How can companies identify skill gaps in their workforce using performance evaluation?

Skill gaps are the differences between the skills that your workforce has and the skills that your business needs to achieve its goals. Identifying and closing skill gaps is crucial for your company's competitiveness, productivity, and innovation. One of the most effective ways to identify skill gaps in your workforce is using performance evaluation. Performance evaluation is the process of assessing and measuring the performance of your employees against predefined standards, objectives, and expectations. In this article, you will learn how to use performance evaluation to identify skill gaps in your workforce, what tools and methods you can use, and how to address the skill gaps once you find them.

1 Benefits of performance evaluation

Performance evaluation can help you identify skill gaps in your workforce in several ways. First, it can help you align your employees' skills with your business strategy and goals. By setting clear and relevant performance standards and indicators, you can communicate what skills are expected and valued in your company, and how they contribute to your success. Second, it can help you monitor and track your employees' progress and achievements. By collecting and analyzing data on your employees' performance, you can identify their strengths and weaknesses, and measure their impact and value. Third, it can help you provide feedback and recognition to your employees. By giving constructive and timely feedback, you can motivate your employees to improve their skills, acknowledge their achievements, and address their challenges.

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Elsa C. Lorenzo

Student Mentor at I'RAISE Girls & Boys International Corporation
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Skill gaps are identified only when performance evaluation is factual and truthful. Assessment of performance that does not clearly describe weaknesses or is worded in a manner that skirts rebuttal has no benefit.

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2 Tools and methods for performance evaluation

Various tools and methods can be used to conduct performance evaluation and identify skill gaps in your workforce. Self-assessment, for example, is when employees assess their own performance and skills according to criteria and standards provided. This can help them reflect on their learning needs and increase ownership and accountability. Additionally, peer assessment allows employees to evaluate their colleagues' performance and skills, enabling them to gain different perspectives and insights. Manager assessment is when you or your managers evaluate employee performance and skills, aiding in the identification of skill gaps within teams. Lastly, 360-degree feedback involves employees receiving feedback from multiple sources such as peers, managers, customers, or stakeholders. This allows them to gain a comprehensive view of their performance and skills as well as identify areas for improvement. Data collection and analysis tools include surveys, questionnaires, interviews, tests, observations, portfolios, or reports. Automation of the performance evaluation process can be achieved through software or platforms such as Performance Pro, Lattice, or 15Five.

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Elsa C. Lorenzo

Student Mentor at I'RAISE Girls & Boys International Corporation
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Write notes during the performance period pertaining to the strengths and improvement areas of supervisees. Praise and coaching are essential elements of performance evaluation. Noting those down ensure accurate assessments. More importantly, addressing both good execution of work assignments as well as what fell short from agreed standards of performance at the time of occurrence is far effective training and learning than later.

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3 How to address skill gaps

Once you identify the skill gaps in your workforce using performance evaluation, you need to take action to close them. Prioritize the gaps by assessing their impact, frequency, difficulty, and cost. Then, plan the skill development based on employees' learning and development needs, goals, and preferences. You can use different methods and formats for skill development, such as training, coaching, mentoring, job rotation, or online courses. Lastly, evaluate the skill development by monitoring and measuring the effectiveness and outcomes of your plan. You can use the same tools and methods that you used for performance evaluation to evaluate the skill development. By using performance evaluation to identify skill gaps in your workforce, you can improve your company's performance, competitiveness, and innovation while also enhancing employees' engagement, satisfaction, and retention.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Elsa C. Lorenzo

Student Mentor at I'RAISE Girls & Boys International Corporation
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• Determine all the skills required in order to achieve the company’s or organization’s goals. • Know recruits’ abilities. • As operations and human resources evolve, identify emerging essential skills. • Coach, hire, train! Important: The last three bullets are achievable when supervisors at all levels observe, listen and know their supervisees. Majority focus only on word of mouth about personnel’s knowledge and experience based on the functions performed in the current company instead of also considering prior employment exposures to complex responsibilities.

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How can companies identify skill gaps in their workforce using performance evaluation?

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1 Benefits of performance evaluation

2 Tools and methods for performance evaluation

3 How to address skill gaps

4 Here’s what else to consider

Global Talent Acquisition

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How can companies identify skill gaps in their workforce using performance evaluation?

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1 Benefits of performance evaluation

2 Tools and methods for performance evaluation

3 How to address skill gaps

4 Here’s what else to consider

Global Talent Acquisition

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