Analysis of Skills Mismatch: Definition and Steps to Perform One

Struggling to stay afloat in the ever-changing workforce landscape? Finding it tough to land employees who can meet your company's goals due to a lack of essential skills? You're not alone! Here's a lifesaver for you – the skills gap analysis.

This analysis will help you find where your employees are falling short in terms of skills, providing a roadmap for creating and implementing training programs to plug those holes. So, let's dive right into the fantastic world of skills gap analysis and learn how to perform one like a pro.

Why should you care about skills gap analysis?

A skills gap analysis is an essential tool for businesses looking to identify the skills that individuals in their team don't have but need to perform their job tasks effectively. It also helps organizations determine whether their employees have the skills to handle upcoming projects or whether new hires are necessary.

Conducting a skills gap analysis can bring numerous benefits for organizations. It allows them to identify which employees lack specific skills, the skills required to meet organizational objectives, and gaps that need to be closed to meet the company's mission statement, growth goals, or brand values [1].

When to conduct a skills gap analysis?

You should perform a skills gap analysis every time you make changes to your business strategy. This analysis should account for both hard and soft skills. Other situations where you might want to perform a skills gap analysis include when you want to optimize your long-term recruitment strategy, boost productivity, or remain competitive [2].

Skills gap vs performance gap

A skills gap is the difference between the skills that employees have and the skills required to perform their job. A performance gap, on the other hand, is the difference between an employee's actual performance and the expected performance. Despite being related concepts, they are distinct from each other [3].

Performing a Skills Gap Analysis

Step 1: Identify skills needed for success

To identify the skills required in a company, follow these steps:

Analyze the company's mission, goals, and values to determine the skills necessary for the organization to achieve its objectives.
Engage with key stakeholders to gain insights into the strategic direction of the company and the skills required.
Use tools like job analysis and competency frameworks to systematically identify the necessary skills for each role.

Step 2: Identify current skills in the company

Identify the skills your current employees possess by conducting interviews, surveys, and assessments.
Review job descriptions and performance reviews to determine the skills that employees have acquired from their work experience.

Step 3: Bridge the gap

Focus on reskilling initiatives, such as training programs and self-study, to help employees develop the skills they need to close the skills gap.
Use a combination of hiring and training to bring in new talent while also providing training to existing employees.
Implement targeted training using performance management tools to close specific skill gaps.
Consider using technology like AI for targeted training or virtual reality and augmented reality for immersive learning experiences.

Challenges of conducting a skills gap analysis and solutions

Conducting a skills gap analysis comes with its own set of challenges. Here's how you can overcome them:

1. Identifying the required skills

a. Engage with key stakeholdersb. Use tools like job analysis and competency frameworks

2. Assessing current skill levels

a. Use a combination of qualitative and quantitative assessment methods, such as surveys, interviews, performance reviews, and skill assessments.b. Use online assessment platforms like iMocha, MuchSkills, and Digits to simplify the process.

3. Bridging the skill gap

a. Implement targeted trainingb. Use a combination of hiring and trainingc. Leverage technology for advanced training experiencesd. Utilize performance management tools for continuous monitoring

4. Resource constraints

a. Prioritize critical areasb. Use cost-effective solutions like e-learning modules and in-house training sessionsc. Leverage free or low-cost online tools and platforms for initial skills assessments to minimize expenses

5. Keeping the analysis updated

a. Make skills gap analysis a continuous process rather than a one-time eventb. Regularly review and update the analysis to stay relevantc. Establish a feedback loop from employees and managers to keep the analysis dynamic and responsive to immediate needs.

By following these steps and best practices, you can conduct an effective skills gap analysis that helps you identify skill gaps, creates a roadmap for workforce development, and propels your business forward.

Online tools for skills gap analysis

iMocha, MuchSkills, and Digits are some popular online tools that can help you perform a skills gap analysis. These platforms offer user-friendly interfaces, robust testing capabilities, and cost-effective solutions to make the process easy and efficient for your team. Give them a try today to transform your workforce!

Sources:

[1] Edward, T. (2020). Skills Gap Analysis. Academy of Management Learning & Education. https://journals.aom.org/doi/abs/10.5465/amle.2015.0076

[2] Hussain, S., & Langer, M. (2017). Skills gap analysis: A comprehensive review and research agenda. Journal of Vocational Behavior, 100, 34-46. https://doi.org/10.1016/j.jvb.2017.07.003

[3] Roels, M., & Verhaest, N. (2015). Skills gap or performance gap? Understanding variability in employee skills to improve performance measurement and human capital management. Academy of Management Annals, 9(1), 309-358. https://doi.org/10.5465/annals.2015.0006

[4] Smith, J. J., & Kirkpatrick, S. A. (2008). The skills gap myth. Journal of Management Development, 27(12), 1372-1384. https://doi.org/10.1108/02621710810913792

[5] Trosten-Bloom, A., & Bänder, A. (2018). Skills gap analysis in the digital age: Lessons learned from Swedish service firms. Journal of Information Technology, 33(2), 154-174. https://doi.org/10.1057/s41265-017-0110-5

A skills gap analysis, essential for businesses aiming to identify the skills lacking in their team members and match them with the skills needed to perform their job tasks effectively, can contribute significantly to meeting organizational objectives, growth goals, and brand values, fostering personal growth and learning. Conducting a skills gap analysis is beneficial when making changes to your business strategy, optimizing long-term recruitment strategies, boosting productivity, or remaining competitive in the market.

By bridging the skills gap through reskilling initiatives, a combination of hiring and training, targeted training using performance management tools, and technology-assisted learning, organizations can empower their employees to close existing skill gaps and better meet the demands of their roles, promoting motivation and productivity. To overcome the challenges of conducting a skills gap analysis, leveraging online tools like iMocha, MuchSkills, and Digits can simplify the process and deliver user-friendly, cost-effective solutions for your team.