With 87% of companies coming to terms with either a current or future skills gap, leaders and employees must be diligent to keep up.
The World Economic Forum Future of Jobs Report predicts that 40% of current workers’ core skills will change by 2025, reinforcing the need for leaders to adapt.
Employers must develop more flexible strategies for training their workforces. This article will discuss the definition of skills gaps, walk through the process of conducting an effective analysis, and finally offer a free skills gap analysis template to help guide these efforts.
Taking the necessary steps to identify skills gaps will provide key insights in focus areas for growth and training, ensuring your team is ready to perform.
Table of Contents
What is a skills gap?
An increasing number of companies are struggling due to workers’ inadequate skills for job requirements.
This discrepancy, called a “skills gap,” is caused by a range of factors, including rapid technological developments, economic instability, and the public perception of work in industries such as manufacturing and IT.
For example, the skills gap is projected to cost G20 countries an estimated $11.5 trillion in lost potential GDP growth if it isn’t addressed quickly by businesses.
Bridging these gaps can be beneficial to everyone involved, providing improved service and increased productivity for businesses, along with better job security and higher compensation for employees.
How to conduct a skills gap analysis for your organization
First, you should assess what your employees are capable of and what skills they lack, as well as identify the skills you need and how to bridge the gaps between the two.
Let’s take a closer look at how to conduct a skills gap analysis.
Step 1: Map out the skills of your employees
Skills mapping starts with identifying current job roles in your organization, and making sure you have an accurate list of each role’s tasks and responsibilities.
Next, you can compile a list of all the skills needed for each task (such as coding, project management, or analytics) and map them against each employee’s current skills and capabilities. This will give you an idea of your team’s proficiency.
Step 2: Identify your needs
After identifying the capabilities of your team, it’s time to identify what your organization needs from them to achieve success. Tracking industry trends and customer feedback can help you determine which areas are most successful.
Once you have identified the areas that need attention, you make a list that includes core and adjacent skills to map out the necessary expertise areas and levels for your team.
Step 3: Compare and contrast
Now it’s time to compare and contrast your list with existing employee skill sets and the list of required organizational needs. Now you can pinpoint the skills gap.
This process should highlight any weak points in your team, so you can focus on addressing those weaknesses when formulating improvement plans.
Step 4: Develop a plan
The last step is developing an actionable plan to help close any gaps identified in the previous step.
This could involve training sessions focused on specific topics or job roles, recruiting new talent, offering incentives or rewards programs, or even outsourcing specific tasks.
It’s key to make sure everyone involved understands their responsibilities and has access to relevant resources.
Skills matrix software for skills gap analysis
An effective way to close the skills gap in your organization is through using skills matrix software. This software allows employers to identify, analyze and track employees’ knowledge, skills, and abilities to determine individual development needs.
Skills matrix software can help employers efficiently evaluate employee performance, creating a baseline metric for comparison against ideal job specifications, and giving individuals opportunities to increase their relevant skills and develop their career potential.
A skills matrix can be used to implement more robust training initiatives, enabling managers to assign roles better suited to each individual’s capabilities.
Investing in skills matrix software can help employers ensure that resources are optimally allocated to maximize organizational success.
Download your free skills gap analysis template
Identifying skills gaps within your workplace is essential to ensure that employee skills are up to date and aligned with industry demands.
A skills matrix is the ideal tool to conduct a skills gap analysis, showing employers exactly which skills are needed by visualizing their team’s skill set.
To get you started, we have put together a free skills matrix template. Start creating a more engaged and productive workforce today.