2. INTRODUCTION
A gap analysis is a tool used to assess the current
performance of a business function relative to standards
or expectations. Human resources is a critical strategic
function in many companies as of 2013. An HR gap
analysis, especially one performed by an outside firm or
consultant, can provide insights on improvements and
resource needs. The challenges for many small
businesses are the costs and time involved in hiring
outside help and participating in HR modifications.
3. COMPANY PERSPECTIVE
A core purpose of a gap analysis is to assess company HR goals and
whether systems and practices in place are up to par in achieving them.
A gaps auditor would typically outline organizational HR strengths and
weaknesses that contribute or detract from the abilities of employees to
operate effectively. The assessor would also provide recommendations
for needed improvements in the human resource system, organizational
culture and other HR-related practices. He might recommend, for
instance, that your small insurance agency invest more time in training
and orientation for new employees.
4. TALENT PERSPECTIVE
The other key perspective in a gaps analysis is the discrepancy between
current talent and skills available in a company's workforce and its
needs. A key aspect of strategic HR is outlining talent needs that
align with near-term and long-term company objectives. The audit
helps reveal shortfalls in departments or roles within the company.
The gaps analysis also provides details on current skills commonly
held by employees in certain roles and the skills necessary by
industry standards for success. This assessment includes a
recommendation for hiring plans and training needs of current
employees. If you plan to add new retail shop locations to your local
chain, the assessor might help in work force planning.
5. DIGGING IN
Whether you perform an external analysis or hire a firm to do the
gaps analysis, a thorough review of company policies, procedures
and HR documents is important. Evaluators will dig into your
employee handbook to see whether basic HR policies are sound,
clear and beneficial. They will also assess how well employee
evaluations and other HR practices comply with policies. Record-
keeping reviews also help to see whether HR professionals meet the
legal and ethical standards of their roles. This is especially key in
small businesses where one employee lawsuit can ruin the company
financially. The analysis also normally includes review of hiring and
firing practices, which are essential to talent management.
6. PROGRAM IMPLEMENTATION
Once the analysis is complete, which can take several weeks or even
months, the evaluators make recommendations for improvement.
Company leaders can simply take the report and work to implement
changes themselves, or continue to employ an external firm or
consultant to help with that process. The implementation process may
involve weeks or months of mentoring, training of HR staff and
managers and changes to manuals, documents, policies and procedures
throughout the HR system. Though significant changes potentially
might be too expensive for a small business to implement all at once, an
overhaul could improve your practices and reduce exposure to
employee-related lawsuits.
