A jaw-dropping 70 percent of companies still count skills gaps among their top five challenges, according to Forbes. Chances are, your workforce may lack a certain skill set that you consider necessary to grow your business. One way to highlight or identify any issues in your structure is to administer a gap analysis. This will help you determine any gaps between current employees' capabilities and your planned offerings, allowing your business to stay competitive. You will also be better able to pinpoint what skills you should seek in your next hire?
Performing a Gap Analysis
As a small or middle market business owner, you should take a close look at your organizational structure to ensure your current workforce will help you meet your desired business goals. You can do this by looking at available performance reports, administering skills tests, interviewing your employees for feedback and taking a closer look at your day-to-day operations, just to name a few options.
For instance, a skills test can help confirm what your employees know or don't know about your company's processes. The test results may show that employees' skill sets need expansion or that their skills need sharpening. Fill in potential skill gaps based on your budget and the training necessary to achieve your goals.
The test results may also help you arrive at the decision to hire new employees with different backgrounds to meet the evolving or future needs of your business. For example, let's say your company wants to get involved with social media marketing to spread the word about your business, but no one on your current staff is tech savvy. You may want to seek new talent that has technology skills instead of training existing staff to get you where you need to be in the future.
Compliance and Resource Allocation
A gap analysis can also pinpoint compliance issues within your organizational structure and help you determine resource allocation. For example, you may find that your HR manager is not familiar with federal and state wage and hour compliance requirements. For your business to meet those requirements, you may need to redirect resources for additional training or hire new personnel.
By understanding what works and what doesn't within your organizational structure, you can figure out a strategy that will help your business evolve and stay competitive. Plus, you'll be better equipped to come up with hiring solutions that will help you achieve business goals.