---
title: Building a Skilled Workforce – The Role of Digital Credentials under House Bill 8
description: House Bill 8 transforms community college funding in Texas, emphasizing student achievements. Explore how digital credentials can support the bill.
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---
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[ Credly Blog ](https://credly-2629051.hs-sites.com/blog) Building a Skilled Workforce – The Role of Digital Credentials under House Bill 8
# Building a Skilled Workforce – The Role of Digital Credentials under House Bill 8
House Bill 8 transforms community college funding in Texas, emphasizing student achievements. Discover how digital credentials can support the goals of this bill in assisting community college students.
 July 5, 2023
 Credly Team
 4 min read
[House Bill 8 (HB 8)](https://www.highered.texas.gov/2023/06/09/texas-house-bill-8-becomes-law-paves-way-for-innovative-community-college-funding/), a groundbreaking education reform measure, has been enacted into law, introducing an innovative funding model for community colleges in Texas. Compared to most of the funding community colleges currently receive based on contact hours or the amount of time their students spend enrolled at the institution, this new model represents [a shift towards an outcomes-based approach](https://radio.kttz.org/2023-06-15/community-college-finance-reform-aims-to-address-workforce-demands-skill-gaps). Colleges are rewarded based on specific achievements by their students. These achievements include earning "credentials of value," completing a minimum of 15 credit hours, transferring to a four-year university, enrolling in dual credit courses, or taking courses that contribute towards academic or workforce program requirements.
This is a game-changing law aimed at addressing workforce demands and skill gaps through comprehensive community college finance reform. In this blog, we will delve into the imperative for community colleges to showcase their students' skills, explore the transformative effects of House Bill 8, and highlight the pivotal role that digital credentials can play in the evolving educational landscape.
**Transforming the Landscape**
HB8 marks a significant turning point for community colleges, transforming the educational landscape and driving progress towards bridging the skills gap. Through comprehensive financial support and incentives, this law empowers these institutions to revitalize their curriculum, offer targeted programs, and forge innovative partnerships with industry leaders.
In today's labor market, where the demand for skilled workers is rapidly increasing, it has become crucial for community colleges to demonstrate the value and capabilities of their students. A report by [Harvard Business School's Project on Managing the Future of Work (MFW)](https://www.hbs.edu/managing-the-future-of-work/Documents/research/The%20Partnership%20Imperative%2012.12.2022.pdf) highlights a mismatch between educators and employers in equipping workers with the necessary skills to fill the millions of job vacancies. Over 40% of employers believe that community colleges lack the mandate or culture to develop programs aligned with their needs.
Similarly, a disconnect exists regarding graduates' employability, with colleges being confident in graduates' skills, while only 62% of employers share the same perception. Recognizing this gap, the legislation acknowledges the importance of agile, market-responsive education and encourages community colleges to equip their students with industry-relevant skills.
In addition to transforming the learning and recognition structure, community colleges must adapt to the future of work by providing tangible rewards for their students. Traditional academic transcripts often fall short of capturing the full range of skills and competencies acquired during a student's educational journey. Instead, opt for digital credentials, a dynamic solution that validates and acknowledges individual skill sets with precision and authenticity.
**The Role of Digital Credentials**
Digital credentials are a powerful tool in this new educational paradigm, seamlessly aligning with the goals of HB 8. By embracing digital credentials, community colleges can offer their students a tangible advantage.
Digital credentials offer verified proof of a student’s competency and skills. They’re a smarter, data-rich alternative to traditional paper-based certificates that provide a granular view of a student’s abilities beyond traditional transcripts. Armed with this detailed information, employers gain increased confidence in community college graduates' capabilities, facilitating more precise and efficient hiring processes.
Community colleges that offer digital credentials can help allay the fears and hesitation students face in the following ways:
1. ** ****Strengthen university transfer application: **Digital credentials often provide additional information beyond traditional transcripts, such as when it was issued and the skills and competencies demonstrated to earn them. These rich metadata give universities a more comprehensive understanding of the applicant's capabilities and potential, enhancing the overall strength of the transfer application.
2. ** ****Motivate students: **Digital credentials serve as a roadmap for learners, highlighting their strengths and areas where further development is needed. This targeted approach to skills development allows learners to enhance their marketability and adaptability in a rapidly evolving job market.
3. **Open up a world of opportunities:** Students can curate a comprehensive online portfolio that showcases their digital credentials, creating a dynamic and easily accessible record of their skills and accomplishments. This online portfolio goes beyond the limitations of a traditional resume. It is a powerful tool that enables potential employers to gain a more comprehensive understanding of a learner's capabilities, including skills they learned outside of the classroom.
4. **Stand out from the job market: **These credentials can offer solid proof of a student’s capabilities, providing transparency and authenticity that can boost their confidence. This can also give them an advantage in the competitive job market.
Additionally, employers also benefit from the efficiency and accuracy of digital credentials. These credentials offer real-time verification, minimizing the time and resources required for traditional background checks. They can confidently identify candidates with the specific skills and qualifications they seek, ultimately streamlining the hiring process and improving talent acquisition outcomes.
**Bridging the Gap to Success**
Acclaim's digital credentials have been successful in helping community college students enhance their career opportunities. For example, the [Colorado Community College System (CCCS)](https://learn.credly.com/case-study/case-study-colorado-community-college-system) has experienced employers finding the rich data in the credentials to be highly informative in talent management.
With the passing of House Bill 8, community colleges have the opportunity to meet the demands of the evolving workforce and address skill gaps. By embracing digital credentials, community colleges can effectively showcase the skills and proficiencies of their graduates, empowering them to stand out in the job market and enabling employers to make well-informed hiring decisions. Let's embrace the power of digital credentials and usher in a future where skills are celebrated, recognized, and leveraged to their full potential.
To learn more about digital credentials and their value in the educational landscape, download our Beginner's Guide below or [schedule a demo call with our team](https://info.credly.com/schedule-a-demo-acclaim).
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