Skills Gap

What Is A Skills Gap?

A skills gap is the difference between the level of competence that a company requires of its employees and what those people actually possess.

A business may struggle to keep up with technology advancements or fall short of client expectations when there is a skills gap. Businesses can have trouble filling open positions if there is a bigger skills gap among the workforce that is available for hire.

The Reason Behind The Skills Gap

Understanding the causes of the skills gap in your company will help you address it. These consist of:

• The departure of important employees

The decline in the number of workers available, particularly at senior levels, is one of the main sources of skills gaps.

Until recently, the workforce was largely composed of so-called baby boomers, or people born between 1946 and 1964. However, as the 21st century progresses, many members of this generation have either retired or are about to retire.

As a result, the talent pool is also losing the valuable talents that these employees hold. A skills gap is starting to appear at the top of certain firms as a result of the departure of many of these people from senior posts.

• Later entry of younger workers into the workforce

Many young people, particularly Millennial and members of generation Z, are staying longer in education than prior generations as part of a global trend. Although having a workforce with a higher level of education is undoubtedly beneficial, this delay in finding work may result in fewer skilled workers being employed.

• The ever-evolving world of technology

One of the biggest causes of the skills gap is the rapid pace of technological change. In reality, someone with training in computer programming may find that many of their skills become outdated in a short period of time. These people will need to continuously pursue professional improvement throughout their careers in order to avoid this.

• A deficit in soft skills

Employers that hire fresh graduates sometimes complain that they don't have the soft skills they need to succeed in the office, such as being on time or knowing the rules of the company. One school of thinking holds that this gap results from fewer young people obtaining work experience through internships or part-time jobs while they are in school.

Dealing With The Skills Gap

• Analyze the abilities needed.

As the name implies, this technique helps you find any critical skills that your staff lacks. Comparing your colleagues' existing skill sets to the ones needed by your company to run efficiently is the basis of an analysis.

You can evaluate the skills of your staff in a number of ways. These consist of the following:

Employees evaluate their own skills and abilities as well as their areas for improvement throughout the self-evaluation process.

• Competency testing: Using this methodology, you'll compare the skills of your employees to what's required for them to carry out their duties. The employee recounts their replies in work-related circumstances in a written exam that is frequently used to deliver competency exams.

• Feedback from coworkers and clients: Often referred to as 360-degree feedback, this strategy entails getting opinions from those who frequently interact with the employee.
• Following your study, you can decide whether you need to hire new staff or teach your current employees.
• Set specific goals: Once a skills shortage has been discovered, discuss the best course of action with other important stakeholders, such as your chief operating officer and head of HR. Important dates and milestones should be mentioned in your plan. To monitor your progress, you should arrange frequent reviews.
• You can do this by giving yourself deadlines by which you'd like to reach important milestones, then setting up a meeting to assess your progress. For instance, you can decide to establish a three-month deadline for all of your employees to complete software training.
• Hire fresh personnel: In some circumstances, hiring new employees is the best way to close a skills gap. It can be a good idea to concentrate on the talents your company requires when creating job postings for these new positions.
• Consider the potential income that closing the skills gap for your company can generate as you decide on pay for new hires. After that, you'll be in a better position to choose the appropriate compensation for these new hires.
• Consider hiring any candidates who might be qualified for upskilling if you are unable to discover workers who exactly match the abilities you require. Always remember that while looking to fill a vacancy, it makes sense to explore both internal and external candidates.
• Educate current employees: You might decide to close the skills gap by enhancing the skills of your current employees rather than adding new personnel. You can upskill your staff by offering more training, paying for them to earn more qualifications, and implementing job shadowing programs.
• Consider working from home: If your business is located in a small town, you might want to think about expanding your hiring pool by implementing remote working throughout your organization. While nearby employees might not have the skills you need, individuals who work hundreds or even thousands of miles away might be a better fit for your company.
• Consider whether your employees really need to be on-site or whether they might do the duties of the position from home. Of course, not every position or industry will be suited for remote working.

Conclusion

It is obvious that the global skills gap won't go away anytime soon. Fortunately, there are steps you can take to lessen its effect on your business and even open up brand-new prospects for growth.

Keep in mind that knowledge is a strong tool. You cannot build the best workforce, either by hiring new employees or by upskilling current ones, without first determining the main skill areas in which your company is weak.