Alternative Certification
Replace degree screens with transparent, job-specific proof of ability
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 5
- Confidence
- 98%
Alternative Certification replaces a blanket college-degree requirement with transparent, job-specific evidence of ability. An employer first identifies the capabilities needed for a role, then publicly lists the tests, courses, certificates, or other assessments it will consider in place of a degree. Candidates gain a visible route to qualification without paying for a conventional four-year program. Once major employers create demand for these credentials, educators, online platforms, tutors, and prerequisite programs have an incentive to help candidates meet the standards. The employer does not need to develop or administer every assessment; it can recognize credible external options and revise the list as evidence accumulates about which credentials predict performance.
Origin
Extracted from Masters in Business, where Joel Greenblatt proposed a route around degree screens for people underserved by the existing education system.
Core principles
- 01Measure ability directly instead of using degrees as proxies
- 02Let employers publish the evidence they will accept
- 03Create demand before expecting a training ecosystem to emerge
- 04Allow multiple assessment formats for different kinds of talent
How to run it
- 1
Specify the Role
Choose a particular job rather than creating a generic company-wide credential. Define the capabilities a successful employee must demonstrate.
Pro tip Start with roles where performance can be measured objectively.
Watch out A vague capability list will reproduce the ambiguity of degree-based hiring.
- 2
Choose Evidence of Ability
Identify tests, courses, certificates, simulations, or game-based assessments that measure the required capabilities.
Pro tip Use several forms of evidence when one test cannot capture the whole role.
Watch out Do not accept credentials solely because they are popular; verify their relevance.
- 3
Publish the Alternatives
Make a public list of the evidence that will be considered in lieu of a college degree for the specified job.
Pro tip State clearly that completing an accepted option earns consideration, not an automatic job.
Watch out Hidden or inconsistently applied standards will undermine candidate trust.
- 4
Let Support Markets Form
Allow training providers, tutors, and prerequisite programs to develop around the disclosed employer demand.
Pro tip Share sample competencies so providers can teach toward real capabilities without receiving confidential hiring material.
Watch out Avoid granting one provider an unnecessary monopoly over access.
- 5
Validate and Refine
Compare credential results with employee performance and update the accepted list accordingly.
Pro tip Track retention, productivity, and advancement as well as initial hiring outcomes.
Watch out Do not preserve a credential that fails to predict workplace success.
In the wild
A company seeking HR analysts publishes a list containing a literacy assessment, a decision-making simulation, and an accepted online employment-law certificate. A candidate without a degree completes the requirements, applies alongside graduates, and is judged using the same job-relevant criteria.
→ A capable non-degree candidate gains access to a high-paying role through demonstrated competence.
A software company replaces its degree requirement with a writing test, a product troubleshooting simulation, and a recognized customer-service course. Training providers then offer low-cost preparation aligned with the published requirements.
→ The company expands its talent pool while candidates receive a clear and affordable qualification path.
Common mistakes
Replacing One Arbitrary Gate With Another
A poorly validated test can exclude talent just as unfairly as a degree requirement. Every accepted credential should map to an actual job capability.
Keeping Standards Private
The ecosystem cannot build affordable preparation if candidates and providers do not know what employers will recognize.
Promising Automatic Employment
Certification should make a candidate eligible for consideration, not guarantee hiring regardless of other evidence.
Is it for you?
Best for
Employers filling roles whose required skills can be demonstrated through tests, courses, certificates, or work samples.
Not ideal for
Licensed professions where law or safety standards mandate a particular accredited qualification.
From the transcript
“What I'm suggesting is Microsoft should simply specify which tests, courses or certificates in lieu of a college degree that they would consider when judging…”
“There's a lot of different ways you can test for talent.”
“all these big, big companies have to do is make the list public what we will consider in lieu of a college degree”
From the episode
Joel Greenblatt on Relative Value Investing (Podcast)
Joel Greenblatt