Competency-Based Master’s Degrees: Expanding Education Options for Learner

Written by Coursera • Updated on

A competency-based master's program gives learners a chance to earn college credit for the skills they've already acquired and apply them toward a degree. See how this type of program can benefit your company.

[Featured Image] A woman studies for her competency-based master's degree on a laptop.

Competency-based master’s degrees allow learners to earn a college degree by taking fewer classes and using their existing knowledge [1]. By encouraging learners to pursue a competency-based degree, they can earn their degree as soon as they demonstrate proficiency within each competency or skill, which means less time spent achieving the credential. Explore further why competency-based education is appealing to employees and beneficial to companies. 

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How is competency-based education different from traditional education?

Competency-based education rewards learners for the experiences they've gained in the real world rather than requiring them to earn a passing grade in specific subjects each semester. When a learner shows proficiency in a certain skill during competency-based education, they can earn college credit for it (usually by taking and passing a type of assessment) and move on to other skills [2].

Competency-based programs are usually part of an online degree, which provides the flexibility required for older learners who juggle family, work, and school. Customized coursework lets each learner move through the program at their own pace. 

Traditional programs have a set list of classes for learners to take, which is the same for every learner. Cumulative tests at the end of the course gauge proficiency instead of competency tests requested when a learner is ready. Learning outcomes aren't rooted in applicable skills but in academic requirements.

Benefits of competency-based education

Competency-based education is attractive not only to employees but also to employers. Employers can encourage their teams to develop new skills through these customized programs, strengthening their talent pool. In addition, employers can:

Hire with confidence

Since real-world practices and needs of the industry guide competency-based programs, you can feel more confident hiring employees with these types of degrees. Often, industry leaders collaborate with universities to develop the required curriculum of competency-based degree programs, which can further reassure you of the employee’s abilities.

Promote from within

It's often easier for companies to promote from within, but employers sometimes must look outside their workforce to acquire workers with new skills. Competency-based learning allows employers to upskill their existing team and hire internally. 

Improve on-site skills

To stay relevant, the skills required for a company to succeed evolve, and agile learning opportunities like competency-based degrees can help your employees develop in sync with this evolution. As a result of this education format, the employee who earned a traditional degree 20 years ago can refresh their skills to maximize their productivity. In addition, your employees who participate in competency-based programs focus on new skills that they can use to enhance their current job performance, which can add immediate value to your organization.

Provide a cost-effective solution for employees

Rather than pay a set price for each course taken in a traditional degree program, competency-based master’s programs often charge a flat rate per term. The more competencies an employee can prove within that term, the fewer terms they'll need to take. 

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Challenges facing competency-based master's programs

While competency-based programs are mutually beneficial to employees and employers, challenges do exist. Collaborations between industry leaders and higher education experts can help alleviate these hurdles, which include: 

Competencies might not correlate with skills

Some employers worry that competencies specified by a college won't correlate to the skills needed for a specific job. Varying definitions of key terms like "assessment" and "competency" contribute to the confusion. The assessments taken at one university to prove competency, for example, could vary widely from another university.  

Employers must put forth the effort to identify skills for programs

In order to address your organization’s skill gaps in your training programs, you first need to identify them. You can implement various methods to determine what additional skills are necessary for the success of your company. To make this process more effective, you might consider including the human resources department in the effort. 

Once you’re prepared, you can utilize the following three techniques to identify the skills you currently need and ones you may need in the future. The first step is to survey employees at all levels throughout your organization to uncover the skills that are critical for each job while also finding out what abilities might be helpful in the future. Next, you can conduct research to determine the future skills that might be necessary for your industry. Finally, you can administer assessments for your employees to figure out their current skill sets and areas in which they need improvement. After identifying these areas, your employees can focus more on learning the skills they need using competency-based programs rather than spending time reviewing knowledge they already have.

Not everyone is eligible 

Competency-based programs are typically aimed at learners with real-world skills looking to advance their careers, which means some applicants are not eligible. Applicants are sometimes required to have certifications or experience in the field to make self-paced assessments worthwhile. As a result, unless your employee already has an IT certification, for example, they may not fit the application requirements for certain programs.

Implementing competency-based master’s programs in your organization

Companies can utilize competency-based master’s programs to develop their workforce, but first, your leadership team needs to familiarize itself with the skills your employees need to acquire. Then, your organization can take the next steps to implement a competency-based master’s program. Get started by:

Assessing skills needed to thrive

Some employers might focus on degree requirements rather than identifying the skills necessary for the employee to succeed. By shifting to a skill-based approach, companies may be able to reduce labor shortages and draw from a larger pool of applicants. Consider auditing the skills necessary for each job by:

  • Assembling a team to audit skills

  • Listing the current skills of employees

  • Examining the knowledge-share process

  • Identifying knowledge gaps that exist in your current workforce

Partnering with an institution

While you can research existing competency-based programs, you can also consider partnering with a local university or institution. By doing so, you may be able to help design a curriculum that directly benefits your company, which can elevate your organization’s output, decrease the number of mistakes, and increase customer satisfaction.  

Considering a tuition assistance program

Consider providing tuition assistance to help your employees with additional learning opportunities. Doing so will most likely attract more applicants to your company, enhance the skill set of your current employees, increase their engagement, and provide you with a tax break. Offering tuition assistance to your employees can both save you money and improve your retention rate.

Next steps on Coursera

For employees, a competency-based master’s can build on the foundation of a bachelor's degree and years of real-world industry experience. As the employer, these innovative programs enable your current employees to gain additional knowledge needed to improve your organization’s overall performance while also instilling a sense of engagement and motivation into your workforce. As your organization evaluates competency-based education and identifies skills to build, online courses on Coursera could help.

With Coursera for Business, you can train teams across your organization in the skills that matter most in today’s digital economy. Your employees will gain access to content from 350+ leading universities and industry partners, where they can build real-world experience with innovative skills, tools, and technologies while earning globally recognized credentials. Our customizable, scalable learning solutions balance workplace and technical skills training in diverse formats, from video clips to guided projects and Professional Certificates. Accelerate your digital transformation and equip employees to drive growth with Coursera.

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Article sources

1

GradSchools.com. "Competency Based Master’s Degree Programs, https://www.gradschools.com/degree-guide/competency-based-graduate-programs." Accessed June 24, 2025.

Written by Coursera • Updated on

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.