We all know that the expectations of employees and their companies will be dramatically altered in a post-pandemic world. The public health crisis and the ensuing labor market disruption, the rallying cries for social justice and racial equity, and a crisis of trust in institutions of all kinds represent an unprecedented confluence of change. But they also are simply accelerating a shift in expectations about the way we work that were already afoot -- though perhaps harder to appreciate as starkly -- barely a year ago.  

Hiring managers and human resource leaders should be doubling down on strategies to increase employee retention and loyalty. And with skills and learning more firmly at the top of an employee’s list of expectations than ever before, it’s time to execute modern engagement methods that center on skill development and recognition as a benefit of employment.

Identifying that sweet spot where “skills as a benefit” and employee engagement meet has led forward-thinking organizations to offer digital credentials. These verified, portable records of capabilities and knowledge areas are generating measurable results for the individual and driving strategic success for their companies. 

Here is how your organization can strengthen its employee retention and loyalty by issuing skill-based digital credentials.

Improve Employee Retention Through Verified Credentials
Building a learning and development program that culminates in a credential is a powerful way to demonstrate a commitment to the ongoing success of your employees. Employers now issue more certifications and credentials every year than colleges and universities. Who, after all, is better positioned to certify what people can actually do than those who observe them on the job? 

Issuing a digital credential translates into an employee benefit that costs relatively little and has a high payoff. Earning a credential is not a reason to leave a company; it’s a reason to stay. Adding employer-issued credentials into one’s human capital account is like depositing a paycheck. Yet unlike a paycheck which is gone once spent, employees can use their human capital over and over again to take on new responsibilities and opportunities. And if you do it right, those opportunities will be at your company.  
 
Employers know that it’s more economical to promote existing employees than to seek external hires, and verified digital credentials are the best way to identify talent from within the organization. When you offer your employees the chance to earn digital credentials, you’re demonstrating a commitment to their development and career paths in the long run. Employees are more likely to stay at a company that provides learning opportunities and recognition for their efforts. 

And since your employees are going to self-report their skills on their resume or professional profiles anyway, why not provide a verifiable method of publicizing their achievements which also returns benefits to the company? Digital credentials provide valuable analytics and brand visibility, while establishing you as the standard-setter for skills within your industry, which drives customer retention and growth, too.

Increase Employee Engagement with a Commitment to Growth
A recent survey by Qualtrics and Accel Partners found that when millennials consider a new job opportunity, the most important thing they look for is skills training and development. Nearly 71% of this generation of workers will leave a company after two years due to limited skills development opportunities. 

And employees of Generation Z are reportedly more risk averse than their predecessors. Even before COVID disrupted everything, their top priority was looking for a job that provided stability, security and opportunities for growth. 

Companies that are responding to these employee expectations by embracing a culture of learning and credentialing are seeing a positive impact on engagement. At IBM for example, where most employees have earned digital credentials as part of upskilling initiatives company-wide, 87% said they were more engaged because of the credentials they were earning. And IBM found that those employees who had earned portable digital credentials verifying their new skills were less likely to leave the company.  

Digital credentials demonstrate a commitment to professional growth and to connecting talent to new roles and projects at your organization, today and as needs arise in the future. As a currency for skills, credentials help individuals feel valued and organizations realize more value from their most important asset -- their people. Giving credit where it’s due pays dividends for everyone.