Recognising employees’ competences through verifiable micro-credentials: aligning higher education and employers’ needs in the digital era

Labour markets in the digital and Industry 5.0 era increasingly expect timely and trustworthy evidence of what employees can actually do, not only which formal qualifications they hold.However, employers often face information asymmetries: CVs and traditional diplomas provide limited insight into specific competences, especially when they are developed through short courses and non-formal learning.This paper examines how verifiable micro-credentials and digital badges can reduce these asymmetries by making learning outcomes, assessment and evidence transparent and machine-readable for employers.Based on a narrative, concept-centred review of 30 peer-reviewed articles (2016-2025), the study develops a three-layer model (pedagogical-assessment, technologicalverification, recognition-policy) and a minimum interoperability profile for micro-credentials.The model links competence needs signalled by employers to learning outcomes, assessment tasks and authentic artefacts that can be recognised both in formal higher education and in flexible, work-based and non-formal settings.The paper outlines practical decision rules and an implementation roadmap for higher education institutions to issue verifiable micro-credentials that are readable and useful for employers.The contribution is an actionable framework that supports skills-based recruitment, internal mobility and upskilling strategies while keeping the recognition of employees' competences at the centre.