What Is Skill Gap Analysis? Meaning, Steps & Benefits in India
Book a Free DemoSkill Gap Analysis
The process of identifying the difference between current employee skills and the skills needed for future goals. This analysis guides training and hiring decisions.
Skill gap analysis is the process of comparing the skills employees currently have with the skills they need to meet organisational goals. This helps businesses identify training needs, recruitment requirements, and upskilling opportunities.
In India, skill gap analysis is critical in fast-evolving industries like IT, manufacturing, and BFSI, where technology and market demands change rapidly. It enables HR teams to plan workforce development strategically and stay competitive.
💬 “Pagarai’s skill gap analysis toolkit helped us identify exactly where to invest in employee training.” — Karthik, L&D Manager
👉 Want to assess skill gaps quickly? [Get Pagarai’s skill gap analysis templates →]
Steps in Skill Gap Analysis
| Step | Purpose |
| Define Organisational Goals | Align skill needs with business strategy |
| Identify Required Skills | List technical and soft skills needed for roles |
| Assess Current Skills | Evaluate existing employee capabilities |
| Analyse the Gap | Compare current vs required skill levels |
| Plan for Action | Design training, hiring, or redeployment strategies |
Bonus: Use both manager feedback and self-assessments for more accurate results.
Why It Matters
- Improves workforce readiness for future challenges
- Helps design targeted training programs
- Reduces hiring costs through internal upskilling
- Supports succession planning
- Aligns employee development with business needs
Common Tools for Skill Gap Analysis in India
- Zoho People, Keka – for employee skill tracking
- Learning Management Systems (LMS) – for training gap closure
- Pagarai HR Suite – for automated skill gap reports and training plans
How Pagarai Help
- Provides skill gap analysis templates and frameworks
- Tracks skills across departments in real time
- Suggests training modules to close gaps
- Integrates with recruitment to fill skill shortages
- Generates analytics for HR and management
FAQ
Q1: How often should skill gap analysis be done in India?
At least once a year, or before major business shifts.
Q2: Can skill gap analysis reduce attrition?
Yes — by offering growth opportunities through targeted training.
Q3: Who should conduct the analysis?
Typically HR in collaboration with department managers.
Q4: Does it cover soft skills?
Yes — both technical and soft skills should be assessed.
