A skills gap exists when there’s a mismatch between the skills employees currently possess and the skills required to successfully perform their roles. When multiple employees across an organization face this gap, it can hinder productivity, project execution, and overall performance.
Why the Skills Gap Is a Growing Concern
Over the past decade, the struggle to find talent with the right skills has become more widespread. According to Manpower’s 2024 Global Talent Shortage report, 75% of employers say they’re facing difficulty filling open roles, more than double the figure from 2014, which was just 36%.
The issue affects businesses of all sizes and industries. A 2023 CEO survey by Fortune and Deloitte confirms this, with executives naming labor shortages and lack of skills among the top disruptors to their business strategies in the near future.
Certain sectors feel the pressure more than others. Manpower highlights these industries as experiencing the most acute talent shortages:
- Health care and life sciences
- Consumer goods and services
- Information technology
- Transportation, logistics, and automotive
- Industrial and raw materials
- Communications
- Finance and real estate
- Energy and utilities
Which Skills Are in Short Supply?
A Forbes Council article from 2022 highlights several core competencies that employers often struggle to find, such as:
- Critical thinking and problem-solving
- Leadership and supervisory ability
- Effective communication
- Collaboration and team skills
- Negotiation and persuasion
- Digital literacy and technical know-how
According to Manpower’s research, here’s a closer breakdown:
Top Soft Skills Employers Seek:
- Team collaboration
- Accountability
- Analytical thinking
- Curiosity and eagerness to learn
- Adaptability and resilience
Top Hard Skills in Demand:
- Data and IT expertise
- Engineering and technical know-how
- Sales and marketing
- Supply chain operations
- Manufacturing and production
While these trends offer useful insights, every organization should assess its own workforce needs to identify specific gaps.
Consequences of Unaddressed Skills Gaps
Failing to bridge skills gaps can impact a business in several ways:
- Lower productivity – Teams may struggle to meet goals without the necessary expertise.
- Profitability issues – Inefficient workflows and reduced output can affect the bottom line.
- Higher turnover – Employees may leave or be terminated if they can’t perform as expected.
- Weakened competitiveness – Without skilled talent, companies may fall behind their peers.
Strategies to Close the Gap
To reduce the effects of a skills shortage, consider these proactive steps:
- Run a skills gap analysis – Evaluate the difference between current employee capabilities and what’s needed for success in each role.
- Involve employees – Engage them in identifying development goals and training opportunities.
- Expand learning initiatives – Invest in upskilling programs, tuition support, digital apprenticeships, or modern learning platforms.
- Hire more strategically – Strengthen recruitment processes to ensure new hires already meet baseline skill requirements.
Companies that partner with providers like Beyond can also gain support in training, performance tracking, and talent management, helping them identify and close skills gaps faster and more efficiently.