To remain competitive, all organizations must foster continuous learning. As tools and technologies rapidly change, roles will continue shifting as well. In fact, we are entering a “reskilling revolution” that will require 60% of workers to upskill by 2030, according to the World Economic Forum. For example, new roles in data and analytics are fast emerging, as Gartner reports. And 98% of HR leaders feel concerned about skill shortages in their organization.
In light of these changes, upskilling employees should be a key priority for HR leaders in any company. Learning new skills also makes workers 47% less likely to look for another job; fostering new skills for employees can establish a company as an employer of choice.
To determine which abilities each employee needs to grow, conduct a skills gap analysis. This easy process will highlight the best developmental opportunities for each employee.
In this article, we’ll dive into how to conduct a skills gap analysis. We’ll also share a free template and example of how to perform one.
Table of Contents
- What Is a Skills Gap Analysis?
- How to Conduct a Skills Gap Analysis
- Free Skills Gap Analysis Template
- Skills Gap Analysis Example
- FAQs about Skills Gap Analysis
What Is a Skills Gap Analysis?
Let’s examine what a skills gap analysis entails, along with its key benefits.
Definition
A skills gap is the divide between an employee’s current skill set and the abilities needed to perform a particular role as effectively as possible. A skills gap analysis evaluates what skills will help the employee thrive in this role. Through this process, you’ll determine needs for upskilling, which helps employees excel in their current role or career path. You’ll also highlight needs for reskilling, which equips people to transition into a different type of role.
Conducting a skills gap analysis ensures employees receive the most beneficial training for their current or future role. Without conducting a skills gap analysis, organizations may fail to nurture their employees’ growth in the right directions. A well-planned skills gap analysis will inform their upskilling and reskilling efforts, enhancing organizational success.
You can perform a skills gap analysis at the individual or organizational level. In this article, we’ll focus on the individual employee level. However, you can also conduct this analysis for a whole team or company to identify specific areas of need.
Key Benefits
A skills gap analysis delivers crucial benefits:
- Allowing an organization to remain competitive
- Conducting effective succession planning
- Keeping employees highly motivated and driven
- Strengthening manager/employee relationships
- Boosting inclusivity by providing pathways to advancement
- Engaging a hybrid workforce more fully
By conducting a skills gap analysis, you’ll get to know each employee better as an individual. As you learn more about their history, aptitudes, and interests, you’ll be poised to help them build vital skills that will keep your organization competitive.
How to Conduct a Skills Gap Analysis
Follow these steps to perform a skills gap analysis that gets results.
1. Review the Skills Needed for Each Role
Examine the skills needed for each position. Are they up to date, or have needs changed since the job description was written? Consult with leaders about emerging needs and incorporate them into the lists of skills for particular roles. You can conduct interviews with managers to glean these insights, as recommended by the Society for Human Resource Management (SHRM). Read industry predictions about what skills will become most essential in the future, too.
2. Assess Prior Learning
Don’t presume that people don’t possess a skill just because they don’t hold a credential. Instead, engage in more expansive recognition of prior learning, as Ras Banamungu says in Recognizing Prior Learning. Employees may have gained certain skills through informal channels, such as life experiences. Even if they still need to undergo formal training, strive to understand the point they’re starting from.
3. Review Performance Management Data
Data on employee performance will also help reveal skill gaps. Here are several tactics you can use to gather and analyze this data:
- Use goal-tracking software, like Primalogik’s performance management solution, to highlight individuals’ strengths and weaknesses. Through sophisticated analytics, such programs can illuminate gaps that relate to key tasks and roles.
- Review 360 feedback to pinpoint gaps related to interpersonal skills. A 360 review can detect gaps in communication, collaboration, and leadership abilities, for instance.
- Look at performance review data and notes from manager logs to spot weak points as well.
These tools can highlight whether upskilling or reskilling in certain areas would help people grow more effective in their role. When examining areas for growth, focus on abilities that directly relate to the employee’s current role or the organization’s future needs.
4. Create Personalized Learning Pathways
As Banamungu notes, tailoring learning strategies to each individual’s needs will lead to best results. Training will feel more motivational when customized to their interests, experience, and desired future role. Hold an in-depth discussion with each employee to create an individual learning plan.
Consider using adaptive learning platforms that use analytics to adjust training to employees’ needs in real time. Such modules can help employees learn more efficiently, as Marc Steven Ramos says in Tasks vs. Skills.
5. Allocate Time for Learning
Instead of expecting employees to engage in reskilling efforts on their own time, consider it part of their workday. Schedule dedicated time blocks for professional development so employees can focus on it during work hours.
In team meetings, ask people to share about the skills they’re developing. This will boost accountability for learning and normalize it as an expected part of the job.
6. Coach Employees to Success
Share feedback as employees apply new skills. Provide daily input on their progress, so they’ll grow more confident in using their new abilities. Schedule weekly one-on-ones as well, holding more in-depth conversations on their development. Refer to their learning plan, discussing their achievements and challenges they’ve faced. Share plenty of praise as they begin to successfully apply their skills. And offer pointers on how to use these abilities more effectively, giving concrete examples.
Next, we’ll share a template to aid in your upskilling efforts. This simple tool will help you to clearly assess crucial skills gaps.
Free Skills Gap Analysis Template
Download Now: Free Skills Gap Analysis Template [Get Your Copy]
Skills Gap Analysis Example
Let’s look at a sample skills gap analysis to clarify how to use this tool in practice.
Role: Lead Programmer
Employee: Hannah Novak
| Skill Required | Current Skill Level (1 – 10) | Needs | Steps to Take |
| Coding knowledge | 8 | Brush up on relevant programs to refine knowledge. | Take advanced courses in X and Y programs. |
| Project management | 7 | Learn to delegate more effectively and manage deadlines. | Work with a mentor to plan how to approach project workflows. |
| Training and coaching ability | 7 | Check in more regularly with direct reports, taking a more hands-on approach to leadership. | Take a transformative leadership seminar focused on coaching; work with a mentor to apply the skills learned. |
| Client relationship management | 6 | Enhance customer service skills and ability to build strong relationships with clients. | Work with a peer mentor to collaboratively build relationships with clients. |
| Determining project specifications | 9 | Strengthening client relationships will further benefit this area, which is already strong. | See above step. |
| Measuring project success | 8 | Enhance knowledge of metrics and evaluation techniques. | Read literature on identifying and evaluating metrics of success; discuss with mentor. |
Comments:
Overall, Hannah is very knowledgeable about the programs her team uses. She has a strong foundation in project management, and upskilling in several of the above areas will help her become a more capable leader. A combination of formal trainings, discussions with her mentor, and readings will work well for her learning style.
FAQs about Skills Gap Analysis
Below, we share our answers to some common questions about this process.
Q1: How to measure skills gaps?
First, create a list of core skills needed for a particular role. Then, using a numeric scale, rate an employee’s skill level for each one. Compare the assigned rating to the highest possible skill level for that role. This will show how much room they have to grow (e.g., if they received a 5 on a scale of 10, there is substantial room for growth).
Q2: When to conduct a skills gap analysis?
You can conduct a skills gap analysis every 3–6 months. This frequency will give you an up-to-date understanding of employees’ needs for upskilling and development.
Q3: What is a skills gap example?
For a marketing specialist, a skills gap could entail a need for stronger customer service skills. If this individual received a rating of 4 out of 10, for example, they would need to undergo development in this area.
Q4: What are the key components of a skills gap analysis?
A skills gap analysis includes first reviewing the necessary skills for a role, then updating that list if needed. Then, it involves reviewing an employee’s level of mastery in each of these skills. Finally, it entails deciding on action steps for building skills that require further development.
Q5: What are the benefits of conducting a skills gap analysis?
This process will aid in reskilling your workforce to keep your skills current. You can prepare for emerging needs through a skills gap analysis, too.
As you conduct a thoughtful skills gap analysis for each employee, you’ll prepare them to excel in their role at a higher level. Employees will gain substantial motivation as they challenge themselves to grow new abilities. Train each manager in how to conduct a skills gap analysis and follow up consistently afterward. By doing so, you’ll support each employee’s ongoing development, priming your company for future success.
Learn how software solutions can support your employees’ growth—demo our performance management product!
