What is the skills gap?

The skills gap refers to the disparity between the skills that employers expect from their employees and the skills that employees actually possess. This mismatch makes it challenging for employers to fill vacant positions.

The United States is in the midst of a significant skills gap — a few years ago,  68% of employers  had open positions that they couldn’t find skilled workers to fill, but  the gap has grown even wider since then  .

What causes the skills gap?

A few factors contribute to the national skills gap, from poor education to a developing workforce. Three major factors in the current skills gap are a lack of technical training, retiring  baby boomers  , and a lack of soft-skills development.

Lack of technical training

Automated machines create more job opportunities for mechanical, electrical, and software engineers. However, educational opportunities fail to keep up — while 67% of new jobs in STEM are in computing, computer science degrees  account for only 11% of STEM bachelor's degrees  .

In addition, many companies fail to provide adequate training for these new machines. A survey by MIT Technology Review found that  only half of U.S. plants  provide formal training to their employees.

Retiring Baby Boomers

About  10,000 baby boomers reach retirement age every day  . This means a group of highly skilled workers will soon be out of the workforce, leaving employers struggling to find new workers who can fill senior-level roles.

Lack of soft-skills development

Fewer high school students get summer jobs than previous generations.  This means students don’t develop soft skills like teamwork, punctuality, and a service-oriented mindset, which puts them at a disadvantage when it comes to finding a job later on.

How does the skills gap affect employers?

According to one study, companies  can lose up to a million dollars per year due to the skills gap  . When employers cannot find candidates who are skilled enough to fill open positions, those positions can remain vacant indefinitely.

Too many vacant positions can have a direct impact on your company’s bottom line, as your workforce will not be fully staffed, and therefore will not be able to work as productively as they could with a full staff.

How do you identify skills gaps in the workplace?

You can find out what skills are missing in your workforce by taking the following five steps:

1. Identify your company's goals and objectives.
2. Consider what skills are needed to accomplish those objectives.
3. Decide which jobs are most directly responsible for achieving each goal (for example, sales representatives are more likely to need customer service skills than the IT department).
4. Identify what skills your employees already have.
5. See how your employees’ current skills match those needed to meet your company’s goals and objectives.

What is internal skills gap analysis?

Internal skills gap analysis helps employers identify skills gaps in their workplace. The analysis compares the skills an employee needs and those he or she currently possesses.

Human resources departments can use this information to identify what skills are lacking in certain departments, and organize training to fill those gaps.

Regular internal skills gap analysis will help your workforce evolve with today’s ever-changing needs.

How can employers address the skills gap?

If you can’t find qualified employees, you need to address the skills gap in your organization.

job training

Once your company identifies a skills gap, address it with employer-led training and development. New employees will complete these trainings to fill the gap in their skill set.

Hiring and promoting from within

Consider your existing workforce when filling senior-level positions. While most of your employees won't meet the skill set requirements, some will at least have an understanding of its responsibilities. By providing more on-the-job training, you can adequately prepare your employees for their new jobs.

Which industries are most affected by the skills gap?

Virtually every industry will feel some impact of the skills gap, but the following industries may be most affected:

• Finance and business
• production
• technology
• Telecommunications