What is Skill Gap Analysis?

Get insights on the importance of Skill Gap Analysis, a process to identify skills required for a job and compare it to an employee's current skillset.

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Skill Gap Analysis is the process of identifying the differences between an individual or organization's skills and the skills required to perform effectively in their current or desired roles. A skill gap analysis aims to identify areas where individuals or organizations need to improve or develop new skills to meet the demands of their current or future job roles.

What is Skill Gap Analysis?

How to conduct a skill gap analysis?

Conducting a skill gap analysis involves several steps, including:

  • Identifying the Required Skills: The first step is to identify the skills required for individuals or organizations to perform effectively in their current or desired roles.
  • Assessing Current Skills: The next step is to assess the current skills of individuals or the organization. You can also do it through employee surveys, performance appraisals, and job analysis.
  • Comparing Current and Required Skills: The assessment of the current skills should then be compared to the required skills, highlighting the areas where there are gaps.
  • Developing a Plan to Close the Gap: Once the skill gaps have been identified, you can eradicate them through planning. This may also involve providing training and development opportunities, recruiting skilled individuals, or reassigning employees to roles that fit their skills.

Learn more: What is Workforce Development?

Benefits of skill gap analysis

The benefits of conducting a skill gap analysis are numerous and can significantly impact the individual and the organization. Some of the key benefits include:

  • Improved Performance: By identifying the skills gaps within an organization, managers can implement strategies to improve performance by ensuring that employees have the necessary skills to carry out their duties effectively.
  • Better Employee Development: Skill gap analysis can help managers to identify areas where employees need further development, allowing for tailored and effective training programs to be implemented.
  • Increased Productivity: Organizations can increase productivity and competitiveness by addressing skills gaps and improving employees' skills.
  • Improved Employee Retention: When employees are allowed to develop new skills, they are more likely to feel valued and motivated, reducing their likelihood of leaving the organization.
  • Better Recruitment Decisions: By understanding the skills gaps within an organization, managers can make better recruitment decisions, ensuring they hire individuals with the right skills for the job.

Common skills gaps faced by employers

Employers face a range of skill gaps; some of the most common include:

  • Technical Skills: The rapid pace of technological change makes organizations need to stay current. This leads to a shortage of employees with the required technical skills.
  • Leadership Skills: Organizational growth and change increase the demand for effective leaders. This creates a shortage of employees with the necessary leadership skills.
  • Soft Skills: The increasing importance of soft skills has led to a shortage of employees. For example, communication and interpersonal skills.

Closing the Skill Gap in Your Organization

Closing the skill gap in your organization involves several key steps, including:

  • Providing Training and Development Opportunities: Employees with opportunities to develop new skills are essential to closing the skill gap. Subsequently, you can do this through training programs, mentoring, and on-the-job learning.
  • Recruiting Individuals with the Necessary Skills: Recruiting individuals with the necessary skills can help to close the skill gap in your organization. You can also do this through targeted recruitment campaigns, attracting and retaining the right individuals, and offering competitive remuneration packages.
  • Reassigning Employees to Roles that Match their Skills: Reassigning employees to roles that match their skills can also help to close the skill gap in your organization. This involves identifying employees' skills and matching them with roles where their skills.
  • Encouraging Continuous Learning: Encouraging continuous learning and development can ensure that the skill gap in your organization does not widen. Subsequently, you can achieve them by providing employees with opportunities to attend workshops and conferences and offering on-the-job training.
  • Regularly Assessing and Reviewing Skills: it is essential to closing the skill gap in your organization. You can also achieve them through regular performance appraisals and skill gap analyses.


A skill gap analysis determines the skills needed for effective performance in current or desired roles. Identifying and addressing these gaps improves organizational performance, competitiveness, and employee success. Moreover, regular skill assessments, reviews, and training opportunities close skill gaps. This also ensures employees' skills are up-to-date and relevant to their job demands.

Learn more: What is Reskilling Workforce?

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