A skills gap is a term used to describe a difference between the skills and knowledge that employees have and the skills and knowledge that are required for their job roles or the company's goals. In other words, it's the gap between the skills that employees possess and the skills that employers require.
A skills gap can occur for various reasons, including changes in technology, business practices, and market trends, which require new skills that current employees may not possess. It can also occur due to a lack of training or development opportunities for employees to acquire the skills needed for their job roles or to advance their careers within the company.
Skills gaps can be costly for companies, as they can lead to lower productivity, decreased employee morale, and increased employee turnover. By identifying and addressing skills gaps, companies can ensure that their employees have the skills and knowledge they need to meet the demands of their job roles and achieve the company's goals.
The Problems Skills Gaps Create for a Company
Skills gaps can create several problems for a company, including:
Decreased Productivity
When employees lack the necessary skills and knowledge to perform their job roles, it can result in decreased productivity and output. This can lead to delays in projects, missed deadlines, and reduced efficiency.
Lower Employee Morale
When employees feel that they don't have the skills or resources to do their jobs effectively, it can lead to lower morale and job satisfaction. This, in turn, can lead to higher rates of absenteeism, turnover, and decreased engagement.
Higher Costs
Skills gaps can lead to increased costs for a company, including the cost of recruiting and training new employees, the cost of lost productivity due to mistakes or inefficiencies, and the cost of lost business due to missed opportunities.
Inability to Compete
In today's fast-paced business environment, companies must be agile and adapt to changes quickly. If a company is unable to keep up with changes in technology, market trends, or customer needs due to a skills gap, it may lose its competitive edge.
Decreased Innovation
A lack of skills and knowledge can also inhibit innovation within a company. Without employees who have the necessary skills to come up with new ideas and solutions, a company may struggle to develop new products, services, or business models.
How to Conduct a Skills Gap Analysis for Your Company
Conducting a skills gap analysis is an important step for any company that wants to identify the skills and knowledge that employees need to develop to meet current or future business goals.
Here are the steps you can follow to conduct a skills gap analysis for your company:
Identify the business goals: The first step is to identify the business goals that the company wants to achieve. These goals could be related to sales, revenue, market share, customer satisfaction, employee engagement, or any other objective that the company wants to accomplish.
Identify the job roles: The next step is to identify the job roles that are required to achieve the business goals. This could involve looking at the current workforce and identifying the different job roles that exist within the company.
Identify the skills and knowledge required: Once the job roles are identified, the next step is to identify the skills and knowledge that are required for each job role. This could involve looking at the job descriptions, performance reviews, and feedback from managers to identify the key skills and knowledge required for each role.
Conduct a skills gap analysis: The next step is to conduct a skills gap analysis by comparing the current skills and knowledge of employees against the skills and knowledge required for each job role. This could involve using surveys, interviews, and assessments to identify the areas where employees need to develop their skills.
Develop a training plan: Based on the results of the skills gap analysis, the next step is to develop a training plan to help employees develop the skills and knowledge they need. This could involve providing on-the-job training, classroom training, online courses, coaching, or mentoring.
Implement the training plan: The final step is to implement the training plan and provide employees with the training they need to develop the required skills and knowledge. It is important to monitor the effectiveness of the training and make any necessary adjustments to ensure that it is achieving the desired outcomes.
How an LMS and eLearning Can Help Close the Skills Gap
A Learning Management System (LMS) is a software application that helps companies manage and deliver eLearning courses to their employees. LMSs can play a crucial role in closing the skills gap by providing the following benefits:
Centralized Training
An LMS provides a centralized location for all training content, making it easy for employees to access the learning materials they need to improve their skills.
Customized Learning Paths
An LMS can help create customized learning paths for employees based on their skill level and job role. This ensures that employees receive the training they need to close their skills gaps.
Tracking and Reporting
An LMS tracks employee progress and provides reports that allow managers to monitor how their employees are progressing in their training. This helps identify areas where employees may be struggling, allowing managers to provide additional support.
Consistent Training
An LMS ensures that all employees receive consistent training, regardless of their location or schedule. This helps ensure that all employees have the same level of knowledge and skills.
Mobile Learning
An LMS can provide mobile learning options, allowing employees to access training content on their smartphones or tablets. This makes it easy for employees to learn on-the-go, fitting training into their busy schedules.
About LMS Portals
At LMS Portals, we provide our clients and partners with a SaaS-based, multi-tenant learning management system that allows you to launch a dedicated training environment (a portal) for each of your unique audiences.
The system includes built-in, SCORM-compliant course authoring software that enables most anyone to build engaging courses quickly and easily.
We also offer a complete library of ready-made courses, covering most every aspect of corporate training and employee development.
If you choose to, you can create Learning Paths to deliver courses in a logical progression and add structure to your training program. The system also supports Virtual Instructor-Led Training (VILT) and provides tools for social learning.
Together, these features make the LMS Portals platform the ideal solution for training your employees and closing the skills gap in your company.
Contact us today to get started or visit our Partner Program pages