Training needs analysis: competency assessment and a development plan

To identify employee training needs, define what the job requires, assess employees' current knowledge and skills, and compare the results with those requirements to see how closely they match. Establish which gaps learning can address, agree priorities and create a development plan with a way to check the outcome. A training needs analysis (TNA) should tell HR who needs support, what they need to learn and why.

Job requirements need reviewing periodically. According to Gartner (26 October 2026), the number of skills required for the average job grows by 4.8% each year. The company forecasts that 34% of skills required in 2025 will lose relevance by 2030. This supports reviewing role profiles after changes to work processes and adapting training courses.

The following method uses an illustrative customer service team to connect job requirements, assessment and an individual development plan. You can apply it to another role by replacing the tasks and assessment criteria.

1. How do you know whether employees need training?

Training is appropriate when an employee cannot carry out an important task because they lack the necessary knowledge or skills. Compare the expected action with actual performance, then check whether the person has clear instructions, access, time and suitable tools.

Repeated errors, missed standards and difficulty with new tasks are reasons to investigate. They do not establish the cause. A delayed customer response, for example, could reflect an unfamiliar procedure, a slow system or a queue for approval.

1. Describe the specific performance gap: what the employee should have done, what happened and under which conditions.
2. Check working conditions with the employee and their manager. If the employee lacks access, find out who can grant it. If work instructions conflict, clarify them with the manager.
3. Ask the employee to explain the process, then perform a typical task under suitable conditions. This lets you check separately whether they know the procedure and can use it in practice.
4. If knowledge is missing, arrange an explanation of the relevant rules and check that the employee understands them. If the person knows the rule but struggles to act, arrange practice and feedback.
5. If the employee performs correctly during the assessment, find out what gets in the way during everyday work. Check their workload, how the process is organised and what the manager expects. If both skills gaps and workplace barriers are present, combine learning with action to remove those barriers.

For example, an adviser knows who should handle a complex customer enquiry but cannot pass it on because they lack the necessary system access. HR identifies who can grant access and contacts them to resolve the problem. Additional training is needed only if an assessment also shows that the adviser does not know or has misunderstood the procedure for passing on enquiries.

2. How do you define the competencies a role requires?

Start with the role's tasks and agree with the manager what good performance looks like. Identify the knowledge, practical skills and behaviour needed, then describe them as observable actions. Here, a competency means the ability to apply knowledge and skills to perform a particular job.

CIPD recommends identifying the knowledge and skills the organisation needs now and in future, then comparing them with the skills employees already have. Decide which gaps to address first in light of the organisation’s strategy. Carry out this analysis for the organisation, the team and the individual employee.

1. List the role’s typical and difficult tasks. Use job descriptions, work standards, examples of enquiries and planned changes to build that list.
2. Describe the correct outcome and critical errors with an experienced employee.
3. Identify the competencies needed to achieve that outcome. Replace broad statements such as 'communicates well' with specific actions.
4. Set the required level for each competency and agree the criteria with managers and employees.

What data do you need at the three levels of training needs analysis?

At organisational level, collect business goals and planned changes. At team level, identify the tasks and standards needed to deliver them. At individual level, assess what each employee can already do. HR or the learning and development (L&D) team brings the findings together, managers clarify requirements, and employees explain difficulties and help plan their development.

For example, a business wants fewer repeat enquiries. The service team must understand requests fully and choose suitable next steps. For an adviser, that becomes an observable requirement: clarify the problem, check constraints and agree the next action with the customer. A survey about preferred courses can inform the conversation, but cannot establish role requirements.

WEF reports that employers expect 39% of core skills to change by 2030. Its survey covers over 1,000 employers across 55 economies. These expectations concern the global labour market. For HR, they are a reason to review which skills employees need to develop further and which they need to learn for new tasks. Developing existing skills is part of upskilling; preparing for different work may require reskilling. WEF and Gartner define their measures differently, so the percentages cannot be compared directly.

How should you describe levels in a competency matrix?

Connect each level to independence, task complexity and quality of performance. Our example uses an internal scale from 0 to 4. It is illustrative, rather than an international standard.

• 0: cannot explain or perform the action, even with step-by-step support.
• 1: completes individual actions with step-by-step prompts and misses important stages.
• 2: completes a standard task with occasional prompts or corrections.
• 3: independently completes typical tasks correctly and recognises the limits of their authority.
• 4: handles complex situations correctly and can explain to a colleague how to choose an appropriate response.

Adviser competency	Required level	What the employee should be able to do at level 3
Understanding customer needs	3	Clarifies the problem, constraints and desired outcome; summarises and obtains the customer's confirmation without prompting.
Applying service rules	3	Independently chooses an authorised response, explains the conditions correctly and recognises when approval is needed.
Recording enquiries	3	Records the request, agreement, owner and next action without missing critical fields.

Level 4 is not automatically necessary for everyone. If the role requires independent performance of typical tasks, setting the target at level 3 avoids unnecessary training. Mark an unassessed competency as 'no evidence yet', rather than assigning zero.

3. Which assessment methods identify employee training needs?

Choose an assessment method that reveals the ability you need to check: use a test for knowledge and observe task performance for practical skills. Apply agreed criteria so that the same behaviour receives the same assessment.

A methodological OECD review published on 20 May 2025 examines how assessments of adults’ skills can better reflect employer needs and actual working conditions. For HR, this means assessing the tasks employees need to perform in their roles.

Method	What it assesses	Main limitation
Job knowledge test	Understanding of rules, products and process steps	A correct answer does not demonstrate practical performance.
Work sample or simulation	Application: a conversation, calculation or task in a system	The scenario must reproduce relevant working conditions.
Manager observation against criteria	Behaviour and independence during work	One occasion may be unrepresentative; observe different situations.
Review of work outputs	Record quality, error patterns and adherence to standards	Processes, tools and workload also affect results.
Interview and self-assessment	Reasoning, difficulties the employee reports and development requests	Check whether the employee can do what they describe.
360-degree feedback	Recurring behaviour with colleagues, direct reports and managers	Requires enough experience of working together; cannot replace a job knowledge assessment.

Before assessment, ask employees and managers which work tasks cause difficulties, where errors occur, what employees have already tried and what support they need. Use their answers to select tasks for assessing knowledge and skills. The assessment results will help you identify what employees need to learn. Involve internal or external experts if HR lacks the specialist knowledge needed for assessment.

Before assessment, explain its purpose and criteria, give employees consistent instructions and provide the tools they need. Ask all assessors to rate the same task performance independently. Then compare their ratings and discuss any differences so that everyone interprets the criteria in the same way. Record the date, assessment conditions and the employee’s specific actions alongside the rating. This makes it easier to explain the finding and compare it with a later assessment.

4. How do you identify skills gaps and prioritise training needs?

Compare the assessed and required level for each competency, then consider the consequences of each gap for work. Skills gap analysis identifies the difference between what the job requires and what an employee can demonstrate.

To describe a gap, record the required and assessed levels and the specific actions the employee still needs to learn. For example, a role requires level 3: completing typical tasks correctly and independently. The employee demonstrates level 1: they complete individual actions with step-by-step prompts and miss important stages. The difference is 2 points. Find out where this employee needs prompts and where errors occur, then use those findings to decide what to explain and what to practise. The point difference alone does not measure how much knowledge or skill is missing, because moving between different levels may take different amounts of effort.

If the assessed level meets or exceeds the requirement, there is no current gap against that criterion. A future role change may create a different development need. Where assessment evidence is missing, gather it before calculating a gap.

How do you decide who needs which training first?

Start with gaps that could lead to serious errors or prevent employees from meeting the most important business objectives. Then consider how many employees need development, how soon results are needed, what resources are available and whether learning can address the cause of the problem.

Situation	Priority	HR and manager decision
An employee applies a mandatory rule incorrectly	High, even for a small gap	Arrange targeted training immediately and continue until the employee can work independently.
Several advisers need prompts to understand requests	High because it affects service quality	Arrange shared practice followed by individual observation.
An employee lacks an advanced skill outside their current responsibilities	Deferred	Review the requirement before a role change; avoid assigning training solely because the gap is large.
System access is missing	Urgent operational issue	Restore access and check performance before deciding on training.

Use the analysis to produce a prioritised list of confirmed gaps. For each gap, identify who needs training and what they need to learn, the work-related risks the training should help reduce, the time required and how you will check the outcome. These details will help you justify the budget and create a development plan.

5. How do you create an employee development plan?

For each priority gap, decide what the employee needs to learn to do, how they will practise and who will help them. Set a deadline and decide how to check the outcome. An employee development plan should make clear how the person will reach the required level and how their manager will assess it.

An online course suits learning rules and foundational knowledge. Practical assignments help employees learn to use that knowledge. A workshop provides an opportunity to rehearse a difficult conversation and receive feedback, while working with a mentor helps the employee use the skill in real situations. Choose the format according to what the employee needs to develop.

For example, an individual development plan for an adviser called Helen could look like this. All levels, deadlines and assessment counts in this example are illustrative.

Competency and level	Development activity	Owner and deadline	Success criterion
Understanding needs: 1 → 3	Review a model conversation, complete 3 simulations and practise with a mentor	Helen and mentor; 4 weeks	Independently completes all agreed actions in 2 new simulations and 3 typical workplace conversations.
Applying service rules: 2 → 3	Short course, review of errors and scenario exercises	Helen and manager; 2 weeks	Correctly resolves every critical scenario in a new set and applies the rules in 3 reviewed enquiries.

Agree time for practice and access to the mentor before starting. After two weeks, discuss with the employee what is going well and where they still need help. At the end of the plan, reassess against the same criteria using new tasks. If the target has not been reached, investigate why and adjust the plan. Course completion alone does not confirm the target competency level.

6. A training needs analysis template and worked example

Use a separate row for each competency you assess for an employee. Record the employee, their role and work task, the competency and required level. Add the assessment method and date, the level demonstrated, what the employee did during assessment, the training decision and the assessor’s name.

Consider the following practical example. An illustrative service team of 8 advisers wants fewer repeat enquiries caused by incomplete clarification of requests. HR and the manager assess the three competencies in the role profile to identify who needs training and which working conditions may hinder task performance. Before assessment, they review customer enquiries, check access and agree the criteria for level 3.

Each adviser completes a test on the service rules, takes part in two simulated customer conversations and records the outcomes in the system. The manager also reviews each employee’s work in three typical situations. If the assessments produce conflicting findings, the manager observes the employee’s work again. HR uses the individual records to establish how many employees need training in each competency.

Competency	Required level	Assessment findings	Decision
Understanding customer needs	3	3 employees at level 1; 2 at level 2; 3 at level 3	Practice for 5 people, with more mentoring for those at level 1.
Applying service rules	3	2 employees at level 2; 6 at level 3	Targeted course and scenario exercises for 2 people.
Recording enquiries	3	All 8 employees had the necessary system access during assessment and demonstrated level 3.	No training assigned.

Five advisers are assigned training. Each needs practice in understanding customer needs. Two people from this same group, including Helen, also need training on the service rules.

The manager initially restricts independent decision-making in critical situations for the two employees with gaps in applying the rules. HR organises the activities in Helen’s plan from the previous section and adapts them for the other participants according to their assessed levels.

In the report for management, state which training takes priority, who will take part, what activities are planned and how much time they require. Record workplace barriers and questions that need further investigation separately. Keep the initial findings and reassessment criteria.

After two weeks, the manager checks how employees apply the service rules through scenario exercises and a review of their work on customer enquiries. After four weeks, they assess how advisers identify customer needs in new simulations and actual customer conversations: whether they clarify the problem, constraints and desired outcome, and obtain the customer’s confirmation of the summary. The manager uses the same criteria as in the initial assessment to determine the level reached.

7. How can an LMS support skills gap analysis and development?

A learning management system (LMS), helps run knowledge checks, assign materials and collect completion results. HR compares the data with work criteria, chooses learning activities and checks practical skills with the manager.

In Smart Way, you can create courses with tests and assign them to employees. In our example, HR prepares materials on the service rules. The system automatically assigns training, monitors deadlines and checks how well employees have understood the material, sends reminders and produces final reports on training results for managers and HR.

In Smart Way LMS, you can create tests with video answers for remote employees and teams in branch offices. For example, ask an adviser to record a video explaining the terms of service to a customer. HR and the manager can review the answer remotely and assess it against agreed criteria. They then use the assessment to identify what the employee needs to practise during training.

Reports show progress and test results. Data collected in the LMS reduces the need to combine completion figures manually from separate files.

To compare results before and after training, Smart Way LMS stores the full history, separate files with the results of each assessment, statistics and analytics. You can revisit results from different periods at any time to analyse and compare changes. HR uses the test results to prepare the competency matrix and development plan.

Use the accumulated results when organising staff training with an LMS: check what employees have learned and what they need to revisit. Adjust future training and employee development plans to reflect those findings.

8. Common mistakes when identifying training needs

HR may choose unsuitable training if the cause of a problem has not been established or if the assessment does not check the relevant knowledge or skills. Common mistakes and ways to avoid them include:

• Relying on one business metric. Check task performance and working conditions as well.
• Treating self-assessment as the final finding. Use it to start a conversation, then test assumptions through a relevant task.
• Accepting a high test score as proof of skill. Assess practical application separately.
• Giving everyone the same programme. Group employees whose confirmed learning needs overlap.
• Prioritising solely by gap size. Check consequences, deadlines and whether the competency is currently needed.
• Choosing an activity that does not address the gap. Develop communication skills through conversation practice as well as theoretical training.

Conclusion

To justify a training need, show what the job requires, what the employee can already do and what they still need to learn. Decide which gaps to address first, considering the risks and the company’s most important objectives. For each gap, plan learning or practice and a way to check the outcome.

Start with one role: agree criteria, assess employees and create a plan for the priority group. Smart Way LMS can help organise courses, knowledge checks and reporting, while the manager checks application at work.

Frequently asked questions

What is training needs analysis?

Training needs analysis identifies gaps between job requirements and employees' knowledge and skills, sets development priorities and selects suitable activities. It should establish who needs which learning and how the outcome will be checked.

How do training needs analysis and learning needs analysis differ?

Training needs analysis can focus on a particular training activity. Learning needs analysis takes a continuing view of current and future capabilities across the organisation. Both should connect development decisions to work requirements and business objectives.

Is a test enough for competency assessment?

No. A test checks only the knowledge covered by its questions. To assess a practical skill, ask the employee to carry out a relevant task or observe them at work. In both cases, assess their performance against criteria agreed in advance.

How often should you review employee development needs?

Review needs after changes to products, processes or roles, recurring errors and completion of development plans. Agree with the manager how often to carry out planned assessments, taking account of work risks and the pace of change.

What belongs in an employee development plan?

State which competency the employee needs to develop, their current level and the level they need to reach. Include specific learning activities and practical tasks, name the person responsible and set a deadline. Describe how you will check the result: after learning and practice, reassess the employee using a new task.

How does an LMS help identify training needs?

An LMS provides knowledge test results and data on assigned learning. HR uses these alongside manager observations to clarify needs and organise further development.