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How to Identify and Address Skill and Capability Gaps in your Organisation

Written by TalentJam | Sep 5, '25

Identifying emerging skills and capability gaps is a crucial part of workforce planning and talent management. Identifying these gaps is essential for creating an agile, future-ready workforce.

By using a combination of self-assessments, data analytics, surveys, and industry benchmarks, organisations can gain a comprehensive view of their current talent landscape and strategically address deficiencies. Implementing a structured approach to gap analysis ensures that training and development efforts are targeted, effective, and aligned with the organisation’s long-term goals.

Understanding where gaps exist allows organisations to strategically address deficiencies, develop targeted training programs, and build a workforce capable of meeting both current and future demands.

This article sets out a step-by-step approach to identifying and addressing skill and capability gaps in your organisation:

Conduct a Skills Inventory

Start by gathering data on the current skills and capabilities of your workforce. This step provides a clear understanding of the existing talent pool and serves as a baseline for identifying gaps.

How to Implement:

  • Self-Assessments: Ask employees to evaluate their own proficiency in relevant skills using structured tools or digital platforms.
  • Manager Assessments: Complement self-assessments with input from managers to provide a more comprehensive view of each employee’s capabilities.
  • HR Data Analysis: Use HR records, including employee qualifications, certifications, past roles, and training history, to build a comprehensive skills database.
  • Create a Skills Matrix: Organise the skills data into a matrix format, categorising skills by department, role, and proficiency level to visualise strengths and gaps.

Tools to Use:

  • Skills management platforms like TalentJam, TalentGuard or Skills Base
  • Employee feedback tools such as TalentJam, Culture Amp or 15Five

Align Skills with Organisational Goals

Ensure that the skills and capabilities within your organisation are aligned with your business’s strategic objectives. This helps determine which skills are essential for achieving your organisation’s vision.

How to Implement:

  • Strategic Goal Analysis: Break down organisational goals into specific functions, roles, and tasks needed to achieve them.
  • Role Mapping: Identify the core competencies required for each role that is critical to your strategy, from technical skills to leadership capabilities.
  • Prioritisation of Skills: Highlight the most important skills that align with your strategic priorities and focus on them in your analysis.

Tools to Use:

  • Strategic alignment software such as Workday or SAP SuccessFactors
  • Business planning tools like Anaplan or Adaptive Insights

Define Organisational and Role-Specific Competencies

Objective: Establish a clear set of skills and competencies required for each role, aligned with both current and future business needs. This creates a baseline for comparing existing skills and identifying gaps.

Steps to Implement:

  • Adopt or Develop a Competency Framework:

Start by adopting or creating a competency framework for the entire organisation. Break this down into core competencies (required for all roles), functional competencies (specific to certain departments or functions), and role-specific competencies. Different professional frameworks could address your diverse functional

Use established frameworks like the Skills Framework for the Information Age (SFIA) or create a custom framework that reflects your organisation’s unique needs and values.

  • Consult with Key Stakeholders:

Collaborate with department heads, managers, and HR to define the skills, behaviours, and knowledge needed for each role. This ensures alignment with strategic goals and day-to-day operational requirements.

Include employees in the discussion to gain insights into what they perceive as critical skills for their roles and future success.

  • Identify Future Skills:

In addition to current role requirements, identify future skills based on emerging industry trends, technology advancements, and business strategy. This helps future-proof your team against upcoming changes in the market.

Tools and Resources:

  • Use competency management software like TalentJam, TalentGuard, HRSG CompetencyCore, or SuccessFactors to develop and document your competency framework.

Use Competency Frameworks

Competency frameworks standardise the process of evaluating skills by defining the behaviours, technical skills, and attributes required for success in each role. You should base these on existing frameworks, such as SFIA, DCF, PSF, etc, where possible.

How to Implement:

  • Define Competency Models: Develop or adopt a competency framework tailored to your organisation’s needs. Include both technical and soft skills.
  • Assess Employees Against Competency Levels: Rate employees on each competency using scales (e.g. beginner to expert) to identify strengths and deficiencies.
  • Identify Gaps by Comparing to Role Requirements: Use the competency framework to see where employees fall short of the expected competencies for their roles.

Tools to Use:

  • Competency management tools like TalentJam, Fuel50 or TalentQuest
  • HR platforms with built-in frameworks, such as TalentJam, or Cornerstone OnDemand

Leverage Technology and Data Analytics

Digital tools can help automate the process of tracking skills and capabilities, making it easier to identify gaps. They also provide insights into future skills needs through predictive analytics.

How to Implement:

  • Skill Gap Analysis Software: Use dedicated software to track employee skills and match them against current and future role requirements.
  • Predictive Analytics: Use analytics platforms to forecast future skill needs based on trends, market shifts, and evolving technologies.
  • Real-Time Skills Tracking: Implement learning management systems (LMS) and talent management software that provide real-time updates on skills acquisition and learning progress.

Tools to Use:

  • TalentJam, Visier or Crunchr for people analytics and skill gap analysis
  • LMS platforms like Degreed or LinkedIn Learning

Conduct Employee Surveys and Interviews

Gather direct feedback from employees to gain qualitative insights into where skills gaps exist. Surveys and interviews can highlight areas of concern that may not be visible through quantitative analysis alone.

How to Implement:

  • Employee Surveys: Use structured surveys to ask employees about their comfort level with key tasks, perceived gaps, and areas they want to develop.
  • Focus Groups and Interviews: Hold discussions with employees across various levels and departments to explore skill gaps and training needs in more detail.
  • Training Feedback Surveys: Collect feedback on the effectiveness of past training programs to identify persistent gaps.

Tools to Use:

  • Survey tools like TalentJam, SurveyMonkey, Qualtrics, or Google Forms
  • Employee experience platforms like TalentJam, Peakon, or Culture Amp

Evaluate Job Performance and Productivity Metrics

Analyse performance data to identify skill gaps that may be impacting productivity or preventing employees from reaching their full potential.

How to Implement:

  • KPI Analysis: Track key performance indicators (KPIs) such as project completion times, error rates, and quality metrics to identify where skill gaps may be affecting performance.
  • 360-Degree Feedback: Use 360-degree reviews to gain feedback from peers, supervisors, and subordinates, providing a comprehensive view of an employee’s skills.
  • Customer Satisfaction and Service Metrics: Analyse customer feedback to identify areas where employee skills may be lacking, particularly for customer-facing roles.

Tools to Use:

  • Performance management tools like TalentJam, Lattice, 15Five, or Culture Amp
  • Data analysis platforms such as Tableau or Power BI

Use Objective Assessments for Technical Skills

Objective: Measure proficiency in technical skills using objective assessments to gain an accurate understanding of current capabilities.

Steps to Implement:

  • Implement Online Skill Assessments:

Use online platforms like HackerRank, Codility, or CodeSignal to assess programming and coding skills. These platforms offer timed challenges, real-world problem scenarios, and automated scoring.

For data analytics and other technical fields, use platforms like Kaggle or DataCamp, which provide targeted skill assessments for tools like Python, R, SQL, and machine learning.

  • Certifications and Testing:

Offer industry-recognised certifications (e.g. AWS Certified, CompTIA Security+) to validate skills in cloud computing, cybersecurity, and other technical areas. Use practice tests to assess readiness before committing to certification exams.

Use internal skill assessments for tools specific to your business, such as proprietary software or niche technical skills not covered by external platforms.

  • Simulate Real-World Scenarios:

For roles involving problem-solving and strategic thinking, create simulations or business scenarios where employees need to apply technical skills to resolve complex issues.

Assess not just the outcome, but also the thought process, approach, and use of specific tools and techniques.

Tools to use:

  • Use technical assessment platforms like TalentJam, Pluralsight, Coursera, or IBM’s SkillsBuild to test specific technical skills.

Perform Gap Analysis Using Skill Gap Analysis Tools

Objective: Compare current skills against the defined competency framework to identify gaps at both individual and team levels.

Steps to Implement:

  • Create a Baseline Skills Map:

Use a skills mapping tool like TalentJam, CompetencyCore, TalentGuard, or SkillsDB to visually map out the skills each team member currently possesses.

Compare the baseline map to the competency framework to highlight skill gaps for each role and team.

  • Conduct a Gap Analysis:

Use a gap analysis template or software to create a visual representation of gaps for each skill. Identify high-priority gaps based on their impact on performance, strategic value, and the likelihood of needing that skill in the future.

For each identified gap, document the current skill level, desired skill level, and required training or development interventions.

  • Prioritise Gaps Based on Business Impact:

Prioritise skill gaps that are critical for achieving business objectives, high-risk roles (e.g. cybersecurity or compliance), and areas where the business is planning to expand (e.g. digital transformation).

Identify quick wins (skill gaps that can be addressed with short-term training) versus longer-term development needs (e.g. leadership capabilities that require a year-long development program).

Tools to use:

  • Use skills mapping and gap analysis tools like TalentJam, TalentGuard, Degreed, or Cornerstone OnDemand to automate gap analysis and visualise skill gaps.

Align Skill Gap Analysis with Future Workforce Planning

Objective: Use the insights gained from the skill gap analysis to inform workforce planning, development initiatives, and succession planning.

Steps to Implement:

  • Identify Critical Roles and Skills for the Future:

Use the skill gap data to identify roles that are at risk due to significant gaps and areas where upskilling or reskilling is essential for future success.

Map out which skills will be in high demand as the organisation evolves and incorporate these into strategic workforce planning.

  • Develop Personal Development Plans:

Create Personal Development Plans (PDPs) for employees that address their specific skill gaps. Include clear learning objectives, timelines, and recommended learning resources (e.g. courses, mentorship, on-the-job training).

Use tools like learning management systems (LMS) to track progress and update plans as skills are developed.

  • Use Skill Gap Data for Succession Planning:

Identify high-potential employees who can be developed for critical roles by closing identified skill gaps.

Create targeted development programs that prepare future leaders and technical experts based on their current competencies and development needs.

Tools to use:

  • Use workforce planning software like TalentJam, SAP SuccessFactors, Workday, or Visier to integrate skill gap data with broader workforce planning and development strategies.

Analyse Industry Trends and Market Data

Industry and market trends can highlight emerging skills that will be in high demand. Staying informed helps you identify gaps that could become critical in the near future.

How to Implement:

  • Industry Reports and Market Research: Regularly review industry publications, research reports, and competitor hiring trends.
  • Technology and Market Trend Analysis: Monitor technological advancements and shifts in your industry that could create new skills gaps.
  • Job Market Analysis: Analyse job descriptions and postings from competitors to identify the skills they are prioritising.

Tools to Use:

  • Market research platforms like Gartner, Forrester, or IDC
  • Competitor analysis tools such as CB Insights or SimilarWeb

Conduct External Benchmarking

Benchmark your organisation’s capabilities against those of similar companies to see where you stand in terms of skills and capabilities.

How to Implement:

  • Benchmarking Studies: Participate in industry-wide benchmarking studies that compare skills, competencies, and workforce capabilities.
  • Competitive Analysis: Analyse competitors’ skill sets, job postings, and hiring strategies to see where they may have strengths you lack.
  • Professional Networking: Engage with industry peers and participate in conferences to gain insights into how other organisations are addressing skill gaps.

Tools to Use:

  • Benchmarking tools like TalentJam, Mercer’s Talent Assessment, IBM Kenexa, or SHL
  • Peer-to-peer networks through industry associations like SHRM or ATD

Review the Effectiveness of Existing Training Programs

Assess the success of your current training and development programs to ensure they are meeting their goals. Persistent skills gaps despite training may indicate that the content or delivery methods need adjustment.

How to Implement:

  • Training Impact Assessment: Track performance improvements and retention of skills post-training.
  • Employee Feedback: Gather input from employees on which training programs have been most helpful and which need refinement.
  • ROI Analysis: Compare the cost of training programs with the business impact they generate to identify areas of inefficiency.

Tools to Use:

  • Training management software like TalentJam, SAP SuccessFactors Learning or Cornerstone OnDemand.
  • ROI tracking tools integrated with your LMS or HR system.