# How to do a skills gap analysis **Canonical URL:** https://skillsmatrixtemplate.com/guides/skills-gap-analysis.html **Author:** Dr Alex J. Martin-Smith **Last reviewed:** 27 May 2026 **License:** Free to cite with attribution and link back to the canonical URL. --- ## Definition It is a comparison, not a hunch. Current capability versus required capability, measured on the same scale and quantified. Look forward, not just at today. A real gap analysis includes the skills the business will need over the next few years, not only the ones it lacks now. Quantify the gap. A gap expressed as a number, per skill, can be ranked and tracked; a vague worry cannot. ## Key takeaways - Use this guide to implement skills gap analysis with the same 0-5 framework as the site methodology. - Write descriptors before you rate, then calibrate managers on what each level looks like in your context. - Review the matrix on a fixed cadence and date every cell when capability changes. - Separate capability ratings from performance conversations. - Link training and hiring plans to named gaps, not generic catalogues. ## Guide body ## What is the first thing to do for skills gap analysis? World Economic Forum research finds that 39% of workers' core skills will change by 2030, and 63% of employers cite skills gaps as the top barrier (World Economic Forum, 2025). It is a comparison, not a hunch. Current capability versus required capability, measured on the same scale and quantified. Look forward, not just at today. A real gap analysis includes the skills the business will need over the next few years, not only the ones it lacks now. Quantify the gap. A gap expressed as a number, per skill, can be ranked and tracked; a vague worry cannot. ## What is the short answer for skills gap analysis? To do a skills gap analysis, define the capability your team will need, today and over the next few years, measure the capability it actually has on a consistent scale, then quantify the difference skill by skill. Prioritise the gaps by business impact, choose how to close each one, train, reskill, redesign or recruit, and re-run the analysis on a cycle. In short: compare required capability against real capability, quantify the gap, and act on the biggest, most critical shortfalls first. ## Why does building a skills matrix matter now? The gaps you cannot see are the ones that hurt Skills gaps do not arrive with a warning. They surface as missed deadlines, stalled projects and work that quietly is not good enough, usually too late to fix calmly. A gap analysis drags them into the open on their workforce's cannot even see to change by 2030, making the forward-looking part of the analysis single biggest transformation. The picture these figures paint is stark: skills gaps are the leading brake on change, the required skills are shifting fast, and yet most organisations lack the reliable data to see where they actually stand. That combination is how teams end up blindsided, committed to a goal they do not have the capability to deliver. A skills gap analysis is the antidote. It is the difference between discovering a gap when it stops you and seeing it months ahead, with time to close it on your terms. ## What does a real team matrix look like? A skills gap analysis, quantified Here is the output of a gap analysis for a six-person team, summarised at the skill level. Each skill's current capability is set against the required future level, the gap is expressed in percentage points, and each is ranked by priority. This one view turns the whole matrix into a plan. CIPD Labour Market Outlook shows many UK employers still report hard-to-fill vacancies linked to capability (Chartered Institute of Personnel and Development, 2024). ## HOW TO READ THIS ANALYSIS? The big gaps stand out instantly. Data analysis (37 points) and Compliance (29 points) are far below the required level, and both are flagged critical, so they lead the plan, ahead of the smaller CRM gap. One skill is already met. Complaint handling exceeds its required level, so it needs no investment, and its surplus capable people are a source to redeploy or to train others. Priority is impact, not just size. Compliance is regulated and Data analysis is strategic, so both rank high. A similar-sized gap on a peripheral skill would not. It doubles as the proof. Re-running the analysis next quarter against the same required levels shows the gaps narrowing, hard evidence the interventions are working. ## From Data To Decisions? The method is free. A ready-made matrix just does the gap maths for you. Everything here works in a blank spreadsheet, and that is a fine place to start. A purpose-built template simply automates the analysis. Score the current state, set a required level per skill, and the grid calculates each gap as a percentage, ranks the shortfalls and shows the critical ones at a glance, so the analysis falls straight out of the data and re-running it next quarter takes minutes. The Advanced Excel Skills Matrix turns current-versus-required scores into a quantified, ranked gap analysis automatically, per skill and across the team, all on the same 0 to 5 framework used throughout this guide. This guide complements [Skills gap analysis worked examples](/resources/skills-gap-analysis-examples.html) and [How to run a skills audit](/resources/how-to-run-a-skills-audit.html) on this site. Those pages own the head search phrases; this page goes deeper on skills gap analysis. ## Which tools on this site support skills gap analysis? - [Skills gap ROI calculator](/roi-calculator.html) - [/resources/skills-gap-analysis-examples.html](/resources/skills-gap-analysis-examples.html) - [/resources/how-to-run-a-skills-audit.html](/resources/how-to-run-a-skills-audit.html) ## How should you score skills on the 0-5 scale? Use the same 0-5 descriptors as the PDF and this site's methodology. Define each level in observable behaviours, not labels alone. (See HTML for 0-5 scale table.) See the [methodology pillar](/methodology.html) and [descriptor generator](/descriptor-generator.html) for policy wording. ## What should you add when implementing this online? This web guide adds live links, cited sources, and site tools around the same method as the PDF. Download [skills-gap-analysis.pdf](/assets/downloads/guides/skills-gap-analysis.pdf) for workshops; use the sections below to implement online. The [methodology pillar](/methodology.html) explains the Upleashed 0-5 framework used across 106. 5M+ assessments. Pair it with the [descriptor generator](/descriptor-generator.html) so raters share one definition of each level. The [Excel Skills Matrix Template](/template.html) (£199) implements this method with heat maps, role targets, and training-plan outputs. Template owners can start [PulseAI](/pulseai.html) for £1 in year one when they need continuous updates. Treat each section as an action checklist: agree evidence rules, run calibration, publish the grid, then review on cadence. The PDF is the narrative; this page is the implementation path with calculators and templates linked in context. Look forward, not just at today. A real gap analysis includes the skills the business will need over the next few years, not only the ones it lacks now. Quantify the gap. A gap expressed as a number, per skill, can be ranked and tracked; a vague worry cannot. Prioritise by impact. A large gap on a critical or future-facing skill outranks a small gap on a peripheral one. The matrix is the foundation. A skills matrix supplies the current-state data; the gap analysis is what you do with it. What a skills gap analysis really is A skills gap analysis is a structured comparison between the capability your workforce currently has and the capability it needs to meet the organisation's goals. The "gap" is the measurable distance between those two pictures, found deliberately rather than discovered the hard way when something stalls. It is the distance between two states Every gap analysis rests on three things: a clear current state (what people can do now), a clear desired state (what the work requires), and the gap between them. Get those three right and the analysis almost does itself: measure where you are, define where you need to be, and the shortfall is simply the difference. The discipline is in making both states precise enough, on the same scale, that the gap is a number you can act on, not a feeling you can argue about. It looks forward, not just at today This is what separates a real gap analysis from simply noticing current weaknesses. The desired state is not only what you need this week; it is what the business will need as it grows, adopts new technology, enters new markets or faces new regulation. A proper analysis maps those future requirements now, before the gap becomes urgent, so you have the lead time to train or hire into them calmly rather than scrambling when the work arrives. Skills gaps rarely announce themselves; the point of the exercise is to find them early. The matrix is the foundation, the analysis is the action A skills matrix and a skills gap analysis are closely linked but not the same. The matrix is the structured record of who can do what, at what level, your current-state data. The gap analysis is what you do with that data: setting it against the required levels, quantifying the shortfalls, and turning them into priorities and a plan. The matrix supplies the facts; the analysis supplies the decisions. One without the other is either data with no direction, or direction with no evidence. The gaps you cannot see are the ones that hurt Skills gaps do not arrive with a warning. They surface as missed deadlines, stalled projects and work that quietly is not good enough, usually too late to fix calmly. A gap analysis drags them into the open on their workforce's cannot even see to change by 2030, making the forward-looking part of the analysis single biggest transformation. The picture these figures paint is stark: skills gaps are the leading brake on change, the required skills are shifting fast, and yet most organisations lack the reliable data to see where they actually stand. That combination is how teams end up blindsided, committed to a goal they do not have the capability to deliver. A skills gap analysis is the antidote. It is the difference between discovering a gap when it stops you and seeing it months ahead, with time to close it on your terms. Seven steps to run a skills gap analysis This is a sequence: define what you will need, measure what you have, quantify the difference, then prioritise and act. Follow it in order and the analysis produces a ranked, defensible plan rather than a list of vague Define the required capability, including the future Start with the desired state. List the skills the work needs, and the level required for each, drawing on both today's roles and where the business is heading: new systems, markets, regulations, growth. Be explicit about the level, "Level 3 in data analysis", not just "data analysis". A required-state list with no levels produces a gap analysis too vague to act on. WATCH OUT A list of skills with no proficiency levels is not a desired state. Specify how good people need to be, or the gap cannot be Prioritise the skills before you measure Not every skill matters equally, so weight them before you start scoring. Mark which are business-critical, revenue-impacting, regulated or central to the strategy, and which are merely useful. This early prioritisation means that when gaps appear, you already know which ones deserve attention first, rather than treating a shortfall in a peripheral skill the same as one in a critical capability. WATCH OUT Skipping prioritisation leads to treating all gaps as equal. Measure current capability honestly Now the current state. Score every person against every required skill on the same consistent scale, backed by evidence. Combine manager assessment with self-assessment and any hard performance data, so the picture is rounded rather than one-sided. A skills matrix is the natural home for this, giving you a structured, comparable inventory of exactly what the team can do today. ## Frequently asked questions ### How do I apply skills gap analysis using this guide? It is a comparison, not a hunch. Current capability versus required capability, measured on the same scale and quantified. Look forward, not just at today. ### What is the first step for skills gap analysis? Agree skills and 0-5 descriptors, then run a calibrated pilot before you scale. ### How often should we refresh ratings for skills gap analysis? Quarterly is the minimum useful cadence; monthly when regulations, tools, or project mix change quickly. ### Can we use the Excel template for skills gap analysis? Yes. The £199 template implements this 0-5 method with heat maps and training outputs. PulseAI automates the same scale when you outgrow spreadsheets. ### How does the 0-5 scale keep skills gap analysis fair? Observable descriptors and evidence rules stop ratings collapsing into opinion or favouritism. ## FAQ ### How do I apply skills gap analysis using this guide? It is a comparison, not a hunch. Current capability versus required capability, measured on the same scale and quantified. Look forward, not just at today. ### What is the first step for skills gap analysis? Agree skills and 0-5 descriptors, then run a calibrated pilot before you scale. ### How often should we refresh ratings for skills gap analysis? Quarterly is the minimum useful cadence; monthly when regulations, tools, or project mix change quickly. ### Can we use the Excel template for skills gap analysis? Yes. The £199 template implements this 0-5 method with heat maps and training outputs. PulseAI automates the same scale when you outgrow spreadsheets. ### How does the 0-5 scale keep skills gap analysis fair? Observable descriptors and evidence rules stop ratings collapsing into opinion or favouritism. ## References 1. World Economic Forum. (2025). The future of jobs report 2025. https://www.weforum.org/publications/the-future-of-jobs-report-2025/ 2. Chartered Institute of Personnel and Development. (2024). Labour market outlook, autumn 2024. https://www.cipd.org/uk/knowledge/reports/labour-market-outlook/ ## Related - [How to identify skills gaps in a team](https://skillsmatrixtemplate.com/guides/identify-skills-gaps-team.html) - [How to identify training needs](https://skillsmatrixtemplate.com/guides/identify-training-needs.html) - [How to prioritise skills development](https://skillsmatrixtemplate.com/guides/prioritise-skills-development.html) - [How to build a skills matrix, step by step](https://skillsmatrixtemplate.com/guides/how-to-build-a-skills-matrix.html)