The importance of skills gaps has always been a point of consideration for HR leaders. However, things have changed. Even a decade ago, jobs and the skills required to perform them remained relatively stable over longer periods of time. 

Now, the workplace is evolving at breakneck speed with developments in technology, globalization and changing market demands transforming the jobs and skills of today. As a result, skills gaps are posing a much bigger problem than they were before.

At the same time, HR leaders have access to more tools and data that make identifying and solving skills gaps more efficient and effective. Let’s begin with a quick refresher on the meaning and causes of skills gaps, followed by tactics you can apply to start closing them.

A skills gap refers to the disparity between employee skills and the skills demanded by a given position. In other words, employees don’t have the skills required to do their jobs.

Unaddressed, skills gaps can have a resounding negative impact on a business. This includes:

Skills gaps don’t just affect organizations on an individual scale — they can have widespread global ramifications. In many industries, such as healthcare and manufacturing, there are more job openings than there are qualified candidates to fill them. Without adequate staff to fill roles, health systems’ ability to provide quality patient care is at risk and disruptions in the global supply chain are not uncommon. Although many factors play a role in causing these talent shortages, skills gaps are undeniably one of them. 

Skills gaps span a variety of different areas and include both hard and soft skills. One of the most prevalent gaps that has been observed across many industries is the technology skills gap. The rate of technological advancement is outpacing workers’ ability to upskill and keep up with these innovations. Data shows that one-third of Americans are digitally illiterate.

Another example is the soft skills gap that’s emerging among Generation Z. The internet has replaced many in-person experiences for younger generations. These experiences range from social interactions to education, and their disruption was particularly severe during the COVID-19 pandemic. As a result, opportunities to hone critical soft skills such as communication, conflict resolution and public speaking have eroded considerably for this group.

Another major cause of skills gaps is the education-employment gap. Technology is evolving so rapidly that academic institutions can’t adapt fast enough to adequately prepare students for work. This problem is further exacerbated by the lack of collaboration between corporations and universities, which limits academic institutions' capacity to tailor their curricula to meet the dynamic demands of the job market.

Additionally, the rising cost of tuition is making higher education a high-investment, low-reward effort that is increasingly inaccessible for all but a very few. This further heightens the problem as many individuals are deterred from continuing their education altogether. Many students who do pursue higher education graduate with significant debt, which may make them less inclined to seek continuous learning opportunities later on.

There are also skills gaps emerging in the workplace that are caused by a lack of effective learning and development programs. Many companies still place L&D on the back burner, or they’re focusing on initiatives that are either inaccessible or irrelevant to the unique skills needs of their workforce.

Discovering which skills gaps exist in your organization is an essential first step in mitigating the problems they cause. You can start by conducting a skills gap analysis.

A skills gap analysis involves gathering qualitative and quantitative data to understand where the gaps are and how they may be impacting organizational performance. Once you’ve collected this information, you can then make data-driven decisions on how to adjust your L&D strategy.

Here are a few simple but revealing questions to consider:

The answers to these questions will likely change as roles, responsibilities and business needs change. Doing this exercise regularly allows you to notice these changes and adjust your L&D approach accordingly.

Now that you know how to find and assess your skills gaps, here’s how you can fix them. 

Start by defining the skills that your organization needs now and in the future. Competency mapping is a common practice that helps you identify the knowledge, skills and personal attributes required for a particular role.

Second, you can mobilize for organizational buy-in for L&D so that it’s viewed as a critical strategic business imperative rather than a nice-to-have benefit. This work should involve an evaluation of your existing L&D initiatives to ensure that they are measurable and contribute meaningfully to organizational goals. Showing the greater impact of learning is essential for securing buy-in. Another part of this is strategizing how to fold learning into your company’s workplace culture so that employees are equally on board.

Third, you can implement holistic learning and development programs that make for an exceptional employee learning experience. Simply offering run-of-the-mill training courses and hoping employees take advantage of them is not enough to fill skill gaps. 

Instead, consider offering a mix of learning options that include training, skill-building courses, professional certifications and degree programs. Consider collaborating with a local academic institution to deliver education to your workforce, either through a direct partnership or with a third-party provider that can facilitate the connection for you. 

Formal learning can also be coupled with on-the-job training and mentorship or apprenticeship programs for an L&D strategy that addresses different skills needs and learning styles. Prioritize accessibility and ensure that employees don’t face barriers when trying to take advantage of these opportunities.

Skills gaps can have a considerable impact on workplaces, but you now know that this doesn’t have to be the case. With the right precautions and initiatives in place, you can identify the gaps before they materialize and safeguard the future of your employees and your business. 

Ready to take action on addressing skills gaps? Download this skill-building guide for actionable advice on how to build an effective learning program from the ground up.