Start with the growth outcome you want, then identify the work and capabilities it requires. Compare those requirements with what your team can reliably do now, prioritize the gaps that could block the goal, and decide whether to develop staff, hire, or reorganize the work. This keeps the assessment tied to business needs rather than a generic checklist of desirable skills.
1. Define the growth outcome
Choose a specific change the business is trying to achieve: increase capacity, enter a new market, improve a customer journey, or introduce a product. Use customer and market evidence to establish why it matters. The U.S. Small Business Administration recommends market research to find customers and competitive analysis to identify ways to differentiate a business. Its suggested direct research methods include surveys, questionnaires, focus groups, and in-depth interviews. See the SBA’s planning and market-research guidance.
A goal such as “grow sales” is too broad to guide a skills assessment. A more useful outcome might be “serve customers in a new region without lengthening response times.” That points to work and standards the team can examine.
2. Map the work the outcome requires
List the activities, decisions, and responsibilities that must be handled reliably for the goal to happen. For each one, note whether it will be new, happen more often, become more complex, or depend on new technology or customer expectations. This work map turns an ambition into observable requirements; it is a practical planning method, not a prescribed OECD checklist.
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For example, entering a new market may require researching local customers, adapting the offer, handling unfamiliar enquiries, and coordinating fulfilment. A capacity increase may instead depend on scheduling, quality control, or managing a higher volume of customer requests. Focus on the actual work in your plan, not on skills that sound generally useful.
3. Identify the capabilities behind each task
Translate each activity into capabilities a person needs to perform it to the required standard. Include role-specific and technical abilities, as well as problem-solving, teamwork, and customer handling when the work calls for them. OECD’s 2024 report found that firms most often identified technical, problem-solving, and teamwork skills as areas needing improvement. In its five-country evidence, smaller firms more often cited customer-service and problem-solving gaps, while larger firms more often cited IT and management skills. Read the OECD findings on how firms experience skill gaps.
Those patterns are context, not a checklist or a prediction for every small business. The initial wave of the OECD’s PIAAC Employer Module covered firms with at least ten employees in Hungary, Italy, the Netherlands, Portugal, and the Slovak Republic. It does not establish rates for sole proprietors, businesses with fewer than ten employees, or every country and industry.
4. Compare requirements with current capacity
For each capability, ask what level the work requires and what the team can demonstrate now. Gather evidence from more than one source:
- People doing the work: Ask employees where tasks become difficult, where they need help, and what has changed. Include managers, but do not rely on a manager’s view alone; employer and employee assessments can diverge, particularly about digital skills.
- Observed work: Review how tasks are completed, where handoffs stall, and whether staff can handle exceptions—not just routine cases.
- Business results: Look at relevant performance, customer feedback, errors, rework, delays, and missed opportunities. A result can signal a capability issue, but investigate the process and conditions before assuming the cause is an individual skill.
- Coming changes: Consider workforce changes, technology, and demographic trends that may alter the skills available or required.
OECD describes firms’ assessment approaches as varied and commonly involving trends such as these. In the 2024 report, 36% of surveyed firms on average across the five countries reported some extent of skill gaps. The country figures ranged from 27% in Hungary to 54% in the Slovak Republic, with 37% in Italy, 32% in Portugal, and 31% in the Netherlands. These are reported results for the surveyed firms, not a global small-business benchmark. See the report’s country and firm findings.
5. Distinguish an internal gap from a hiring shortage
A skill gap is a mismatch between the skills available within a firm and those required for its current or future business needs. In practical terms, it may mean current employees do not yet have a capability their roles require. A skill shortage is difficulty finding suitable skilled workers in the wider labor market. The distinction matters: a gap may be addressed by development or work redesign, while a shortage may make recruitment slower or harder. A business can face both.
Also distinguish a business requirement from a preference. A capability belongs on the priority list when it is connected to a defined growth outcome and necessary work—not simply because it would be nice to have.
6. Prioritize the gaps that matter most
Keep the first action list short enough to address. For each potential gap, record:
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- Which growth outcome and work it affects.
- How soon the capability is needed.
- The likely cost of leaving the issue unresolved, such as delays, errors, missed customers, or added pressure on the team.
- Whether the skill can be developed in time or must be obtained quickly.
These are practical decision aids, not a validated scoring formula. If a weakness has no clear connection to the goal or the work, it may not be a priority for this growth plan.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.7. Choose a response that fits the gap
Training, recruitment, and work-practice changes are different ways to address a capability need; they are not mutually exclusive. OECD reports that nine in ten firms facing skill gaps used training and development, 49% used recruitment, and 39% changed work practices. Strategies could overlap, and the figures describe firms in the report’s evidence—not a recommendation that every business use the same mix. Read the OECD discussion of assessment and responses.
| Response | Best fit | What to weigh |
|---|---|---|
| Targeted development | The capability can be built in current staff within the time available. | Identify the specific skill to improve and how staff will practise it. Training is useful when it is high quality and targeted to the missing capability; it takes staff time and does not automatically solve an urgent need. |
| Recruitment | The business needs a capability quickly or does not have a realistic way to develop it internally in time. | Consider hiring time, availability of suitable candidates, and the effect of recruiting on operations. Hiring alone may not address other gaps or resolve how work is organized. |
| Change work practices | The requirement can be met by redistributing tasks, changing handoffs, or organizing work differently. | Check whether the change genuinely removes the bottleneck or simply shifts it to another person or process. |
The right choice depends on how directly each option addresses the gap, when the skill is needed, the time and capacity available, and the effect on ongoing work. A combination may be appropriate—for example, adjusting task ownership while developing an employee for a longer-term responsibility.
8. Reassess when the business changes
Repeat the assessment when the offer, market, tools, or operating model changes, and incorporate it into workforce planning if that fits the business. OECD found that 73% of firms reporting a skill gap assessed skill needs, compared with 63% of firms reporting no gap. This association does not show that assessment causes a gap or independently produces growth: firms with existing gaps may also be more likely to assess them.
For an Ireland-specific example, the OECD’s 2023 SME and Entrepreneurship Outlook describes Skills for Better Business as a free online assessment for SME owner-managers to identify management and business capabilities and areas to target for growth. The report also describes a listing of management-development and training supports. See the OECD’s description of the programme. Current access, eligibility, and programme details are not established here, so check with the programme before relying on them. For wider context on entrepreneurial, green, and digital skills, see the OECD’s 2025 paper, Equipping SMEs with the skills to navigate the twin transition.
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