Issue #1

Why a skills-based economy matters now

March 18, 2025

⬇️ Inside this issue:

  • Thania explains why the need for a skills-based economy 

  • How small businesses are winning with LERs and skills-based hiring

  • Industry Insider: Meet Colin Reynolds

INTERESTING READS

🔎 Why skills will matter more than degrees in 2025.

🏗️ The industries hit hardest by America’s labor shortage and what’s driving the demand.

🤖 Learn AI and blockchain from scratch with these career-boosting strategies.

EDITORIAL

What is a skills-based economy anyway?

If you’re deep in the world of Learning and Employment Records (LERs), this might not be the article you personally need—but it’s one most people do. Because the truth is, while those of us in this space are laser-focused on the future of work, the vast majority of the world has no idea what an LER is, why skills-based hiring matters, or how any of this affects their careers.

And that’s a problem. Because the people who stand to benefit the most from a skills-based economy—workers looking for better opportunities, businesses struggling to hire the right talent, and industries desperate to close skills gaps—are often the ones left out of the conversation.

I know this because, until I was hired at SmartResume, I was one of those people—completely outside of the LER world, unaware that skills-based hiring was even a thing. I thought job hunting was just about crafting the perfect resume, making connections, and hoping someone took a chance on you. It never occurred to me that there was an entire movement trying to make the process smarter, fairer, and more effective.

The Problem: A Broken Hiring System

So we have millions of job openings and millions of unemployed people. Yet they’re not connecting.

Why? Because we have a hiring system that prioritizes degrees over skills, years of experience over ability, and outdated methods that filter out perfectly qualified candidates.

Meanwhile, many workers have the skills but don’t have the credentials to prove it, or struggle to communicate it effectively—so they’re overlooked, leaving too many talented individuals unseen and too many businesses unable to fill critical roles. Employers don’t know how to find the right people because they’re still relying on outdated signals like degrees and years of experience instead of actual ability.

Take me, for example.

My career has been rooted in marketing, primarily in startups. At my favorite role, Scoot Education, I helped grow the company from $0 to $70M+. Yay!

But if you looked at my resume, you’d never know I was also the unofficial interior designer, contractor, and operations guru behind all our office spaces. I selected the artwork, chose the furniture, built a lot of it myself, and replicated that process across our new offices as we expanded.

It’s a valuable skill—one that would be incredibly useful to a startup looking for a marketer with a broad, hands-on approach. But it’s not the kind of thing that fits neatly into a job title or a bullet point on a resume. Boo!

And that’s just one example. I have plenty of skills that don’t make my resume—color-coded Excel mastery, obsessively organized Google Drive, planning epic happy hours, and running a business like it’s my own.

In a true skills-based economy, I wouldn’t have to wedge those into a cover letter hoping someone reads between the lines. I’d have digital credentials proving my abilities in things like:

  • Office Space Design & Build

  • Operational Efficiency

  • Event & Experience Curation

  • Google Drive Organization Master

  • Startup Growth Architect

Imagine if all of us had a way to showcase our actual skills—not just the ones our job titles suggest we have.

Why Now?

The workforce is evolving—fast. Several factors are driving the shift to a skills-first hiring model:

  1. Talent Shortages: Many industries struggle to fill critical roles because traditional hiring filters out qualified candidates who lack a specific degree but have the skills to thrive. According to the Boston Consulting Group, “72% of Executives say that talent gaps and shortages represent the top business challenges that their companies face.”

  2. The Rise of Digital Credentials: Learning and Employment Records (LERs), microcredentials (or micro-credentials), and digital badges provide verifiable proof of skills, allowing job seekers to showcase competencies in a way that employers trust.

  3. Equity & Access: Degrees are expensive and time-consuming, disproportionately excluding underrepresented groups. A skills-based economy creates more opportunities for diverse talent by reducing barriers to entry.

  4. Automation & AI: As technology reshapes industries, skills become more important than job titles. Upskilling and reskilling workers ensures they stay competitive in a rapidly changing job market.

Why It’s Good for the Economy

A skills-based economy doesn’t just help job seekers—it strengthens entire industries and economic growth.

By shifting the focus from credentials to capabilities, we:

  • Increase workforce mobility – Workers with proven skills can move into higher-paying roles without needing new degrees.

  • Reduce hiring inefficiencies – Businesses fill jobs faster by matching skills to needs rather than scanning for traditional qualifications.

  • Boost entrepreneurship & innovation – People can showcase, monetize, and leverage their real skills in ways that weren’t possible before.

  • Strengthen global competitiveness – A skills-first workforce keeps the U.S. economy adaptive and future-ready.

This movement isn’t just about hiring—it’s about unlocking potential, creating opportunities, and building a workforce that truly reflects what people can do, not just where they’ve been. I’ve seen firsthand how powerful this change can be, and I’m all in.

The momentum is building. The conversation is growing. And we should be proud to be part of driving it forward.

Thania (Skills Scoop, Co-Founder)  

DIGITAL WALLETS

A Guide to Digital Wallet Providers

The digital wallet space is booming, but let’s be real—no single provider has it all figured out. Each platform comes with its own strengths, trade-offs, and quirks, which means organizations looking to build a robust Learning & Employment Record (LER) ecosystem often need to mix and match providers like a well-curated playlist.

Enter Education Design Lab with CredCompare—a handy comparison tool that gives stakeholders a clearer picture of available options. And if you’re more of a visual learner, their Digital Credentials Wallet PDF offers a helpful breakdown of digital wallet solutions in an easy-to-digest format.

👉 Explore the Vendor Landscape: Download the PDF

👉Compare Digital Wallet Solutions: Access CredCompare

IMPLEMENTATION

How Small Businesses Are Winning with LERs

Small businesses don’t have the hiring power of big corporations, making it tough to find and keep the right employees. Traditional hiring—sifting through resumes and relying on degrees—often fails to show what candidates can actually do. That’s where Learning and Employment Records (LERs) come in. By digitally verifying skills, LERs help small businesses hire smarter, cut costs, and build stronger teams.

1. Hire Smarter, Not Harder

Small businesses don’t have time to filter through stacks of resumes. LERs make hiring easier by letting employers search for candidates based on verified skills, not just job titles or degrees.

Take Johnson Dermatology in Arkansas. Struggling to find qualified candidates through traditional job boards, they turned to SmartResume. That’s how they found Pamela, a 70-year-old medical coding specialist with credentials from the University of Arkansas’ Reimagine Workforce program. Instead of guessing who had the right experience, they knew Pamela was the right fit.

2. Cut Hiring Costs & Reduce Turnover

Between job postings, interviews, and training, hiring is expensive. Even worse? When a new hire doesn’t work out. LERs help reduce turnover by ensuring a better match between job requirements and candidates’ proven skills.

Shelly, the hiring manager at Johnson Dermatology, hired five long-term employees using SmartResume. She found that microcredentials—digital records of specific skills—helped her quickly spot quality candidates, even those not actively job hunting. Features like blinded resume reviews and talent alerts made the process more efficient.

3. Train & Retain Employees More Effectively

LERs aren’t just for hiring—they’re a game-changer for upskilling and career growth. Many small businesses struggle to provide clear advancement opportunities, leading to disengagement and turnover. With LERs, employees can earn stackable credentials to advance while businesses ensure they’re developing the right skills.

Accelerate Montana’s Job Site Ready (JSR) program is a great example. JSR helps small businesses train workers, including Denman Construction in Whitefish, MT, which uses JSR to train apprentices.

“We streamlined our training by using the Job Site Ready microcredential program. Our apprentices completed online modules with great video content, cutting down on in-class learning time.” — Adam Shilling, Director of Apprenticeships and Trainings

JSR’s mobile training unit has also helped train employees for Fort Peck Housing Authority and Missoula Aging Services, where one worker now specializes in home modifications for seniors aging in place.

4. Build Trust & Credibility

For industries like skilled trades, credibility is everything. Customers want to know they’re hiring someone qualified. LERs provide verified proof of skills, giving small businesses a competitive edge.

Accelerate Montana recognizes that two-thirds of Montanans work for small businesses, with an average company size of six employees. Since many small businesses aren’t hiring often, they focus on managing and upskilling their current team.

To help with this, Accelerate Montana is piloting programs through its SkillsFWD grant to help small businesses assess their team’s current skills. These tools will give managers better insights into staffing and training needs, making it easier to keep teams strong and well-equipped.

The Future of Small Business Hiring is Skills-Based

LERs are shaking up how small businesses hire, train, and grow. By focusing on skills over resumes, business owners can make smarter hiring decisions, reduce turnover, and build a workforce that’s ready for the future. Whether you’re filling a position, upskilling employees, or proving credibility to customers, LERs make it easier and more effective.

HR TOOLS

Build a Skilled, Engaged Workforce (Without the Hassle)

Tired of sorting through an endless stack of internal tools, unsure which actually moves the needle? Meet ConnectTeam—your all-in-one solution for deskless teams. Think Slack meets Rippling meets CultureAmp, but simpler (and way more mobile-friendly).

If you're serious about building a skills-based culture, ConnectTeam is your fast track to success—faster than choosing your next Netflix binge. Level up your HR strategy with:

✅ Mobile training & seamless onboarding✅ Recognition & rewards that drive a culture of excellence ✅ One-click document uploads & employee timelines✅ Easy time-off management & digital incentives

Less admin. More impact. Better results.

SKILLS-BASED VOCAB

Interoperability (in·ter·op·er·a·bil·i·ty)

noun

Interoperability is the ability of different information systems, devices, or applications to connect in a coordinated manner, allowing stakeholders to access, exchange, and use data within and across organizational boundaries. It requires open standards and common ontologies/frameworks and allows data in learners’ records to be machine-readable, exchangeable, and actionable across technology systems and, when appropriate, on the Web.

🧐Thania’s translation: “Remember when iPhone and Android phones couldn’t be in the same group chat? Well, they fixed the tech in the background to be compatible and now we can all enjoy group chats without that annoying green bubble person ruining it 😛 It’s the same for LERs. We need the tech to work together, so we can easily work across systems, apps, and devices.”

☕️ Robert gives you the scoop: “The data economy fuels tech giants, institutions fear losing control, and employers remain skeptical—but the need for a better system is universal. Across education, workforce development, policy, and technology, we’re forging a new common language—one built on trust, alignment, and the right standards to create real opportunities for everyone.”

Improve your skill-based hiring vocabulary at Learn & Work Ecosystem Library.  Search by topic | glossary.

WORKFORCE TIME MACHINE

How Stamps Became Widely Adopted

In 1874, a letter crossing borders was a gamble—costly, slow, and fraught with uncertainty. Then came the Universal Postal Union (UPU), which changed everything. Picture a pact among nations, agreeing to standardized rates and mutual acceptance of mail. Suddenly, the world felt smaller, and businesses thrived as communication barriers crumbled.

The UPU didn’t just deliver letters; it delivered trust, reliability, and a glimpse of what a connected world could achieve.

Key Drivers of Interoperability

  • Standards and Protocols: Universal addressing and rate structures simplified global mail exchange.

  • Public-Private Partnerships: Governments and private couriers collaborated on infrastructure.

  • Market Drivers: Demand for reliable, affordable communication across borders.

Lessons for LER

  • Introduce universal standards for digital credentials.

  • Highlight portability and trustworthiness through certification or "trust marks."

  • Educate users on the benefits and functionality of interoperable systems.

🕰️ Have a historical connection to suggest? Send us your recommendations for how we can learn from history about interoperable innovations, workforce solutions, and other vital education.

INDUSTRY INSIDER

Meet Colin Reynolds

Senior Education Designer,
Education Design Lab
👥 Add me on LinkedIn

Colin is on a mission to bridge education and employment by recognizing skills beyond traditional academics. He’s passionate about digital credentials, learning mobility, and creating equitable pathways for learners of all backgrounds.

  • Top skills:

    • Building Relationships

    • Future-Focused Thinking

    • System Design & Strategy

  • Fun fact: I’ve visited hundreds of coffee shops across five continents—tracking my favorites on one map to rule them all! From hole-in-the-wall gems to globally renowned spots, I’ve been curating the ultimate coffee map for over a decade.

  • I can connect you with: leaders in digital credentials, standards developers, and ed-tech innovators;  experts in tech standards, LERs, and non-traditional assessment frameworks. 

  • Ask me about: Learning Mobility, my ecosystem level work at The Lab, human-centered design, digital credentials, the intersection of education and web3, all things sports, travel itineraries, and brewing + drinking amazing coffee.

 We’re huge on networking and connection at Skills Scoop. Each week, we want to feature professionals at all stages of their journey to foster a community where everyone can learn, share, and grow together. Want to be in the spotlight or know someone who should? Fill out this form and let’s make it happen!

JOB OPPORTUNITIES

🔔Job Alerts

Here’s a list of open positions in the industry:

👩🏻‍💻Have a job you’d like to share? Submit your open role here. 

FOR FUN’SIES

💌 Have more feedback? Reply to this email and tell us. We read each one.

🗣️ Want to be featured as a contributor? We’re looking for industry people to write editorials. 

✊🏼 Want to sponsor or partner? Connect with us about advertising opportunities.