Skill gap analysis: The What, the how and the why

Skill gap analysis is a process of identifying the specific skills and knowledge that employees need to meet future targets or milestones. This process is important for organizations because it allows them to tailor their training and development programs to better meet the needs of their employees. Though IT, BFSI and the HealthTech industry are highly lucrative, the skill gaps in these industries have consistently widened. Skill gap analysis can effectively help key industries assess better, make informed decisions to bridge the gap, and improve their L&D process. In this blog, we discuss the What, the How, and the Why guide for Skill-gap analysis.

Table of Contents

Introduction:  

As the modern workforce continues to evolve, so too must the skills and competencies of the employees. With new technologies and industries emerging every day, it’s more important than ever for companies to make sure that their employees have the skills necessary to succeed in today’s economy. That’s where skills gap analysis comes in. 

Skills gap analysis is a strategic approach for locating and filling skills gaps in your workforce. It is a specially created tool that calculates the difference between your company’s desired and actual skill levels. By identifying these gaps, you can take steps to rectify them through training and development programs. Doing so will ensure that your employees have the skills they need to be successful now and in the future.  

The following are some of the established facts about skill-gap analysis in key industries:  

  • The skills gap is a reality in many industries, and it’s particularly prevalent in IT, BFSI, and HealthTech 
  • The reason for the skills gap is complex and multi-faceted 
  • There are several ways to close the skills gap, but it will require cooperation from educators, businesses, and employees alike 
  • The benefits of closing the skills gap are clear for individuals, businesses, and the economy as a whole 

When to conduct a skill-gap analysis? 

By investing in the learning and development of your employees, you can empower employees to close the gap between their current skills and the skills they need to be successful in their roles. This, in turn, can help to improve business performance. 

  • When you want to establish a continuous learning culture: When it comes to creating a continuous learning culture, conducting a skill-gap analysis is essential. Skill-gap analyses help you to identify technical skill gaps within your organization so that you can address them through training and development. By identifying these gaps, you can ensure that your employees have the skills they need to be successful in their roles.  
  • When your company is heading in a new direction: To make the shift from a traditional company structure to an agile one, you’ll need more than just a change in work strategies. You also must think about what skills your employees already possess and how they can be trained for new ones so that everyone is on board with this transformation. 
  • When adopting new technologies: The introduction of new technology can have a significant impact on an organization. Before introducing any standardized tool, it is important for managers and coaches to conduct anticipatory skills gap analysis so that team members are prepared with the necessary knowledge about how their work will change as well as what resources need attention to support them through the change. 
  • When business goals are not being achieved efficiently: A dip in business performance can have many causes, but one possibility is that your employees aren’t equipped with the learning and education resources they need to meet the demands of their roles. A skill gap analysis can help you identify the areas where your employees need additional training or education. 

Best practices and frameworks to conduct an efficient skill gap analysis  

Step 1: A comprehensive L&D strategy 

The skills gap analysis is a great way to identify employees who have the necessary qualifications for certain jobs but may be missing some of their desired abilities. It can also help companies find out if they need more people with specific expertise in order perform tasks on upcoming projects or training programs targeted at developing those needed talents within your company’s workforce. 

Step 2: Being clear on requirements 

Skills are an important part of the hiring process. Without them, it will be difficult to find qualified candidates for any position that needs filling; this includes both high-level positions like CEO or president or highly technical. If you want someone who can do everything from managing overseas operations all by themselves without needing much guidance then look no further than Yaksha assessment Platform 

Step 3: Assess current skill levels 

Measuring skill levels is an important part of any company’s performance management strategy. You could use surveys or assessments to get a sense for how your employees perceive their skills and what they need from you in order continue doing well at work, but there are also other ways that Yaksha can help make this measurement more efficient! 

Step 4: Gain actionable data  

The data tells us that there are two ways to fill skill gaps – training and hiring. Decide which approach (or combination) works best for each gap you are trying to address based on the information available about what will be most effective in filling those needs, as well maybe considering some other factors such a social media presence or how quickly they can produce content! 

Industry overview: IT, BFSI and HealthTech 

Now we will deep-dive into a skills gap analysis in three industries: IT, BFSI, and HealthTech. We will discuss why a retrospective analysis is essential in each industry and offer some tips on how to close the skills gap in your own company.  

  • IT Industry  

The IT industry has been one of the fastest-growing sectors in recent years. With new technologies being developed constantly, it’s essential for companies within this sector to stay on top if they want their businesses not just survive but thrive and grow with innovation as well! Skill gap analysis helps decision makers make informed decisions about how best spend resources which will greatly impact what pace innovations come out while also helping organisations achieve goals efficiently without wasting time or money training employees who won’t be able to help anyway due lack skillset matching job requirements.  

Key skills required in IT industry: Knowledge of compliance regulations and standards like PCI-DSS, HIPAA, and CCPA, Ethical hacking and penetration testing, SQL, Container technologies like Docker or Kubernetes, Scripting languages like Python, Ruby, and Cloud platforms, Parametric and nonparametric algorithms, Kernels, Deep learning technique 

Here are some statistics and trends about the skill-gap in the IT industry 

  • BFSI Industry  

The pandemic had a significant impact on the banking sector, leading to transformed skills requirements. Digital tools and technologies were adopted for services communication which created noticeable gaps in traditional soft skills like financial management but also technology savvy ones such as programming languages or cloud infrastructure design/development. While these changes are still happening within this industry there has been an emphasis placed upon upscaling employees’ abilities beyond just being skilled technicians by teaching them how to use new digital applications that will help businesses operate more efficiently. 

Key skills required in BFSI industry: Machine Learning, Algorithmic Trading, code in Python, MQL 4, MQL 5 and Excel VBA, it also teaches you how to build logical long-run money making strategies, machine learning R&D, Machine Learning (ML) techniques used in personal trading, Increasing Automation with AI and ML and handing Big Data. 

Here are some statistics and trends about the skill-gap in the BFSI industry:  

  • HealthTech Industry  

The digital and technological innovation in healthcare has shown a light at the end of the tunnel for doctors and patients alike. The industry is now backed by solutions like electronic medical records (EMR) which allow easy access to patient information while also automating tasks that were once done manually; these advancements have led to increased demand within this field because they help improve performance rates so everyone can benefit equally- no matter their situation or budget! As per an IAMAI report released last year on “Health Tech”, three major challenges remain namely accessibility, affordability, and quality. 

Key skills required in HealthTech Industry: Electronic Medical Records (EMR) Build Specialists, configure systems specific to the client environment, specific understanding of HIT analytics and data architecture, Ensuring the performance of HIT systems, Data analytics, SQL Data Analysis, Data Collection, Python 

Here are some statistics and trends about the skill-gap in the HealthTech industry: 

Why is skill gap analysis important for every business?  

“The Future of Jobs Report by the World Economic Forum states that 54% percent or more workers will need to update their competencies in just four years.” 

This is because rapid technological developments have created a skills gap which causes an increasing digitalization effect on both personal lives as well professional careers. Here are some benefits of skill-gap analysis.  

Advantages of Skill-gap analysis:  

Gain actionable insights 

The insight that skill gap analysis gives you into your entire workforce will allow for easy identification of which employees have the most knowledge about certain aspects of the business. For example, if there is a need within one department to improve their communication skills but not another area where they excel; accurate insights can help make better decisions rather than wasting training resources and upskilling the wrong skill.  

Boost employee growth and morale 

When you invest time and money into skill gap analysis, your employees will be able to find out what improvements they need to make for them to perform at a high level that many industries demand. The results of this process should positively impact both productivity levels within the company as well as an individual’s growth potential on the job! 

Plan ahead with more efficiency 

Planning for the future requires knowledge of your current strengths and weaknesses. skill gap analysis is an important component in strategic workforce planning because it helps you assess what skills are necessary going forward, giving insight into how best to strategize for the future, so that skilled employees step up to offer solutions when needed. 

Refine your recruitment process 

By conducting a skill gap analysis, employers can more effectively identify candidates whose skills better match those needed to function effectively in a particular role. This, in turn, can improve the overall quality of the recruitment process. In addition, skill gap analysis can help to improve retention rates by ensuring that employees are placed in roles for which they are suitably qualified. 

Stay ahead of the competition: 

Skill gap analysis is vital for any organization that wants to create a competitive advantage. By understanding the strengths and weaknesses of your workforce, you can plan in terms of learning, development, and recruitment. This allows you to optimize your organization’s performance. Skill gap analysis can be used to identify the skills that are most important to your organization’s success. It can also be used to identify the skills that your workforce lacks. By addressing these skill gaps, you can empower your organization to stay ahead of the curve.  

Conclusion:  

Skill gap analysis is a process of identifying the specific skills and knowledge that employees need to meet future targets or milestones. This process is important for organizations because it allows them to tailor their training and development programs to better meet the needs of their employees. Though IT, BFSI and the HealthTech industry are highly lucrative, the skill gaps in these industries have consistently widened. Skill gap analysis can effectively help key industries assess better, make informed decisions to bridge the gap, and improve their L&D process. In this blog, we discuss the What, the How, and the Why guide for Skill-gap analysis.  

As you can see, skills gap analysis is an essential tool for any company that wants to stay competitive in today’s economy. By regularly assessing the skills of your employees, you can ensure that they have the knowledge and abilities necessary to succeed in today’s rapidly changing business landscape. So don’t wait – start using skills gap analysis in your company today! 

The Yaksha Skill Assessment Platform offers in-depth skill assessments for every job role. Whether you are hiring or mapping skill gaps, our platform can help you get deeper insights with role-specific assessments. Explore Role-Based Assessments across Cloud, Java, .Net, Big Data, and more today! 

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