5 strategies to close skill gaps and solve talent shortages
Skill gaps and perceived talent shortages are solvable. Come along as we discuss skill gaps, why they exist, their impact and how you can close them.
Back to TopSkill gaps are big problems. They come about for several reasons, but whatever they are, one thing is sure–they must be closed so businesses can operate efficiently.
Let's spend some time together discussing skill gaps, their effect on the workplace, why they're present, how to unearth them and finally, five strategic ways you can mitigate them.
What is a skill gap?
If there's a divide between an employee's skills and what your company needs for that employee to perform a job, that's a skill gap.2
Skill gaps or skills gaps (using the s is optional and has the same meaning) impact organizations in all the following ways:
Increases in:
- Stress on existing employees
- Project durations (making resolution time slower)
- Operating costs
- Security vulnerabilities and risks
- Talent acquisition costs
Decreases in:
- Ability to meet business objectives
- Customer satisfaction
- Innovation in developing new products or services
Losses of:
- Business to competitors
- Revenue
Why do skill gaps exist?
Skillsoft's The C-Suite Perspective: Executive Insights from the IT Skills and Salary Report 3rd Edition | 20251 shows these are the top reasons behind skill gaps.
- 45% - We struggle to hire candidates with the skills we need
- 39% - We cannot pay what candidates demand
- 38% - Rate of technology change exceeds skills development programs
- 30% - We have not invested enough in training
- 30% - We struggle to retain employees
- 21% - Our current training is not effective
- 20% - We have not anticipated the skills we need
- 10% - Other
There are other considerations too, like the thousands of Baby Boomers who are retiring from the workforce4, but as you can see by the numbers, most of the issues stem from a general lack of desired skills.
So what can employers do? Figure out what the skills gaps are.
How to identify skill gaps
Skill gaps aren't always obvious. That's why many recommend performing a skill gap analysis, which can be done in a qualitative, quantitative or team-forward way3. Such an activity gives you insight into staff expertise, supports learning and development, makes hiring and recruiting better and gives you a more solid base to move forward from.2
Once you choose your analysis method and assemble your list of skill gaps, you can work on closing them.
Closing skill gaps
Executives have plans to handle skill gaps like training existing people, hiring additional staff with skills/certifications, hiring third-party support and leveraging AI. 3% have no plan at all.1
Even if you have a partial plan, building a comprehensive strategy to close skill gaps is essential. Here are our top five recommendations.
1. Champion professional development for both reskilling and upskilling1
To provide the best reskilling and upskilling experience, include both remote and in-person options so that all types of employees can participate.
After considering how you will deliver to all, promote the learning options internally and to potential hires (this will become a selling point to candidates, so bonus win!).
To keep your workplace working well, solicit feedback from current team members about how they like to learn and implement their suggestions when possible. This should be an ongoing effort.
"The link between certifications and higher earnings continues to grow. Twenty-five percent of executives believe that certified staff can add $30,000 or more annually to the organization’s value."
"Another 16% report that certifications contribute between $15,000 and $19,999, while 15% estimate the added value at $10,000 to $14,999 annually."1
You must make paths to certifications apparent to increase your workforce's value. Don't expect your team to seek them out.
2. Promote your existing team4
Your current team members understand what they need to know to succeed in higher roles and will be more willing to fill their gaps to rise. Help them get there. They and other future hires will receive this well.
3. Foster mentoring in the workplace5
Let your employees learn from other employees they respect! Mentoring is an opportunity for the mentor and the mentee. You're creating leaders and learners all at once.
4. Integrate learning new skills into assessments
When it comes time to incentivize your team to learn new skills, add it to your assessment process. Analyze areas where they could improve and come prepared with options for them.
Make sure to relate these efforts to future promotion potential. Paths to what's next are highly motivating.
5. Hire for social skills instead of technical skills
Being an agile learner, focusing on outcomes, practicing inclusive leadership and being digitally fluent, while being more challenging to measure, are helpful indicators of success in a modern workplace than hard skills are (with specific exceptions like those of a medical professional). Those types of hires will be willing to adapt5.
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Do you feel confident moving forward and closing your team's skill gaps? We hope so! However, if you're still unsure, Beacon Hill's expert team is here if you have questions or need a partner to hire others with vital skills.
Sources and inspiration
