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How to Conduct a Skills Audit

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A skills audit provides critical insight into your team’s abilities, revealing both strengths and skill gaps. This can be helpful for both improving business outcomes and enabling skills-first hiring, which focuses on abilities over traditional qualifications.

Discover how to conduct a skills audit that delivers actionable results for your organization.

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How to plan a skills audit 

Consider following these steps to plan a skills audit:

  1. Define objectives clearly. Outline what you want to achieve, such as filling skills gaps, planning for growth, preparing for projects or assessing capabilities.
  2. Determine scope and focus. Decide which departments or employees to include. This keeps the audit manageable and focused.
  3. Choose your tools. Select the best methods for gathering skills data. Will you use questionnaires, interviews, assessments or a mix?
  4. Establish a timeline. Establish a realistic schedule for collecting, analyzing and reporting the data. This helps keep the project on track.
  5. Communicate with employees. Explain the audit’s purpose and process clearly to employees.Transparency may encourage participation.

How to conduct a skills audit

Now that you’ve planned the skills audit, here’s how to conduct it:

  1. Use staff skills audit questionnaires. Collect self-reported skills data from employees with questionnaires. These can assess skills, proficiency levels (e.g., beginner, intermediate, expert), and employee interests. Include a variety of question types (multiple-choice, rating scales, open-ended) for a comprehensive view.
  2. Conduct individual interviews. Structured interviews can help you assess employee skills and experiences. These interviews can provide valuable context, especially for specialized or nuanced skills.
  3. Implement practical skills testing. You can directly evaluate employee abilities with skills-based assessments, such as standardized tests and job-relevant simulations. Testing helps provide objective, performance-based skill data.
  4. Analyze performance reviews. Review existing performance appraisals to identify demonstrated skills and areas where employees could improve or expand their skill set
  5. Gather manager and supervisor assessments. Managers and supervisors may have valuable perspectives on employees’ skills and team contributions.
  6. Employ software and skills-tracking systems. Consider using skills management software or a skills matrix to centralize and manage skills data efficiently.

Why conduct a skills audit?

Conducting regular audits may help you:

  • Discover skills gaps.Identify areas for improvement in your team’s skills.
  • Optimize talent allocation. By understanding each employee’s skill set, you can place workers in roles best suited to their abilities.
  • Support strategic workforce planning. Data from audits can inform long-term workforce plans and a skills-first hiring approach, aligning talent development with business needs.
  • Improve training and development programs. Discover opportunities to educate employees and encourage professional development.

How to analyze skills audit data 

Consider analyzing your data with these steps:

  1. Centralize data. Compile all data into a spreadsheet or database for easy organization and analysis.
  2. Categorize skills. Group skills by job roles, departments or areas of expertise to identify patterns.
  3. Identify skill levels. Document proficiency levels for each skill using standardized assessment tests.
  4. Compare skills to requirements. Compare identified skills to current and future role requirements to highlight any gaps.
  5. Visualize findings. Present skills data with charts and graphs to quickly identify trends.

How skills audits can benefit your employees

Skills audits can be valuable tools for your team members and demonstrate you’re invested in their growth. The process can also highlight employee strengths, which may present new opportunities within the company.

In turn, you can support their career paths and provide targeted development.

FAQs about how to conduct a skills audit

What are common skills audit challenges, and how do you overcome them? 

Common challenges may include low employee participation,managing large data sets and subjectivity in self-reporting. You may overcome these by clearly communicating the audit’s purpose, using data management tools  and focusing on actionable insights over individual performance.

How often should my company conduct a skills audit? 

Audit frequency likely depends on your industry and rate of change. Some companies may conduct annual audits and switch to every six months during organizational shifts.

Can skills audits assist with succession planning strategies? 

Skills audits can be helpful with succession planning. Consider identifying employees with leadership potential and targeting development programs to prepare them for future roles.

What are the key components of an effective staff skills audit questionnaire? 

Effective skills audit questionnaires may include multiple-choice, ratings and open-ended questions. They might also have clear skill categories relevant to your business, proficiency scales and space for employees to add unlisted skills.

To potentially improve participation, keep questionnaires concise and easy to complete.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.