Skill gaps can impact the overall success of a business by affecting the performance of employees, but how is it even real to count on all necessary skills in the workplace?

It is common these days to hear people talking about skill gaps.

Managers say, "I need a team leader for this new project, but I can't find a perfect match! Like it doesn't exist!"

Perfect match? Maybe it doesn't exist. But the manager can make it happen.

This blog will discuss skill gaps, why they arise, and how to identify and reduce them.

So, let's start!

What is the skill gap and how does it arise?

We could identify the skill gap with the disparity between what an employer expects from its employees and the actual skills employees possess, and the reasons for their formation could be numerous.

Thousands of baby boomers retire every day (globally). That means highly skilled workers bow out, leaving employers to find new workers who can fill senior-level roles. It takes a lot of work to do. This might also be the result of a poor hiring procedure or a lack of training and development within the company, as well as a lack of experience and poor changes in roles or responsibilities.

However, companies often don’t realize that employee investment is one of the most critical tasks for successful business and overcoming skill gaps.

If a job requires an employee in a technology company to know a programming language and a database and the employee knows only one language, there is a skill gap. The employee can improve this by learning the missing skill.

Okay, that seems pretty straightforward, but we forgot one thing: how to identify that skill gap?

Why skill gaps are so dangerous?

You run your own business, and you are responsible for every aspect of it, even for the skill gaps.

Skills gap analysis is a critical tool for organizations to assess the effectiveness and productivity of their workforce. It is becoming essential to identify skills gaps and understand how they could lead a company into crisis thanks to new technologies transforming many business sectors.

With new technologies finding widespread use across the business world, the need for skills gap analysis is only growing.

At a time when digitization and automation are redefining what companies need from their employees, skills gap analysis offers the roadmap to a better, more efficient way of working.

Suppose a company skips checking the skills and opportunities for the advancement of its employees while, at the same time, technology is changing faster and faster. In that case, the company will start to lose the race in the market, which definitely puts the company in a bad position.

According to Forbes, here is the most significant and most dangerous skills gap of all: the gap between our employees' limited or nonexistent awareness of themselves as economic units. If you want to teach your employees something with long-term value, you and your shareholders teach them how to run their careers like businesses. Teach them how to drive their careers, or just support them in that process.

3 approaches that can help finding skill gaps in the workplace

1. Identify the company’s key performance indicators (KPIs)

Key performance indicators help businesses measure performance across specific metrics.

It discovers how much an employee contributes to achieving the company’s growth. In other words, it analyzes their abilities. Of course, you must first identify what your company’s KPIs are. After that, examine these to discern whether the company is achieving them or lagging. This will also help determine the departments failing to achieve the goals, and you can direct your focus on them.

2. Benchmark the top performances

When identifying the KPIs, you should benchmark the top performances as the next step. They will help your organization become aware of what skills are highly required from all employees according to the current market situation. It will also help in identifying which employees are lacking.

3. Conduct 360-degree feedback and create continuous feedback culture

It is also possible to identify any skill gaps in employees by taking 360-degree feedback, including feedback from peers, managers, clients, and direct reports, so that you will have the whole picture. This process you should do at least twice a year, and since it requires much time - you should use the software to help you do it much faster.

It’s important to note that even when you recognize skill gaps, you shouldn’t give up on your employees. It would help if you bridged the gap between their talent and required skill. It’s the only correct way for their personal and organizational development.

Milica Kujundzic

How to identify skill gaps and training opportunities?