Why an HR Gap Analysis is Crucial for Your Business in 2022 — and Beyond

2022 will be a critical year for businesses in Malaysia. The economy has (finally) begun to open up with increased vaccination rates, while active cases have been on a downward trend — but there is still a degree of uncertainty ahead, not least because of the Omicron variant. 

So, what does this mean? Essentially, it’s important that you build a digitally resilient business, one that can handle potential (and very possible) disruptions in 2022 (and beyond). This involves investment in the right infrastructure and tools, as well as timely initiatives to better prepare the company for anything and everything that 2022 brings. 

But at the same time, it’s equally as important to invest in your own people. Traditional roles are beginning to disappear to an extent, and with the pandemic only serving to accelerate digital transformation, every successful business should be conducting an analysis of any gaps in their HR. 

In essence, every business needs a workforce with the right skills to succeed in 2022 — and beyond. 

What is a Gap Analysis for HR?

In general, a gap analysis is a process whereby organisations assess the performance of the business, and whether objectives and targets are being achieved. If/when there are gaps discovered, the analysis also involves designing and implementing steps that are required in order for the business unit to meet key business goals. 

Meanwhile, an HR gap analysis is a similar process — but applied to the workforce, and the skills they possess. When analysing the workforce, the process involves the assessment of your existing employees, their various skill sets, and whether your organisation’s workforce is sufficiently equipped to meet the aims and objectives of the business. 

Why is an HR Gap Analysis important? 

An HR gap analysis, just like the general process of gap analysis within a company, is crucial in helping employers and HR personnel plan ahead. Assessing potential gaps in your workforce is a crucial part of business strategy planning, and you’ll be able to rely on the analysis to help with hiring and recruitment plans — or even upskilling programmes — for your company. 

As mentioned, Digital Resilience will arguably be a key factor in the survival and success of businesses in Malaysia in 2022. As such, leadership and HR professionals must keep this in mind when analysing potential gaps in the organisation, with required skills for professionals leaning heavily towards digital literacy in the future. 

In short, a successful analysis of potential gaps in your company’s HR will empower you to: 

• Project potential business needs in the future 
• Understand your workforce’s existing capabilities 
• Plan for business growth ahead of time 
• Strategise to bridge the gap between where your company is, and where you want it to be
  

How to execute an HR Gap Analysis

There isn’t necessarily one best time to implement a gap analysis of your human resources, although a good opportunity to execute this process would be before the start of a project, whenever your company is not meeting its business goals, or even before the next cycle of the financial year. While the process can also differ from industry to industry, you should ask yourself the following questions during the process: 

• What skill gaps exist in the company’s workforce?
• How important are these/skills with regard to the changing business environment?
• Is there a readily available talent pool to bridge these skills gaps?
• Do I need to adjust the company’s recruiting strategies to attract the right talent?
  

In general, the entire process can be broken down into 5 key steps: 

• Identify key business goals for your organisation 
• Identify key skills/competencies required to achieve these goals
• Identify potential gaps in the workforce 
• Identify factors that may/may not contribute to these gaps 
• Plan strategies to bridge the gaps
  

At the end of the process, your business should be better equipped to face any challenges that the future may bring. This is particularly important in the digital age, with business in Malaysia and around the world adopting digital-first mindsets in order to survive — and thrive — against the backdrop of the COVID-19 pandemic.

It’s important to remember that the lessons of the pandemic shouldn’t be forgotten — and building a digitally resilient company is essential in 2022, and beyond.