Skills Gap

The skills gap is a persistent issue in the workforce. Per Gartner, 64% of managers express concerns about their employees’ ability to meet future skill demands. Additionally, 70% of employees feel they must develop the skills required for their current roles.

What is the importance of identifying skill gaps in the workspace?

Recognizing skills gaps gap offers several advantages, including opportunities for professional development, improved job performance, a more streamlined work approach, better work-life balance and increased productivity — all of which contribute to employee satisfaction and retention.

What are the types of skills gaps in the workspace?

The skills gap is a multifaceted issue with common factors that include the following: 

Knowledge gap

The knowledge gap refers to the difference between what someone knows and what they need to know to perform a task effectively. This gap often involves the specific knowledge required to carry out certain actions. When employees lack the necessary information or understanding related to their roles, it can hinder their ability to perform tasks efficiently. Therefore, addressing knowledge gaps can enhance employee performance and improve team collaboration.

Individual skill gap

Next up is an individual skills gap. Addressing the individual skills gap, which focuses on the ability to apply knowledge in practical situations, requires a proactive approach. Individual skill gaps include an individual’s mental skills, such as coding proficiency; physical skills, like the fitness needed for physically demanding roles; and soft skills, which include communication and emotional intelligence.

Performance gap

The final type is the performance gap. When teams are operating at peak performance, it directly benefits the organization. However, if there is a discrepancy between the current and expected performance, then it is called a performance gap. Performance gaps are quite prevalent in any stage of the organization. This could be for several reasons, including unclear understanding of the role and its expectations, poor training or individuals being a bad cultural fit for the organization.

How does a skills gap impact employers?

The skills gap transforms the talent landscape and significantly affects organizations’ growth, productivity, and competitiveness. According to a new McKinsey Global Survey on future workforce needs, nearly nine out of ten managers report that their organizations currently face a skills gap or expect gaps to develop in the next five years. As a result, this may cost companies up to one million dollars a year. 

When employers cannot find candidates who are not skilled enough to do the proposed job, the positions remain open indefinitely. Too many open positions in an organization can affect productivity and efficiency, as the workforce won’t be fully staffed.

How do we identify skill gaps in the workplace?

Recognizing the skills gap is essential for L&D (Learning and Development) professionals, enabling them to create targeted training and development programs that directly address the organization’s specific needs. Thus, as a first step, research about the company and follow these five steps: 

1. Define organizational goals to understand the strategies and changes within the workplace. 
2. Examine every job role in the organization. Consider what skills are required to make these roles successful.
3. Conduct surveys and questionnaires to collect insights from employees and their managers regarding their perceived skills and training requirements.
4. Perform skill assessments.
5. Identify and evaluate the skills an employee already possesses. 
6. Once the evaluation is done, see what skills match and what is important to completing the company’s goals and objectives. 

What industries are most affected by the skills gap?

The skills gap is driven by rapid technological advancements and changing job requirements. The the most affected industries are: 

1. Information Technology (IT): According to a report by IDC, over 90% of organizations will experience challenges due to a lack of IT skills by 2026. These findings suggest an immediate need to reshape learning and development strategies.
2. Healthcare: The healthcare industry is experiencing critical shortages after the pandemic. Some common skill gaps in healthcare are clinical skills, proficiency in new medical technologies and lack of effective communication and empathy. 
3. Manufacturing: As automation and advanced technologies become more prevalent, manufacturing companies face a gap in necessary technical skills among their workforce. 
4. Construction: This industry is grappling with labor and skill deficits. According to a report by McKinsey, there will be a shortfall of 300,000 engineers and 90,000 skilled technicians in the U.S. by 2030.

Challenges in addressing the skills gap

Hiring the right talent and bridging the skills gap to smoothen workflow are two challenges posed by the skills gap. Some additional challenges are include:

• Rapid technological changes: As technology evolves quickly, organizations struggle to keep their workforce updated with the latest skills required in their industries.
• Education-employment gap: Academic institutions struggle to keep pace with rapidly evolving job market demands. This disconnect often results in graduates lacking the necessary skills that employers seek. 
• Limited access to training: Many employees, especially in underserved communities, face barriers to quality training and development opportunities.
• Lack of soft skills: One of the pressing issues observed in younger generations is that digital interactions have replaced many in-person experiences that are crucial for developing essential interpersonal skills.
• Aging workforce: As experienced workers retire, they take valuable knowledge and skills with them, creating a void that younger employees may not be ready to fill.

What is a skill gap analysis? 

Skills gap analysis is a critical assessment that helps organizations identify the discrepancies between the current and expected skills that are important for the role’s success. 

HR and team leaders play a crucial role in addressing the skills gap. By conducting a gap analysis, they can identify the specific skills, abilities and knowledge required for certain job roles. This proactive approach will help them observe areas where a skill gap exists and take necessary actions to bridge them.

Four effective tips for bridging the skills gap

Once skills gaps have been identified, there are four effective ways to bridge potential gaps

Enhance employer branding strategies

A strong employer brand showcases an organization’s values, culture and growth opportunities, making it more appealing to high-caliber candidates. Research suggests that 94% of job seekers choose a company with a stronger branding identity than a poorly managed digital presence.

Integrate L&D programs

Once the goals and objectives are defined, you can mobilize the organizational Learning and Development (L&D) programs so that it is viewed as a vital business strategy rather than just a nice perk. Start by assessing your current L&D programs to ensure they are measurable and aligned with your organization’s goals. Additionally, consider integrating such programs into your company culture so that employees are fully engaged and invested in their development.

Upgrade digital tools & technology

When employees are forced to work with outmoded and inefficient technologies, they often spend significant hours troubleshooting issues instead of focusing on core tasks. According to a report by McKinsey, nearly 20% of employees waste a significant portion of their workweek searching for internal information or trying to locate colleagues who can assist with specific tasks.

With the advent of technology and digitalization, organizations must enhance the workspace experience by including user-friendly, intuitive and robust software that can handle a broad intranet workspace like modern intranets. It is the best cutting-edge technology that can streamline workflows and improve efficiency.

Introduce employee experience software

Next comes implementing a solid employee learning experience software that prioritizes accessibility and relevance. This can include offering a mix of formal training sessions, online courses, mentorship programs and on-the-job learning opportunities. By fostering employee empowerment and boosting internal communication, organizations can help employees to work efficiently. 

Close skill gaps with Simpplr’s eLearning modules

Closing the skills gap in today’s modern workforce demands a proactive and data-driven approach. Thus, closing the skills gap in your organization can be simple with Simpplr. Yes, that’s right. Simpplr is a leading AI-powered employee experience platform offering a comprehensive suite of training resources backed by AI and a modern intranet. It has empowered 1000+ brands by providing them with the right tools and technologies for a smooth collaboration. It also offers flexible eLearning modules to help your employees access essential training materials catering to various skill levels and learning styles.

Integrating these eLearning programs into your development strategy ensures that employees have the tools to enhance their skills and stay competitive in a rapidly changing work environment. Whether it’s mastering new software or improving collaboration techniques, these modules are tailored to meet your organization’s specific needs. 
Getting started is simple — follow the easy registration process to access Simpplr’s eLearning modules, and if you’re confused about how Simpplr actually works? Watch our 5-minute quick demo to transform your employee experience today!