Mind the Gap! 6 Steps to conduct a Skills Gap Analysis
The Skill Gap is the difference between the skills required on the job and the actual skills the employees have.
The Skills gap is not only evident within organizations, but even on the job market!
43% of employers say that although they have enough applicants, those do not have the skills needed. (Harver)
Although many worry about automation taking over the job market, an analysis in the future of jobs report by WEF indicates that 133 million new roles may emerge in the near future compared to 75 million jobs that may be displaced. (WEF, 2018)
New roles will require new skills, and as business environments are constantly changing a Skills Gap Analysis can provide many benefits, including:
- Overview of organization: Gain deep insights about the organization’s objectives and how each department and employee is working towards reaching them.
- Enhance the recruiting strategy: Recruiting with purpose by hiring with the right skills in mind.
- Stay competitive: Stop being reactive and become pro-active by evaluating weaknesses and opportunities to execute strategies that are forward-looking.
- Boost productivity: Allocate human resources efficiently so that employees (whether trained or hired) are qualified to do their work.
6 Steps to conduct a Skills Gap Analysis:
1. Identify the organization’s objectives & future goals?
Find out where the company is heading to. It is important to know what skills are required to reach the company’s objectives and goals. According to these objectives, figure out what skills are valuable to the company and what skills are required for the employees to do their job in order to reach the organization’s goals.
2. What are the future job trends?
It is important to not just consider the present but also the future, analyzing trends that might impact the organization’s direction.
There are future positions or skills that might be required and jobs that could be automated. To do a skills gap analysis, consider and identify which of these skills will be necessary to survive in the future.
3. Who to talk to?
Once intel has been gathered about the company’s objectives and future trends, the next step is to establish who to talk to. Consider to talk to team leads, a department head or manager, since they are probably well aware about the internal skills present and the ones that are missing.
4. What are the current skills?
Now it’s about researching what skills currently exist in the organization.
Feedback is crucial, whether it’s surveys, skill assessment tests, performance reviews or interviews. It often helps to analyze KPIs concerning the employees and go from there. There are different resources and tools to help conduct skill management or feedback.
- Typeform: Conversational Forms & Survey maker
- 15five: A continuous performance management suite
- CultureAmp: Tools to run performance reviews and culture surveys
5. Where is the gap?
The skills gap analysis will help identify the gap of skills at a current state and for the future needs. It’s about analyzing the data now: Skills Required – Skills Possessed = Skills gap.
After reporting the missing skills, classify which skills in the gap could be trained for, and which need to be hired? What skills are required in the future and what is done to prepare for them?
6. Where will we go from there?
It’s important to plan for gaining the skills identified in the “gap”.
So what are the current strategies for addressing skills gaps?
The main 3 strategies are:
- Hire new staff already possessing relevant skills (Lionstep has a huge talent community to help recruit the best qualified, find out more)
- Automate these work tasks completely
- Re-train existing staff
All industries expect sizable skills gaps, according to WEF at least 50% of companies’ workforce will require re-skilling of some duration.
Artificial Intelligence, Machine learning, 3D Printing, IoT, Robotics, Biotechnology, VR, AR, drones… and so much more will impact our everyday lives. The future of jobs will demand technological, digital, people, creativity and imagination skills. All necessary to adapt to complex changing business environments.
Are you ready for the Skills Gap? We hope you enjoyed learning more about the Skills Gap Analysis and how it impacts your organization!