How to Develop a Skill Gap Analysis

by Tara Duggan
Competency mapping identifies the required skills for each job.

Competency mapping identifies the required skills for each job.

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Developing a skill gap analysis typically involves defining the skills and knowledge required to complete a task and then comparing a person’s current level to that requirement. After identifying the gap between the two, training professionals work with personnel to create a plan to remedy the situation. According to the American Society for Training and Development, the underlying causes of skills gaps typically include changing jobs and lack of education and training. Determining the required skill levels usually includes defining the job responsibilities when companies introduce new technologies or processes.

1. Identify business goals. To remain competitive, small businesses typically need to maintain a skilled work force. Assessing the critical skills needed by an organization allows the company to ensure current and future employees possess the right skills to enable optimal business performance. Prepare a project plan that lists the current business needs and strategic objectives of the organization. Identify the procedures and processes in place as well as the types of personnel required to carry out company functions. Articulate the desired state.

2. Collect data. Create a skills inventory to list the skills and knowledge to perform each role in the company. For example, create a spreadsheet that lists the tasks in one column and the skills and knowledge in another. Observe people completing the work to validate your assumptions. Rate personnel as entry level, master level or expert level. Additionally, conduct focus groups or create an online survey using a tool such as SurveyMonkey, Zoomerang or Qualtrics, to gather information. Compare the outcomes of experts with the outcomes of less experienced personnel to identify the tactics used by skilled professionals. This helps determine what training needs to be implemented to improve the success rate for less seasoned employees.

3. Interpret the data and make recommendations. Prepare a report that lists the missing skills and knowledge required to complete work successfully. For example, list the skills lacked by existing workers, newly hired college graduates or temporary employees. Job competencies may fall short in areas such as communication, creativity, leadership and teamwork. Other typical gaps can involve project management, sales, technical or customer service skills.

4. Prepare a training plan to address identified skills gaps in the current environment. Successful training professionals may develop curricula using the resources provided by the Bureau of Labor Statistics Occupational Outlook website, which lists professional associations affiliated with a wide variety of occupations. Many of these organizations offer training. For example, the Project Management Institute provides training and certification for project management professionals and the American Society for Quality provides training and certification in areas related to quality management, such as Six Sigma. Skills gaps commonly occur when a company strategy changes, mergers or acquisitions result in employees lacking relevant industry skills or training investments get cut due to budget shortages. After analyzing the gap between the current performance and the desired performance levels, effective training professionals design, create, deliver and evaluate interventions that enable employees to develop both professionally and personally to achieve the desired state. This typically results in improved employee morale, retention and business performance.

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