Conducting a competency gap analysis: Tips, tricks, and best practices

In this article, we will discuss how you can conduct a competency gap analysis, as well as share a few strategies you can use to bridge any competency gaps you discover in your organization.

Conducting a competency gap analysis

Conducting a competency gap analysis brings a wide range of benefits to organizations, helping them develop a better understanding of the skills employees possess – and those that are needed.

In this article, we will discuss how you can conduct a competency gap analysis, as well as share a few strategies you can use to bridge any competency gaps you discover in your organization.


What is a competency gap analysis? Copied

A competency gap analysis is a methodical approach that aims to evaluate the difference between the required skills for future organizational goals and the current skills held by employees. Organizations can take necessary steps to address these gaps and strengthen their workforce by identifying areas where improvement is needed.

Regularly conducting a competency gap analysis is essential to maintaining a competitive edge. Additionally, it helps organizations adapt to changing industry trends, improve productivity, and enhance employee engagement and retention.


How do you conduct a competency gap analysis? Copied

You can conduct a competency gap analysis by following these steps:

Identify future organizational goals

The first step in conducting a competency gap analysis is to outline your organization’s future objectives. These goals can include expansion plans, product development, or increasing market share. Clearly defining these goals will help determine the necessary competencies to achieve them.

List required employee competencie

Next, list the competencies required to accomplish these objectives. This list should cover all relevant skills, knowledge, and abilities for the workforce to perform their roles effectively.

Assess current employee competencies

Third, evaluate the current competencies of employees. To do so, gather data on their skills, knowledge, and abilities through various assessment methods. These methods can include self-assessments, manager evaluations, performance reviews, or skill assessments.

Identify and prioritize gaps

After assessing the current employee competencies, you should identify the gaps between the required and existing skills. These gaps should then be prioritized based on their impact on your team’s or organization’s overall success.


What strategies can you use to address competency gaps? Copied

Identifying and addressing competency gaps in your organization is crucial for maintaining a skilled and adaptable workforce. Here are some strategies you can use to help fill any competency gaps your analysis reveals.

  • Training and development. One of the most effective ways to address competency gaps is by providing employees with targeted training and development opportunities. This can include on-the-job training, workshops, seminars, or e-learning courses.
  • Coaching and mentoring. Establishing a coaching or mentoring program can facilitate knowledge transfer between experienced employees and those who need to improve their skills. This approach helps close competency gaps and fosters a culture of continuous learning and improvement.
  • Recruitment and talent acquisition. In some cases, competency gaps may be too significant to address through training and development alone. In such instances, you should consider recruiting new talent with the necessary skills or promoting employees with the potential to fill these gaps.
  • Employee retention and succession planning. To maintain a skilled workforce, it is crucial for organizations to focus on employee retention and develop succession plans for critical roles. This ensures that valuable knowledge and expertise are preserved when employees leave the organization.


How can you monitor and evaluate competency progress? Copied

Competency development should not be an ad hoc process. Instead, organizations should regularly monitor progress and review performance to ensure that desired outcomes are achieved. Here are a few methods you can use to do so.

  • Regular assessment. Organizations must regularly assess the effectiveness of their efforts to address competency gaps. This involves tracking progress, evaluating the success of implemented strategies, and adjusting plans as needed to ensure continuous improvement.
  • Feedback and communication. Gathering feedback from employees and managers is an essential part of the evaluation process. Open communication channels allow organizations to identify areas for further improvement and adjust their strategies accordingly.
  • Revisiting and adjusting goals. As organizational goals and industry trends change, revisiting and adjusting the identified competencies is crucial to maintain alignment with these shifts. In addition, it ensures that the workforce remains adaptable and ready to face new challenges.


How can you use competency mapping to create a culture of continuous learning? Copied

Continuous evaluation and improvement should be part of an organization’s culture. To create this culture, organizations should focus on the following:

Encourage employee growth

Fostering a culture of continuous learning within your organization ensures that employees stay engaged and motivated to develop their skills. This can be achieved by providing opportunities for skill development, recognizing employee achievements, and encouraging innovation and creativity.

Establish a learning management system (LMS)

Implementing a Learning Management System (LMS) can help organizations manage, track, and deliver employee training content. An LMS can also provide valuable data on employee progress and skill development, allowing organizations to tailor their training and development efforts effectively.

Develop a competency framework

Creating a competency framework outlining the required skills, knowledge, and abilities for each role within the organization can help employees understand their development needs and career progression opportunities. This framework can also serve as a foundation for performance management, talent acquisition, and succession planning.


Seamlessly bridge competency gaps with AG5 Copied

AG5’s skills management software is designed to help organizations assess, track, and develop employee competencies. It can help identify competency gaps, map learning and development plans, and provide insight into individual and team strengths and weaknesses. By using skills management software, organizations can ensure that employees have the knowledge, skills, and abilities to perform their job functions effectively.

Moreover, AG5 software offers a range of features to support competency management, including competency mapping, skills assessments, and training management. AG5 also offers integrations with other HR tools, making managing employee data and streamlining HR processes easier.


Want to learn more? Schedule a free, live, 15-minute demo today.

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Original version | August 7, 2023

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