Definition
A systematic assessment that identifies the difference between the skills an organisation currently has in its workforce and the skills it needs to achieve its strategic objectives. The analysis informs recruitment, training, and development priorities.
UK Context
UK employers increasingly use skills gap analysis to respond to challenges including digital transformation, post-Brexit workforce changes, and sector-specific skills shortages identified by the Migration Advisory Committee. The UK government's apprenticeship levy and other funding mechanisms can be used to address identified gaps.
Best Practices
- Align skills gap analysis with the organisation's strategic plan and future workforce requirements
- Use a mix of self-assessment, manager assessment, and objective data to identify gaps
- Develop action plans that combine recruitment, training, apprenticeships, and internal development
Frequently Asked Questions
How often should a skills gap analysis be conducted?
A comprehensive analysis should be conducted at least annually, aligned with business planning cycles. However, targeted analyses should be triggered by organisational changes such as new technology adoption, restructuring, or strategic shifts.
What methods are used for skills gap analysis?
Common methods include employee skills surveys, manager assessments, performance review data, competency framework mapping, benchmarking against industry standards, and analysis of recruitment difficulties and time-to-competence for new hires.