Conducting a competency gap analysis is a powerful tool for organisations. It offers deep insights into employees’ existing knowledge, skills, and abilities while identifying the competencies needed. A strategy that enables informed decision-making and the development of effective growth strategies.

Identifying competency gaps is essential in learning and development (L&D). This process highlights areas for improvement and serves as the foundation for designing targeted training initiatives aimed at closing these gaps, enhancing performance, and building proficiency.

Addressing competency gaps at an organisational level is not just an advantage—it’s essential. Doing so enhances employee performance, increases job satisfaction, and aligns workforce capabilities with business objectives.

Furthermore, it’s a strategic approach that helps organisations remain competitive in a rapidly changing market by equipping their workforce with the necessary skills and knowledge.

Closing the competency gaps

The first step is to establish a robust Competency Framework, supported by an effective implementation strategy.

Organisations must be prepared to address competency gaps by identifying areas requiring improvement, selecting suitable training activities to close those gaps, and evaluating the effectiveness of the training provided. Once the gaps are identified, proactive steps can be taken to address them.

Setting SMART goals is essential for defining training activities that target specific competency gaps, such as enhancing customer service, technical expertise, or leadership capabilities. Prioritising gaps that add value and align with organisational objectives ensures meaningful outcomes.

Equally important is personalising the learning journey by creating tailored individual development plans. These plans should incorporate a range of development approaches, including workshops, e-learning, and mentoring, to suit diverse learning needs.

Regularly monitoring progress and making adjustments to development plans as required ensures continuous improvement and long-term success.

Buy vs. Build Talent

When addressing competency gaps, organisations face a key decision: acquiring talent externally (“buying”) or investing in their current workforce (“building”). For instance, competency-based hiring broadens the talent pool by focusing on potential rather than traditional qualifications. However, while recruiting new talent can address immediate needs, developing current employees fosters engagement and retention.

In some cases, a combination of both strategies is necessary. By analysing present and future business goals alongside workforce capabilities, organisations can craft a balanced approach that supports long-term growth.

Before determining which approach is most suitable for the organisation, companies must pinpoint the skills or competencies that they require to achieve their business objectives. This entails analyzing present and future business goals, evaluating the current workforce’s abilities, and identifying the necessary skills lacking to accomplish these objectives.

Competency-based hiring enables organisations to broaden their talent pool by focusing on identifying candidates with strong potential for future success and practical skills and emphasising their educational history and job titles less. This requires establishing precise competency requirements, alignment with the workforce plan, and the organisation’s business strategy. Therefore, utilising data-driven assessment tools and competency-based interviews is essential to analyse candidates’ competencies and learning adaptability.

Building the skills of existing staff may, at times, require more time than recruiting skilled individuals, yet it offers unique benefits. By recognising and effectively focusing on competencies that need development in organisations, HR helps develop a highly experienced and resilient workforce. Offering employees personalised training and development opportunities is a highly effective approach to bridging competency gaps. Various options, such as on-the-job training, workshops, seminars, or e-learning courses, are available.

Creating coaching or mentoring programs enables the sharing knowledge from seasoned employees to those aiming to enhance their skills. Investing in workforce development helps create an engaging work environment that supports employee retention and well-being.

Conclusion

Bridging competency gaps is a multifaceted challenge, but with a strategic approach that combines thoughtful hiring, targeted development, and personalised learning, organisations can cultivate a resilient, highly skilled workforce capable of achieving their objectives.

Competency gaps may sometimes be too substantial to resolve solely through training and development efforts. Implementing both a “buy” and “build” talent strategy is beneficial in situations.