Skills gap analysis: build the capabilities your organization needs
A structured approach to identifying the gap between the skills your people have today and the skills your strategy demands tomorrow.
What is a skills gap analysis?
A skills gap analysis is a systematic process for comparing the current capabilities of your workforce against the capabilities required to achieve strategic objectives. It identifies where gaps exist, quantifies their impact, and provides the basis for targeted development investment.
At the organizational level, skills gap analysis is an essential workforce-planning tool. It connects learning and development strategy directly to business strategy, ensuring that training investment is focused on the areas that will have the greatest impact on performance.
The framework works at multiple levels: organization-wide (what capabilities do we need to deliver our strategy?), team level (does this team have the right mix of skills?), and individual level (what does this person need to develop for their role or next step?). The organizational and individual versions are complementary – aggregate individual gap analyses upward and you get a clear picture of organizational capability.
How to conduct an organizational skills gap analysis
1. Define strategic skill requirements
Start with the organization’s strategy and identify the capabilities needed to execute it. This isn’t just a list of current job requirements – it should include future skills that the strategy demands, even if they don’t exist in the organization today.
2. Assess current capabilities.
Use a combination of self-assessment, manager assessment, performance data, and competency frameworks to map the current skill levels across the organization. Tools like the Manager Skills Assessment provide a structured, scalable way to benchmark capabilities consistently.
3. Identify and quantify the gaps.
Compare current capabilities against requirements. For each gap, assess its size (how far apart are we?), its criticality (how much does it affect strategic execution?), and its urgency (how quickly do we need to close it?).
4. Prioritize development investment.
Not all gaps are equal. Focus resources on the gaps that are most critical to strategic success and most urgent to address. A small gap in a strategically vital skill may matter more than a large gap in a peripheral one.
5. Design and implement development solutions.
For each priority gap, determine the most effective development approach. This might include formal training, on-the-job development, coaching, mentoring, hiring, or restructuring. The right approach depends on the nature of the skill, the size of the gap, and the time available.
Benchmark with Manager Skills Assessment
When to use skills gap analysis
Skills gap analysis is most valuable during strategic-planning cycles, when preparing for significant change (digital transformation, market expansion, restructuring), when L&D budgets need to be justified with clear business alignment, and as a regular capability review to ensure the workforce can meet evolving demands.
It’s also a powerful tool for succession planning. By mapping the skills required for critical roles against the capabilities of potential successors, you can identify development needs well in advance and build targeted pipelines.
Personal application
Skills gap analysis works just as well at the individual level. Our personal Skills Gap Analysis page walks you through how to use the framework for your own career development – comparing your current capabilities against the requirements of a target role or career goal.
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