- Needs analysis links training to performance gaps and organisational strategy, at three levels: the organisation, the department or team, and the individual.
- Training is not always the answer. Some gaps come from an unclear process or a missing tool, and good analysis reveals that.
- The attached template calculates the gap between required and current levels, and ranks priority by the gap's impact on performance.
Many annual training plans are built the same way: a survey goes to employees, then a list of the most requested courses. The result is often programmes participants enjoy that change nothing in organisational performance. Good training needs analysis reverses this order: it starts from organisational goals and performance gaps, and ends with the training that actually closes them.
What is a needs analysis?
It is a structured process for identifying the gap between the capabilities the organisation needs to reach its goals and those its employees actually have, and then choosing the best way to close that gap.
The Chartered Institute of Personnel and Development (CIPD) warns that the analysis can become a rigid, box-ticking annual exercise disconnected from strategy. The difference between the two is whether the plan leads to a measurable improvement in performance.
Three levels of analysis
The analysis takes place at three levels: the whole organisation, a department, team or project, and the individual. The key is to read the results together. A recurring individual need across a whole department may point to a process problem rather than a people problem, and a new organisational need, such as rolling out a new system, may require training specific departments rather than everyone.
The analysis steps
1. Start from goals
What are the organisation’s goals for the coming year? A new system to roll out, a new service to launch, a performance indicator to improve, an accreditation to obtain. Each goal requires certain capabilities.
2. Define required competencies
For each role affected by the goals, define the competencies it needs and the level required. Competency frameworks and job descriptions are good sources for this step.
3. Gather data from several sources
CIPD recommends combining several methods because a mix gives better results:
- Performance data and management reports.
- Job descriptions and competency frameworks.
- Manager interviews and focus groups.
- Observation in the workplace.
- Surveys, provided the questions are designed carefully and it is clear in advance how answers will be used.
4. Calculate the gaps
The gap is the difference between the required and current level of a competency. The attached template calculates it automatically on a scale of 1 to 5.
5. Rank priorities
Not all gaps matter equally. The template ranks priority by multiplying the size of the gap by its impact on performance, so large, high-impact gaps rise to the top.
6. Choose the right solution
This is the most important question: is training the answer? CIPD advises considering every appropriate way to meet the need rather than defaulting to “a course”. Some gaps are better closed by on-the-job training, coaching from an experienced colleague, a process change, or a tool or system.
How to use the attached template
The template is ready to fill in and includes a sample row showing how to use it:
| Column | What to enter |
|---|---|
| Department, role and headcount | Who the need applies to |
| Linked organisational goal | Why this competency is needed now |
| Competency | The precise skill or knowledge required |
| Required and current level | 1 to 5; the gap is calculated automatically |
| Performance impact | 1 to 3; priority is calculated automatically |
| Is training the answer? and intervention type | A written decision for each need |
| Programme, impact indicator and target quarter | What will be delivered, when, and how success is measured |
The “impact indicator” column is the bridge to evaluating training later. If you write it now, you can check after the programme whether it was achieved, in line with Level 4 of the Kirkpatrick Model.
Conclusion
Good needs analysis starts from organisational goals, gathers data from several sources, ranks gaps by impact, and asks honestly whether training is the answer. Use the attached template, and you will end up with a training plan you can defend in front of leadership.
Frequently asked questions
What is the difference between a training needs analysis and a learning needs analysis?
According to CIPD, a training needs analysis is usually a one-off look at the needs for a specific training activity, while a learning needs analysis is an ongoing process linked to organisational strategy.
Is an employee survey enough to identify needs?
No. A survey reflects what employees want; it is better combined with performance data, competency frameworks and manager interviews.
How often should the analysis be done?
A full analysis annually when preparing the training plan, and a quick review after a major change such as a new system or structure.
What if the gap is not caused by a lack of skill?
Then the answer is to change a process, provide a tool or clarify responsibilities, not a training programme. The template includes a column for this decision.
References
- Chartered Institute of Personnel and Development (CIPD). Learning needs analysis (Factsheet)
- Kirkpatrick Partners. The Kirkpatrick Model
- Association for Talent Development (ATD). Levels of Evaluation
