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Updated on February 28, 2024
A skills gap is the difference between an employee’s current skill set and the expertise that’s required to perform their job duties effectively. When an organization has a skills gap, a number of staff members lack the qualifications required to complete specific projects or tasks.
The percentage of employers reporting talent shortages due to skills gaps has increased significantly over the years. According to Manpower’s 2024 Global Talent Shortage report, “Today, 75% of employers report difficulty in filling roles,” compared to just 36% in 2014. These talent shortages have an impact on employers of all sizes.
Other workforce management experts, including those from Fortune/Deloitte, recognize the impact these shortcomings can pose. Their 2023 survey indicated that labor and skills shortages are among the top challenges CEOs anticipate disrupting their business strategy in the next year.
Certain industries may be more susceptible to skills gaps. According to the Manpower report, the following industries experience the most challenges in finding qualified people:
A 2022 Forbes Council article lists the skills gaps employers are most likely to come across, including:
The Manpower report further categorizes the most common soft and hard skills employers look for, but can be hard to come by, when recruiting job candidates.
Keep in mind that skills gaps can vary by employee, role, and industry. While understanding the broader trends is useful, it’s important to assess your organization’s specific skills shortages.
When there’s a lack of qualified personnel working in an organization, it can lead to:
When skills gaps are not addressed, it can lead to long-term subpar employee performance, which can be detrimental to an organization.
“We are expanding our recruitment efforts to reduce the skills gap in our organization. This will help us find qualified candidates.”
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