“If you want something you have never had, you must be willing to do something you have never done.”— Thomas Jefferson
Just last year, I sat across from the director of a new tech startup, deeply perplexed by what he told me, “We’re in desperate need of talented workers, but there’s a significant Skills Gap I can’t seem to fill.”
“What’s a Skills Gap?” I’d asked, as if entirely unfamiliar with the term. It was there and then that my journey towards understanding and tackling the Skills Gap started. In this blog, we will plunge into the intriguing world of ‘Skills Gap’. We’ve got it all covered, from ‘What is a skills gap?’ through real-world situations, its existence in varied sectors like manufacturing and technology, the nitty-gritty of skills gap analysis, and even a ready-to-use analysis template.
So, let’s clear the air: what exactly is a skills gap? It’s a significant shortfall between the skills employers need and those their employees have. Sounds simple enough, but the real-life implications of a skills gap can be daunting and widespread, impacting not just individuals and businesses, but entire sectors and economies.
For example, the manufacturing sector frequently battles with this dilemma. Despite high unemployment rates, many factories and plants remain understaffed. Why? Many workers simply don’t have the specific skills required for the available jobs. The same story unfolds in the technology sector, with companies struggling to find qualified programmers and data scientists, leaving key roles vacant.
What exactly is a skill gap?
The skill gap is the differences between the abilities required for the work and the skills that employees actually possess. The skill gap provides an opportunity for both the organization and the employee to identify and acquire missing skills.
Companies hire employees to work towards achieving the company’s goals. As a result, organizations hire people with the necessary skill sets. However, because of the evolving situation and advancement of technology, it is common for employees to lack specific knowledge, skills and training, resulting in a skill gap. As a result, the employee is unable to accomplish the entire job.
So how do we tackle the skills gap? Enter the world of Skills Gap Analysis. A Skills Gap Analysis is a strategic tool used by businesses to understand and quantify the set of skills they need and those they currently have.
Identifying skill gaps is critical for businesses to ensure that their employees are adequately trained, competent, and better equipped to do their jobs. This analysis contributes to the following goals:
1.Aids in the refinement and definition of skills required by the Organization today and in the future.
2.Inform employees about the critical skills they will need to develop.
3.Aids in recruiting efforts when current employees lack the necessary skills or interest.
A Skills Gap Analysis would involve the following steps:
•Assessing your workforce’s existing skills.
•Identifying the skills that your company needs to remain competitive.
•Determine the gap between these two spots.
•Creating a strategy for closing such gaps through training, upskilling, or hiring.
Skills Gap Analysis Template: A Practical Approach:
Suppose you’re planning on baking a cake. Your Skills Gap Analysis Template is your recipe – it pinpoints precisely what you need (the ingredients) and compares it to what you currently have. It’s not just about recognizing you need eggs and flour but understanding the subtleties; the difference between having all-purpose flour and cake flour can determine whether you’ll have a dense or fluffy cake. The same principle applies to business; knowing what specific skills your team needs is vital for success.
1.Determine desired skills: To begin, identify the skills and competences that your organization requires for success. Examine industry trends, job descriptions, and long-term objectives.
2.Assess available skills: Evaluate your employees’ existing skills using surveys, performance reviews, or skill-based assessments. Identify which areas require improvement.
3.Analyze the gap: To identify the gaps, compare the needed skills to the current skills. This will assist you in identifying the exact areas that want improvement.
4.Create a strategy: Create a thorough strategy to close the skills gap. This could include training programmes, mentorship initiatives, or collaboration with educational institutions.
5.Implement and evaluate: Implement your strategy and track its success. Assess progress on a regular basis, make adjustments as needed, and applaud accomplishments.
If a work function in a technology company requires an employee to know a few specific programming languages and a database, but the employee only knows one language. This indicates that there is a skill gap. This can be improved by the employee learning the missing skill.
Let me share a personal experience to assist you understand the real-world impact of the skills gap. I worked in the technology sector a few years ago and saw directly how the skills gap affected our team. We were having difficulty locating qualified cybersecurity professionals capable of keeping up with the fast-developing threats in the digital landscape. As a result, our company experienced data breaches and lost client trust.
We didn’t, however, let this setback define us. We took action by completing a skills gap study and investing in comprehensive cybersecurity training programs. We gradually developed a highly experienced and informed workforce that effectively reduced hazards and helped in protecting our organization’s assets. This experience taught me the importance of bridging the skills gap and the benefits it may offer.
Skills Gap in manufacturing/technology and different sectors:
In the Tech industry, there might be a horde of Java enthusiasts, but what if the industry is gravitating towards Python? Similarly in the healthcare sector, we might have scores of general practitioners, but what if the need of the hour is more mental health specialists? These examples perfectly illustrate how sector-specific skills gaps can arise.
Take, for example, the manufacturing industry. Automation and sophisticated technology have increased the demand for specialized technical skills. Many workers, however, lack the required competence, resulting in a huge skills gap.
According to a 2021 study carried out by Deloitte and the Manufacturing Institute (MI), 2.1 million manufacturing roles will go unfilled by 2030. These vacant positions might cost the United States $1 trillion in GDP.
Similarly, the quick speed of innovation in the technology sector frequently causes professionals to struggle to keep up with emerging innovations.This skills gap can stifle business growth and competitiveness, making it critical to bridge the gap through targeted training and upskilling initiatives.
The demand for healthcare workers is increasing owing to the aging population. Many healthcare organisations are facing difficulty finding suitable employees to perform vital tasks such as nurses and medical technicians.
Consider the rise of Artificial Intelligence (AI) and automation. While new technologies provide amazing opportunities, they also create a demand for tech-savvy professionals who can capitalize on them. The skills mismatch here can make it difficult for enterprises to implement these disruptive technologies.
Apart from the above, there is a shortage of the following critical skills in the global workforce as a whole:
Top three hard skills in short supply:
•Writing proficiency
•Public speaking
•Data analysis
Top five soft skills found lacking:
•Critical thinking/problem solving
•Attention to detail
•Leadership
•Teamwork
•Communication
Bridging the Gap: What Works:
It’s essential to remember that addressing a skills gap isn’t a solo journey. It’s about sharing experiences, learning from experts, and collectively pushing towards growth and progress. As I embarked on my journey to decipher the skills gap, I sought out leaders who were not only addressing this issue but inspiring change and improvement.
One such leader would be the director I spoke to. Despite his struggle with the skills gap within his company, he sought solutions. He shared stories of his team undertaking extensive training, hired industry-specific education consultants, and persevered. Today, they’re a success story, and an example that the Skills Gap, while a steep mountain to climb, is not insurmountable.
You may be wondering “How can we bridge the skills gap effectively?”. Here are a few ways that have proven successful:
My journey and study have shown me that bridging the skills gap necessitates a multifaceted approach:
1.Education and Training: Providing individuals with accessible and relevant educational opportunities to equip them with the skills required for job market.
2.Collaboration: Promoting collaboration among educational institutions, businesses, and governments in order to align curricula with the needs of industry.
3.Mentorship and Apprenticeships: Creating mentorship and apprenticeship programmes that allow individuals to develop practical skills while learning from experienced experts.
4.Continuous Learning Culture: Creating a culture of lifetime learning within organisations by encouraging people to upskill and stay relevant on a regular basis.
Final thoughts:
We’re not alone in our battles. Consciously recognizing the skills gap and taking measurable strategies to bridge it has worked in the past and will work in the future. Through concerted action, organizational transformation, and personal dedication, we can turn our skills gap from a stumbling block to a stepping stone. Together, let’s tackle the Skills Gap, one employee, one company, and one sector at a time.
Training, upskilling, and reskilling become our staunch allies on this battlefield. For instance, if the tech industry’s swinging towards Python, arrange training programs and incentivize Java developers to learn Python. Or in the healthcare sector, creating incentives and funding for doctors to specialize in mental health could be the game-changer.
So, what are your thoughts on the skills gap? Have you encountered it in your industry or personal experience? I’d love to hear your stories and ideas in the comments below. Together, we can make a difference!
“The skills gap is a reflection of what we value. To close the gap, we need to change the way the country feels about work.”-Mike Rowe