SkillsLedger

Guide

Skills gap analysis, step by step

How to find out which skills your team is missing, measure the size of each gap, and decide what to do about it first.

Free Excel template · no sign-up

What is a skills gap analysis?

A skills gap analysis compares the skills your organisation needs with the skills it currently has. The difference is the gap. Done properly, it turns a vague feeling ("we're weak on cloud") into something you can count ("we need four people at practitioner level in Azure and we have one").

You can run one for a single person (what do they need for their role or next role?), for a team, or for the whole organisation.

How to do a skills gap analysis

  1. Start from the goalWhat is the team or business trying to do in the next 6 to 18 months? A new product, a migration, a partner tier, an audit? The skills you need follow from that.
  2. List the skills requiredFor each team, list the skills and certifications that goal depends on. Keep it to the ones that genuinely matter.
  3. Set targetsFor each skill, decide how many people you need and at what level. For example, three people at practitioner or above in Azure networking.
  4. Measure current skillsRate everyone against the same scale. A self-assessment checked by managers is usually the most practical method; see how to assess employee skills.
  5. Calculate the gapsTarget minus current count, per skill. Note certificates expiring in the period too: they're gaps that haven't arrived yet.
  6. PrioritiseRank gaps by risk and impact, not size alone. A gap of one in a critical skill can matter more than a gap of five in a nice-to-have.
  7. Act and re-measureAssign each gap an action, an owner and a date, then re-rate after the training to check it worked.

A worked example

A 12-person IT team is moving its servers to Azure next year. Its gap analysis might look like this:

SkillTarget (level 2+)CurrentGapPriority
Azure infrastructure413High: the migration depends on it
Azure networking312High: single point of failure
PowerShell532Medium
Windows Server46noneCovered
Azure Administrator cert2 held2 (1 expires in 3 months)1 at riskHigh: renew now

The resulting plan: certify two more people in Azure infrastructure, cross-train one person on Azure networking alongside the current expert, renew the expiring certificate, and run an internal PowerShell session. Windows Server needs nothing; the team is over-covered and some of that time can move to Azure.

Ways to close a skills gap

Train

Courses, certifications and coaching for people who already have most of the foundation.

Cross-skill

Pair people with the in-house expert. Cheap, fast, and it removes single points of failure.

Redeploy

Move someone who already has the skill from a team that's over-covered.

Hire or contract

When the gap is large, urgent, or needs expertise nobody has yet.

Choosing between these is covered in upskilling vs reskilling vs cross-skilling.

Common mistakes

Do it in a spreadsheet, or let it run itself

Our free template has a gap summary sheet: enter a target per skill and it counts the gap. In SkillsLedger, objectives such as "four people at practitioner in Azure by June" update live as people's ratings change, and the org overview shows the weakest skills by department.

Common questions

What is a skills gap analysis?

A comparison of the skills your organisation needs with the skills it has. The difference, per skill, is the gap, which you then prioritise and close through training, cross-skilling, redeployment or hiring.

How do you measure a skills gap?

Set a target for each skill (how many people at what level), rate everyone on the same scale, and subtract the current count from the target.

How often should you do a skills gap analysis?

At least once or twice a year, and whenever goals change, such as a new product, a migration or an upcoming audit. A live skills matrix keeps the gaps up to date continuously.

What's the difference between a skills gap and a training need?

The skills gap is the shortfall itself; the training need is one possible way to close it. Some gaps are better closed by cross-skilling, redeploying or hiring.

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