Having the right skills is not sufficient; these skills need to be recognised and used effectively by employers and learning institutions. Qualifications serve this function by certifying acquired knowledge and skills. This chapter explores how qualifications work, why they sometimes fail, and what can be done to make them work better. It first discusses how to construct strong qualification systems. It then examines how competence-based qualifications can be fully exploited, and how effective skills assessments may underpin the credibility of qualifications.