Staying ahead of the curve is crucial for success, and companies need to continuously adapt to changing demands as they strive for excellence in their operations. A key tool for achieving this is the skills gap analysis.

A skills gap analysis is not just a process; it’s a strategic approach that empowers organisations to enhance workforce performance, boost employee engagement and ultimately position themselves as leaders in their respective industries. 

Companies can take proactive steps towards growth and competitiveness by identifying discrepancies between the skills their employees currently possess and the skills needed to achieve their business objectives.

In this article, we’ll explore the process of performing a skills gap analysis, from understanding its fundamental concept to the practical steps involved. We’ll also look deeper into the numerous benefits of conducting such an analysis, from optimising performance and strategic planning to fostering cost efficiency and compliance. 

Through a practical example, we’ll provide insights and actionable advice that can be applied to any organisation’s unique context.

What is a Skills Gap Analysis

A skills gap analysis is a strategic process that thoroughly evaluates a company or organisation’s workforce skills and abilities in relation to the specific skills and competencies required to accomplish its business objectives. 

This evaluation is crucial for identifying any discrepancies or gaps between employees’ current skill set and the skills necessary for achieving optimal performance and success within the company.

This analysis isn’t just a mere assessment; it’s a proactive approach to understanding where there may be shortcomings in employee skills that hinder the organisation’s growth and competitiveness. By recognising these gaps, a company can strategically plan for improvements, development and training initiatives.

A skills gap analysis is a valuable tool for aligning the workforce with the company’s overarching goals. When conducted effectively, it can lead to a range of positive outcomes which, ultimately, contribute to the overall success and competitiveness of the organisation in its industry. 

Benefits of a Skills Gap Analysis

Companies conduct skills gap analyses for several important reasons, offering numerous advantages for the company and its employees.

Optimising Performance

By identifying skill gaps, a company can ensure its employees have the necessary skills to perform their jobs effectively. This leads to improved productivity, efficiency and overall performance.

Strategic Planning

Companies can align their training and development efforts with their long-term goals and objectives. This ensures that the workforce is prepared for future challenges and opportunities.

Cost Efficiency

Addressing skill gaps can be a game-changer for your recruitment strategy, ultimately reducing your training and recruitment costs. 

Instead of hiring for new positions, in some cases, companies can instead upskill and develop existing staff to fill skill deficiencies. This approach saves valuable time and resources and enhances your reputation as an employer that values its employees’ professional development.

In cases where upskilling existing employees isn’t feasible, companies can leverage the insights gained from skills analysis to make strategic new hires. This way, you ensure that you’re addressing skill gaps efficiently and effectively, maintaining a competitive edge in the market.

Employee Engagement

Employees who see opportunities for growth and development within the company are more engaged and motivated. Conducting a skills gap analysis allows companies to tailor training and development programmes to meet individual and collective employee needs.

Competitive Advantage

A workforce with up-to-date and relevant skills can give a company a competitive edge in the market. It enables businesses to adapt more effectively to changing industry trends and customer demands.

Compliance and Regulation

In some industries, for example, healthcare, compliance with regulations and certifications is crucial. Identifying skill gaps ensures that employees meet the necessary qualifications and standards.

Steps To Conduct a Skills Gap Analysis 

By following this skills gap analysis process, your organisation can systematically close skill gaps, enhance employee performance and best position itself for future success.

1. Define Goals and Objectives: 

Begin by clearly defining the specific goals and objectives you want to achieve through the skills gap analysis. Knowing what you aim to accomplish will guide the entire process.

2. Identify Required Skills

Determine the skills and competencies that are crucial for your organisation’s success. These should align with your business strategies and future needs.

3. Assess Current Skills

Evaluate the current skills and capabilities of your workforce. This can involve surveys, interviews, performance reviews or skill assessments.

4. Identify Skill Gaps

Compare the skills identified in Step 2 with the skills your employees possess (as identified in Step 3). This step reveals the gaps that need to be addressed. 

5. Prioritise Skills

Recognise that not all skill gaps are equally critical. Prioritise these gaps based on their impact on your organisation’s goals and the feasibility of addressing them. 

6. Develop Training Plans

Create tailored training and development plans to bridge the prioritised skill gaps. These plans should include methods, resources and timelines.

7. Implement Training

Put your training plans into action. This may involve in-house training, external courses, mentoring or on-the-job learning experiences.

8. Track Progress

Continuously monitor and measure the progress of employees in acquiring the needed skills. Adjust training strategies if necessary.

9. Evaluate the Impact

Assess how closing the skill gaps has influenced your company’s performance and achievement of goals.

10. Iterate and Improve

Skills gap analysis is an ongoing process. Regularly revisit and refine your analysis to ensure your workforce remains aligned with your business objectives.

Gap Analysis Example

In this scenario, we’ll follow the journey of a technology company, “TechSecure,” to illustrate each step of conducting a skills gap analysis. 

Through this skills gap analysis, TechSecure aims to enhance its IT team’s cybersecurity skills, reduce security risks and strengthen its position as a trusted technology company.

1. Define Goals and Objectives

TechSecure begins by setting clear goals and objectives. They aim to improve cybersecurity awareness and practices within their IT team to reduce security risks. This objective provides a clear direction for the entire skills gap analysis process.

2. Identify Required Skills

The next step involves identifying the essential skills and competencies needed to achieve their cybersecurity objectives. TechSecure recognises that skills such as threat detection, incident response, and security best practices are crucial for their success.

3. Assess Current Skills

To assess their IT team’s current skills, TechSecure conducts in-depth evaluations. They use methods such as technical assessments, interviews and performance reviews. This comprehensive evaluation helps identify the team’s existing cybersecurity knowledge and proficiency.

4. Identify Skill Gaps

By comparing the skills identified in Step 2 with the skills possessed by their IT team (as determined in Step 3), TechSecure uncovers the specific skill gaps. For example, they discover that while their IT team excels in network configuration, they lack expertise in effectively identifying and responding to security threats.

5. Prioritise Skills

TechSecure recognises that not all skill gaps are equally critical. They prioritise these gaps based on their potential impact on the organisation’s cybersecurity. They prioritise closing gaps related to threat detection, which has a more immediate impact on security.

6. Develop Training Plans

With the prioritised gaps in mind, TechSecure creates detailed training and development plans. These plans outline the methods, resources and timelines for improving cybersecurity skills. They schedule regular cybersecurity workshops and allocate resources for online courses and certifications.

7. Implement Training

TechSecure puts its training plans into action. They provide in-house cybersecurity training sessions, encourage participation in external courses and arrange mentorship opportunities for their IT team. Additionally, they foster a culture of continuous learning to ensure that cybersecurity knowledge is regularly updated.

8. Track Progress

To monitor their IT team’s progress, TechSecure continuously measures their employees’ skills. They use various metrics, including simulation exercises and regular assessments, to assess threat detection and incident response capability improvements.

9. Evaluate the Impact

TechSecure assesses how closing the skill gaps has influenced the company’s performance. They analyse data on security incidents, noting decreased security breaches and faster incident response times. Customer trust and confidence in TechSecure’s cybersecurity measures also increase.

10. Iterate and Improve

Recognising that skills gap analysis is an ongoing process, TechSecure regularly revisits and refines its analysis. They adapt to emerging cybersecurity threats and evolving best practices, ensuring their IT team remains aligned with the latest cybersecurity requirements and industry standards.


A skills gap analysis is a pivotal tool that empowers organisations to reach their objectives. It is not merely a process; it’s a strategic approach that enables companies to elevate workforce performance, foster employee engagement, and solidify their positions as industry leaders. 

Organisations can take proactive steps towards growth and competitiveness by identifying disparities between the skills employees currently possess and those required to achieve business objectives.

As the business landscape evolves, skills gap analysis remains vital for those committed to thriving and excelling in their respective industries. Those who adapt, evolve and continuously invest in their workforce’s capabilities are the ones who will rise above the competition and lead the way to a brighter future.

Are you ready to enhance your workforce’s capabilities? Contact Joss Search, a specialised recruitment agency in business support roles, to find the perfect talent for your organisation’s journey towards excellence.