Training Needs Analysis: Identifying Skill Gaps

Training is only as valuable as its relevance to the actual needs of the business and the individual. An organisation that invests in training without first identifying what gaps exist will spend resources on development that does not address the real sources of performance shortfall. Training needs analysis is the process by which an employer determines, systematically, what skills are required, what skills exist, and where the gap between the two lies.

The sources of information for a training needs analysis include performance review outcomes, which reveal where individuals are falling short of the required standard; employee feedback, which surfaces development areas that employees themselves have identified; business planning, which identifies the new capabilities the organisation will require as it grows or changes direction; and direct observation of performance, which may reveal skill deficiencies not captured in formal review processes.

The analysis follows four steps. The first is an identification of the skills and knowledge required to meet current and future business needs. The second is an assessment of the skills and knowledge currently available in the workforce. The third is a comparison of the two to identify gaps. The fourth is the development of a training plan that addresses those gaps in priority order, with the most business-critical gaps addressed first.

Training Needs Assessment Template

This template should be completed for each employee and reviewed in conjunction with the annual performance appraisal. Completed assessments should be used to build the organisation’s overall training plan for the year ahead.

Employee	Current Role	Identified Skill Gap	Priority (H/M/L)	Training Required

Practical Insight: Training Without Analysis is Waste Generic training provided to the whole workforce regardless of individual need is a common and costly mistake. An employee who already possesses a skill gains little from training in it; an employee whose actual gap lies elsewhere gains nothing at all. Training budgets in SMEs are rarely generous, and they should be directed precisely at the gaps that matter most to business performance. A training needs analysis, even a simple one, ensures that every training investment is purposeful.

Real-World HR Scenario Situation: A business owner decides to send all staff to a customer service training programme following a period of complaints. Incorrect Approach: Generic training is provided to the entire workforce without first investigating the source of the complaints. Outcome: Subsequent review reveals that the complaints arose not from poor customer service skills but from a process failure in order fulfilment. The customer service training did not address the actual problem, and the complaints continue. Correct Approach: A training needs analysis is conducted before the investment, identifying the actual source of the performance gap and directing the training response to the correct area. Outcome: The training investment addresses the real problem and produces a measurable reduction in complaints.