"Skills Gap" means the discrepancy between the skills required for a job and the skills employees actually have. The skills gap makes it difficult for employers to fill open positions as candidates don’t have a certain skill set that employers look for.
Basic skills, leadership, communication skills, technical and professional abilities are some of the areas where there are the biggest skill gaps.
Almost every industry will be affected if there is a skills gap; however, some industries may face the biggest impact. Those industries are-
Finance and business
What Causes a Skills Gap?
Variables like poor education, evolving workforce, lack of proper training, insufficient development, and reskilling programs can lead to the national skills gap.
1. Lack of Tech Training
Automated machines offer more and better job opportunities for electrical, mechanical, and software engineers. However, though computing accounts for 67 percent of new STEM occupations, computer science degrees only make up 11 percent of STEM bachelor's degrees. So, it's clear that educational opportunities are failing to keep up.
Again, many businesses also don't provide enough training for these new devices. According to a survey from the MIT Technology Review, only half of U.S. plants provide formal training to their workers.
2. Lack of Soft-Skills Development
Compared to past generations, fewer high school students now work summer jobs. As a result, they are less likely to develop soft skills like punctuality, teamwork, and a service-oriented mindset, leading to the skills gap.
3. Retiring Baby Boomers
Every day, around 10,000 baby boomers retire. This means that a large number of highly skilled workers will soon leave the workforce, leaving employers to hustle to find new employees to fill senior-level positions.
How Does a Skills Gap Impact Employers?
If employers hire employees who don’t have the necessary skill set required for a particular job role, the organization will suffer for a long time and be unable to achieve its goals. The organization will then have to invest a lot of time and money to train those under-skilled employees.
On the other hand, if employers can’t fill open positions with qualified candidates, the positions may remain unfilled indefinitely. As a result, teams will be understaffed and unproductive, which can negatively impact your company’s bottom line.
By following the 5 steps, you can find out the skills gap in your workforce.
Step 1: Set your organization’s goals and objectives.
Step 2: Determine the skills required to achieve those objectives.
Step 3: Identify which job roles are directly in charge of achieving each goal.
Step 4: Find out the skills your employees already possess.
Step 5: Check to see if your employees’ current skills match the required skills to complete the goals and objectives of your company.
How Can Employers Address the Skills Gap?
If you are facing trouble hiring skilled employees, you need to solve the skills gaps issue within your organization.
1. Arrange Job Training
Reskilling, training, and development are essential to address the ever-increasing skills gap.
First, identify the skills gap within the company, then fill it through employer-led training and development. New hires must participate in and complete these training to fill the gaps.
2. Hire and Promote from Within
When hiring senior-level positions, consider your current workforce. Though most of your employees won’t have the required skill set, some will have an understanding of its responsibilities somewhat. Also, you can prepare your employees for new job roles by making more on-the-job training available.
What is Skills Gap Analysis?
Skills gap analysis is a tool that determines the different skills and abilities that employees need to match specific job requirements and perform certain tasks more effectively. This analysis of the disparity between employees’ current skills and the skills employees should have for a particular job.
Using the data of this analysis, HR departments can identify which skills are lacking within a particular department and arrange training accordingly. Additionally, a skills gap analysis helps HRs to take a quantitative approach to hire professionals who meet the organization’s requirements.
Why is Skills Gap Analysis Important?
Performing a skills gap analysis is required to understand a company's needs and how employees’' skills can meet those needs. Skills gap analysis is important because it-
1. Provides Insight into Staff's Expertise
A skills gap analysis can assist you in identifying which team members have the highest skill levels for specific areas of your organization and determining the roles best suited for employees' present skills. Knowing your team's various skills and capabilities is also important for focusing on areas where employees need to improve.
2. Supports Learning and Development
Using skills analysis results, employees can find out what skills they need to learn to satisfy their job requirements and advance in their roles.
On the other hand, the information provided by a skills gap analysis can help employers to support workers' development through workshops, training programs, and individual improvement plans and encourage employees.
3. Improves Hiring and Recruiting
Using data from your analysis, you can find and recruit candidates who have the necessary skills for various roles and who can help the organization meet business objectives.
4. Serves as a Foundation for Planning
Along with ensuring that workers’ skills and expertise meet the organization’s goals, the skills gap analysis also provides insights that an organization can use for planning and implementing development programs for their employees.