12 Examples of Skills Gaps in the Workplace

By the next few years, an estimated 85 million jobs will be vacant due to skill gaps, resulting in a loss of $8.5 trillion. This alarming statistic, combined with various other surveys, highlights the importance of addressing skill gaps in your organization as a top priority. 

Bridging skill gaps is essential for organizations to maintain productivity and for employees to remain competitive in the marketplace and valuable to their employers. With the modern workplace constantly evolving with new technologies, businesses need employees with the right skill set to stay ahead of the curve.

Skill gaps in the workplace can manifest in various forms, including technical, analytical, communication, and many more. In addition to these, there are underutilized skills examples where employees possess capabilities that are not fully leveraged by their organizations. 

This underutilization can contribute to a broader skill gap issue, as valuable employees’ potential remains untapped, as observed in the real-world skills gaps examples that we have covered. Therefore, it becomes necessary for company leaders to help their employees upskill and ensure that their existing talents are fully utilized, thereby fostering a culture of continuous improvement, reducing reliance on external hires, and enabling the organization to swiftly pivot in response to emerging industry trends and technological advancements.

In this blog, we will explore the various examples of skills gaps in the workplace and the reasons behind their occurrence. Additionally, we will provide specific lack of skills examples to offer a comprehensive understanding of how organizations can better utilize their workforce. We will also present real-world case studies as skills gap examples that underscores the importance of bridging skill gaps in your organization. 

Real-World Examples of Skill Gaps in the Workplace:

Identifying and addressing specific skill gaps is essential for building a robust and future-ready workforce. By analyzing a few unused skills examples across different departments, an organization can understand where to focus its training efforts and develop effective strategies to bridge these gaps. 

After going through examples of gaps in the workplace, it becomes evident that every department in an organization has its unique skill gaps. In the absence of prompt attention to these gaps, performance and growth can be negatively affected. Below are skill gaps examples from a few departments of an organization.

1. Skill Gaps Example in IT/ Development Teams

There are many skill gap examples in IT/development teams, one of which is notably in cloud computing. The skills gap in cloud computing presents significant challenges for the tech industry. In spite of the rapid adoption of cloud applications, there is a shortage of professionals skilled in these fields, which leads to a slower implementation of advanced projects. This situation underscores the urgent need for targeted education and training initiatives to close the skills gap in the IT industry and accelerate technological progress.

For instance, many organizations struggle migrating to cloud platforms like AWS, Azure, or Google Cloud due to a lack of in-house expertise, which hampers their digital transformation efforts and ability to leverage scalable and cost-efficient solutions. 

Addressing these gaps through targeted upskilling programs can significantly enhance the capabilities of the current workforce, ensuring that organizations can fully harness the power of cloud computing to drive innovation and growth. Gain insights into common deficiencies in cloud technology skills from one of the development gaps examples below:

Case Study: American Airlines

American Airlines partnered with IBM to migrate its critical applications to the cloud and integrate AI-driven analytics into their operations. During the migration of American Airlines apps to IBM cloud and in the process of building cloud native apps, the IT team at American Airlines required new set of skills to ensure that the migration and development projects were successful and the company could fully leverage the advanced technologies to enhance flight operations, streamline maintenance processes, and improve customer service.

Solution: Through this partnership, IBM and American Airlines collaboratively developed new cloud-native applications in Cloud Foundry on the IBM Public Cloud Platform as a Service. This hands-on experience allowed American Airlines employees to acquire essential skills in cloud computing by being directly involved in the development and management of the new cloud infrastructure. 

The Airline's IT staff acquired crucial skills in managing and optimizing cloud-native applications, which led to optimized flight operations, streamlined maintenance processes, and enhanced customer service. 

2. Skill Gaps Example in Marketing Teams

One of the notable skill gaps within marketing teams is understanding and analyzing consumer behavior. Despite the availability of vast amounts of consumer data, many marketers lack the expertise to extract actionable insights, leading to ineffective marketing strategies. This gap hampers the ability to tailor campaigns to specific consumer segments and predict trends accurately.

Marketing talents are no longer limited to creating memorable slogans and producing brochures. Today's marketing world needs a varied skill set to adapt to rapidly evolving technology, customer behaviors, and data-driven strategies. 

However, many employees lack expertise in navigating digital marketing channels like social media, search engine optimization (SEO), and content marketing, as highlighted by the latest report, which states that the attrition rate of marketers is close to 27.3% in a year. The impact of these workplace skills gaps is significant; businesses struggle to reach their target audience effectively, missing out on potential customers and engagement, which sets the stage for strategic interventions like those illustrated in the upcoming case study of Gap Inc. 

Case Study: Gap Inc.

Gap Inc., a renowned global apparel retailer, faced substantial challenges due to a pronounced skills gap in consumer behavior analysis specific to apparel. The company struggled to understand regional consumer preferences, leading to inefficiencies in inventory management and marketing strategies. This deficiency in effectively leveraging consumer behavior data hindered Gap Inc.'s ability to cater to diverse consumer needs and optimize product placements across different regions.

Solution: To address these challenges, Gap provided comprehensive training programs on advanced data analytics. which enabled them to use the existing consumers’ data for predicting consumer behavior and trends more efficiently. 

Through the training, employees were able to effectively manage inventory by aligning stock levels with regional consumer preferences, such as ensuring an adequate supply of smaller-sized garments in coastal areas and larger sizes inland.  This approach helped employees to identify both popular items for promotion and underperforming products for reallocation, thereby maintaining brand integrity and customer satisfaction.

3. Skill Gaps Example in Sales Teams

Cross-selling and upselling techniques is one of the common skill gaps among sales teams. Despite the potential for increased revenue through these techniques, many sales professionals lack the expertise to effectively identify and act on these opportunities, leading to missed revenue potentials and suboptimal sales performance.

According to Data Axle USA, companies implementing cross-selling strategies have seen an increase in revenue of up to 30%, yet only about 15% of customers are receptive to cross-selling efforts, highlighting a critical gap in effectively executing these strategies. Addressing this gap through targeted training programs can significantly enhance the ability of sales professionals to leverage cross-selling and upselling strategies effectively, driving higher sales and better customer relationships.

Case Study: McDonald's

McDonald's has famously mastered the art of upselling and cross-selling effectively, increasing their average order value and enhancing customer satisfaction. The fast food giant recognized a skills gap in their employees' ability to maximize sales through these techniques. This gap included the potential to increase sales by suggesting additional items such as fries or beverages with a main order, and promoting larger meal sizes for a small price increase.

Solution: McDonald's addressed this challenge by implementing comprehensive training programs focused on upselling and cross-selling techniques. Employees were trained to identify opportunities to suggest meal upgrades, like the iconic "supersize" option, which encourages customers to purchase larger portions for a minimal additional cost. Additionally, McDonald's bundled main items, fries, and drinks into "meal deals" to offer a lower price compared to purchasing each item separately, thus functioning as an effective cross-selling strategy. 

These strategies led to a significant improvement in McDonald's sales performance. Employees consistently applied the upselling and cross-selling techniques, leading to higher average order values. The introduction and reinforcement of the infamous “Would you like fries with that?” question and the "supersize" offer resulted in increased customer purchases of additional items, boosting overall revenue.

4. Skill Gaps Example in Finance Teams

Finance teams pose significant skill gaps in the current era; strategic financial planning is one of the notable skill gaps. The skills gap in strategic financial planning presents significant challenges for organizations in the current era. Despite the critical need for aligning financial strategies with business goals, many finance professionals lack the expertise to develop and execute long-term strategic financial plans and cash flow management. This gap can hinder an organization's ability to achieve sustainable growth and adapt to changing market conditions.

A study by the U.S. Bank revealed that 82% of business failures are due to poor cash flow management and financial planning. Addressing this deficiency through targeted upskilling programs in strategic financial planning can significantly enhance the ability of finance teams to support organizational sustainability and drive long-term success.

5. Skill Gaps Example in Human Resource Teams

There are several skill gaps within human resource teams, particularly in the management of employee well-being. This particular skills gap presents significant challenges for organizations. Despite the increasing recognition of the importance of employee well-being, many HR professionals lack the expertise to design and implement effective well-being programs. This gap can lead to higher turnover rates, lower employee engagement, and reduced productivity.

A survey by the CIPD revealed that 43% of employees worry about disclosing mental health conditions to their employers, highlighting the lack of effective well-being programs in many organizations. 

Additionally, the American Psychological Association's 2023 Work and Well-Being Survey found that although 71% of workers believe their employers are more concerned about employees' mental health than in the past, significant improvements are still needed. Addressing this gap through targeted training programs can significantly enhance HR professionals' ability to support employee well-being, leading to a healthier and more productive workforce.

Case Study: Cedars-Sinai Health System

Cedars-Sinai Health System, a large nonprofit hospital organization, faced significant challenges due to a skills gap in managing employee well-being. The organization identified high levels of stress and burnout among its staff, which were impacting employee satisfaction, retention, and overall performance. The lack of structured well-being programs and resources was contributing to these issues.

Solution: Cedars-Sinai launched a comprehensive employee wellness program aimed at addressing physical, mental, and emotional health needs. The program included several key initiatives:

1. Wellness Champions: Cedars-Sinai appointed wellness champions across the organization to promote health and wellness activities and provide peer support.

2. Mental Health Resources: They provided access to mental health resources, including counseling services and stress reduction workshops.

3. Fitness Programs: The organization introduced fitness programs, including yoga and exercise classes, to encourage physical activity among employees.

4. Nutritional Support: They revamped their cafeteria offerings to include healthier food options and provided nutritional counseling.

Outcome: The implementation of these initiatives led to a notable improvement in employee well-being. The wellness champions helped create a culture of health and support within the organization. The mental health resources and fitness programs resulted in reduced stress levels and improved physical health among employees. 

The healthier food options contributed to better overall nutrition and energy levels. As a result, Cedars-Sinai saw a decrease in absenteeism and employee turnover, as well as an increase in job satisfaction and productivity.

Other Common Examples of Skill Gaps in the Workplace:

Apart from the skill gaps that's extensively covered above, let’s explore a few common examples of skill gaps in the workplace:

6. Not having Data Analysis Skills

A common gap in today’s workplace is the lack of data analysis skills. As businesses increasingly rely on data to drive decisions, employees who can effectively analyze and interpret data are crucial. This skills gap can lead to missed opportunities for optimization and growth, as organizations struggle to convert raw data into actionable insights. 

According to Forbes, the US might lose $162 billion by 2030 due to lacking data analytic skills. Without data analysis, businesses overlook trends, misunderstand client preferences, and fail to assess campaign performance. Without these skills, companies may rely on intuition or outdated methodologies, resulting in poor decision-making and missed possibilities for development and optimization.

How to Overcome Data Analysis Skills Gap?

To upskill your workforce, you can offer training programs in tools like SQL, Excel, and data visualization software. You can cultivate a data-driven culture by encouraging employees to understand basic data concepts and how data can be used for better decision-making. You can also consider partnering with an external corporate data analytics training courses provider.

7. Absence of Soft Skills

While technical skills grab attention when discussing skill gaps, the lack of soft skills is another example of skill gaps in the workplace. With almost 69% of managers lacking proficiency in communication, the absence of soft skills is increasing every year. These interpersonal skills and intrapersonal skills, like communication, teamwork, problem-solving and critical thinking, are building blocks of successful teamwork and client relationships.

Despite its importance, many employees lack the necessary skills, especially in a remote or multicultural workforce, creating a gap that negatively impacts personal and organizational success. This gap can lead to misunderstandings, customer dissatisfaction, less employee engagement and inefficiency.

How to Overcome Soft Skills Gap?

Regularly assess team soft skills through 360-degree assessments and invest in corporate training programs that equip employees with practical tools and strategies to improve communication, teamwork, problem-solving, and emotional intelligence. Also, you can provide coaching and mentorship training to address specific skill gaps and support skill development.

8. Inadequate Project Management Skills

Almost 39% of projects fail due to lack of planning and insufficient work activities. This is why bridging this skill gap in the workplace is crucial. Effective project management skills are essential for effectively completing projects in all industries. This requires project managers who adapt, think strategically, and manage project complications. 

However, the common examples of skill gaps in the workplace are efficient planning, execution, and monitoring of projects. These skill gaps can delay the project and cause budget overruns. Ultimately, the organization's ability to deliver on its objectives can be compromised.

How to Overcome Project Management Skills Gap?

You can provide opportunities for project managers to learn new skills through workshops, certifications, and mentorship programs. Encourage continuous learning and knowledge sharing within the organization. Hire or promote candidates with the necessary skills and experience or invest in training high-potential employees to close this workplace skills gap. Utilize project management software and collaboration tools to streamline processes and improve communication.

9. Missing Creativity and Innovation

In an age of rapid technology breakthroughs and increasing customer expectations, organizations want employees who can think outside the box, discover creative solutions, and adapt to new challenges. This requires a combination of divergent thinking, which explores various options, and convergent thinking, which chooses the most effective answer. 

According to Adobe, 94% of hiring managers consider creativity when hiring a candidate, highlighting its importance in the workplace. Many employees, however, find it difficult to leave traditional ways in favor of creative ideas. Companies with these skill gaps may struggle to adapt to changing markets, develop new products, or attract and retain customers.

How to Overcome Creativity and Innovation Skills Gap?

To address this example of a skill gap in the workplace, you can implement training programs, encourage experimentation, recognize and reward innovation, promote collaboration and invest in leadership and management training programs.

10. Not Honing the Negotiating Skills

In a study, 80% of companies around the globe do not have negotiation processes, which prevents them from earning more. Negotiating skills play a crucial role, especially for salespeople. Strong negotiation skills allow employees to secure better contract terms, partnerships, and service agreements. However, many employees pose these workplace skills gaps, leading to client dissatisfaction, damaged client relationships, negative brand perception and missed opportunities. 

How to Overcome the Negotiation Skills Gap?

The solution to address these workplace skills gaps is to invest in negotiating skills training and workshops, promote a culture of open communication, and reward successful negotiation outcomes to reinforce positive behaviors. 

11. Absence of Teamwork and Collaboration Skills

With almost 86% of employees in leadership positions blaming lack of collaboration as the top reason for workplace failures, bridging this skill gap is of utmost priority. Teamwork and collaboration skills are at the heart of any successful organization. The most common examples of skill gaps in the workplace include communication, active listening, conflict resolution, and empathy. However, they often present significant skill gaps in the modern workplace. The rise of remote work, diverse teams, and complex projects demands a new level of cooperation and communication.

How to Overcome Collaboration Skills Gap?

You can invest in training programs focusing on communication skills, conflict resolution, active listening, and emotional intelligence. Encourage open communication, celebrate teamwork successes, and create opportunities for employees to connect and build relationships.

12. Adaptability and Flexibility

In an evolving work environment, being adaptable and flexible is a crucial requirement for employees to stay at their companies. A recent report from McKinsey states that 40% of employees regard workplace flexibility as a top motivator for not resigning. This resistance to change can slow down a company's ability to shift focus and capitalize on new opportunities.

How to Overcome Adaptability and Flexibility Skills Gap?

To overcome adaptability and flexibility skills gaps, Implement regular training sessions that simulate unexpected scenarios and encourage problem-solving that can help employees enhance their adaptability skills. Additionally, promoting a culture that values and rewards flexibility can motivate employees to develop these critical skills actively.

By addressing these examples of skill gaps in the workplace, organizations can enhance their workforce's capabilities and ensure their teams are equipped to meet the demands of the modern workplace.

Reasons for Skill Gaps at Workplace:

Understanding the root causes of the skills gap can help organizations craft effective strategies for attracting and retaining the appropriate talent, ensuring continuous growth and success. 

Let’s see the reasons:

1. Rapid Technological Advancements

‍In the modern era, fast technological advancements regularly introduce new tools and platforms that reshape industry landscapes. This ever-changing business environment necessitates a workforce proficient in current technology and capable of rapidly learning and adapting to innovations.

2. Evolving industry Standards and Regulations

‍As industries grow, the standards and rules that govern them change. This continual evolution requires a team that follows established norms and is prepared to adapt to future changes. It necessitates an anticipatory approach to professional development, pushing employees to constantly refresh their knowledge to stay up with changing trends and regulatory requirements.

3. Inadequate Training

‍Ongoing training and development are critical for developing a skilled workforce. Companies without adequate training may be at an edge in a competitive environment. Thus, creating a continual learning and growth culture is critical to ensuring that people have the skills required to prosper in their roles.

So, how could you close these skill gaps in your workplace? Simply start by conducting a workplace skills gap analysis, upskilling and reskilling your employees with training programs, collaborating with training providers, providing learning opportunities to your teams, and encouraging your team members. These initiatives will keep your team members engaged and motivated. The result? It will boost productivity and ROI.

Case Study: How Wells Fargo Implemented Blended Learning Program to Bridge its Skill Gaps?

This case study describes how Wells Fargo, a large financial services company, used a blended learning program to address a skills gap among its audit managers. 

Wells Fargo is a diversified financial services firm offering banking, insurance, investments, mortgages, and consumer and commercial finance worldwide through over 9,000 shops, 12,000 ATMs, and online. While the team possessed strong theoretical knowledge, they lacked practical experience and confidence in applying their skills in real-world audit scenarios. 

Challenge: Wells Fargo audit managers are highly skilled individuals who operate in demanding environments. They handle multiple tasks, tight deadlines, and complex technical situations while leading and collaborating effectively. However, their career advancement requires them to adapt to new challenges like managing change, navigating technological shifts, and leading virtual teams in a dynamic and regulated industry. This gap posed a potential risk to the effectiveness and efficiency of their audit processes.

Solution: To address this issue, Wells Fargo implemented the "Audit Leadership Experience" program, a blended learning initiative. First, the learning team launched "Audit Services University" (ASU), a program with role-specific learning paths to train skilled auditors. ASU teaches them to assess risks, plan audits, evaluate controls, and challenge management within their assigned business area.

Second, they formed the "WFAS Learning Council" with subject matter experts. This council ensures the learning strategy aligns with current business needs and is relevant for teams. It complements the ASU program by providing audit managers with a safe space to practice tackling complex work scenarios specific to Wells Fargo's technical audit processes.

Outcome: The results? The audit managers significantly improved their understanding of audit methodologies and best practices. They reported feeling more confident in applying their skills to real-world audit situations.

Key Takeaways: The Wells Fargo ALE program demonstrates the effectiveness of blended learning in addressing workplace skills gaps within organizations. By combining online and in-person elements, the program provided a comprehensive and engaging learning experience that resulted in measurable improvements in participants' knowledge, skills, and confidence.

Conclusion

Recognizing and addressing skill gaps within various departments such as IT, Marketing, Sales, Finance, and HR is crucial for maintaining a competitive edge in today’s dynamic market. The landscape of the modern workplace is always changing, with technological advancements and changing market dynamics continuously shaping the skills required for success. However, skill gaps can significantly impact an organization's productivity, growth, and competitive edge. 

By proactively identifying and understanding the competency gap examples in the workplace and addressing these gaps, specific competency gaps examples in areas like IT and Marketing, businesses can enhance their capabilities to handle more complex and advanced tasks that directly contributes to increased revenue and company growth. 

If you’re looking to partner with organizations to analyze your organization’s skill gaps, then Edstellar is the right choice. Our comprehensive Skill Matrix tool lets you visualize your team’s competencies accurately. It provides a detailed report to boost your business’s productivity by bridging potential skill gaps.