skills gap analysis

8 Easy Steps to do a Skills Gap Analysis for your Team

In today’s fast-paced world, being skilled cannot be overstated. As more and more businesses are looking to hire employees with specific skill sets, individuals must identify their own skills gaps and take steps to bridge them. That’s where a Skills Gap Analysis comes in.

This blog post will define a Skills Gap Analysis and why it is essential. We will also discuss how to conduct a Skills Gap Analysis and the various methods that can be used for this purpose. Additionally, we will provide you with a template that you can use to conduct your own Skills Gap Analysis and take control of your career growth.

What is Skills Gap Analysis?

Skills gap analysis is a process that helps organizations identify the gap between the skills and competencies required for a particular job or industry and the skills possessed by their current workforce. It involves assessing the skills, knowledge, abilities, and qualifications needed for effective job performance and comparing them with the existing skill set of employees.

A skills gap analysis aims to identify areas where there is a shortage of skills or a need for additional training and development. Organizations can identify these gaps by creating targeted training programs, hiring new employees with the required skills, or developing strategies to address the gaps through upskilling or reskilling initiatives.

Importance of Skills Gap Analysis

Skills gap analysis is of significant importance for organizations for several reasons. Firstly, it helps organizations identify the specific skills and competencies lacking within their workforce. This enables them to bridge those gaps through targeted training and development initiatives. By investing in the necessary training and upskilling programs, organizations can enhance their employees’ overall competence and proficiency, leading to improved productivity, efficiency, and performance. Identifying skills gaps also allows organizations to make informed decisions about recruitment and hiring. They can attract and select candidates with the desired skills, ensuring a more qualified and capable workforce.

Secondly, skills gap analysis is crucial for keeping pace with the rapidly changing job market and evolving industry requirements. New skills and competencies become essential as industries undergo technological advancements and market trends shift. By regularly conducting skills gap analyses, organizations can proactively identify and develop strategies to address emerging skill requirements. This helps them stay ahead of the competition, adapt to changing business landscapes, and remain agile in a dynamic environment. It also enables organizations to align their talent development efforts with their long-term business goals, ensuring their workforce has the necessary skills to meet future challenges.

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How to do a Skills Gap Analysis?

Conducting a skills gap analysis involves several steps. The process may vary depending on the organization’s specific needs and context. It is essential to involve key stakeholders, such as HR professionals, managers, and employees, to gather diverse perspectives and insights. Here’s a general guide on how to perform a skills gap analysis:

  1. Identify the objective: Determine the purpose of the skills gap analysis. Is it to identify gaps for a specific job role, department, or organization? Clearly define the scope and objectives of the analysis.
  2. Define required skills: Identify the skills, knowledge, abilities, and qualifications needed for the job roles or functions being analyzed. This can be done by consulting job descriptions, competency frameworks, industry standards, and best practices.
  3. Assess current skills: Evaluate your employees’ or workforce’s skills and competencies. This can be done through various methods such as surveys, interviews, self-assessments, skills assessments, performance evaluations, or a combination of these approaches. Collect data on the existing skills of each individual about the required skills.
  4. Analyze the gaps: Compare the necessary skills with the current skills to identify the gaps. This can be done by examining the data collected in the previous step. Identify specific areas where the skills fall short and quantify the gaps. Prioritize the gaps based on their impact and importance to the organization.
  5. Identify causes and sources of gaps: Determine the underlying reasons for the identified skill gaps. Is it due to a lack of training opportunities, technological changes, evolving industry requirements, or other factors? Identify the sources of the gaps to understand the root causes better.
  6. Develop an action plan: Create a plan to address the identified skill gaps. This plan should outline specific strategies and initiatives to close the gaps. It may include training programs, workshops, seminars, e-learning modules, mentoring or coaching, hiring new talent, partnering with educational institutions, or other talent development approaches. Align the action plan with the organization’s goals and resources.
  7. Implement and monitor progress: Execute the action plan and regularly monitor the progress. Implement the training programs or other interventions outlined in the project. Track the development and improvement of skills over time. Continuously assess and adjust the plan as needed based on feedback and results.
  8. Evaluate the effectiveness: Assess the impact of the skills gap analysis and the implemented interventions. Measure the outcomes, such as improved performance, increased productivity, and enhanced employee satisfaction. This evaluation helps refine future skills gap analyses and ensure continuous improvement.
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Various Methods for Conducting Skill Gap Analysis

There are several methods that organizations can use to conduct a skills gap analysis. Combining these methods to gather comprehensive and reliable data is often beneficial. Each method has its strengths and limitations, and utilizing multiple approaches can provide a more holistic understanding of organizational skills gaps. Additionally, involving employees and stakeholders in the process can enhance the accuracy and relevance of the analysis. Here are some commonly used methods:

  • Surveys and Questionnaires: Design and administer surveys or questionnaires to gather information about employees’ current skills and competencies. This method allows for collecting data from a large number of employees efficiently. The survey questions should focus on specific skills and ask employees to rate their proficiency or indicate areas where they lack expertise.
  • Interviews and Focus Groups: Conduct one-on-one interviews or group discussions with employees, managers, and subject matter experts. This qualitative approach provides deeper insights into skills gaps and allows for a more nuanced understanding of the challenges individuals or teams face. It also enables participants to provide additional context and examples of their skills and job responsibilities.
  • Performance Evaluations: Review performance evaluation data to identify areas where employees may lack the necessary skills or struggle to meet performance expectations. Performance evaluations can provide valuable insights into specific skill gaps and performance deficiencies.
  • Skills Assessments and Tests: Utilize skills assessments or tests to measure employees’ proficiency in particular areas objectively. These assessments can be conducted online or in person, including practical exercises, simulations, or knowledge-based tests. Skills assessments provide quantitative data on individuals’ skills and can help identify precise areas of improvement.
  • Job Analysis and Competency Frameworks: Conduct a detailed job analysis to identify the specific skills and competencies required for different organizational roles. This involves breaking down job roles into crucial tasks and placing the skills necessary for successful performance. Competency frameworks, which outline the desired behaviors and skills for specific functions, can also be used as a reference to assess skill gaps.
  • External Benchmarking: Compare the skills and competencies of your employees against industry standards or best practices. This can involve researching industry reports, job market trends, or benchmarking studies conducted by professional associations. External benchmarking helps organizations understand how their workforce’s skills stack up against industry norms and identify areas where improvement is needed.


In conclusion, conducting a skills gap analysis is essential for the growth and development of your workforce. It helps identify gaps in skills, knowledge, and competencies within your organization and provides an opportunity to bridge them. With technology advancing at an unprecedented rate, staying ahead of the curve is essential to keeping your workforce up-to-date with relevant training and development programs. Use our skill gap analysis template to thoroughly analyze your organization’s skill gaps and create a plan of action that ensures long-term success. Don’t let the lack of skills hold you back. Start bridging the gap today!


What is a skills gap analysis?

A skills gap analysis identifies the difference between the required skills for a specific job or task and the actual skills an individual or team possesses. The analysis helps organizations to know where improvement is needed, whether through recruitment, training, or other measures.

What are some examples of skill gaps?

Some skill gaps include a lack of proficiency in new technologies, limited knowledge of industry-specific regulations or standards, poor communication or leadership skills, and inadequate problem-solving abilities. It can vary depending on the specific job or task required within an organization.

What are three skill gaps?

Three skill gaps commonly identified in organizations include communication, leadership, and technical skills. Improving these areas can have a significant impact on the productivity and success of your workforce.

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