Free Skills Gap Analysis Template + [Best Practices and Tips]

Every organization reaches a point where ambition outpaces capability. Teams have drive, but certain capabilities fall short of what’s required to hit the next level. With AI becoming a big part of the workforce, human skills are increasingly taking the backseat. In fact, Gartner predicts that by 2030, nearly 50% of businesses will face skill shortages in multiple job roles.

A skills gap analysis can help in such situations. It brings clarity to the difference between the skills employees have today and the skills they’ll need tomorrow. With a clear view, leaders can direct training, shape hiring strategies, and prepare their workforce for what lies ahead.

To make that process easier, we’ve shared an example of a free skills gap analysis template along with guidance on how to apply it. You’ll find practical steps and best practices to make sure the insights you gain translate into action.

What Is Skills Gap Analysis?

A skills gap analysis is a way for organizations to compare the abilities their teams currently have with the abilities they’ll need to achieve upcoming goals. Basically, you're holding a mirror to your workforce and then asking: what’s missing?

For example, a company might realize its sales team is strong in building relationships but falls short in using new CRM tools. That insight points directly to how you can bridge the skills gap.

A skills gap analysis highlights opportunities for growth and provides leaders with a clear roadmap for building capability. As a result, they can create a workforce that’s better prepared for current demands and positioned to take on challenges that lie ahead.

Why Conduct a Skills Gap Analysis

The main reason to conduct a skills gap analysis is to turn uncertainty into clarity. Organizations often sense that performance could be stronger. However, it's difficult to find exactly where the shortfall lies without a structured approach.

A skills gap analysis provides this structure. It connects day-to-day performance with long-term strategy and shows leaders where to invest time and resources.

You can conduct a skills gap analysis to:

• Guide training and developing instead of wasting effort on irrelevant programs
• Support workforce planning
• Identify hidden strengths present in the workforce but underused in current roles
• Increase adaptability with a clear picture of gaps
• Reduce risks that come with missing skills

In short, a skills gap analysis gives decision-makers the insight to direct energy where it counts most. It helps leaders take deliberate steps that strengthen teams now and in the future.

Free Skills Gap Analysis Template + How to Use It

A skills gap analysis template saves you the time you'd otherwise spend on building tables and assessments from scratch. For example, this free skills gap analysis template from Recruitee covers skills assessment in detail and helps you see where you stand in terms of your workforce's skills.

Here’s a step-by-step guide on using a free skills gap analysis template. 

Step 1: Determine Why You're Using It

Before filling in the template, decide on the scale of your analysis. Some organizations use it at a company-wide level, while others focus on a specific department or even a single team.

Maybe you want to assess your marketing department's digital skills. Or, maybe your product team's technical expertise needs to be studied. Either way, you should have a clear motive in mind.

The scale also matters. A company-wide skills gap analysis can show structural weaknesses, like a general lack of digital literacy. On the other hand, a department- or team-level analysis can dive into very specific issues, like a marketing team struggling with advanced SEO. You might even narrow it down to individual roles, such as assessing the leadership readiness of your mid-level managers.

Step 2: Establish Context

Once you know your “why,” the next step is to lay out the context in which you’re conducting the analysis. Start by defining your organization’s strategic objectives.

If your company is expanding into new markets, you may need multilingual communication abilities. Similarly, if automation tools are being introduced, technical proficiency will rise in importance. Defining this backdrop sets the stage for the rest of the analysis.

It’s also important to consider external influences, such as industry trends, competitor benchmarks, or regulatory requirements. For example, if new sustainability regulations are reshaping your sector, skills in compliance, ESG reporting, and sustainable supply chain management will become imperative.

Step 3: Identify Crucial Skills

Next, pinpoint the skills that truly matter for success. Look at your organization’s short-term and long-term objectives. 

If the company plans to release a new product within the year, technical competencies like coding, user experience design, and project management may rank at the top. Similarly, if customer retention is the priority, skills in relationship management, problem-solving, and communication could be more valuable.

You can also divide skills into tiers: 

• Tier 1 - Essential Skills: Without these, critical tasks cannot be performed. Examples include compliance expertise in finance, medical knowledge in healthcare, or coding proficiency in software development.
• Tier 2 - Important Skills: These improve efficiency and performance but aren’t dealbreakers if missing. They may include advanced Excel modeling, foreign languages, or negotiation skills.
• Tier 3 - Complementary Skills: They are useful for career growth or innovation but not directly tied to core business operations. Some examples include public speaking, event planning, or creative design.

Step 4: Map Current Strengths and Weaknesses

After identifying the skills that are most important, the next step is to evaluate your workforce against these criteria. Start by assessing each team member’s current capabilities, noting areas where they excel and areas where improvement is needed.

Try to involve multiple perspectives in this process. Managers can provide insights into team performance, while employees can self-assess their confidence and comfort levels in different skill areas. Once the strengths and weaknesses are mapped, patterns often emerge. That’s where the next step comes in. 

Step 5: Document Low-Scoring Skills

At this stage, the goal is to identify the skills that most limit your team’s effectiveness. Now, you’re pinpointing the exact capabilities that stand between your team and its goals. Highlight these low scores to prioritize investments in employee training and development.

Once documented, prioritize these low-scoring skills based on their impact on business goals. Skills critical to strategic initiatives, such as compliance knowledge, technical expertise, or client-facing communication, should receive immediate attention. For lower-priority gaps, you can plan gradual development initiatives.

Step 6: Build an Action Plan

Now, you can record interventions, the employees affected, anticipated impact, and timelines. For example, if your marketing department scores low on data analytics, you might assign employees to an online certification course and mark the expected impact as “high.”

Similarly, you can create a course in-house to train your employees. A course builder like Coursebox makes this a breeze since you can use existing content and documents to build a course. Then, Coursebox's AI assessment generator creates assessments and grades them based on your rubrics. 

Since there's a mobile app, too, employees can learn at their own pace and receive certifications for course completion.

If the gap is too large to close with training, you might document a plan to recruit a new hire with that expertise. Whatever your action may be, it will be in line with the findings of the template.

Step 7: Track Progress Over Time

A skills gap analysis template isn’t meant to be a one-time activity. Record the dates of analysis and reassessment to create a timeline that shows improvement over months or quarters.

Skills that were once considered weak can be revisited to measure growth. The ongoing tracking also helps leaders demonstrate the return on investment from training budgets or new hires.

Conclusion

In the absence of guidance, it can be overwhelming to run a skills gap analysis. A structured skills gap analysis template turns it into a manageable process with defined steps.

However, keep in mind that this isn't a static document. It's a working tool that grows with your organization. You must use it regularly to reassess and refine your approach as your goals shift. 

Further, combine the template with a commitment to act on its findings to really make a difference in your organization. With a tool like Coursebox, you can cultivate the skills currently missing in your workforce. Get started now to put the template’s findings to use. 

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Frequently Asked Questions

How often should a company run a skills gap analysis?

Most organizations benefit from running a skills gap analysis annually, though fast-moving industries may need to do it more frequently. The right timing depends on how quickly your business goals shift and how often new technologies or processes are introduced.

What types of data are needed to complete a skills gap analysis?

You’ll want both qualitative and quantitative inputs. Employee self-assessments, manager evaluations, performance reviews, and measurable outputs (like sales data or project completion rates) all provide valuable context.

Can employees use skills gap analysis for personal development?

Employees can use the findings to set personal goals and take ownership of their growth. They can also identify their weaknesses and enroll in training opportunities provided by their organizations. Many learners even use tools like Coursebox, where they can access AI-driven assessments, instant grading, an AI chatbot, and interactive modules to build skills.

What challenges do organizations face when running a skills gap analysis?

Some common challenges include collecting accurate self-assessments, gaining honest feedback, and gaining consistent manager evaluations. There’s also the risk of overlooking hidden strengths.

Who should be involved in conducting skills gap analysis?

Ideally, it’s a collaborative effort between HR, team leaders, and department heads. HR manages the framework, leaders bring insight into daily operations, and employees provide self-assessments. Together, this mix helps the analysis reflect real conditions instead of being skewed by a single perspective.

How can organizations act on identified skill gaps?

Responses vary depending on the size of the gap. Smaller gaps can be closed through targeted training or mentoring. Larger gaps may require hiring new talent. Some organizations use AI-powered training platforms like Coursebox, which can quickly generate interactive courses and quizzes to close skills gaps efficiently.