Technical Hiring

Skills gap analysis: template and step-by-step guide

A practical skills gap analysis guide: individual, team and organization levels, a 6-step method, a ready template with a worked example, reliable measurement and how to choose between training, hiring and redeployment.

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TeamCheck Editorial Team
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Key takeaways

  • A skills gap analysis compares required and current levels skill by skill, then turns the differences into ranked actions with owners and review dates.
  • Setting a clear proficiency level for each skill, not just a list of skills, is what makes gaps measurable.
  • Self-ratings are only modestly related to measured performance, so job-relevant tests and work samples give a more reliable current level.
  • Not every gap calls for training: some are better closed by hiring or redeployment, and some can wait until the next review.

A skills gap analysis compares the skills a person, team or role needs with the skills they have today, and records the difference for each skill. The result is a clear list of gaps, ranked by importance, with an action for each one: train, hire, redeploy or accept the gap for now. It works best when current skill levels are measured, not only self-rated.

This guide explains the three levels at which you can run a gap analysis, a six-step method, a ready-to-use template with a worked example, how to measure current skill levels reliably and how to decide between training, hiring and redeployment.

What is a skills gap analysis?

A skills gap is the difference between the level of a skill that a job requires and the level a person or team currently has. A skills gap analysis is the structured process of finding those differences, sizing them and deciding what to do about them.

It answers four practical questions:

  • What skills does the work require? Usually defined from the job description, a competency framework or the organization's plans.
  • At what level? "Uses Excel" is not enough. The analysis needs a proficiency level for each skill, such as basic, working, advanced or expert.
  • Where are people today? Based on evidence, such as tests, work samples or manager observation.
  • What will you do about each gap? Develop the skill, bring it in through hiring, move people who already have it, or decide the gap is not a priority.

Why skills gaps matter

Skill requirements are moving. In the World Economic Forum's Future of Jobs Report 2025, employers expected 39% of workers' core skills to change by 2030. That does not mean every role changes at the same pace, but it does mean that a skills profile written a few years ago may no longer describe the job. A regular gap analysis keeps the profile, and the development plans built on it, current.

A skills gap analysis sits between two neighboring tools. A skills matrix is an inventory: it records who has which skills across a team, often as a grid. A training needs analysis works at organization level: it combines gap data with strategy, causes and budget to decide which learning to fund. The gap analysis is the focused comparison in the middle: required level against current level, skill by skill.

Individual, team and organization-level gap analysis

You can run a gap analysis at three levels. The method is the same; the scope and the decisions differ.

LevelQuestion it answersTypical inputsTypical decisions
IndividualWhere does this person fall short of the role's requirements?Role profile, skills tests, work samples, manager inputIndividual development plan, coaching, stretch assignments
TeamWhich skills is the team missing or too thin in?Individual results combined, team goals, upcoming projectsTeam training, hiring for a missing skill, redistributing work
OrganizationWhich skills will the organization need that it does not have at scale?Strategy, workforce plans, combined team results, market changesLearning investment, hiring plans, reskilling programs

Individual gap analysis

This is the most common starting point. It compares one person with the profile of their current role, or of a role they are preparing for. The output feeds directly into a development conversation and an individual plan.

Team gap analysis

A team analysis looks for skills that are missing altogether, or held by only one person. Single points of failure matter: if only one analyst can build the monthly model, the team has a gap even if that analyst is excellent.

Organization-level gap analysis

At this level, individual and team results are combined to show patterns across departments or job families. This is where gap analysis feeds into workforce planning and the organization's broader learning plan.

How to run a skills gap analysis in 6 steps

  1. Define the scope and purpose. Decide whether you are analyzing a person, a team or a job family, and why: development, a new project, a restructure or workforce planning. Tell employees the purpose and how results will be used. People respond more openly when the aim is development.
  2. List the skills the role requires. Start from the job description and your competency framework, then check with managers and strong performers. Keep to the skills that matter most for performance, often eight to fifteen per role. Include technical, digital and behavioral skills where relevant.
  3. Set the required level for each skill. Use a simple proficiency scale with clear descriptions (see the template section). Be realistic: not every skill needs to be at expert level for every role.
  4. Measure current levels with evidence. Use job-relevant tests, work samples or structured manager assessments, and treat self-ratings as one input. Record the source of each score so others can see how reliable it is.
  5. Calculate and prioritize the gaps. Subtract the current level from the required level. Then rank gaps by how important the skill is to the role, not only by the size of the gap. A one-level gap in a critical skill can matter more than a two-level gap in a minor one.
  6. Agree actions, owners and a review date. For each priority gap, choose an action (train, hire, redeploy or accept for now), name an owner and set a date to measure again with the same method.

Skills gap analysis template

Use one row per skill. The columns below are enough for most individual and team analyses.

Template columns

SkillImportance (1–3)Required level (1–5)Current level (1–5)GapEvidence sourceActionOwnerReview date
  • Importance: 3 = critical to the role, 2 = important, 1 = useful.
  • Gap: required level minus current level. Zero or negative means no gap.
  • Evidence source: for example "skills test", "work sample", "manager observation" or "self-rating".
  • Action: train, hire, redeploy or accept for now, with a short description.

Proficiency scale

A shared scale makes scores comparable across people and teams.

LevelLabelDescription
1AwarenessKnows the basic concepts; needs close guidance to apply them
2BasicApplies the skill in routine tasks with some support
3WorkingApplies the skill independently in most situations the role involves
4AdvancedHandles complex or unusual cases; helps others improve
5ExpertRecognized reference point; sets standards and solves new problems

Worked example

This is a hypothetical example for a financial analyst role.

SkillImportanceRequiredCurrentGapEvidence sourceActionOwnerReview date
Financial modeling3431Skills testAdvanced modeling course plus review of two live models with a senior analystLine managerIn 6 months
Advanced Excel3440Skills testNone; consider as a peer coachAnalystNext cycle
Business English writing2422Writing sampleReport-writing coaching; manager feedback on monthly reportsL&D partnerIn 4 months
Data visualization2312Work sampleShort online course and redesign of one dashboardAnalystIn 3 months
Stakeholder communication2330Manager observationNoneLine managerNext cycle

Notice how the priorities differ from the gap sizes. The largest gaps are in writing and visualization, but financial modeling is critical to the role, so its one-level gap still comes first. Each action becomes a line in the person's development plan. Our individual development plan template shows how to turn these rows into goals, activities and check-ins.

Measuring current skill levels reliably

The quality of a gap analysis depends almost entirely on the "current level" column. If that column is guesswork, the gaps, the priorities and the training spend built on them are guesswork too.

Why self-ratings alone are not enough

Self-assessment is a useful starting point for a development conversation, but research shows it is an uncertain measure of ability. Mabe and West's (1982) meta-analysis of 55 studies found an average correlation of only .29 between self-evaluations of ability and measured performance. Dunning, Heath and Suls (2004) reviewed a wide body of research and concluded that people's self-views are often only modestly related to their actual performance, including in the workplace. In practice, some people overrate skills they have not fully mastered, and others underrate real strengths.

Comparing measurement methods

MethodWhat it measuresReliability for gap analysisEffortBest for
Self-ratingConfidence and perceived abilityLow to moderate on its ownLowEngagement and a starting point for discussion
Manager ratingObserved performance in the current roleModerate; depends on how closely the manager sees the workLow to mediumBehavioral and role-specific skills
Job-relevant skills testDemonstrated knowledge and skill against a standardHigher, when the test is linked to the role and scored consistentlyMediumTechnical, digital and language skills
Work sample or practical taskApplied skill on realistic workHigher, when scored with a clear rubricMedium to highComplex, hands-on skills
360 feedbackHow behaviors are experienced by othersModerate; perception-basedMediumLeadership and interpersonal skills

Practical tips for better measurement

  • Use the same measure for everyone in scope. Comparable data lets you see team patterns and compare people fairly.
  • Match the method to the skill. Use tests for technical and language skills, work samples for applied skills, and structured observation or 360 feedback for behavior.
  • Combine at least two sources for important decisions. Where self-rating and test results differ, discuss the difference rather than choosing one.
  • Record a baseline. Re-running the same measure after training is the simplest way to show whether a gap has closed.

TeamCheck Technical Assessments support this step with competency-based tests across 138 job families, including coding, Microsoft Office, English and typing tests. Results feed an automated gap analysis against the role benchmark, individual development plans and real-time dashboards across candidates, roles and departments.

Closing the gaps: train, hire or redeploy

Once gaps are ranked, decide how to close each one. Most organizations use a mix of three options, and sometimes a fourth: accept the gap for now.

OptionWhen it fitsAdvantagesWatch out for
Train (upskill or reskill)The gap is moderate, the person has a solid foundation and there is timeBuilds loyalty; keeps knowledge of the organizationTakes time; needs manager support to apply new skills
HireThe skill is missing entirely, needed quickly or needed at expert levelBrings the skill in at the level requiredCost and time to hire; onboarding; effect on team morale
RedeploySomeone elsewhere in the organization already has the skillFast; uses existing talent; offers career movementLeaves a gap in the original team; needs a fair internal process
Accept for nowThe skill is useful but not critical, or the need is uncertainKeeps focus on priority gapsRevisit at the next review so the gap does not grow unnoticed

Questions to guide the decision

  • How urgent is the need? If the skill is needed next month, training from a low base may not be realistic.
  • What level is required? Moving someone from basic to working level is often achievable through training; moving them to expert level in a short time is harder.
  • Is the skill needed permanently? A one-off project may justify a contractor or a temporary move rather than a permanent hire.
  • Do we already have it somewhere? Before hiring, check combined team results or a skills matrix for people who could move or mentor others.

When you hire to close a gap, use the same skills profile and the same tests you used to measure current employees. That keeps the standard consistent and lets you compare candidates side by side against the role's requirements.

Frequently asked questions

What is an example of a skills gap?

A skills gap exists when a role requires a skill at a higher level than a person or team currently shows. For example, a hypothetical analyst role might require advanced financial modeling, while the analyst currently builds models only at a working level with support. The one-level difference is the gap, and it can be closed through targeted training, coaching or practice.

What is the difference between a skills gap analysis and a skills matrix?

A skills matrix is an inventory that records which skills each team member has, often in a grid. A skills gap analysis compares those current levels with the levels a role requires and turns the differences into ranked actions. Many teams keep a skills matrix up to date and run a gap analysis from it when planning development, projects or hiring.

How do you identify skills gaps in employees?

Start by defining the skills and proficiency levels each role requires. Then measure each employee's current level with evidence, such as job-relevant skills tests, work samples and manager observation, using self-ratings as one input only. Compare current and required levels skill by skill, rank the differences by importance, and agree an action and owner for each priority gap.

How often should you do a skills gap analysis?

Many organizations run a skills gap analysis once a year, linked to performance and development planning, and again when something significant changes, such as new technology, a new project or a restructure. For individuals, revisiting the analysis a few months after a development action shows whether the gap has closed and what to focus on next.

Summary

A skills gap analysis turns a vague sense that "the team needs more skills" into a specific, ranked list of gaps with actions. Define the skills and levels each role requires, measure current levels with job-relevant evidence rather than self-ratings alone, weight gaps by importance, and choose deliberately between training, hiring, redeployment and waiting. Then measure again to see what changed. To see how competency-based tests and automated gap analysis can support this work, explore TeamCheck Technical Assessments.

References

We cite sources so you can read further. Links open external websites.

  1. Validity of self-evaluation of ability: A review and meta-analysis (Mabe & West). Journal of Applied Psychology, 1982. doi.org/10.1037/0021-9010.67.3.280 (opens in a new tab)
  2. Flawed self-assessment (Dunning, Heath & Suls). Psychological Science in the Public Interest, 2004. doi.org/10.1111/j.1529-1006.2004.00018.x (opens in a new tab)
  3. The Future of Jobs Report 2025. World Economic Forum, 2025. www.weforum.org/publications/the-future-of-jobs-report-2025/ (opens in a new tab)

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TeamCheck Editorial Team

TeamCheck is an HR talent intelligence platform. Articles are researched and written by the TeamCheck editorial team.

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