How to do a Skills Gap Analysis

Lessons from 200,000 skills assessments

Article originally published on the Skills Gap Analysis website.

First things first: what is a Skill Gap Analysis?

A skills gap analysis is, quite simply, an assessment of your current capability level compared to the skill level required. This can be done on an individual, group or organisation-wide level. The skill level required might be in relation to a project in the pipeline, the broader responsibilities of a job position, or even the ability to live up to the values of an organisation

Why should you believe us?

We know the web is full of blog posts from self-proclaimed experts, so why is this post any different? Well, Skills GAP Analysis is a global leader in Assessments with tools adopted by both public and private sector organisations with over 20,000 assessments completed across Australia, United Kingdom, South America, New Zealand, Middle East, and Asia. Simply put, when you’ve done as many skills gap analysis as we have, you know what you’re talking about!

Why do a Skills Gap Analysis?

The world is growing more complex. Stakeholder demands, innovation, risk, volatility and evolving technology all add to a multi-faceted workplace that is demanding more from those who work in it. It’s daunting, but also exciting. 

In our industry of procurement and supply chain, there is much to be gained for organisations when it comes to their procurement performance. An IBM Chief Procurement Officer Study found that ‘procurement performance has a broad and direct impact on corporate performance’. But in order to take advantage of this, an organisation must have the appropriate capability in the positions where they’re needed.

Why not hire appropriately skilled staff? I hear you ask. Well, sometimes that is an appropriate course to take. But consider this: it’s predicted that by 2030, 10,000 ‘baby boomers’ will have reached the age of retirement and could trigger the biggest corporate ‘brain-drain’ to date. Ready-made employees will become thin on the ground, and organisations will be hell-bent on retaining them.

A skills gap analysis can uncover not only where you need to improve skills but you might uncover some hidden competency in places you weren’t expecting them. This graph below identifies not only where an employee needs skill improvement, but also where they exceed benchmark results.

Also, consider this from an employee’s point of view. Would you prefer to work for a company that wants their staff perfectly trained and skilled before they apply or a company that invests in the development of their employees and guides them to new heights? People will always want to work for the organisation that will leave them better skilled and more desirable than they were on their first day. It’s how you breed loyalty, and in this age of a thinning workforce, loyalty is king.

All right, so how do you do it?

Well, find out here...