To ensure training isn’t falling beyond the pace and change of business, organizations should often evaluate how well their current workforce is fulfilling their company's needs.
Evaluations like performance reviews and Key Performance Indicators (KPI) analysis can track past performance, but implementing an actionable development plan for improving workforce skills requires a major step—a skills gap analysis.
Skills gap analyses are designed to compare employee training programs, existing skill sets, workforce planning, and recruitment strategies with the organization’s strategic objectives and business goals. It will help determine how well the current skill sets and hiring processes match the business needs.
Bottomline: If not aligned with business goals, employee training will not drive business performance.
An effective skills gap analysis uses 7 basic steps to provide training teams with a picture of their organization’s workforce skills and if they’re hitting the mark.
1. Define Organizational Goals and Objectives
First, the team members conducting the analysis must ensure the skills gap analysis aligns with the organization's strategic goals.
How do you do this?
Engage senior leadership and key stakeholders to fully understand the short and long-term business objectives. This will give you a bulls-eye to shoot for and demonstrate how training investments drive business metrics.
2. Identify Current and Future Skills Needs
Establish a baseline. Working with human resources, conduct a thorough analysis of the existing job roles to identify the required skills for each position. This can be done through job descriptions, competency models, and input from managers.
Performing a future needs assessment is also key for anticipating future skills requirements based on industry trends, technological advancements, and changing business strategies. This forward-looking approach ensures an organization is prepared for upcoming changes.
3. Assess Current Skill Levels
After identifying your needs, now focus on identifying the current skill levels—both from employees and from their managers.
First, distribute surveys and self-assessment tools to current employees to gather data on their skill levels. These tools can include KPI rating scales, open-ended questions, and competency assessments.
Next, collect feedback from managers regarding their team’s skill sets. Managers can provide insights based on their direct observation of employee performance and capabilities, as well as important information about soft skills.
Finally, review information you’ve already collected in the past. Evaluate existing performance data collected with management software, such as employee evaluations, productivity metrics, and project outcomes, to assess their current skill proficiency.
These three avenues will give you a solid picture of employee’s current skill levels.
4. Use Skills Assessment Tools and Methods
Develop a skill gap analysis template, like a skills matrix, that maps out required skills against current employee skill levels. This visual representation helps in identifying gaps and areas for development.
Implement competency frameworks that define the behaviors, knowledge, and skills needed for various roles.
These frameworks provide a structured way to evaluate current competencies against desired skills and skill levels.
Utilize various skills assessments and tests to objectively measure skills. These can include technical tests, simulations, and practical exercises tailored to specific roles.
5. Analyze and Interpret Data
With a comprehensive data set, it’s time to compare the current skills among the organization’s workforce against the required skills identified by the stakeholders and their business objectives.
Prioritize skills gaps based on their impact on business goals and the urgency of the training needs. Focus on critical skills that are essential for immediate and long-term success.
6. Develop and Implement a Training Plan
Design targeted training programs to address identified skills gaps. These programs can include workshops, online certification courses, mentorship programs, and on-the-job training.
Create personalized learning paths for employees based on their specific skill gaps and career aspirations. Mentoring programs are especially helpful for new employees to learn the specific skills necessary for their success.
Learning management systems (LMS) and other e-learning platforms are excellent tools for tracking the progress and effectiveness of training programs and initiatives.
7. Monitor and Evaluate Progress
After performing the skills gap analysis and aligning the training program with the overall organizational goals, it’s important to continuously monitor and evaluate the progress of these improvements. Implement a feedback loop where employees and managers regularly discuss progress and challenges in skill development. This helps make necessary adjustments to training programs that help maintain their effectiveness.
Track key performance metrics to evaluate the effectiveness of training initiatives. These metrics can include KPIs identified in post-training assessments, changes in productivity, and business goals.
Finally, conduct periodic skills assessments to ensure that employee skills sets remain aligned with the evolving business needs of the organization while maintaining a dynamic, competent, and engaged workforce.
How Often Should Skills Gap Analyses be Conducted
Skills gap analyses should be conducted at least annually to keep up with evolving business goals and industry trends. But there are times they need to happen more frequently.
Additional skills gap analyses should be conducted during significant organizational changes, such as the advancement of new technologies, organizational restructuring, or entering new markets. Similarly, they should also be used after major training initiatives to measure their effectiveness and to identify any remaining or new skills gaps.
Why They Are Critical
Performing a skills gap analysis can identify specific areas where individual employees either lack the necessary skills or need to refine their current skills—all to hit broader business goals.
Meeting these training needs proactively often drives business performance, and improves employee engagement, as employees feel more competent and valued in their roles.
By pinpointing precise skill deficiencies, organizations can also allocate training resources more efficiently to enhance their desired skills, giving a better return on investment (ROI) for employee training programs and increasing employee retention.
They can also show opportunities for upskilling, reskilling, and opportunities for automation efficiencies.
What's after? Content development. Here's a step-by-step guide to creating effective training materials that will hit your business goals.
How a Content Partner Can Help
Skills gap analyses reveal critical training opportunities. Often, training teams don’t have the capacity to launch large, complex projects, with training media they haven’t developed before.
An expert content partner, like NextThought, can quickly and affordably create volumes of videos, interactives, animations, and other content. Effectively, they become part of your team, so your new hires and existing employees develop the right skills that hit your business goals.
