Abstract: In the current era of rapid technological advancement and evolving job roles, organizations are increasingly confronted with the challenge of aligning employee competencies with business needs. Skill gap analysis has emerged as a vital strategic tool in identifying the mismatch between the skills employees possess and the skills required to perform their roles effectively. This paper explores the process of skill gap analysis, its methodologies, and the profound impact it has on organizational productivity. By assessing both individual and team capabilities against desired performance standards, skill gap analysis enables organizations to pinpoint specific areas requiring development. The findings of this study highlight that unaddressed skill gaps can lead to decreased efficiency, increased error rates, lower employee morale, and overall productivity decline. Conversely, organizations that actively conduct skill gap assessments and implement targeted training programs experience enhanced performance, better talent utilization, and improved business outcomes. Through real-world examples and evidence-based insights, this paper emphasizes the need for continuous skills evaluation and strategic workforce planning. It advocates for the integration of skill development into HR practices to foster a culture of learning and adaptability, ultimately driving long-term organizational success.

Keywords: Skill Gap Analysis, Workforce Development, Employee Competencies, Organizational Productivity, Training Programs, Talent Utilization, Strategic Workforce Planning.

| DOI: 10.17148/IARJSET.2025.125151