Skills Gap Analysis Toolkit Final 0313
Skills Gap Analysis Toolkit Final 0313
Employer Toolkit
February 2013
environment in which we work, live and spend leisure time is developed, managed and maintained
to the benefit of all.
Drive innovation, change employer behaviours and develop new ways of working; and
Secure momentum from employers to support sustainable increases in skills levels and better use of skills
across sectors.
The funding is supporting 61 projects over the period 2012 2014. This research report is part of the
Asset Skills EIF 2 Talent Management programme of projects.
Contents
1. Introduction ................................................................................................................. 4
2. The Issue ...................................................................................................................... 5
3. The Solution ................................................................................................................. 6
4. Considerations ............................................................................................................. 7
5. The Toolkit ................................................................................................................... 8
5.1 Identify Business Goals ........................................................................................... 8
5.2 Current Processes and Procedures ....................................................................... 11
5.3 Identifying Job Roles ............................................................................................. 12
5.4 Identifying Skills Gaps ........................................................................................... 14
5.5 Identifying Competencies .................................................................................... 15
5.6 Identifying Hidden Skills ....................................................................................... 16
5.7 Interpretation....................................................................................................... 17
5.8 Next Step .............................................................................................................. 18
6. Summary ................................................................................................................... 19
Further Information ....................................................................................................... 20
Bibliography .................................................................................................................. 21
Foreword
We know from working closely with employers across our sectors that workforce skills are a priority
for any business looking to remain competitive in the current economic landscape. The value of
employee skills cannot be underestimated as they benefit employers through improved costs,
greater customer satisfaction and increasing profitability.
With this in mind, the Asset Skills talent management project team has worked hard to develop a
toolkit based on employer feedback that will facilitate the design and implementation of a suitable
skills gap analysis tool that will support talent management and support your organisations
approach to developing competitive advantage.
We hope you find this toolkit useful and informative. As we strive to be as accurate as possible and
to cover the areas of most concern to employers, please feedback to us any comments you may
have. Armed with this information we can work with employers and partners to help them develop
strategies to meet their requirements and develop world class skills.
February 2013
1. Introduction
Asset Skills is one of 21 Sector Skills Councils (SSCs) representing five sectors in the UK: property
(including planning), housing, facilities management, cleaning and parking. Businesses in these
industries share the goal of ensuring the environment in which we work, live and play is developed,
managed and maintained to the benefit of all.
To achieve this goal, employers within the Asset Skills sectors must ensure that their employees
have the necessary knowledge, skills and experience required to undertake their duties
competently. This can be ensured by embracing the concept of a skills gap analysis. It allows
employers to highlight the areas where employee skills may be lacking and thus informs them on
any gaps that need to be rectified.
In recent years, workplace efficiency has become a priority for employers worldwide due to the
global recession and the cost cutting measures that have been implemented as a result. Completing
a skills gap analysis allows organisations to stay on top of employee development, channel their
resources effectively and adapt to future skills demands.
Employers can use a range of different approaches following their skills gap analysis to facilitate
appropriate employee development and training plans. For example, relevant on the job training or
continuing professional development, to membership of professional bodies and attainment of
career related qualifications (Asset Skills Barometer, 2011).
To support employers in implementing a successful skills gap analysis, the Asset Skills Talent
Management Project Team has developed a toolkit designed to help employers conduct a skills gap
analysis. Having worked through this toolkit, employers will have reached the conclusion of their
skills gap analysis and should have the information available to develop a framework for the
implementation of talent management strategies to improve employees skill competencies.
The information presented will be of interest to individuals, providers, employers and others who
wish to assess the skills base of an organisation in the future. Further research work that develops
this theme will be undertaken through the Asset Skills EIF2 Talent Management programme during
the period October 2012 to March 2014 (funded by UKCES).
2. The Issue
According to figures from the Office for National Statistics the knowledge and skills of workers in the
UK were worth an estimated 17.12 trillion in 2010 (ONS, 2011). However, some organisations
experience significant skills gaps that are defined as an instance in which an individual lacks a skill in
a particular area, preventing them from performing their job effectively (UKCES, 2012a).
Skills gaps are self-defined by employers when they perceive that an employee lacks certain skills
preventing them from being fully proficient in their job role for example, the main cause of skills
gaps cited by employers within the Asset Skills footprint is employees that are new to their job roles
have only partially completed their training and are therefore lacking technical, practical or job
specific skills required to perform their role to a high standard (UKCES, 2012a).
Skills gaps can occur at an individual, departmental or organisational level at any time because staff
lack critical skills (required to complete a task successfully), or non-critical skills (skills that are not
essential but would enable a task to be completed more quickly or efficiently) (QFinance, 2009) due
to changes in the working environment for example, as a result of new practices, policies or
equipment.
These skills gaps can have significant implications for companies as they will be unable to reach their
potential productivity and profitability. For example, if employees have skills gaps in areas of verbal
or written communication they could struggle to follow simple instructions and make mistakes when
manufacturing products or providing services. Additionally, individuals with poor literacy or language
skills may not understand health and safety procedure resulting in accidents. This could result in
higher costs for customers as production will be relatively slow or missed opportunities to release
new products/services as the employers will not be confident that their workforce could meet the
conditions of a new contract. Furthermore, skills gaps in areas of customer service could potentially
result in a failure to meet customer demands, an increased number of complaints and the loss of
customers to competitors.
There are also implications on an individual level. For example, if an individual feels their
development is not being supported by their organisation because they are experiencing general job
dissatisfaction or stress caused by a lack of investment in their skills they may choose to move on.
Driven individuals who want to develop their skills will relocate to rival firms who offer better
opportunities for skills development because in modern society there is almost no stigma attached
to people moving jobs to further their career.
3. Solution
A skills gap analysis is a systematic review of the skills held by individuals in a company (Clark, 2012).
The first step in performing an analysis is to identify all the skills required by an individual to carry
out their job role effectively (Duggan, 2013). Employers should then be able to identify the critical
and non-critical skills required to achieve a higher standard of work by comparing the list of required
skills with the actual skills possessed by the individual employee (QFinance, 2009).
From an individual perspective, the results of the skills gap analysis can be used to develop individual
training plans, support performance appraisals or justify pay reviews (Antonucci and dOvidio, 2012).
For a department, a skills gap analysis can be used to identify which staff members have knowledge
in particular area as well as which individuals lack certain skills facilitating the mentoring process
within teams (QFinance, 2009). This can also support recruitment practices as employers can select
candidates with skills required by a particular department.
Traditionally, a skills gap analysis is undertaken using paper-based assessments and supporting
interviews; however, technological advancements, such as skill management software, are allowing
large companies to administer a skills gap analysis without using a significant proportion of human
resources (Antonucci and dOvidio, 2012).
A skills gap analysis can really benefit an organisation by providing a critical overview of the
workforce allowing managers to determine if their employees have the necessary skills to meet
organisational objectives (QFinance, 2009). If employees do not have these skills, an organisation
can use the skills gap analysis to prioritise training resources so that they are tailored to specific job
roles rather as opposed to generic training days that are not suitable for all the individuals
participating.
Research by Mudor and Tooksoon (2011) indicates that providing appropriate opportunities for
training that link business and individual skills needs may influence workers to stay with an employer
for longer, maximising the benefits of increased employee productivity due to a higher level of skills
when considered against the original cost of training. Further long-term savings are made as
employees feel valued and increasingly willing to remain with their employer, reducing the costs
associated with staff turnover (Asset Skills, 2012).
If employees are more willing to remain with a company and progress their careers then they
become part of the organisations talent pipeline facilitating effective succession planning and
contributing to the success of an organisations overall talent management strategy.
6
4. Considerations
However, employers contemplating the implementation of a skills gap analysis should be aware that
the process can be costly in terms of purchasing paper based assessments or skills management
software. Furthermore the process can be very time consuming for staff administering a skills gap
analysis and for directors within the business that must decide what actions they will take after
evaluating the results (QFinance, 2009).
Many employers believe that administering a skills gap analysis will require them to create an inhouse framework to implement the process, but there are a number of human resource companies
that provide frameworks that can simply be adapted to a particular employers needs (Antonucci
and dOvidio, 2012).
However, bringing in a consultant to conduct a skills gap analysis could result in apprehension or
suspicion that may ultimately affect staff morale because the process involves a stranger evaluating
employees skillsets (QFinance, 2009). It is therefore important to communicate the purpose of the
assessment and include employees throughout the process by offering individual feedback so that
they understand the importance of such a review.
It has been suggested that a more cost-effective approach to analysing skills gaps would be to have
individual line managers identify specific skills in their department or simply to ask staff to identify
specific areas they need additional training (Duggan, 2013). However, asking line managers or staff
to complete the assessment themselves can result in bias as staff may not answer the questions
correctly or honestly (QFinance, 2009).
Furthermore, this approach will often require a culture of learning within the workplace which
according to survey evidence from across the UK is not prevalent as less than one third (27 per cent)
of employed adults report to have engaged in job related training in the last three months (UKCES,
2010).
It is therefore important to remember that while a skills gap analysis can contribute to prioritising
training needs, a skills gap analysis can also be used to plan recruitment and redundancy
programmes, support organisational restructures, build effective teams and manage business
change (QFinance, 2009).
5. The Toolkit
The process of conducting a skills gap analysis can be broken down into four main steps: identifying
business goals, collecting the data, analysing or interpreting the data and finally implementing
training plans based on the results. The following toolkit will outline each of the sections and provide
templates and examples to assist you in your own skills gap analysis work.
Yes
No
Not sure
1.___________________________________________
2. __________________________________________
3. __________________________________________
2. Can you identify the current demand for skills in
your industry and list the top three here?
1.___________________________________________
2. __________________________________________
3. __________________________________________
2.1 Do you know why these skills are important?
Please explain: _______________________________
__________________________________________
If you answered mostly yes to checklist 1 and could complete most of the information you have
enough information to conduct an analysis of your skills gaps easily. You could conduct this
analysis in-house or use external specialists. You would then use the information to properly
evaluate the talent management strategy options available to you.
You do not have enough information to conduct a skills gap analysis easily if you answered
mostly no or not sure to checklist 1. You will need to consider a separate project to collect this
information so that you can make informed decisions about talent management strategies and
properly evaluate the options available to you.
Definition: Future Skills Needs
Using labour market information to predict future
skills needs can help to improve decision making in
areas such as investing in training and identifying
courses that will best support employee skills needs.
However, it is important that employers do not
solely rely on forecasting methods because skill
needs are driven by a variety of factors including
legislation,
environment
and
technological
advances.
10
Yes
No
Not sure
If you answered mostly yes to checklist 2 and could complete most of the information you have
enough information to conduct an analysis of your skills gaps easily. You could conduct this
analysis in-house or use external specialists. You would then use the information to properly
evaluate the talent management strategy options available to you.
You will have to develop new processes and procedures that facilitate skills gap assessment if
you answered mostly no or not sure to checklist 2. You will need to consider a separate project
to collect this information so that you can make informed decisions the types of procedures and
processes that will suit your business.
11
Yes
No
Not sure
2. ______________________________________
3. ______________________________________
3. What job roles generate the most income for your
company? (could refer to annual report)
1. ______________________________________
2. ______________________________________
3. ______________________________________
4. What job roles have the largest gap between
employees performance and organisation expectations?
1. ______________________________________
2. ______________________________________
3. ______________________________________
5. What job roles experience the highest staff turnover?
1. ______________________________________
2. ______________________________________
3. ______________________________________
12
If you answered mostly yes to checklist 3 and could complete most of the information you have
enough information to conduct an analysis of your skills gaps focusing on specific job roles or
departments.
You do not have enough information to conduct a job role or department focused skills gap
analysis easily if you answered mostly no or not sure to checklist 3. This may indicate that the
skills gaps within your business must be identified on an individual basis. The following section
describes how this data can be collected.
13
Step 2: Ask your employees to list the skills they need to perform in their current role. Have they
identified any that they do not have? By giving them this opportunity they are more likely to be
receptive to the introduction of new training.
Skill
Behavioural Description
Yes
No
Not sure
Step 3: Encourage each member of staff to complete a written or online assessment to complement
the information you have already collected.
If you have followed the three steps process above you should have identified skills that will
need to be prioritised through training. This is because it allows the weaknesses of the individual
to be easily pinpointed, allowing you to progress to plan your training.
Definition: Online Surveys
14
No evidence
of
competence
Some evidence of
competence needs
more training
Quite competent,
needs more
experience
Very
Competent
Building Trust
Coaching
Collaboration
Communication
Conflict management
Customer service
CPD
Problem solving
Decision making
Delegation
Presentation skills
Initiative
Innovation
Managing workload
Time management
Negotiation
Planning
Leadership
Teamwork
Technical knowledge
If you answered very or quite competent to checklist 5 then you know that employees possess
the correct competency for their role. You could conduct this analysis in-house or use external
specialists. You would then use the information to properly evaluate the talent management
strategy options available to you.
You will need to prioritise your training resources if you answered mostly no or some
competence to checklist 5. You will need to consider a separate project to collect this information
so that you can make informed decisions about talent management strategies and evaluate the
options available to you.
15
Multi-tasking
Planning,
Organising and
Time Management
Resource
Management
Social skills
System skills
Technical skills
Foreign Language
skills
Work ethic
Example
This skill is developed by everyday tasks,
from grocery shopping to paying your bills
each month.
Holding down a job, running a home, having
children, all adds to your multi-tasking
capabilities.
These three skills are intrinsically linked, to
succeed in many aspects of life. By meeting
educational deadlines you will have
combined these skills to succeed.
Getting done what you need to get done
with the resources at hand.
General interactions will have given you the
confidence to lead people without realising.
Seeing how things, people or information
relates to each other. If you are proficient in
this area you are likely to respond will to
detailed training
Having a foundation in using IT equipment
will mean that employers can train you in
the area without starting from the very
beginning.
Speaking a foreign language says a lot about
a person, it shows you are willing to work
hard and have a good memory.
Being punctual, setting yourself high goals
and standards will show employers that you
can be an asset.
Yes
No
Not Sure
If you can answer yes to most of these skills you will find that you have a good level of
foundational, or transferable skills. These are looked upon highly by employers as they show you
have the potential to learn job specific skills and respond well to training.
If you have answered No or Not sure to all or the majority of the listed skills you are probably
being too harsh on yourself. Life experiences will have led to you developing certain skill sets, you
just need to work out which ones.
16
5.7 Interpretation
The final outcomes of such an assessment will be that individual/job role/department competency
profiles are produced, containing the skills interpretation table and any comments associated with it
for each employee. Explanations of lacks of competencies and measures to counteract this will be
included in the individual reports. Keeping the individual reports well filed and up to date with any
training that takes place is suggested as it will help track employee development progress.
Table 2: Competency scale
0
No evidence of
competence
0.25
Some evidence of
competence
0.5
Evidence of
competence,
however needs
extra training
0.75
Very competent,
needs more
exposure to use
their skills
1
Full evidence of
competence
Checklist 7 could be used to interpret the data and produce Individual/job role/department
competency profiles based on the scale shown in Table 2. The example below is drawn up for an
individual although it could quite easily be adapted to show the trends of a particular job role.
Checklist 7: Data interpretation
Name:
Role:
Skills
Leadership
Communication
Team work
Problem Solving
Self-Management
Planning and organising
Technology
Learning
Initiative and enterprise
Comments:
0.25
Rating scale
0.5
0.75
17
Yes
No
Not sure
18
6. Summary
According to figures from the Office for National Statistics the knowledge and skills of workers in the
UK were worth an estimated 17.12 trillion in 2010 (ONS, 2011). However, many organisations are
plagued with skills gaps that are defined as an instance in which an individual lacks a skill in a
particular area, preventing them from performing their job effectively (UKCES, 2012a).
These skills gaps can have significant implications for companies as they will be unable to reach their
potential productivity and profitability. For example, if employees have skills gaps in areas of verbal
or written communication they could struggle to follow simple instructions, make mistakes when
manufacturing products or providing services and individuals that do not understand health and
safety procedure may have accidents. This could result in higher costs for customers or missed
opportunities to release new products or services as production will be relatively slow.
There are also implications on an individual level. For example, if an individual feels their
development is not being supported by their organisation because they are experiencing general job
dissatisfaction or stress caused by worrying about work they may choose to move on.
To overcome these issues, employers can administer a skills gap analysis which involves a systematic
review of the skills held by individuals in a particular organisation (QFinance, 2009). A skills gap
analysis can really benefit an organisation by providing a critical overview of the workforce allowing
managers to determine if their employees have the necessary skills to meet organisational
objectives (QFinance, 2009). If employees do not have these skills, an organisation can use the skills
gap analysis to prioritise training resources so that they are tailored to specific job roles rather as
opposed to generic training days that are not suitable for all the individuals participating.
Research by Mudor and Tooksoon (2011) indicates that providing appropriate opportunities for
training that link business and individual skills needs may influence workers to stay with an employer
for longer, maximising the benefits of increased employee productivity due to a higher level of skills
when considered against the original cost of training.
If employees are more willing to remain with a company and progress their careers then they
become part of the organisations talent pipeline facilitating effective succession planning and
contributing to the success of an organisations overall talent management strategy.
19
Further information
Asset Skills is working on several projects in collaboration with employers across the housing,
property, cleaning, parking, and facilities management sectors to help them implement successful
talent management strategies. Additional information is available in the following publications:
Talent Management Strategies Research Report
This report identifies the key characteristics of different talent management strategies through a
literature review and a series of primary research case studies to establish in what ways such
schemes are suitable for employers working in the Asset Skills sectors.
http://www.assetskills.org/Projects/TalentManagement/TalentManagementReports.aspx
Talent Management Diagnostic Tools
This report discusses the different talent management diagnostic tools available through a literature
review and a series of talent diagnostic tool technical profiles that incorporate several primary
research case studies.
http://www.assetskills.org/Projects/TalentManagement/TalentManagementReports.aspx
Coaching and Mentoring Research Report
This report contains a literature review and five supporting case studies designed to establish in
what ways coaching and mentoring schemes are suitable for employers working across the Asset
Skills footprint. Click on the image to download the report.
http://www.assetskills.org/Projects/TalentManagement/TalentManagementReports.aspx
Women and Work: Career Progression Research Report
This report contains a literature review and six supporting case studies focussing on female
graduates of the Women and Work programme. It highlights the obstacles (such as being the
primary unpaid carers of children and vulnerable adults in society) that some women face with
regards to their career development and demonstrates that investing in their skills not only benefits
the individual, but the organisation as a whole.
http://www.assetskills.org/Projects/TalentManagement/TalentManagementReports.aspx
20
Bibliography
Antonucci, L. and dOvidio, F. (2012) An informative system based on the skill gap analysis to
planning training courses, Applied Mathematics, Volume 3, pg 1619-1626.
Asset Skills (2012a) Real estate and facilities management sector skills assessment, UK Commission
for Employment and Skills, London. Available: http://www.ukces.org.uk/assets/ukces/docs
/publications/evidence-report- 66-real-estate-facilities-ssa.pdf
Clark, W. (2012) Definition of skills gap analysis, eHow, London. Available:
http://www.ehow.co.uk/facts_6788842_definition-skills-gap-analysis.html (31/01/13)
Duggan, T. (2013) How to develop a skills gap analysis, Houston Chronicle, Texas. Available:
http://smallbusiness.chron.com/develop-skill-gap-analysis-39872.html (31/01/13)
Mudor, H. and Tooksoon, P. (2011) Conceptual framework on the relationship between human
resource management practices, job satisfaction and turnover, Journal of Economics and
Behavioural Studies, Volume 2, Number 2, pg 41-49.
QFinance (2009) Performing a skills gap analysis, QFinance, Unknown, Available:
http://www.qfinance.com/performance-management-checklists/performing-a-skills-gap-analysis
(18/01/13)
21
Notes
22
William Day
Research Assistant, Asset Skills
Email: [email protected]
Tel: 0845 678 2888
23