Due to the widespread skills shift, any organization, small or large, are facing difficulties across industries. According to World Economic Forum research, 40% of the world’s workforce will require up to six months of reskilling by 2024 due to digitalization and automation. The difficulties faced by enterprises have increased as a result of COVID-19. Consumers are using digital platforms for information consumption and buying more than ever due to the pandemic. As automation develops, businesses can use robotic process automation and hyper-automation to streamline processes in various roles.
Companies are dealing with a severe skills gap in their current workforce as they struggle to fill open positions in their talent channel. Some organizations prioritize reskilling to enable employees to fill new internal positions as new technology replaces specific roles. Any CEO or CHRO should consider accurately identifying skills gaps as a strategic objective and a top priority. So, here in this blog, we will study the Skill gap analysis: The What, the how, and the why.
Table of Contents
What Is Skill Gap Analysis?
An evaluation of the disparity between the current situation and a desired future state is done using a skills gap analysis. Employers use it to determine the talents a specific employee requires but may not necessarily have to complete a job or a particular task successfully. The skill gap analysis is a method HR and L&D managers use to identify the knowledge and abilities that people inside the company need. HR can address the skills gap in the organization once they have this information. This can be accomplished through succession planning, retraining, L&D investment decisions, and other strategies. In a later section of this post, we will review the numerous possibilities.
According to a 2018 World Economic Forum report, at least 54% of workers will need to upgrade their skills or replace existing abilities due to the rapid pace of technological improvements. A lot is happening in the worlds of automation and AI, and technology will soon replace workers in large numbers. In such circumstances, the person who maintains himself up to date and improves his skills following the current trends has a better chance of winning the race.
Why Do Skill Gaps Occur?
As a result of technology breakthroughs and digitization, business is being reinvented. The organizational strategy may be a constant readjustment to changing objectives rather than a once-a-year board of directors meeting. Workplaces are changing faster than employees can adapt to new procedures and technologies. Due to competitive pressures and the speed at which technology is developing, HR’s focus has changed from risk management to help employees adjust to constant, disruptive change. According to a survey, sixty-four percent of managers believe their staff members cannot meet future skill needs, and 70% of employees assert they haven’t mastered their present skills.
Industry leaders have promoted employee upskilling and reskilling for a while, but it still needs improvement. Most companies require a firm idea of the abilities or competencies of their staff to close the talent gap. By the time they realize it, it is too late to coach. They must go to the market to look for talent, or they will pass up chances. When bridging the skill gap, a differentiation must be made. Your business can use people analytics to detect present and absent talent and determine how to close the gap.
Why Is a Skills Gap Analysis Useful?
One analysis shows a 30% difference between how employees and employers see the organization’s dedication to efficient skill development. Compared to 90% of employers, just 60% of employees said they were confident in their organization’s emphasis on skill development opportunities. Employee confidence has since further declined. In 2022, only 55% of employees say they are confident in the organization’s opportunities for skill development. This is the outcome of the accelerating digitalization and technological advancements that impact our personal and professional lives. For businesses across all industries, automation will devour many jobs while changing the primary duties and responsibilities of others. This is where job redesign, or restructuring these jobs and responsibilities to line them with the evolving nature of work, becomes essential. But before you start redesigning roles, it’s critical to understand which knowledge and skills are currently lacking among your workers and which are crucial for the success of your business.
Benefits of Skill Gap Analysis
A skill gap analysis is carried out to determine the discrepancy between the skills the business needs and the capabilities employees currently possess. By doing a skills gap study, you may discover the talents your firm requires to achieve your business objectives. Generally, this means examining your personnel’s talents and contrasting them with the business’s needs. There might not be individuals with both of these skill sets, for instance, if you need someone who can work with a picky clientele. They would need to have good communication skills and a thorough understanding of the good or service you provide. From here, you may determine which competencies are lacking or can be supplemented inside the organization.
After conducting the analysis and choosing the training provider, you can begin offering staff members training as and when they have the time and availability. It is usually a good idea to encourage a learning culture within the company, as this will motivate the personnel to participate in the training. This may also be considered part of its yearly performance assessment if the business adopts such a technology. You will require management’s support and backing to guarantee that all essential resources and documents are put in place to perform this formally. This is necessary to ensure that the process is successful. Prodeg is a business management software solution. It allows users to manage finances and operations, as well as marketing efforts. It is very easy to use and is affordable for small and medium businesses.
Conclusion
Knowing about the abilities and competencies your staff now possesses is crucial at a time when businesses are increasingly trying to train their employees for the future. A skill gap analysis testing is helpful since it provides you with insightful information about your whole staff, aids in strategic workforce planning, and enhances recruitment efforts. You may also tailor your learning and development programs to reskill your workforce where necessary with the help of an efficient skills gap analysis.
Yaksha provides a recruiters assessments platform that assists them in identifying, screening, and hiring tech talent for different organizations within their organization. Yaksha helps HR managers and recruiters hire the most suitable candidates with accurate assessments that test their applications, skills, and knowledge.
