What is gap analysis in HR?

HR gap analysis is a method used to assess the difference between the current human resources capacity of an organisation and its future needs based on business objectives. This analysis helps identify areas of improvement in skills, processes, and policies to better align HR practices with the overall strategic plan of the company. It involves evaluating existing HR functions and systems to pinpoint shortcomings that could hinder achieving business goals.

Effective Use of HR Gap Analysis in a Company

1. Strategic Alignment: By conducting an HR gap analysis, companies can ensure that their HR strategies are in sync with their business objectives. This alignment is crucial for effective workforce planning and management.

2. Enhanced Training and Development: The analysis often reveals specific areas where training or development is needed. Addressing these gaps helps in building a more competent workforce, which is directly linked to improved organisational performance.

Developing and Implementing a Strategy for HR Gap Analysis

1. Data Collection and Analysis: Start by gathering data on current HR capabilities and business objectives. This includes reviewing job descriptions, employee performance data, and strategic business plans.

2. Identifying Gaps: Compare current HR competencies with the skills and capabilities needed to achieve future business goals. Identify both current and anticipated gaps in skills, leadership, and workforce capabilities.

3. Action Planning: Develop a detailed action plan to address identified gaps. This might include initiatives like targeted recruitment, training programs, succession planning, or changes to HR policies.

4. Monitoring and Evaluation: Implement the action plan and regularly monitor its progress. Adjust the plan as necessary based on feedback and changing business needs to ensure continuous alignment and improvement.

What an Effective HR Gap Analysis Is

An effective HR gap analysis systematically identifies discrepancies between current HR capacities and future needs, providing a clear roadmap for strategic HR development.

Summary of an Effective HR Gap Analysis System

• Aligns HR strategy with business objectives.

• Identifies critical gaps in workforce skills and capabilities.

• Provides actionable insights for addressing deficiencies.

Key Considerations for HR Gap Analysis

• Ensure accurate and comprehensive data collection for effective analysis.

• Regularly update the analysis to reflect changing business strategies and market conditions.

• Foster strong communication between HR and other departments to ensure alignment and support for strategic initiatives.