A skills gap analysis is an evaluation tool for determining training needs of an individual, group or organisation. The analysis reveals the differences between the required and the existing skill levels and the recommended strategies for reducing the differences or closing the gap.
Performance assessments, questionnaires, interviews and group discussions are main tools for assessing current skill levels. Projections, company goals and long-term plans inform what the desired skill levels are.
Comparing the two findings reveals the gaps in competencies. Skill areas evaluated include responsibilities, duties, tasks, functions and knowledge.
Details of the gap in skill levels inform discussions among trainers, managers and employee representatives to determine the nature of the training program needed.
Identifying employees' training needs and the ways of meeting those needs helps managers in planning, time management and budget considerations. With targeted training, employees receive job satisfaction, the company optimises its human resources and production levels are likely to improve.
A skills gap analysis may also reveal employees' competencies or lack thereof that could point to the need for replacement, promotion or pursuit of personal growth. An employee may use knowledge of a skills gap to seek continuing education at an external training facility.