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CORPORATE LEADERSHIP COUNCIL® MARCH 2006
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LITERATURE KEY FINDINGS

Skill Gap Assessment Methodologies

Research suggests no single model of skill gap/needs assessment stands out as most effective or more validated than others. Literature on this topic
consists of guidelines, principles, and tools that may be used to conduct skill gap assessments as effectively as possible. Of the models/approaches
in use, the Discrepancy Model is the most preferred for identifying learning and performance needs in organizations, though a hybrid methodology
may be preferred when projects require greater simplicity and flexibility. Regardless of the methodology used, the key to conducting effective skill
1
gap assessment lies in leveraging multiple data collection methods, including surveys, interviews, and performance appraisals.

Overview of Skill Gap Assessment Methodologies

Skill gap assessments determine what skills and/or competencies are lacking in an organization’s employees and what, if any, training is
necessary to fill identified gaps; it is the first step in the instructional system design (ISD)* process. Although there is no universally endorsed
ISD skill gap method, the following table presents three over-arching frameworks identified in literature that organizations use to identify
employee and organizational skill gaps and training needs.2,3
Table 1: Skill Gap Assessment Methodologies
Assessment
Description Advantages Disadvantages
Methodology
Asks employees to list or rank desired • Can boost employee morale • Employees report “wants”
“Felt-Needs” training courses; traditionally used to • Easy large-scale rather than needs
Methodology assess skill gaps of large numbers of implementation • Minimal success in improving
employees quickly • Low resource requirements performance
• Difficult to implement on
Performance evaluations and other data
Performance • High impact on performance large-scale
are aggregated and analyzed to identify
Analysis/Discrepancy • Most effective methodology • Moderate impact on
skill gaps by comparing individual and
Model employee morale
organization-wide skills to desired skills
• Resource intensive
Consists of a strategic needs assessment • Can be implemented on
phase and an employee-perceived large-scale with limited
performance improvement phase; identifies resources • Identifying strategic goals can
Hybrid Methodology
gaps between what is and what should be • Uncovers high priority be difficult
in terms of valued organizational goals or organizational priorities and
results and prioritizes those gaps aligning training needs

The chart below details the advantages and disadvantages of three main skill gap assessment techniques used to gather data within the
frameworks above: surveys, observation, and interviews/focus groups. As previously noted, research suggests that multi-source,
multi-dimensional assessments are optimal for conducting effective skills gap analysis, and organizations should therefore use a
combination of the methods below.4
Table 2: Skill Data Collection Techniques
Collection
Description Advantages Disadvantages
Technique
• Can gather a significant
Most common method for conducting skill
amount of information from a • Results often unclear and
data collection; asks employees and
Surveys high quantity of people subjective
managers questions regarding specific job
• Relatively simple to • Risk of survey-fatigue
requirements
administer
• Observer must have both
Observation at work site by subject-matter • Can generate highly relevant content and process
Observation expert; usually limited to study of specific job information to the work knowledge
classification setting • Requires great time
commitment
• Provides respondents the
May include key consultation with persons
opportunity to convey
who are in a position to understand the skill
feelings more completely
gaps and needs of a group, individual • Require great time
than other methods
Interviews and interviews with those who would participate commitment
• Permits immediate synthesis
Focus Groups in training, and group discussion; one of the • Require highly-skilled
of ideas, build support for
most widely used techniques for gathering interviewer or facilitator
specific program under study,
information on organizational and individual
and help participants be part
skill gaps and training needs
of the solution

*The ISD process is the overall framework for identifying and delivering training needs as identified in public literature. The process includes skill gap/needs
assessment, training delivery, training design, and training evaluation.

 2006 Corporate Executive Board. All Rights Reserved.

CATALOG NUMBER: CLC15AUJQW
 CORPORATE LEADERSHIP COUNCIL® PAGE 2
SKILLS GAP ASSESSMENT METHODOLOGIES RESEARCH FINDINGS

Levels of Skill Gap Assessment

Regardless of which of the previously detailed methodologies is used to conduct skill gap assessments, there are three levels at which
assessments are conducted: organizational analysis, job/task analysis, and individual analysis. These layers of assessment, developed in
1961 by Mcghee and Thayer, are still the dominant framework for conducting skill gap assessment. The figure below offers definitions, goals,
and data collection methods at each level of analysis.5,6
Organizational Analysis
Organizational analysis considers the appropriateness of the training process based on the context in which training will occur. An important
aspect of this level involves strategic planning and the identification of knowledge, skills, and abilities (KSAs) that will be needed in the future
as both jobs and the organization evolve. Organizational analysis should identify the following:

• Organizational goals (effectiveness of the organization at • Increasing global/world market

meeting its goals) and resources available
• State of the economy and the impact on operating costs
• Changing work force demographics and the need to address
cultural or language barriers
• Changing technology and automation
• Political trends such as sexual harassment and workplace
violence
• Environmental impacts (e.g., new laws such as ADA, FMLA,
OSHA, competition, customers)
• Climate and support for training (top management support,
employee willingness to participate, responsibility for outcomes)

Organizational Analysis Data May be Obtained via:

• Organizational goals and objectives—As determined via
mission statements, strategic plans, succession planning,
long- and short-term staffing needs
• Skills inventory—Determined via surveys, supervisory
observation, training records
• Efficiency indices—May be assessed via annual report,
customer service records, quality records, process delays
• Engagement indices—As determined via surveys, exit
interviews, grievances

Job/Task Analysis
Organizations may diagnose skill gaps via a job or task analysis, which compares the requirements of certain jobs with the KSAs needed to
achieve optimum performance.

Job/Task Analysis Data May be Obtained via:

• Job description—A narrative statement of the major activities
involved in performing the job and the conditions under which
these activities are performed. If an accurate job description is
not available or is out of date, one should be prepared to use job
analysis techniques.
• KSA analysis—A more detailed list of specified tasks for each
job including knowledge, skills, attitudes, and abilities required of
employees.
• Performance standards—Objectives of the tasks of the job and
the standards by which they will be judged are needed to identify
performance discrepancies.
• Job observation/work sample—Manager observation at work
site or analysis of employee products
• Job inventory questionnaire—Evaluation of tasks in terms of
importance and time spent performing.
• Review of literature about the job—Research of best practices
from other companies, review of professional journals.
• Interviews/Surveys—Questions employees, their supervisors,
and upper management about the job requirements.
• Analysis of operating problems—Analyzes down time, waste,
repairs, late deliveries, quality control, etc.

Individual Analysis
Skill gap assessment may be focused on individual performance. Companies most commonly use employee performance evaluations to
evaluate at this level. Based on the employee performance evaluation, a recommendation is made by the employee’s supervisor regarding
an area for performance improvement and specific training.

Individual Analysis Data may be Obtained via:

• Performance evaluation—Identifies weaknesses and areas of
improvement (e.g., 360/180-degree reviews)
• Performance problems—Productivity, absenteeism and
tardiness, accidents, grievances, waste, etc.
• Job observation/work samples—See above
• Skills inventories—See above
• Interviews—Talk to manager, supervisor, and employee; ask
employee what he/she believes he/she needs to learn
• Questionnaires—Written form of the interview, tests, must
measure job-related qualities such as job knowledge and skills
• Attitude surveys—Measures morale, motivation, and
satisfaction

 2006 Corporate Executive Board. All Rights Reserved.

 CORPORATE LEADERSHIP COUNCIL® PAGE 3
SKILLS GAP ASSESSMENT METHODOLOGIES RESEARCH FINDINGS

Case Example: Company-Wide Hybrid Skill Gap and Needs Assessment

The following hybrid methodology was used by one state government to conduct an organization-wide needs assessment. The model is
broken into two phases: a strategic needs assessment and employee-perceptions assessment, as detailed in the figure below.7

Figure 1: Organization-Wide Performance Driven Training Needs Assessment

Situation: A state government had little funding available for employee training due to a variety of political and economic factors, but state
employees had a high level of unmet training needs. The administration placed a high priority on improving employee training and approached
the HRD program at the state university for assistance in assessing and prioritizing training needs. HRD used the following hybrid model to
conduct the assessment:

Phase 1: Phase 2:
Strategic Needs Assessment Employee Perceived Performance Improvement

Top • Top management in the organization were • Employees were divided into job Employees
Leaders: interviewed to identify a) high priority groups with somewhat similar (selected):
Key goals for performance goals, b) performance indicators, tasks (approximately 20 per Opportunities
the agency and c) perceived barriers to accomplishing department) for
them. Sample interview questions included: • A sample of 20% from each performance
o What is the mission of your unit/agency? employee group was randomly improvement
o What are the key goals/objectives of drawn and sent a pre-survey through
your unit that support this mission? form. Sample questions training
(Prioritize if possible) included:
Top o What are the key areas within your o Please describe the three
Leaders: agency with the greatest performance to five biggest problems
Areas with improvement potential to meet the you face in your job that
greatest objectives above? keep you from being as Subject
performance • Goals and expected outcomes were productive as you think you Matter
improvement summarized in a report for the organization could be. For each Experts:
potential head (each strategic issue received a problem noted, please Prioritize
separate summary) identify any possible training for
Unit • The organization head rated each strategic training and non-training performance
Leaders: objective as high, medium, or low priority solutions you see. improvement
Areas with • Unit management and selected employees • Three to six subject matter potential
greatest were interviewed to gain a better experts from that employee
performance understanding of the high priority goals/issues group were then chosen to
improvement • Intensive training needs assessment or review pre-survey results
potential performance analysis methodologies • A survey was created using the
appropriate for the situation were proposed training solutions and
implemented. These typically involved distributed to all employees in
Unit intensive, multiple-data collection methods the group Employees:
Employees: including focus groups, customer interviews, • Responses were tabulated and Training
Performance work observation, work sampling, and ranked by perceived needed
improvement surveys. performance improvement rating survey
training • Training recommendations were made on the
solutions basis of the intensive assessments.

Training Needed to
Improve Performance

Results: The process was completed on time and within resource limitations. Phase 1 led to a small set of very high priority organizational goals,
as intended, and intensive assessment in these areas led to significant training and non-training initiatives. Employees’ reports of performance
problems and training and non-training solutions to these problems indicated that the pre-survey was used appropriately. The procedure led to a
more highly targeted list of intervention options judged by employees to have the likelihood of improving performance.

 2006 Corporate Executive Board. All Rights Reserved.

 CORPORATE LEADERSHIP COUNCIL® PAGE 4
SKILLS GAP ASSESSMENT METHODOLOGIES RESEARCH FINDINGS

Skills Gap Analysis and Training Needs Assessment Vendors

The vendors below are a sampling of those offering consulting services, courses, and/or software programs to support the skill gap
assessment process at companies.

DDI
DDI offers the Leadership Mirror Featuring Targeted Feedback, a multisource, multilingual feedback system. Web-based and flexible, the
Leadership Mirror allows companies to implement standard or customized 20-30 minute surveys based on organizational needs. For organizations,
it enables measurement of leadership development impact as it provides a deeper understanding of strengths and developmental needs. For
participants, results spur performance improvements through actionable suggestions and support tools.
http://www.ddiworld.com/products_services/leadershipmirror.asp

Langevin Learning Solutions

Langevin offers Training-Needs-Analysis: A Step-by-Step Procedure, a course which provides a needs analysis approach and provides support tools
for implementation. Workshop objectives include:
• Analyze job performance
• Design interviews
• Design questionnaires/surveys
• Determine causes and solutions for job performance problems
• Determine the cost-benefits of training
• Determine when (and when not) to train
• Plan a needs analysis system
• Write proposals
http://www.langevinonline.com/wShop.asp?C=TNA&Ad=G603&gclid=CK_ahdH5zYMCFR_CSgodx3toFw

Lominger
Lominger provides multi-rater assessment and feedback services, including Voices 360 and Development Tracker. These tools measure skill
strengths and weaknesses, as well as offer a “Skills-Importance Matrix Report.”
http://www.lominger.com/67_411.htm

ORC Macro
ORC Macro designs and develops training in partnership with its clients. Whenever possible, the company begins this process with an up-front
assessment of an organization’s skills and knowledge gaps. Training specialists work in conjunction with clients to determine the appropriate level,
timing, and depth of an assessment. Assessment strategies may include the use of general surveys, trend data, task analysis, one-on-one interviews,
or focus groups. ORC uses data from the assessment to tailor the training content and method of delivery to meet the needs of participants and
support the goals of the organization.
http://www.orcmacro.com/Management/Training/tna.aspx

Real Time Performance

Real Time Performance offers the RealPath product suite, delivering Web-based solutions tailored to an organization’s competency
model. RealPath identifies individual skill gaps, makes targeted recommendations for improvement, and helps employees create and
share their action plan.
http://www.realtimeperformance.com/leadership.html

SuccessFactors
SuccessFactors offers SuccessFactors 360 /Multi-Rater, which provides 360-degree assessments at the work group or business unit-level, as well
as detailed gap analysis that identifies hidden strengths and weaknesses.
http://www.successfactors.com/products/sf-products_360-degree-review.asp

 2006 Corporate Executive Board. All Rights Reserved.

 CORPORATE LEADERSHIP COUNCIL® PAGE 5
SKILLS GAP ASSESSMENT METHODOLOGIES RESEARCH FINDINGS

Professional Services Note

The Corporate Leadership Council (CLC™) has worked to ensure the accuracy of the information it
provides to its members. This project relies upon data obtained from many sources, however, and
the CLC cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore,
the CLC is not engaged in rendering legal, accounting, or other professional services. Its projects
should not be construed as professional advice on any particular set of facts or circumstances.
Members requiring such services are advised to consult an appropriate professional. Neither
Corporate Executive Board nor its programs are responsible for any claims or losses that may arise
from any errors or omissions in their reports, whether caused by Corporate Executive Board or its
sources.

1
Holton, Elwood F., Reid A. Bates, and Sharon Naquin, "Large-Scale Performance Driven Training Needs Assessment,"
Public Personnel Management (Summer 2000). (Obtained through Factiva).
2
Society for Human Resource Management, "HRD and Training Needs Assessment," www.shrm.org (2005).
[Accessed 1 March 2006]. (Due to copyright restrictions, a copy of this article cannot be provided.)
3
Holton, Elwood F., Reid A. Bates, and Sharon Naquin, "Large-Scale Performance Driven Training Needs Assessment,"
Public Personnel Management (Summer 2000). (Obtained through Factiva).
4
Patton, W. David and Connie Pratt, "Assessing the Training Needs of High-Potential Managers,"
Public Personnel Management (Winter 2002). (Obtained through Factiva).
5
Society for Human Resource Management, "HRD and Training Needs Assessment," www.shrm.org (2005).
[Accessed 1 March 2006]. (Due to copyright restrictions, a copy of this article cannot be provided.)
6
Society for Human Resource Management, "Training Needs Assessment,"
SHRM White Paper (February 1996, reviewed July 2002). (Obtained through www.shrm.org). [Accessed 7 March 2006].
(Due to copyright restrictions, a copy of this article cannot be provided.)
7
Holton, Elwood F., Reid A. Bates, and Sharon Naquin, "Large-Scale Performance Driven Training Needs Assessment,"
Public Personnel Management (Summer 2000). (Obtained through Factiva).

 2006 Corporate Executive Board. All Rights Reserved.