Let’s be honest—most organisations have no real idea what skills they actually have in-house. Are you one of them? We work to hire great people, those people gain experience, learn new things, do things outside of work and shift into different roles, but we rarely have time to stop and take stock of where people are at. Ths results in Skills gaps, wasted potential, and failure to recognise what’s already in your toolkit.
A skills audit is an important tool and when done well, it helps you see where your strengths are, where the gaps lie, and how to plan for the future. Done badly, it’s just another form for staff and another spreadsheet that no one looks at again.
So let's talk about how to do it properly.
Step 1: Figure out what you actually need
Before you start make sure you are clear why you’re doing this. Are you planning for growth? Identifying training needs? Preparing for a major transformation? Without a clear purpose, your audit will just be a list of competencies with no direction.
What next:
Identify your key business goals for the next 12-24 months.
Map out what skills are essential to achieving them.
Consider both technical and "soft skills" (I'll blog another day about why I hate this phrase!)—communication, leadership, adaptability, and problem-solving are just as critical as industry-specific expertise.
Step 2: Gather Data (and this is KEY - without making everyone hate you)
No one likes pointless forms, and your employees don’t want to feel like they’re being assessed for redundancy. Approach the skills audit with transparency and engagement.
How to collect skills data effectively:
Self-assessments: Get employees to rate their own skills (with clear guidance so it’s not just guesswork).
Manager input: Line managers can offer insight into team strengths and areas for development.
Workplace evidence: Look at project work, peer feedback, and actual output—what people do is often more telling than what they claim.
Step 3: Analyse the Gaps (and the hidden pearls)
Once you have the data, it’s time to analyse it. The goal isn’t just to spot what’s missing but also to uncover underused talent.
Key things to look for:
Critical gaps—Skills you need but don’t currently have in-house.
Emerging needs—What skills will be essential in 1-3 years?
Hidden expertise—People often have skills they aren’t using in their current roles. Someone in finance might have coding skills; a customer service rep might be a natural trainer.
Step 4: Take Action (to make it worthwhile!)
Now you know where you stand, do something about it.
Ways to address skills gaps:
Training & Development: Upskilling existing employees is often cheaper and more effective than hiring new people.
Mentoring & Knowledge Sharing: Pair up experienced employees with those looking to grow in certain areas.
Strategic Hiring: If gaps are too big to fill internally, bring in fresh talent with the right skills.
Role Adjustments: If someone has untapped skills, could their role evolve to make use of them or are they looking to move to a new team?
Step 5: Use your findings to Support Recruitment
A skills audit isn’t just about training—it’s also a powerful tool for recruitment. Understanding your gaps means you can hire strategically, bringing in people who complement your existing team rather than just filling vacancies blindly.
How to align recruitment with skills audits:
Create job descriptions that target identified gaps.
Focus on skills you actually need, rather than hiring based on generic industry expectations.
Use your audit findings to create career pathways, ensuring both new hires and your current team see opportunities for growth within your organisation.
Finally, remember... You need to make strategic planning a priority, always, not just the once.
A skills audit is only as useful as the strategy that follows it. Actively planning for skills development and workforce changes helps you stay ahead of industry shifts and remain competitive.
So make sure you regularly review your skills data, using skills mapping to inform succession planning and to identify future leaders within your organisation who you might of missed out otherwise!
So... Let’s get started
If you want to unlock the full potential of your workforce, a skills audit is the first step. Need help? We can walk through the process together, from designing the right framework to turning insights into action. Get in touch, and let’s build a workforce that’s ready for the future.
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