Using Key Performance Indicators to evaluate and track employee success is the most effective way to identify who and what is hindering a business’s success. KPI’s determine how individuals contribute to the business and track career progression, compensation, rewards, benefits, and retention. A report comprised of all of these elements gives employers an accurate depiction of workplace competency.
Another method for identifying skill gaps is conducting 360-degree reviews. These reviews consist of gathering feedback from managers, peers, direct reports, and customers/clients of an employee. A 360-degree review is a great way of collecting qualitative data on an employee’s work ethic and temperament, rather than just numerical results.
Treating a Skill Gap
After identifying what is causing the competency gap, employers should act quickly to reduce the risk of continued loss; they are faced with two options: train or dismiss. Although many factors go into the decision of whether to keep or fire employees, it may be more efficient to invest in extra training for those lagging in skills rather than letting them go.
Training and providing supplementary education for employees is more cost effective than firing/rehiring; it also builds culture and develops team building skills in trainers and leaders—which is beneficial for productivity and culture in the long run. Firing, on the other hand, may end up being costly due to the compounding cost of a vacancy.