Equipping your organization with the right people to get the work done is the most basic and essential requirement. It’s important not only to have the right people in the right positions, but also to continually analyze whether or not your organization is keeping up with the latest advances in technology and knowledge.

58 percent of global CEOs fear this alleged gap in workforce talent could hinder their company’s ability to grow. One of the direct ways for your organization to achieve peak performance is through a systematic evaluation of your employee skills in relation to business operations.

What is Skill Gap Analysis?

Skills gap analysis is an important business tool that measures the difference between the current skills of an individual and the required skill set. This evaluation tool helps organizations decrease the gap between current skills and skills actually required in the near future.

Significance:

The skills gap analysis tool allows organizations to identify and suggest improvements points in terms of employee skills to meet the present and future requirements of the organization in addition to improving work performance. Performing a skills gap analysis can benefit employees and the organization since it enables both to professional development needs. This procedure involves the measurement of employee skillset and comparing the gaps with the desired skills. It culminates in strategy formulation aimed at refining and adding skills to close the gap.

Effects:

A skills gap analysis is beneficial for the organization as well as employees since it identifies the goals needed for workplace progress. It further recognizes deficiencies that can hamper the growth of a company. A successful skills gap analysis will provide a clear path for professional improvement, and increase chances of promotion for the concerned employee. This overall helps the organization, increases productivity, increases employee retention and boosts bottom-lines.

Further Benefits:

– Comprehensive Overview about the organization – This analysis provides a comprehensive overview of the organization or a particular department, to determine whether that particular department has the resources to meet company goals and objectives.
– Establish Priorities – This analysis helps an organization to make informed decisions and then create efficient budgets.

 Process:

The first step is to conduct a skills gap analysis, which is basically an inventory of skills you need versus skills you already have. It’s simple math:

Skills needed – skills possessed = skills gap

Once the gaps are clearly defined there needs to be a plan to close those gaps. How will you identify specific development opportunities? How will you equip employees to grow? How will you track and incentivise progress? These are some of the questions that we need address to further.

Watch out this space or reach us to know more about our detailed process to conduct a scientific skill analysis exercise.

Written By: Faber Mayuri Pandya