5 Ways to Identify a Skills Gap

What is a Skills Gap, and Why Does it Matter?

A skills gap refers to the difference between the skills required for a job and the actual skills an employee has. When there is a known skills gap, employees may not be able to complete their job according to the organization’s expectations.

Identifying skills gap benefits companies as it ensures their employees are well trained, knowledgeable and better equipped to perform the job.

How to Identify a Skills Gap

When looking to better your staff and drive employee engagement; identifying a skills gap is a great place to start. However, it takes strategy and a long term plan to do it effectively. Keep reading for five ways you can identify a skills gap within your own financial institution.

1. Review Core Job Skills

Maintaining and periodically reviewing job descriptions is a critical first step in keeping abreast employee skill levels. Whether it’s an employee of the company or a consultant performing the task, it’s important individuals know and understand the exact skills and expectations necessary to effectively perform in a specific job.

Some skills naturally overlap among employees, while others are distinctly different. Companies should determine and list the core skills their employees need to possess for their current position. Involving employees in assessing their own skills gap is crucial. Asking employees to evaluate their competencies can lead to more effective training programs and also encourages employees to learn new skills.

2. 360-Degree Feedback

360-degree feedback is a method (and tool) that provides employees the opportunity to receive feedback from their supervisor and 4-8 of their peers. This can also include direct reports and customers. Most 360 feedback programs also include an employee’s self-assessment.

This approach is helpful in determining if employees have the skills needed to succeed in their current role and identify what skill gaps they may have.

Company leaders should research the pluses and minuses of the practice, and carefully think through the questions to be asked of their employees. Questions can be general or specific and should involve quantitative ratings. For example, on a scale from 1 (poor) to 10 (exceptional) how often does an employee complete tasks on time? Statements could be made to evaluate an employee’s skills and behaviors desired by your organization.

After completing a 360 feedback, individuals should gain an understanding of their strengths and weaknesses. Managers should gain meaningful insight into aspects of work needed that require professional development.

3. Stay Up to Date With Regulations

Employers specifically need to make their employees aware of the importance of keeping current with changing regulations. Instituting a culture of compliance helps establish or maintain a company’s respected position within their field.

A test, whether written or taken online, is one method of assessing employees’ knowledge of state and federal regulations. It is important to reassure employees that these tests are being administered to help them improve and grow in their jobs, and not to determine the validity of their employment. Courses employees take, whether online or in a classroom, should include assessment tests to determine if more learning is needed. Creating periodic assessments on compliance issues and offering recognition for high performers can be engaging and rewarding for employees and educational to management.

4. Select the Right LMS Partner

Many companies use a cloud-based learning management system (LMS) to train their employees once skill gaps have been identified. However, an LMS also can be used to identify employee skills gaps, particularly regulatory knowledge. Managers should look for a compliance partner with an LMS that provides regular, timely, and accurate updates to regulatory mandates.

Managers can determine how well employees are doing with learning new skills by referring to reports they get from an LMS that schedules, manages and tracks their employees’ e-learning. An LMS gives employers a centralized system to track data related to what their employees know and must learn. Because reports are generated based on an employee’s learning progress on an LMS, managers can easily see which skills still need to be refined, thereby keeping the skills gap assessment process current. Employees have full access to their personal professional progress report and are able to advance their careers via additional and optional content and learning.

5. Year-Round Commitment

Managers should meet regularly with their employees to identify areas where employees may need help and where additional training is warranted. These meetings also assure employees that there will be no surprises when performance reviews are given. Regular reviews can also provide insight into a skills gap that might need to be addressed as well as employee strengths. This is important to maintaining morale and identifying potential leaders.

Once a skills gap is identified, managers can look at methods to train employees – whether it be through in-house sessions, online courses, off-site seminars or pairing employees who can help one another with competency deficits. Many companies find that a combination of these services can be provided more efficiently and cost effectively by utilizing an outside consultant or LMS vendor that specializes in modern e-learning methods. Depending on the company’s budget, managers can prioritize what gaps require the most attention.

Periodically revisiting job descriptions, consistently talking with all levels of employees about key skills and testing employees on regulatory issues can all assist companies improve productivity – as well as keep their skilled workers content and up-to-date on required competencies.

Financial professionals are being asked to do more than ever before. Closing a skills gap is no longer optional, but necessary in the financial industry. It’s a priority that needs a strategy and plan to stay abreast skills gaps. Companies need to have a skills gap assessment plan in place.