The skills shortage is a real worry for many businesses across all industries. The rapid expansion of AI, the shift towards more greener practices, and the general knowledge gap between generations mean that many businesses just can’t keep up.

Businesses that aren’t adapting risk falling behind.

That’s why keeping up to date on your teams’ skills and abilities now – and for the future – is critical for success. Tools like a Skills Gap Analysis Template support the implementation of strategies that will bridge any gaps and future-proof your team.

What is a skills gap analysis?

A skill gap analysis is an exercise where you identify and review the skills of your business, team, or individuals have today and the skills you need to achieve your goals now and in the future.

Pro Tip: Consider your team and try asking your team what they think! Their insights can highlight gaps you might miss and make them feel invested in your company’s growth.

Why it matters

Improve morale

Skill gaps in your teams can be huge pressure on employees. They can feel overwhelmed by additional workloads, or unrealistic expectations to keep up with the needs of the business leading to burnout.

Build winning teams

To create a successful team, you need to be aware of what you need to achieve your goals. Knowing what is needed to be successful and having a team of professionals with all the right skills to do so, will result in a high-performing team you can rely on.

Tailor learning programmes

Identifying areas of improvement means you can build successful learning and development strategies that benefit your team individually and your business goals.

Shape smarter recruitment

Knowing where your team’s weaknesses lie gives you a clear idea of the kind of people you need to look for when hiring. You’ll be able to recruit not just for today’s needs but for long-term success.

When to conduct a skills gap analysis

  • Business strategy shifts that require new skills or developing old ones
  • The start of a new project
  • Adopting new technologies
  • When you’re struggling to meet team or business goals
  • Restructuring or turnover

How to conduct a skills gap analysis

Step one: List the skills that are valuable to your team. Think short-term (existing skills within the team) and long-term (skills needed to achieve future goals).

Step two: Rate each skill by the level an individual, team, or business is currently at. 1 being Very limited/No skill, 5 being Expert level.

Step three: Rate each by its importance to your teams’ future goals, with 1 being unimportant and 5 being critically important.

Step four: Review the gap to see where you’re falling short.

Want a head start? Download our Skills Gap Analysis Template. It’s already fitted with the necessary formulas; all you need to do is add the information relating to you.

What to do next

Once you have a clear idea of the gaps, you can begin to consider strategies to address any skill gaps and prepare for future needs, such as upskilling, reskilling, or recruiting. If you’d like a hand with the process, we’re here for you.