78% of employees feel they lack the skills necessary to advance in their career. Is this true for your employees? If so, a skills gap analysis should be high on your list of priorities. But, what is a skills gap analysis? And why could it be the answer to closing the skills gap in your organisation?
Having a team with the necessary skills to perform their role is more crucial than ever. This need is particularly evident when hiring career changers. Yes, they may bring diverse experience but they might also lack certain role-specific competencies. This is where your skills gap analysis comes in. It will help you identify and address discrepancies between the skills your employees have and those required for optimal performance.
Today’s blog is all about understanding and bridging these gaps so you can build a resilient and adaptable workforce for your organisation.
Let’s get started, shall we?
What Is a Skills Gap Analysis?
First things first: a “skills gap analysis”, what is it? A skills gap analysis is a strategic process businesses use to assess the difference between the skills their employees currently possess and the skills needed to achieve organisational goals.
The process involves evaluating the competencies required for specific roles and comparing them against the existing skill levels of employees.
By identifying these “skills gaps”, companies can implement targeted training programmes, make informed hiring decisions, or reassign roles to ensure that their workforce is equipped to meet the demands of their industry.
Why Is a Skills Gap Analysis Crucial for Businesses?
A skills gap analysis is not just a diagnostic tool; it’s a strategic necessity for businesses striving to remain competitive. By identifying where skill shortages exist, companies can proactively address these gaps before they impact performance.
This is particularly important when integrating career changers, who may need additional support to fully adapt to new roles. Conducting a skills gap analysis ensures that your workforce is equipped with the right skills to meet current demands and future challenges. As a result, your organisation will see continued growth and boosted innovation.
Examples of Skills Gaps
Skills gaps can differ based on specific roles and industries, but they generally fall into four categories:
- Industry-Specific Skills: These gaps occur when employees lack the specialised knowledge or certifications essential for compliance and best practices in their sector, such as accounting, data analysis, and digital marketing.
- Soft Skills: Particularly among Generation Z, gaps in communication, teamwork, decision-making, and creativity have emerged, often due to a lack of face-to-face interactions.
- Leadership Skills: Insufficient training or poor communication can create gaps in leadership abilities, including conflict resolution, delegation, and team building.
- Technical Skills: Rapid technological advancements or outdated training can result in gaps in areas like AI, software proficiency, and programming.
How to Conduct a Skills Gap Analysis
Now that we better understand the importance of a skills gap analysis, let’s get to work on the step-by-step guide on how to conduct a skills gap analysis in your organisation.
Below are the steps to effectively carry out a skills gap analysis:
1. Identify Key Skills and Competencies
You will need to begin by determining the critical skills and competencies needed for your business to succeed. What are your company’s needs now? What will they be in 1 year? 5 years? 10 years?
For example, if your business is in digital marketing, key skills might include SEO, content creation, data analytics, and social media management.
For leadership roles, essential competencies might include decision-making, conflict resolution, and team management.
You will need to create a comprehensive list of all of these skills. Therefore, be sure to use job descriptions and industry standards, and get input from department heads. This will guarantee you cover all the bases.
2. Assess Current Employee Skills
The next step is to evaluate your employees’ existing skills. There are numerous ways you can do this, including surveys, interviews, performance reviews, and skill assessment tests.
For instance, a digital marketing firm might assess their team’s proficiency in tools like Google Analytics or Adobe Creative Suite.
When hiring career changers, consider their transferable skills, but also assess the gaps they may have in industry-specific knowledge.
- Practical Example: A company might use a skills matrix, where employees rate their proficiency in different areas. This visual tool allows employers to see at a glance where strengths and weaknesses lie.
3. Identify the Gaps
Now that you have assessed the current skills of your workforce, it’s time to compare them to the required competencies. This comparison will highlight the areas where there are significant gaps.
For example, if your company is adopting new software and your team lacks proficiency in it, this would be a critical skills gap.
For career changers, you might find that while they excel in leadership or project management, they may lack technical expertise specific to your industry.
- Industry Example: In the IT sector, rapid technological advancements often lead to gaps in knowledge of new programming languages or software. A skills gap analysis might reveal that your team needs training in the latest cybersecurity measures or AI technology.
4. Prioritise the Gaps
Not all skills gaps are equally urgent. Prioritise them based on factors, such as the importance of the skill to the business’s success, the number of employees affected, and the cost or time required to bridge the gap.
For instance, if your company is transitioning to a new CRM system, training in this system might be more urgent than developing soft skills like communication.
5. Develop an Action Plan
Once the gaps are prioritised, develop a plan to address them. This might involve creating training programmes, hiring new talent, or offering mentorship opportunities.
For career changers, consider tailored onboarding processes that help them quickly acquire the necessary industry-specific skills.
- Training Example: If your analysis shows a significant gap in digital literacy, you might implement a series of workshops focused on using specific software or tools.
- Hiring Example: In cases where training isn’t sufficient or time constraints are a factor, hiring someone with the required skills might be the best solution.
6. Implement and Monitor
After developing the plan, it’s crucial to implement it effectively and monitor progress. You will need to set clear timelines, assign responsibilities, and regularly review progress.
For career changers, providing ongoing support and reassessment will help ensure they are closing the gaps effectively.
- Monitoring Example: Regular follow-ups through surveys or performance reviews can help assess the effectiveness of the training and whether the skills gaps are being closed.
- Long-Term Monitoring: Skills gap analysis should be an ongoing process. Regularly reassess your workforce’s skills to keep up with changes in technology and industry standards, as well as your business’ needs.
7. Evaluate the Results
Finally, evaluate the outcomes of your efforts. Did the training programmes successfully close the skills gaps? Is there an improvement in employee performance and business outcomes?
For career changers, evaluate how well they’ve integrated into their new roles and whether any additional support is needed.
- Outcome Example: A successful skills gap analysis and training programme might cause increased productivity, better job performance, and higher employee satisfaction.
Key Takeaways
Conducting a skills gap analysis is essential for maintaining a competitive edge, especially when hiring career changers. By following these steps, businesses can ensure that their employees are equipped with the skills necessary to succeed and that the organisation is prepared to meet future challenges.
Are you an employer looking to hire career changers? Our experts can help you recruit skilled career changers for your business. Here are just some of the services we offer:
- Advice and support – We want to support career changers as they transition to a new career path, shining a light on the many benefits of employing career changers. Our website is packed with resources for employers, including guides on training and building an inclusive work environment. Moreover, find the latest industry insights on our weekly blog.
- Attract career change talent – Get in touch to advertise your roles on our dedicated career change jobs board.
- Find diverse talent – Our job advert inclusivity screening tests your ad against our “Inclusive Language Checklist” to remove potentially discriminatory language.
- Advertise your business – Our talented team of writers works with you to create a company profile that documents your efforts as a leading inclusive employer.
- Support career changers – If you’re a job seeker, you’ll find a range of support and resources to help you with your job hunt. From confidence tips to retraining to job application advice, we have you covered. You can also browse the latest opportunities on our career change jobs board.
Call 03458724501 or email info@refreshingacareer.com to learn more about our bespoke packages.
