Skills Gap Analysis
What is a skills gap analysis?
A skills gap analysis is the process of comparing the skills an organisation or individual currently has with the skills they need, now or in the future, to identify where the gaps are. It turns a vague sense that “we need to develop people” into a clear picture of which specific capabilities to build.
It is a starting point for targeted development and a core practice for a skills-based organization.
Why it matters
Development budgets are limited, and spreading them thinly rarely works. A skills gap analysis focuses investment on the capabilities that matter most, supports workforce and succession planning, and informs decisions about whether to build, borrow, or buy skills. It makes development strategic rather than reactive.
How to do a skills gap analysis
- Define needed skills. Based on strategy and roles, often via a competency framework.
- Assess current skills. Through data, assessments, and manager and self input.
- Identify the gaps. Compare current against needed, and prioritise.
- Act. Close gaps through upskilling, reskilling, coaching, and hiring.
Related terms
Close the gaps that matter
Once you know your gaps, coaching is one of the most effective ways to close the human and leadership ones. Coachello helps you develop those capabilities at scale.
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FAQs
What is the goal of a skills gap analysis?
To identify the difference between the skills you have and the skills you need, so development and hiring can be targeted where they matter most.
How do you measure current skills?
Through a mix of skills data, assessments, manager evaluations, and self-assessment, ideally against a clear competency framework.
How often should you do one?
Regularly, since needs change. Many organisations revisit it annually or whenever strategy shifts significantly.
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