From MOOCs to College Degrees: Which Education Options are Worth It?

Over the last decade, the growing need for technical skills and a rapidly-changing workplace has left employers struggling to find skilled candidates and a workforce continually seeking new skills to stay relevant.

The vast majority of companies reported talent shortages in 2019, and half of HR professionals say the skills gap has gotten worse since 2017. Trade jobs, middle-skilled positions, and highly-skilled STEM roles have been the hardest to fill, partly because there is a lack of reliable credentials to show talent in these areas.

Traditional higher education has been slow to respond to industry needs, leading to a rise in education alternatives and credentials. Employers are increasingly bridging the gap - Google, Amazon, and other companies now offer new certifications and courses to help workers reskill.

With so many new forms of education available, people looking to gain new skills may have difficulty navigating the complicated map of credentials. To help in this process, we’ve created a guide to compare education options and evaluate things like cost, time commitment, and career impact when considering credentials.

MOOCs

Massive Open Online Courses, or MOOCs, started as a few free online classes back in 2008. Today, they have evolved into hundreds of thousands of targeted courses in everything from effective time management to essentials for machine learning. Popular MOOC platforms include Coursera and edX, which partner with universities such as Yale, Stanford, and Johns Hopkins to offer free or low-cost online classes. They originally carried little credential weight, but platforms have updated their business model to include paid certificate programs backed by companies like IBM and Google. They also offer full online bachelor’s and master’s degrees from accredited institutions and have created smaller credentials that fulfill partial requirements for a degree.

Takeaway: Depending on your personal career goals, MOOCs can be useful. Since they are unlikely to carry much weight on a resume, learners will have to be dedicated and resourceful to effectively use MOOCs to progress their careers. MOOCs are a good way to learn skills needed for a specific role but will not be as beneficial for advancing careers as a degree will.

Professional certifications

Certifications act as an official credential that indicates someone is proficient in a specialty area and are awarded by recognized organizations in an industry. They are usually obtained by taking a test, and often require some experience in the field.

Occupations in healthcare, business and financial operations, management, installation, maintenance, and repairs often require certification. They can also be beneficial in tech, as there are so many programs and other specialty areas in the industry. Positions that require certification, such as nursing or phlebotomy, are likely tied to a formal education program. For business, tech, and other sectors, those seeking certification can take prep courses or have the option to study on their own.

Takeaway: Certifications awarded by recognized organizations can significantly benefit someone’s career, but how valuable they are depends on the field and type of employment. Most groups that grant certifications have clearly defined requirements that lend credibility and make them easy to understand for employers.

For those seeking general positions in their industry or who are not actively following a clearly-defined career path, earning a certification is less likely to get them where they want to go. They are not typically a replacement for a degree or formal education but are more suitable than degrees for some careers.

Company-sponsored or designed certifications

To address the growing skills gap, employers in tech, business, and other industries are increasingly designing their own certifications for specific programs or capabilities. Google, Amazon, Microsoft, and IBM all have a range of certifications designed to teach targeted skills necessary for roles in the field. Some of these include optional prep courses for an exam while others offer full educational programs online. In recent months, Google announced that it will view its own certifications in data analytics, project management, UX design, and IT support as equivalent to a degree when hiring. As these grow in popularity, it’s likely that they will become more widely accepted as a degree alternative in the industry.

Takeaway: Company-designed certifications are informed by industry needs and teach specific skills in high demand. While they are a good option for career-specific training, a bootcamp or degree program may be a better choice for those who struggle with accountability or have limited experience in the field. Certain skills needed in tech-related roles may be worth getting certified in, but hard skills you’re able to showcase through portfolios are less likely to require certification.

The perception of these certifications will change in coming years as Google and other big tech companies increase their educational opportunities and continue to back them as legitimate credentials.

Bootcamps:

Bootcamps are widely offered and recognized in the tech industry, but are also available for project management, leadership, accounting, and even professional skills. They are usually intensive programs designed to teach hard or soft skills necessary for a more advanced role, such as a software developer or manager. People often use bootcamps to change careers or break into a new industry, and the immersive, hands-on aspects make them beneficial for those with limited experience in a field.

Takeaway: Bootcamps largely operate in the tech industry, and are instrumental in helping people pivot into tech. Whether or not it’s worth it will depend on the career services available, how serious you are about landing a position, and the connections you’re able to make through your program. For industries outside of tech, they are likely less effective.

While they may be a more significant investment, bootcamps are probably the best bet and the most surefire way to enter the tech industry other than earning a college degree. People who already work in tech or have a degree can also use bootcamps to further their careers or help them in their current role.

College degrees:

Earning a college degree continues to be the most reliable way to open job opportunities and higher wages. Undergraduate studies teach students a wide range of soft skills that are necessary to succeed in many roles. While earning a college degree is still necessary for many career tracks and will qualify graduates for more positions overall, they may not be required in certain industries.

Takeaway: While certifications, MOOCs, and other skills-based credentials are teaching people the actual tools they need for specific career goals and roles in their field, degrees are still more beneficial for those seeking employment. However, the tech industry is increasingly hiring people without degrees, and hands-on experience and certifications are giving them a competitive edge. None of these credentials are replacements for a college degree, however. Many soft skills necessary for professional roles are developed in college, and companies have come to see liberal arts degrees in a new light as industries realize employees and applicants are often lacking these critical skills.

In the coming years, it’s likely that alternative forms of education, especially company designed or role-specific programs, will become more widely accepted. As guidelines for evaluating non-degree credentials emerge and become clearer to employers and workers, they are likely to grow in popularity and become increasingly competitive against traditional degrees. However, credential-seekers should research and evaluate whether or not the education they seek is worth it for their career goals and industry, and should evaluate the time commitment and financial investment they are able to make.