Skill Gap Analysis for Your Business Needs

In some companies, an employee’s performance appraisal is tied directly to the amount of money that they receive when they are scheduled for a raise. This means if the employee receives a very high score on their performance appraisal, they may also receive a very lucrative amount on their next pay check. Contrary to that, when the employee receives a very low performance appraisal, they may not receive any money at all. So, it is important that the performance appraisal systems that the management team uses are fair and not flawed with biases or incorrect assessment measures.

Another problem with providing performance appraisals based on flawed systems is the high performers are also promoted, while low performers remain in the same job. In some situations, they may be demoted if the performance appraisal is very poor. Whatever the case, these systems can make a major impact in an individual’s professional and personal life.

With this being said, companies that want to be fair with their employees should look for the best performance appraisal system on the market. When managed appropriately, the software can assist with not only providing fair assessment of company employees but also prove to be a motivator for operations that need the help. For instance, the manager who establishes the performance criteria should set the performance measure against simple requirements. These requirements should be easy to communicate to all involved and not too much for the employees to achieve. Another popular system for this purpose is skill gap analysis.

In addition to setting simple objectives as a basic measurement, the management team can also include a criterion that sets a higher standard for people want to excel. For instance, the management may give bonus points to people who do extra projects on the side. Thereby, allowing each employee an opportunity to do above and beyond tasks so that they can receive a higher score. Whatever the case, with the right type of performance appraisal system, all employees can receive a fair assessment based on simple and not complex assessment measures.

In addition to providing the employee with goals that can be understood and acquired by everyone, another essential part of a good assessment system is being able to develop the employees. Development measures can be implemented by incorporating skill gap analysis. With this analysis, employees will have an opportunity to advance. Since this analysis will identify areas that the employee is weak in or needs more experience to become well versed, it will also give managers an opportunity to further develop the employees under their leadership. Once the employee begins to grow and excel in specific areas, they are also more marketable for other positions in the company. For instance, if the employee acquires project management skills, they may be more marketable in leadership roles. From leading large projects in another division to becoming a manager over a small operation, employees can grow when they are provided with additional opportunities.

The author has an extensive knowledge of Skill Gap Analysis systems, which he has shared in this article.