Skills Gap Analysis
Skills gap – what does it mean?
Skills gap refers to the mismatch between the skills a person has and those required for working and future progress.
It represents the skills that an individual lacks. This gap occurs when the existing skills do not align with what is needed to stay competitive. This can result from changes in products and services or broader workplace developments that necessitate company growth/evolution. Identifying skills gaps is the most crucial step for anybody looking to upskill and grow in their career. Starting an upskilling initiative without conducting a skills gap analysis is likely to lead to failure.
What is Skills gap analysis?
Skills gap analysis is a technique used to assess a person's existing skills and identify any deficiencies. This information informs the overall training and development strategy. It allows for the prioritization of urgent skill acquisition through focused training. At an individual level, the analysis often involves evaluating shifts in roles, team responsibilities, the need for new skills for career advancement or project management, or outcomes from an unsatisfactory capability review.
Common types of skills gaps in organizations
At the workforce level, team leaders, with assistance from HR, carry out the skills gap analysis. The skills identified for enhancement are usually aligned with business goals. While many of these skills are technical, reflecting advancements in technology and digitalization, it is equally important for companies to evaluate the soft skills of their employees. Poor management, communication, and problem-solving abilities can impede optimal performance, even if the necessary hard skills are in place. An effective skills development strategy should aim for a balanced approach that incorporates both hard and soft skills for every employee.
Closing skills gaps
A strong starting point for developing skills gap tools in your company is to establish a detailed taxonomy of both hard and soft skills required. Once this taxonomy is in place, you can begin matching the identified skill gaps with new learning resources. Increasingly, companies are using AI to perform skills gap analyses, providing personalized insights for each individual. For effective implementation, it is crucial that the tools can suggest appropriate training and development resources for everyone, maintaining active and balanced engagement across all levels of the organization.
