Your enterprise is performing really well and is growing substantially. Imagine you’re rolling out a new product to meet the increasing demands. But do your teams have the necessary skills to pull off the project on time?

Rapidly changing market demands are quite common in the modern world. As your organization grows, your business strategies will continue to evolve. If you want your business to meet changing needs, you need to equip your workforce with the necessary skills. This is where a skill gap identification comes in.

Read on to explore the meaning of skills gap analysis, its importance and the way to conduct one.


  1. What Is Skill Gap Analysis?

  2. Why Conduct A Skills Gap Analysis?

  3. For The Changing World Of Work

What Is Skill Gap Analysis?

To understand what a skills gap analysis is, let’s first look at the meaning of a ‘skills gap’. Essentially, a skills gap is the difference between the skills present in your workforce currently and the skills it needs to successfully execute their jobs. No matter which industry it is, organizations will always face a skills gap because of ever-changing business demands. Organizations can bridge the gaps through skill gap identification and necessary interventions.

A skill gap assessment or analysis is a strategy that helps organizations recognize and determine the types of gaps that exist in their workforce. It further helps in establishing training or hiring needs that will address those gaps, so that organizations can effectively reach their goals. By gaining valuable insights into the requirements of your workforce, you can help your organization keep pace with external demands.

Why Conduct A Skills Gap Analysis?

Also known as a competency gap analysis, a skill gap assessment is an effective way to check if your business is performing optimally. Here are some of the other benefits of a competency gap analysis:

  1. Identifies Weaknesses

Every individual has unique strengths and weaknesses. Instead of overlooking setbacks, organizations should provide tools to address and overcome them. By performing a competency gap analysis, you can identify where exactly employees need additional guidance or training.

  1. Offers Development

Employees are often unaware of training needs. Even if they are, they may not always be vocal about it. Sometimes, when employees start to feel a disconnect, they start looking for other opportunities. This is why it’s crucial to conduct a skills gap analysis as it will show people that you value their professional growth.

  1. Increases Productivity

Probably the most crucial benefit of competency gap analysis is the increase in productivity and efficiency. Skill gap identification opens doors for several interconnected development needs such as time management, planning and organization of projects, and efficient budgeting. These matter while achieving larger business goals.

Now that you know that a skill gap assessment is crucial for your workplace, let’s see how to conduct a skills gap analysis:

  1. Identify The Skills Needed

Whether it’s your current or future business strategy, the first step is to consider the skills needed to execute those strategies. You can begin by listing organizational goals and mapping skills to each of those objectives. Additionally, note down the desired level of proficiency needed for each skill.

For example, if your organization wants to maximize employee productivity, you need to prioritize project management or data collection and analysis skills.

  1. Measure Skills

The next step is to check what are the skills that your employees already possess. By measuring the skill level, you can identify what’s most important. An effective way to do this is by using a numerical rating scale. By rating each skill level, you can gauge how proficient someone is or isn’t in a particular skill. Make note of gaps that need to be addressed.

  1. Address Skills Gaps

The final step is to address the skills gap through different tools such as learning and development, upskilling or reskilling programs. By training, mentoring and guiding employees, you can help them advance their critical skills such as leadership, communication and critical thinking, among others.

For The Changing World Of Work

Organizing a skills gap analysis can be time-consuming but the effort is worth it. Harappa’s 10 on 10 Program is specially designed to help organizations tap into employee potential and drive peak performance. Whether it’s developing leadership or communication skills, powerful programs such as High Performing Leaders, Compelling Communication Program and First Time Manager Program are designed to drive organizational excellence. Help your employees build necessary 21st century cognitive, social and behavioral skills and drive high-performance behaviors at scale. Schedule a demo today!

Explore Harappa Diaries to learn more about topics such as Who is a Project Manager, Must-Have Skills For Leadership, Top Behavioral Skills For Managers, Operational Manager Skills and Managerial Roles And Skills that will help organizations tap into their employees’ potential.

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