A skills gap analysis compares the skills needed for a role, team or business activity with the skills currently available. It identifies where people need further development, where additional expertise is required and which gaps could affect planned work.
The analysis can focus on an immediate requirement, such as introducing a reporting system, or a future change, such as offering a new service. Its findings help inform decisions about training, recruitment and moving people between roles.
Where does a skills gap analysis start?
It starts with the work the organization needs to complete. Managers identify the tasks involved, the skills those tasks require and the level of proficiency needed.
“Improve data skills” is too broad to assess. Preparing a monthly report, checking its accuracy and explaining changes to a budget owner describe observable abilities.
The timescale matters, too. A team introducing a new system next month has different options from one preparing for a change next year. CIPD’s guidance on learning needs analysis connects current and future capability requirements with an assessment of existing knowledge and skills.
How are existing skills assessed?
Evidence can come from completed work, practical assessments, manager observations and conversations with employees. Qualifications and training records provide context, although completing a course does not necessarily show how confidently someone can apply the learning.
Employees may also have skills their current role gives them little opportunity to use. Someone responsible for preparing spreadsheets might have previous experience building dashboards that their manager does not know about.
Using several sources helps build a more accurate picture. Where an employee and manager assess a skill differently, they can discuss a recent assignment and identify what the employee completed independently and where support was needed.
How are the gaps recorded?
A skills matrix records the required skills alongside the current evidence. Proficiency levels need clear descriptions so different managers assess them consistently.
For a reporting task, an illustrative comparison could look like this:
| Skill | Required ability | Current evidence | Development need |
|---|---|---|---|
| Prepare a report | Complete the monthly report independently | Completes it with a colleague’s support | Practice the full reporting cycle |
| Check data | Find and investigate inconsistent entries | Identifies errors but needs help tracing them | Learn the checking and investigation process |
| Explain findings | Present the main changes to a budget owner | Produces accurate figures but gives limited explanation | Practice interpreting and discussing results |
A gap can also concern coverage. A team may have one capable person but nobody able to cover their absence or take on additional demand.
Which skills gaps need attention first?
Priority depends on the consequences of leaving a gap unresolved. A skill needed for an imminent customer commitment may require attention before one associated with a possible future project.
Managers can consider when the skill is needed, how many people require it and how long development is likely to take. They also need to establish whether the problem is a skills shortage. Missing information, unreliable tools or an excessive workload can prevent capable employees from completing work successfully.
For longer-term requirements, skills forecasting helps identify how the work itself may change and which capabilities will become more important.
What happens after the analysis?
The response follows the identified need. An employee learning an unfamiliar system may benefit from guided practice. Someone preparing for greater responsibility may need a stretch assignment, coaching or time working alongside an experienced colleague.
Other gaps may require recruitment, an internal move or temporary specialist support. The decision depends partly on whether the expertise exists elsewhere in the organization and whether there is enough time to develop it.
Skills development programs can connect structured learning with practical work. The plan needs to specify who will learn, what support is available and how progress will be assessed.
How is progress checked?
The review returns to the original work requirement. Can the employee now prepare the report independently? Can another team member provide cover? Is specialist work still waiting for external support?
Course attendance alone will not answer those questions. Completed assignments and follow-up conversations provide evidence of what has changed.
The analysis also needs updating when responsibilities, systems or business plans change. A record of the assessment date and supporting evidence helps managers distinguish current capability from an older picture.
