64.8% of employers surveyed reported using skills-based hiring practices for new entry-level hires, according to the National Association of Colleges and Employers. If you’ve ever struggled to hire or promote someone and thought, “Why is this so difficult?” You’re likely dealing with a skills gap.
A skills gap is the difference between the skills a role requires and the skills a person currently has. It’s more than an HR challenge. Skills gaps impact productivity, performance, employee satisfaction, customer success, and ultimately revenue.
Why the skills gap matters for your business
A growing skills gap can affect every corner of your organization. Employers often experience:
- Lower productivity: Employees spend more time troubleshooting than innovating.
- Higher turnover: Frustrated team members may leave if they feel unsupported.
- Missed revenue opportunities: Teams may be unable to meet market demands or customer needs.
- Slower innovation: Without new capabilities, adapting to change becomes harder.
According to the World Economic Forum’s Future of Jobs Report 2025, 30% of existing skill sets will soon be outdated, meaning talent shortages and underdeveloped skills could cost companies millions annually in lost output and slowed growth. When your people don’t have the tools to succeed, performance suffers across the board.
How to identify a skills gap
The first step to solving any gap is understanding where it exists. That’s where a skills gap analysis comes in.
Here’s a simplified process
- Define your business goals: What outcomes are you trying to achieve this quarter or this year?
- Map the skills required: Outline the technical, soft, and leadership skills needed to reach those goals.
- Assess current capabilities: Use surveys, assessments, and performance data to evaluate your team’s current skill levels.
- Compare and prioritize: Identify the most urgent and high-impact gaps.
This analysis doesn’t just show where you are, it shows where you need to go.
How employers can close the skills gap
The good news? Skills gaps are solvable with the right strategy. A mix of internal development and strategic hiring can help build a future-ready workforce.
- Invest in training and upskilling: Check out how OpenSesame makes custom course lists to see how to better offer employer-led learning pathways that help employees build the skills needed for evolving roles.
- Promote from within: Support internal mobility with career pathing and leadership development so roles can be filled before they open.
- Hire with intent: When hiring externally, look for candidates with transferable skills and a strong learning mindset.
- Provide better access to knowledge: Use a centralized learning platform to deliver timely, relevant training that your employees can apply right away.
A flexible training strategy that blends these approaches ensures your team stays agile, even as roles shift.
Industries most affected by the skills gap
While nearly all industries feel the effects of skills gaps, some are hit harder than others:
- Technology: Digital transformation moves faster than internal training programs
- Manufacturing: Automation and compliance demand ongoing skill development
- Finance & Business: Regulatory changes create new learning needs constantly
- Telecommunications: Evolving tools and platforms require continuous technical training
These sectors show just how urgent the need for strategic learning has become.
Closing the skills gap is a business advantage
The skills gap isn’t going away, but it doesn’t have to hold you back.
By identifying where the gaps are and investing in education that’s aligned with your business goals, you can turn today’s challenges into tomorrow’s advantages.
The takeaway: Closing the skills gap isn’t just about filling open roles. It’s about building a workforce that’s capable, confident, and ready for whatever comes next.
Want a smarter way to close your team’s skills gap?
Explore Oro to see how OpenSesame can help you deliver training that boosts performance by mapping skills to courses, or browse our course catalog.
FAQs
What is a skills gap in the workplace?
A skills gap is the gap between the skills employees have today and the skills needed to meet business goals.
How does the skills gap affect employers?
It can reduce productivity, slow innovation, increase turnover, and limit business growth.
How do you identify a skills gap?
Start with a skills gap analysis: compare the skills your team has today to the ones needed to meet key objectives.
What’s the best way to close a skills gap?
Combine training, upskilling, and strategic hiring with a focus on business-aligned learning.
Which industries are most affected by skills gaps?
Tech, manufacturing, finance, and telecom often experience the widest and most urgent skills gaps.