Talent Gap: What Is It, How to Identify & Close It?

One of the biggest challenges faced by many businesses in today's competitive market is the noticeable "talent gap". Not being able to find skilled employees who possess the necessary knowledge and expertise required for their specific industry is becoming a critical issue.

Multiple studies have suggested that a total of 375 million individuals worldwide are expected to seek new employment by the end of the decade that follows to match firms' skill requirements, and that the changes brought about by automation will allow workers to spend up to 30% of their time on other tasks. 

This blog dives deep into the real meaning of talent gap and its analysis that exist in the industry and explores strategies to bridge these gaps and secure a highly skilled workforce. If you want to stay ahead of the competition and ensure your organization's success, continue reading to gain valuable insights into talent gaps in the industry.

What is Talent Gap?

The term "talent gap" describes the discrepancy between an employee's actual skill set and the set of talents needed for a given position. Employees might not be able to do a task satisfactorily due to the talent gap. Put differently, a talent gap is the discrepancy between what employees truly give and what employers expect from them.

You can find the skills or the proper talent to match your business demands and goals by doing a talent gap analysis. You may gradually enhance your hiring and staff development initiatives by using a variety of skill gap analysis templates and data. 

Today, the talent gap in various industries is widening at an alarming rate, with companies struggling to hire and retain skilled professionals. According to a survey by the Society for Human Resource Management, nearly 70% of companies confirm they have difficulty filling job openings due to the lack of skilled candidates. With rapidly evolving technology, the gap has only broadened over the years.

What are the Causes of Talent Gap?

Shifting Market Demands

‍Businesses must adapt to changing client demands, which necessitate the acquisition of new skills.The availability of skilled experts around the world raises the bar. Some industries, such as green technology, require specialized skills that are not widely available.

Technological Advancements

‍Jobs are being displaced, needing upskilling and adjusting to new positions. Continuous learning and skill acquisition are essential. The need for qualified data analysts, interpreters, and strategists outnumbers the available personnel.

Inadequate Training and Development

‍Occurs when organizations lack resources or have out-of-date training. Communication and critical thinking are frequently overlooked. Universities' curricula may not be tailored to current job market needs.

Demographic Shifts

‍As baby boomers retire, knowledge and experience shortages emerge. Lower interest erodes the pipeline of future skilled workers.Restrictive regulations may limit access to skilled talent from other countries.

What is Talent Gap Analysis?

So we have seen what the Talent Gap really is. Now what should we do to overcome the talent gap and hire successfully? In order to find the resolution the first step is to analyze the Talent Gap properly.

A talent gap analysis is a systematic procedure used by companies to determine and assess the difference between the abilities and knowledge required to achieve their objectives and the skills and abilities currently possessed by their employees. It's like taking a complete inventory of your skills and comparing them to a roadmap for future success.

Key Components of Talent Gap Analysis:

• ‍Identification of Strategic Goals: Organizations begin by determining their strategic goals and objectives. These objectives could include expanding into new markets, adopting new technology, or pursuing any other efforts that demand certain skills and competencies.‍
• Job Role Analysis: Conduct a detailed examination of the organization's numerous employment roles. This includes comprehending the primary tasks, abilities, qualifications, and competencies required for each position.‍
• Current Workforce Assessment: Evaluate the skills and competencies of the current staff. This includes assessing employees' strengths and weaknesses, defining their present abilities, and establishing whether they are aligned with the organization's strategic goals.‍
• Future Skill Requirements: Anticipate the future skills and competences required for the organization's success. This entails anticipating changes in the sector, technological improvements, and other factors that may affect the skill set required for specific professions.‍
• Skill Inventory: Develop a comprehensive inventory of the skills and competencies present within the current workforce. This inventory should highlight the skills that are abundant and those that are lacking.‍
• Identify Skill Gaps: Compare the current skill inventory with the future skill requirements. This comparison helps identify the gaps between the skills the organization currently possesses and those it needs to achieve its strategic objectives.‍
• Prioritize Skill Gaps: Prioritize the identified skill gaps based on their relevance to the organization's objectives. Some skills may be essential for instant success, while others may be required for long-term viability.‍
• Strategic Planning: Create a strategy plan to address the identified skills gaps. This could include a variety of initiatives, such as training and development programs, employing new employees, or restructuring existing roles.‍
• Implementation of Solutions: Execute the planned interventions to close the talent gap. This could involve training programs, upskilling or reskilling campaigns, recruitment techniques, and other human resource interventions.‍
• Continuous Monitoring and Adjustment: Talent assessment is a continual activity. To remain aligned with changing business requirements, organizations should continuously review the effectiveness of their interventions, adapt tactics as appropriate, and reassess skill shortages on a regular basis.

👉 Read More: How UST Uses WeCP to Transform Candidates into Skill-Mapped, Project-Ready Talent

How to Identify Talent Gaps?

Identifying talent gaps requires meticulous analysis and planning. To truly understand this process, let's delve into each step in detail:

Defining Your Needs:

You can start by establishing your organization's long-term goals and strategic objectives. What goals do you want to achieve in the next 5 years? What are the market challenges you have to overcome? Defining these will surely help you focus your skills search.

Analyze your current and planned projects. Break down each project into its key components and determine the exact talents and abilities your team requires to succeed at each level. This generates a clear roadmap of required skill sets.

Create profiles for the optimum skill sets required for certain roles, teams, and potentially the entire organization. Beyond technical expertise, think about soft skills such as communication, cooperation, and critical thinking, as well as leadership traits. These profiles serve as your talent-hunting blueprints.

👉 Read More: How to Identify Hiring Needs in Your Company?

Assessing Current Skills:

Take advantage of earlier performance reviews. Analyze individual employees' strengths, limitations, and achievements to uncover potential skill gaps in your team. Look for common themes across teams or departments to have a more comprehensive understanding. Use surveys or self-evaluation questionnaires to collect truthful information about employees' perceived skill strengths and areas for improvement. This helps to reveal hidden skill sets and learning goals.

Use standardized exams or practical assessments to objectively assess specific abilities related to your stated needs. This provides quantitative data to compare to your targeted skill sets. Schedule one-on-one conversations with employees to learn about their career objectives, training requirements, and personal skill development goals. This open communication promotes trust and participation, providing you with deeper insights into.  

👉 Read More: How WeCP helped Infosys Evaluate 100k+ Super Coders

Analyzing the Gaps:

Place your intended skill set profiles alongside your collected data on present skills. This image clearly shows areas of discrepancy - where your workforce falls short of your expectations. Not all gaps are created equally. Determine the degree and impact of each gap on your strategic objectives. Prioritize closing major gaps that are impeding your development, while keeping less important ones on your radar.

Estimate how many people are affected by each skill gap, as well as the possible impact on resources and productivity. This converts qualitative knowledge into concrete figures, which helps with resource allocation and strategic planning.

Gathering Additional Insights:

Analyze the skill sets necessary for similar occupations in your business to better understand competitive positioning and prospective recruitment targets. We can also use the Case studies provided by various companies to understand the industry trends and  to compare your skills to industry norms

To anticipate future skill requirements, keep an eye on developing technology, shifting market demands, and future job forecasts. This proactive approach keeps your people relevant and adaptable to the changing market scenario. Consult with human resource professionals, training specialists, or industry advisors. Their knowledge can provide useful insights into best practices for talent gap analysis, including effective tools and approaches adapted to your specific situation.  

How to Close the Talent Gap ?

Bridging the talent gap is integral to individual businesses and the industry as a whole. A lack of skilled employees can impact productivity, stifle innovation, and ultimately damage overall economic stability.

Consequently, efforts to close this gap not only benefit the companies striving to fill positions but also contribute to economic growth and technological advancements. Here are some effective strategies :

Training and Development:

• Equip your existing personnel with the skills required to fill the gaps. Provide a variety of training choices, including online courses, workshops, mentoring programs, and on-the-job training.
• Create opportunities for employees to transition into roles that will allow them to use their existing abilities while also developing new ones. This can include employment rotations, lateral transfers, and internal promotions.
• Do not overlook soft skills like communication, cooperation, and critical thinking. These are essential for success in any role and can be effectively fostered through training programs and team-building activities.

Recruitment

• Attract qualified candidates by properly communicating the necessary skills and experience in your job postings. Use targeted advertising and social media marketing to find the perfect talent.
• Look beyond typical resumes and qualifications. Focus on talents and potential, look for applicants with transferable skills from other industries, and use apprenticeship programs or internships to organically develop talent.
• Your firm can recruit top people by offering a competitive wage, benefits package, and possibilities for growth.

Collaboration and Partnerships

• Work with universities, colleges, or vocational training programs to create skill pipelines that meet your future needs. To attract and develop talent, consider offering internships, scholarships, or cooperative research initiatives.
• Work with other companies in your field to share best practices, find and hire competent workers, or even create collaborative training programs.
• Consider hiring freelancers, consultants, or temp workers to fill particular skill gaps or manage short-term tasks.

Culture and Engagement

• Encourage employees to take responsibility for their professional growth and provide them with resources and support to learn new skills.
• Create a workplace in which people feel respected, engaged, and inspired to do their best. This can help retain existing talent while also attracting fresh talent.
• Consider providing flexible work hours, remote work choices, or sabbatical programs to recruit and retain talent, particularly in today's competitive market.

By implementing and adjusting these techniques to your specific context, you can effectively bridge talent gaps and create a future-proof workforce with the skills and agility required to compete in today's ever-changing business world.

Conclusion

Closing the talent gap will need a collaborative effort from corporations, educational institutions, policymakers, and individuals. Recruiters can close the gap by investing in skill development, supporting diversity and inclusion, and cultivating a culture of lifelong learning.

Individuals, the fundamental cornerstone of this ecosystem, must embrace the spirit of continual learning, honing their skill sets in order to stay relevant and capitalize on possibilities given by a changing world. Collaboration, not rivalry, must become the workplace's guiding principle, with individuals supporting and motivating one another on the route to professional advancement.

Want to know more on how WeCP can help you out? Try WeCP for free or Schedule a Call with us.‍‍