Empowering HR Teams Through Skills Gap Analysis
What is the Role of HR in Skills Gap Analysis?
HR plays a key role in skills gap analysis by identifying shortages in current workforce capabilities versus skills required for business goals. HR can conduct a skill gap assessment by mapping existing employee skills, pinpoints gaps, develop training plans and implements hiring strategies to bridge gaps through upskilling, reskilling, or recruiting skilled talent.
How can HR professionals empower their companies to bridge talent gaps, and help business owners overcome the divide to drive success? The answer lies in a skills gap analysis.
As your company grows, the skills needed to move your business forward will change. To stay competitive, businesses need workers who can adapt to new challenges. A 2023 Wiley survey reveals that 69% of HR professionals in the US say their companies have a skills gap, up from 55% in 2021.
What is a Skills Gap Analysis?
A skills gap analysis is a strategic process that helps companies evaluate the capabilities of their current employees. It’s a tool that helps identify areas where it’s necessary for skills to be developed or improved. It also involves gauging the skills your organization and workforce require to grow.
As technology rapidly evolves, employees may not have the necessary skills to keep up with the latest advancements. One employee skills gap example is a company recently implementing a new customer relationship management (CRM) system and realizing that its workforce lacks the skills to use the system effectively.
According to a recent report by Adecco, 92% of corporate executives believe that employees aren’t as skilled as they need to be. This highlights the need for companies to prioritize workforce development in addition to pre-screening applicants for proficiency in the skills needed for the job.
3 Benefits of Conducting an Employee Skill Gap Analysis
Regardless of the size of your company, conducting a talent gap analysis can provide your HR team with a roadmap to enhance employee professional development and several other benefits.
1. Informed Hiring and Improved Retention
A workforce gap analysis can help HR teams make informed hiring decisions by identifying the required skills for each role. Additionally, by addressing skills gaps and investing in employee development, you can increase employee retention by demonstrating your commitment to their growth and professional advancement.
2. Future-Proofing Your Workforce
The business landscape is constantly evolving. New technologies and trends emerge rapidly. Regular skills gap analyses allow your HR team to anticipate future skills requirements and proactively equip your employees with the necessary skills to adapt to changes.
3. Gain A Competitive Advantage
Companies that can effectively identify and close employee skills gaps will have an advantage over those that don’t. Investing in professional development creates a highly skilled workforce that drives innovation and growth.
How HR Teams Can Conduct a Skills Gap Analysis
Conducting a talent gap analysis doesn’t have to be difficult for HR teams. With the right resources and partners, you can identify areas where employees need improvement and take steps to address those gaps.
Understand Current and Future Workforce Trends
Stay ahead of the curve by understanding the current and future trends in your industry. This knowledge will help you identify the emerging skills required to stay competitive and align your employees’ and new applicant skill sets accordingly.
Determine the Skills Necessary for Business Goals
Clearly define the skills needed for employees to be successful in their roles and complete tasks effectively. Consider the expanding needs of your company and identify the specific talents that will drive future success in each department and position.
Measure Your Current Skills
To conduct a comprehensive workforce skills gap analysis, begin by measuring the current skills within your organization. Here are some effective methods or skills gap analysis examples to gain visibility over your workforce.
- Employee Surveys: Gather feedback directly from your employees to understand how they view their own skills, identify areas of improvement, as well as determine which skills they believe are critical for conducting their job effectively.
- Performance Reviews: Assess employee performance and identify areas of strength and areas that need further development. Performance reviews provide valuable insights into each of their individual unique capabilities.
- Key Performance Indicators (KPIs): Analyze performance metrics to determine whether employees are meeting established benchmarks. This can help pinpoint specific areas where skills may be lacking, as well as where employees already excel.
- 360-Degree Reviews: Involve multiple perspectives in the evaluation process by gathering feedback from colleagues and supervisors. This holistic view provides a well-rounded assessment of your employees’ skills.
- Management Assessments: Evaluate the leadership skills of managers within your organization. Strong management is essential for guiding and developing the skills of the entire workforce.
- Skills Tests: Measure skills using assessments designed by industrial-organizational psychologists.
Close the Skills Gap
After your HR team has identified the skills gaps within your company, it’s time to take action. There are several approaches you can take to bridge the gap:
- Upskilling Your Current Employees: Invest in training and development programs to enhance the skills of your existing workforce. This is not only a great way to fill the gaps, but also boost employee engagement and commitment to their job. In a recent study, companies that provided further education for their employees saw a 15% increase in engagement and a 34% increase in retention.
- Hiring New Employees: Recruit candidates who demonstrate the skills needed to fill the gaps. By strategically testing talent during the interviewing phase, you can enhance your workforce capabilities and bring in fresh insights.
- Outsourcing: Consider outsourcing certain tasks or projects to specialized external partners. This allows you to tap into their expertise without the need for immediate in-house skill development.
- Monitor the Results: A skills gap analysis should be an ongoing process. Continuously monitor and reassess your workforce to ensure that your talent aligns with your evolving business needs. Regularly update your analysis and adjust your strategies as required.
Bridging the Gap for a Thriving Workforce
By conducting a skills gap analysis, HR Teams can help the company make data-driven decisions. Maximize the potential of employees through testing, upskilling, targeted hiring, and development strategies that will increase productivity, efficiency, and ultimately, your bottom line.
Select an organization that specializes in providing the skill gap analysis tools and resources you need. Skills assessment tests and pre-employment tests help you evaluate candidate capabilities, saving you time and resources in the hiring process. By leveraging a best-in-class platform, test library, and expertise, you can confidently build a workforce of skilled employees.
Take the first step toward closing the skills gap within your organization, and reach out to our team. Together, we can empower your HR Team to build a future where the company achieves its goals through the power of a skilled and motivated workforce.