists explained that the overarching goal is not to reduce the workforce, but to augment it-leveraging AI to support staff, improve services, and enrich job quality.

States and Territories: Aligning Systems for Skills

The afternoon sessions, led by Competency-Based Education Network, highlighted how state and territory leaders are working across silos to create ecosystems that support skills-first strategies. Key points included the critical need for collaboration between education, workforce, government, and industry, as no single entity can drive these changes alone. Leadership buy-in, particularly from Governors and senior officials, is essential for setting clear goals and maintaining momentum. Building robust data systems, skills taxonomies, and transparent job postings were emphasized as foundations for equitable hiring, alongside faculty and stakeholder engagement to ensure skills-based approaches complement existing credentials. The sessions also stressed the importance of piloting new initiatives to deliver early wins and credibility, as well as maintaining adaptability in the face of evolving legislation, leadership, and technology.

Key Takeaways

• Data as the Backbone of Skills and Credential Policy-States are advancing SLDS, wage data, and credential registries to better track outcomes and define credential quality. High-quality, connected data systems are essential for transparency, accountability, and for making informed policy decisions.
• Credential Quality and Value- Defining what makes a non-degree credential "high quality" depends on the perspective of learners, employers, and states. Outcomes data, clear frameworks, and stakeholder input are central to building effective quality assurance systems.
• Bridging the Worker-Employer (Public and Private) Disconnect- Learners and workers see credentials as key to advancement, but many employers still prioritize experience and internal assessments. Stronger employer-education partnerships and on-the-job learning opportunities are needed to make credentials meaningful signals of skills.
• Skills-Based Transformation Requires Culture Change- While public and private employers are moving away from degree requirements, challenges remain in validating skills, updating technology, and ensuring equity. Leadership buy-in, clear ROI, and incremental steps are critical to sustain momentum.
• AI as a Disruptive Force and Opportunity-With 92 million jobs potentially reshaped and 60% of workers needing upskilling, AI is both a risk and a chance to reimagine work. State and territory agencies, in particular, face both urgent disruption and the opportunity to enhance efficiency and engagement.
• Collaboration Across Systems Is Essential-No single sector can achieve a skills-first future alone. Cross-sector partnerships, alignment of governance structures, and trust-building are foundational.

Next Steps

Over the coming year, the Data and Non-Degree Credentials Learning Community and the Skills in the States Community of Practice will continue working together to strengthen the connections between data systems, non-degree credentials, and their relevance in the labor market. This ongoing collaboration will also promote greater cross-sector alignment among agencies, systems, and stakeholders. Building a skills-first future requires vision, leadership, and sustained commitment. By prioritizing and creating robust data systems, ensuring the quality and transparency of credentials, leveraging AI responsibly, and deepening partnerships, states and territories can expand opportunities for workers and help build more resilient, inclusive, competitive economies.

If you are interested in learning more about this work, please contact Amanda Winters ([email protected]).