Can competency-based education help close the skills gap?

By: The Capella University Editorial Team

Reading time: 3 minutes

Many employers face a common challenge: finding qualified people with the skills their organization needs. According to the Lumina Foundation–Gallup 2026 report Aligning Education and Work, 56% of U.S. employers say that’s difficult.

That puts pressure on employers to find new ways to prepare their workforce and on students to show they’re ready for the job.

Capella University’s competency-based education (CBE) is designed to help close that gap by focusing on career-ready skills that students can apply in the workplace.

Do college graduates have the skills employers need?

Many employers say recent graduates need additional training once hired. The same Lumina Foundation–Gallup survey found that 69% say recent college graduates need a great deal or a moderate amount of additional training to succeed in their roles.

What is competency-based education and how does it work?

Competency-based education (CBE) is an approach to learning built around one question: what does success look like in this field? Capella’s scholar-practitioner faculty set the knowledge and professional standards for each discipline. Employers in the sectors Capella serves advise on what’s expected from their best employees. Those insights shape the competencies you build in each course.

In CBE, your progress depends on the skills you can apply right away, not on time spent in the class or facts memorized. You must show mastery of each competency before you move on to the next.

How do competency-based assessments work?

Competency-based assessments are practical tasks that mirror real work. Instead of memorizing facts for an exam, you might build a business case or recommend actions based on a company’s quarterly reports.

Each assessment is scored against specific criteria tied to the course competencies, so you can see what was strong and what needs more work. A competency map – a personalized dashboard – shows your progress on each competency along the way.

GuidedPath vs. FlexPath: two ways to learn at Capella

Capella offers competency-based learning in two learning formats. They differ in how you manage your time.

• GuidedPath: Follow a preset schedule with deadlines. If you like a clear structure, this learning format gives you a steady rhythm to follow.
• FlexPath: Set your own deadlines and progress as you show mastery of each competency. If your work and family schedule changes week to week, this learning format gives you room to adjust.

How do employer education benefits help build skills?

Many employers support their teams’ education through tuition assistance. Capella partners with over 1,000 organizations to offer access to educational benefits and tuition savings.

Employees who use these benefits describe the impact on their work. In Workforce Edge’s 2025 survey of employees using employer-sponsored education benefits, 76% said their performance at work improved due to newly gained skills.

If you want to build skills you can use at work now, competency-based learning is worth considering.