“Show Me What They Can Do”: Employer Perspectives on Credential Signaling in Regional Labor Markets

Abstract

Credential signaling — the degree to which a credential communicates meaningful, actionable information to an employer — is frequently assumed but rarely examined empirically. This qualitative study reports findings from semi-structured interviews with 34 regional employers in three regional labor markets with significant community college workforce pipelines. Participants described consistent skepticism toward short-term certificates and micro-credentials, not on principle, but because of repeated experience with completers who could not perform work the credential implied they had mastered. Employers expressed preference for evidence of applied performance in context — portfolios, supervisor endorsements, documentation of project work — over credential titling or seat-time hours. Findings are discussed in relation to the gap between credential design logic (competency-based, standards-referenced) and employer decision-making logic (risk reduction, performance prediction), with implications for how workforce programs communicate outcomes to hiring partners.