Skill Gap Analysis and Workforce Readiness

Context

The problem of skill gaps in organisations has been aggravated by the rapid technological change, automation and the changes in business models.

Key Highlights

• The presence of skill gaps is not just a problem of an operational nature but extends in terms of productivity, employee morale, retention, and organisational culture.
• More and more organisations are discovering that they are not lacking talent but they are simply not using the talent they have and misaligning it with the organisation’s strategic objectives.

What is Skill Gap Analysis?

• Skill gap analysis is considered to be the methodological evaluation of the discrepancy between the already existing skills in the labour force and the performance needed to fulfil the organisation goals.
• It is traditionally viewed as a one-time diagnostic exercise; however, it is continuously regarded as dynamic.
• The new approaches to workforce focus on the ability to release the hidden talents instead of overreliance on external recruitment.

Cases of Skill Deficiencies

• Case Study 1: Technology (Sector)

• • • There were delays and inefficiencies in a technology services company although the workforce was technically qualified.
    • The skill gap analysis indicated gaps in new technologies like cloud computing and artificial intelligence.
    • The organisation implemented systematic internal reskilling programs and peer-learning programs.
    • The results were better project delivery schedule, increased employee confidence, and reduced attrition rate.

• Case Study 2: Manufacturing Sector 

• • • Even after installing superior equipment, the productivity of a manufacturing firm was low.
    • Digital literacy, data interpretation as well as automation handling among workers were the core gaps identified.
    • The company has also worked with technical schools to offer on-job training and ongoing skills development.
    • This practice led to efficiency, cost-reduction and enhanced labour-management relationships.

• Case Study 3: Service Sector

• • • A service-based organisation reported customer satisfaction that was going down whilst there was a sufficient technical capacity.
    • The analysis of the skill gap identified the lack of communication skills, adaptability, and emotional intelligence.
    • The organisation used mentoring programs, behavioural training and formal feedback programs.
    • This resulted in enhanced customer relationships, staff satisfaction and corporate unity.

Key Learnings from the Case Studies

• The skill gaps are dynamic and change according to the change in technology and organisational priorities.
• The current employees may have skills that can be transferred but this is not being utilized because it has not been mapped properly.
• The effectiveness of continuous learning frameworks is determined by the fact that they are more effective than intermittent training programs.
• The anthropocentric practices of skilling increase trust, retention, and productivity in the long term.

Way Forward

• Periodic skill mapping and competency tests should be institutionalised in organisations.
• Academia-industry partnership should be intensified so as to provide training programs relevance.
• Virtual environments may be exploited in real-time proficiency monitoring and customised learning journeys.
• Lifelong learning should be given a priority in the public policy in order to enhance human capital and economic resiliency.

Source: The Hindu

Mains PYQ

(Q) “Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (2016)

• Skill gap analysis determines the discrepancy between the current and the expected workforce skills.
• Skill gaps have influence over productivity, morale and organisational culture.
• Reskilling and upskilling play a very important role in ensuring the sustainability of the workforce.
• Long-term economic growth will require development of human capital.
• One of the aspects of future-ready organisations is continuous learning.

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