Recognising the Skill Gaps within your Business

In today’s competitive environment, if you want your business to be successful in the long run, you need employees who contribute productively to your business. For that to happen, they must be “experts” in their fields and have the necessary skills relevant to your business, and markets, for now and into the future. But the question is, what are these skills that are specific to your business? More importantly, how can you identify these skills and measure an individual’s ability against these skills specifically?

What is a Skills Gap Analysis?

A skills gap analysis is a process used to identify and gauge the difference in the business’s current state and a future, ideal goal state. In business, this comes in handy when assessing skills and knowledge that are lacking among the employees in the organisation. Often attaining these required skills is only possible via on-the-job learning and relying on social learning from colleagues and other workplace sources. To cater to this, the Owners and Managers in organisations should make use of a skills gap analysis, to identify exactly the skills they require vs. those that the individuals have now.

How do I Conduct a Skills Gap Analysis?

1. PLAN YOUR ANALYSIS The first step of a skills gap analysis is identifying how and where to focus your evaluation. For instance, you may perform it on: • An individual (the concerned person will be of focus) • A department (all the employees in the selected department will be of focus) • Company-wide (all the employees in the organisation will be of focus) 2. IDENTIFY THE SKILLS YOU NEED Now you will need to decide every skill that might be important for the objective you have set out for yourself. Each role or purpose that you define will have some standard expertise, while others may change according to your future goals. 3. COMPARE WITH YOUR

EXISTING SKILLS You hired a resource because they were talented. It is highly unlikely that they don’t have any of the skills that are required for their current role. Your main goal is to identify the slight gap that might exist in their abilities and your requirements. 4. PRIORITISE ESSENTIAL SKILLS Your findings may suggest that many employees need up skilling and/or training to meet your organisation’s goals for the future. This can often be a challenging exercise, you may consider evaluating the following for each specific skill or group of skills, to better help you understand and contextualise what is important: • The cost required to up skill • The time needed to up skill • Problems being caused due to the lack of that skill, and

• Opportunities that will be generated from that skill

5. DEVISE A PLAN TO

BRIDGE THE SKILLS GAP This step is where you prepare your plan to bridge the skills gap you have identified. There are two primary methods you can take to start bridging these skill gaps:

• Training – design learning and development paths on either an individual, functional, and/or company-wide basis.

• Hiring – particularly in the case that your skills gaps are too wide to minimise with training, this will allow you to bring new knowledge and skills into your organisation.

Key Takeaway

To provide your business with longevity and the best chance of success in the future, it is important to know what skills and competencies your workforce currently possesses. A skills gap analysis is an effective way of tangibly understanding your requirements for the future, and can help with your strategic workforce planning, including your recruitment efforts, as well as employee learning and development efforts. Talk to us now to assist you through the finer details of this process.

Chris Rehm

Operations Manager AU