What is a skills gap analysis?
A skills gap analysis compares the skills a role or a team needs with the skills people have today, to find what is missing and decide how to close it.
Updated
In short
A skills gap analysis puts two ratings side by side: what the work needs and what people can do now. The difference is the gap. Done for one person, it shows what to learn for the next level. Done for a team, it shows where to train, hire or move people.
Individual and team gaps
An individual gap analysis compares one person with the level they hold or are aiming for. It is the basis of a development plan and of a fair promotion case.
A team gap analysis looks at everyone’s ratings together and compares them with what the work needs. It answers questions like: how many people can cover this skill, and what happens if one of them leaves?
What you need before you start
Two things. First, the skills the work needs and the rating expected at each level: that is a skills matrix. Second, a current rating for each person on the same scale, usually a self-assessment checked by a manager or colleagues.
Train, hire or redeploy
Train when the gap is small and the person has time to grow: a course, a stretch project or pairing with someone stronger.
Hire when the team needs the skill sooner than anyone can learn it, or when nobody has it at all.
Redeploy when someone elsewhere in the company already has the skill. Moving them can be faster than either.
How to do a skills gap analysis in 4 steps
Set the required skills
For each role or level, list the skills and the rating each should reach. A skills matrix or a career ladder gives you this.
Assess current skills
Rate each person on the same scale: a self-assessment, plus a view from a manager or peers so one opinion does not decide it.
Compare and prioritize
Take the current rating away from the required one for each skill. Start with the largest gaps on the skills the work depends on most.
Act on the gaps
Close each gap with training, a stretch project or mentoring; hire where nobody can grow into it in time; or move someone whose skills fit better elsewhere.
Example
| Skill | Area | Data Analyst expects | Senior Data Analyst expects | Gap |
|---|---|---|---|---|
| Data Privacy and Compliance | Data Governance | Proficient | Proficient | None |
| Analytical SQL Querying | Data Engineering | Proficient | Advanced | 1 step |
| Dimensional Data Modeling | Data Engineering | Basic | Advanced | 2 steps |
| Experiment Design and A/B Testing | Statistics & ML | Basic | Advanced | 2 steps |
| Predictive Modeling Fundamentals | Statistics & ML | Novice | Proficient | 2 steps |
Take someone who fully meets the Data Analyst level and wants to become a Senior Data Analyst. They have no gap on data privacy, a one-step gap on SQL, and two-step gaps on data modeling, experiment design and predictive modeling, so those three come first in their development plan.
Source: Data and analytics career path
Want to find your own gaps? Try it on yourself with the free skill gap tool
Skills gap analysis vs skills matrix
A skills matrix is the table: skills against people or levels, with ratings. A skills gap analysis is what you do with it: compare the expected ratings with the current ones, and decide what to do about the difference.
Read: What is a skills matrix?
Common mistakes
Measuring against a vague target
Without an agreed rating for each level, a “gap” is one manager’s opinion.
Relying on one opinion
A self-rating alone can be too modest or too generous. Combine it with a manager’s or peers’ view.
Treating every gap the same
A one-step gap in a minor skill matters less than a two-step gap in a skill the job depends on.
Stopping at the report
A gap analysis that ends in a spreadsheet changes nothing. Each large gap needs an owner and an action.
Frequently asked questions
What is the purpose of a skills gap analysis?
To find the difference between the skills the work needs and the skills people have, so training, hiring and promotion decisions are aimed at real gaps rather than guesses.
What is an example of a skills gap?
Someone rated Basic at a skill that their next role expects at Advanced has a two-step gap in it. The example on this page shows five such comparisons from a real data analytics ladder.
How often should you do a skills gap analysis?
Many teams run one with each review cycle, and again when the work changes, for example before a new product launch or after a reorganization.
What is the difference between a skills gap and a training need?
A skills gap is the difference between the required and the current rating. A training need is one way to close it; some gaps are better closed by hiring or by moving people.
Can I do a skills gap analysis in a spreadsheet?
Yes: one column for the required rating, one for the current rating and one that takes one from the other. It works for one team; it gets harder once many people and review cycles are involved.
Further reading
- Competencies (U.S. Office of Personnel Management)
- The O*NET Content Model (O*NET Resource Center (U.S. Department of Labor))
Related
- More real examples: Finance & accounting career path · Cybersecurity career path
- Other definitions: Skills matrix · Competency matrix · Competency framework · Career ladder · Career framework · Competency model
Would you rather keep yours in an app than in a spreadsheet? Try it in Competrace for free