21 Feb 2023

Skills gap analysis

Are you struggling to keep your business competitive? Do you feel your team is falling behind in their skills and knowledge? If so, then you may be facing a skills gap. A skills gap is a lack of necessary skills and expertise in a particular industry or job role. It is a fundamental challenge for founders and people leaders to overcome, especially in the fast-paced world of start-ups. In this blog post, we’ll explain skills gaps, their impact on the workplace, and how to perform a skills gap analysis to identify them.

What are skills gaps in the workplace?

Skills gaps can occur in many different ways. For instance, they may result from introducing new technologies and techniques into an industry. Employees may have needed more time to learn about them, or their training may need to be updated. Skills gaps can also emerge when organisations experience rapid growth and need new roles filled that they’ve never had to recruit for before. These gaps could mean employees cannot do their jobs to the best of their abilities, causing productivity and quality issues. Additionally, employees may become demotivated and leave the company, yielding a costly turnover rate.

What is the impact of a skills gap in the workplace?

The impact of skills gaps can be significant for the individual employee and the company. For employees, the lack of necessary skills can lead to feeling of inadequacy and low job satisfaction. This can result in a negative attitude toward their work, ultimately impacting their productivity and overall job performance. For the company, skills gaps can result in a decrease in competitiveness and efficiency. This can lead to lost revenue and a lack of innovation, which can cause long-term harm to the business.

How to do a skills gap analysis?

A skills gap analysis identifies the skills and knowledge required for a particular role or industry. It helps HR leaders identify the skills gaps within their organisation and develop a plan for addressing them. To perform a skills gap analysis, follow these steps:

  • Identify the skills required for each job role within your organisation.
  • Assess the skills of your employees, either through self-assessments or performance reviews.
  • Compare the skills needed for each job role with the skills possessed by your employees.
  • Identify any gaps in skills or knowledge.
  • Develop a plan for addressing those gaps, such as offering training or professional development opportunities.

How do you write a skills gap analysis?

Writing a skills gap analysis can initially seem daunting, but it is a straightforward process. The study should include the following information:

  • The job roles and skills required for each role
  • The skills possessed by your employees
  • The gaps in skills and knowledge
  • A plan for addressing those gaps

The analysis should be concise and easy to read, with clear headings and bullet points. It should be written in plain English so that all members of your organisation can understand it.

What is a skills gap example?

An example of a skills gap might be that your sales team struggles to close deals due to a lack of knowledge of the latest sales techniques. After performing a skills gap analysis, you identify that only 50% of your sales team is proficient in the latest sales techniques. You then develop a plan to address the gap, such as offering a training course or hiring an experienced sales trainer. Addressing the skills gap enables your sales team to improve their skills and increase their productivity, positively impacting the bottom line.

Skills Gap FAQs

Q: How often should I perform a skills gap analysis?
A: Skills gap analysis should be performed regularly, as skills requirements and technology change over time. You may wish to conduct a skills gap analysis annually