The future is digital and don’t we know it? The recent pandemic has further accelerated the spread of data-centric models, AI, and cloud solutions. Businesses welcome transformative technology to address their constantly shifting consumer needs. However, digital transformation is not only about technology but equally about people. With these rapid advancements in the Internet Age, organizations must address their skill and knowledge gaps and future-proof the potential of their employees. By identifying and bridging that skill gap, a company can drive higher revenue, productivity, and process innovation.
Skill Gaps And The Need To Identify Them
A skills gap is the difference between the skills that an organization wants or needs and the skills that its workforce possesses. A skills gap analysis helps a business (or even an individual) identify the skills needed to meet business goals and enrich oneself. As technologies and business models continue to rapidly progress, companies must focus on upskilling their workforce so that they thrive and grow.
Most companies worldwide (87%) are aware that they either already have a skills gap, or will have one within a few years. (Research)
Nearly 375 million workers worldwide might have to change occupations in the next decade to meet their companies’ needs, as per a McKinsey report.
The India Skills Report 2021 found that 53% of Indian businesses are not able to hire candidates due to a lack of future skills. Furthermore, only 45.9% of Indian graduates were found employable as per research.
Around 33% of employers in the US say the skills gap has increased when compared to last year, and 80% of employers mention the difficulty in filling openings due to skills gaps. (Monster.com)
4 in every 10 businesses in the European Union (EU) report difficulties finding staff with the right skills.
By 2022, more and more jobs will be automated, and the remaining ones will be redesigned to suit new responsibilities. At least half of all workers will need to update or entirely replace their core competencies and skills. Therefore, it is crucial to know what skills and knowledge you are currently missing.
Why Do You Need A Skill Gap Assessment?
A skill gap assessment is a critical part of optimizing the business for efficiency and productivity. Here are a few reasons why it is so essential:
Bird’s eye view of workforce competencies: You can identify which individual or team possesses how many of the necessary skills and therefore direct training and resources to those that require it most.
Optimize workflow and strategic planning: You can ensure the right resources are allocated to the required task/project.
Better hiring practices: Once you understand what skills are missing, you have a better idea of whom to hire next and how to upskill the existing employees.
Enhanced Individual Output: Employees understand their skill gaps as well as their teams and start working on themselves. This increases efficiency and also boosts morale.
Important Metrics For A Skill Gaps Assessment
KPIs and Employee Benchmarks: These are often accurate indicators of an individual/team’s contribution to the business. They can be used to identify existing strengths and any skills that are lacking.
Reviews: Appraisal and feedback mechanisms are another important source of identifying strengths and weaknesses.
Company goals: Knowing where the company is headed helps one figure out what skills are needed to get there.
Other things to keep in mind are the possible automation of certain jobs in the future, skills currently on the rise, and so on. Conducting a skills gap analysis can be quite an arduous task, but the results are well worth it. Getting to know which skills you have and which ones you need will not just help you hire better but also retain the right people.
Interested In Learning More?
SkillOps helps your business identify and assess skill gaps. We help HR professionals, L&D departments, Project Leads, Product Managers and employees conduct skill gaps analysis to effectively expand their skill set and scale up performance. Contact us to find out more.
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