How to Conduct a Training Needs Assessment in 9 Steps

A training needs assessment is a forward-thinking strategy that identifies gaps in employee skill sets. Using this information, leaders can arrange training that equips employees with the skills they need to take the business into the future.

This practical guide describes how to conduct a training needs assessment in nine easy steps. We also provide various templates to support your process.

Step 1: Define the scope of your TNA

Begin by deciding how broad your training needs assessment process should be. For example, you might choose a TNA scope that is:

• Organizational: A company-wide assessment of all ranks, roles, and departments, providing a snapshot of current overall skills and competencies
• Occupational: Also known as task or job level TNA, this strategy examines the training needs of people in specific roles
• Individual: A personalized approach uses a skills matrix to help employees, including managers or specialists, develop in their roles

Step 2: Define organizational goals and objectives

Determine what you want to achieve by conducting a training needs assessment in the short or long term. You might use the SMART goal-setting framework to formulate your goals, focusing on choosing a Specific, Measurable, Achievable, Relevant, and Time-Bound destination.

Example: Your organization’s business goals are to drive innovation, increase operational efficiency, and position the company as a leader in the competitive market landscape. To meet these goals, you aim to enhance AI literacy across the organization and improve the adoption of and integration of AI technologies in key business processes.

Using the SMART methodology, your TNA goal could look like this:

• Specific: You plan to launch AI literacy training for all employees, covering essential machine learning concepts, applications, and ethical considerations
• Measurable: You require a 90% course completion rate and a minimum score of 80% on the post-training assessment
• Achievable: You’ll achieve your goal using a combination of in-house experts and external AI specialists to deliver engaging and accessible training modules
• Relevant: You’ll ensure your training aligns with the company’s strategic initiative to enhance operational efficiency and innovation
• Time-bound: You require your AI training to be completed by September 30th this year, with periodic check-ins and feedback sessions to track progress and address any challenges

Step 3: Run a cost analysis

Once you’ve identified the desired outcomes for your training needs program, and the skills and knowledge you need to plug any current performance gaps, budgeting becomes your next consideration. By running a cost analysis, you can understand whether your business can afford to invest in the required training.

Typical costs include:

• Employee hours invested in training and any corresponding lost productivity
• Training content development (either internal or external)
• Training evaluation time (to determine if employees are meeting their goals)
• Travel and administrative expenses if attending external training centers

Step 4: Determine the skills and knowledge required to achieve those goals

Take a granular look at the skills, competencies, and knowledge required to achieve your TNA goal. This information is crucial when selecting or developing your training content.

Example: If your training needs goal is to improve AI literacy across your organization, you might decide your employees will need the following to achieve this goal:

• Understanding of key AI concepts and principles
• Ability to identify areas in their day-to-day work where AI can improve processes
• Familiarity with common AI tools and technologies used in your industry
• Knowledge of ethical considerations for AI implementation

Step 5: Select your data collection method and design questions

Learn the current position of your individual, team, or organizational skills by collecting relevant data to inform your decision-making.

Tools and techniques for conducting a training needs analysis (+ Template)

The following options can each extract meaningful data; you might use one or more of them as part of your training needs analysis process.

• Surveys and questionnaires: Use software to ask employees about their skills and development to uncover gaps between their existing knowledge and the competencies required for their role
• Interviews and focus groups: Small sessions or 1:1 meetings provide more context and finer detail, enabling employees to share their development experiences
• Performance appraisals and reviews: Recent performance data can highlight employee strengths and weaknesses and provide employee proficiency scores, either using numerical scales from 1 to 5 or statements from Strongly disagree to Strongly agree
• Observations and assessments: A third-party subject matter expert is well-placed to assess your workforce’s skills without the bias or favoritism often ingrained within an organization
• Using HR analytics and data: Software with built-in reporting capabilities can use data points such as skills aptitude or job performance metrics to identify and target specific areas for improvement

Sample questions to include in your training needs assessment

Create a list of questions for employees and managers to answer. Ensure your questions are tied to the skills and knowledge you identified as necessary in Step 4.

Step 6: Collect data: Assess current employee skills and performance levels

Based on your preferred data collection methods, schedule your training needs assessment. This may involve:

• Booking a third-party specialist to conduct observations on your behalf
• Examining training needs following or in conjunction with performance appraisals
• Distributing surveys or questionnaires to employees and managers
• Conducting interviews or focus groups with employees and managers
• Holding employee skills and competency assessments

Step 7: Analyze the data: Identify skill gaps and training needs

Using your accumulated data, begin to identify your employees’ knowledge gaps. A comprehensive skills gap analysis involves:

• Comparing current skills and performance levels against the required standards identified in step four
• Identifying any discrepancies or gaps between the two
• Linking certain kinds of training to skills based on their impact on employee performance and goals

Step 8: Prioritize training needs based on urgency and impact

Determine specific training needs based on data analysis and establish priorities based on urgency and impact. Ask the following questions:

• What training needs to be implemented immediately, soon, and in the long term?
• What factors limit our ability to provide training?
• How does this training align with our organizational goals and objectives?
• Does this training provide a return on investment?

Speaking on “The Learn Grow Succeed” podcast, Alex Dinnadge, a Learning Consultant and Marketing Executive, explains that prioritizing training needs can be a significant challenge when there’s so much ground to cover:

Step 9: Develop a training plan and schedule

With your training needs ranked and aligned to your overall business needs, you’ll know where and when to allocate your resources. The next step is to design a tangible training plan, which includes the following steps:

• Set training objectives: Your overall objectives will align closely with your training needs assessment objectives—for example, if company-wide AI literacy is your TNA objective, then a smaller training objective could be to ensure every employee completes a foundational AI skills course
• Select appropriate training methods and tools: Consider types of training and learning styles, such as online learning, microlearning, instructional courses directed at specific groups of employees, etc., and the most appropriate platforms, such as learning experience platforms, learning management systems, video tools, etc.

• Create a training schedule and timeline: Work backward from your overall training completion goal and determine the milestones that need to happen beforehand
• Allocate resources and budget: Use the information gathered from your cost analysis to understand how you could repurpose existing resources for your training or what additional investments you need to make
• Determine desired expertise: Decide how you expect your training to move the needle on your learners’ knowledge levels—for example, do you want employees with intermediate skill levels to become experts? Or do you want to train on specific skills for the first time to deliver basic knowledge of a particular topic?

Common training needs analysis challenges (and how to overcome them)

Conducting a training needs analysis can be complex, particularly when approaching it at an organizational level. As with any large-scale project, some common challenges crop up, which you can overcome with some preparation:

1. Obtaining buy-in

Your training efforts will only be a success if you have buy-in from the top. Executive support is essential to communicate with management and employees about your training needs assessment goals and how L&D support your overall business objectives.

Learning Consultant and Managing Director of Excel Communications, Tom Hallett, explains:

2. Acknowledging bias

Skills evaluations invite the potential for bias and favoritism. Managers may be tempted to give some team members higher skill ratings than others based on their tenure, personality, gender, or other factors that can spark cognitive bias. Besides being a DEI issue, any prejudice will also throw your analysis widely off track, highlighting skill gaps that are or aren’t a real issue.

Beyond this advice, self-assessments, third-party evaluations, and 360-degree feedback all help provide a more comprehensive picture and reduce the chance of bias.

3. Overthinking the TNA process

It’s common for companies to hesitate conducting a training needs analysis, either because they’re concerned about what they might find or they’re worried about how long it will take or cost. Tom Hallett advises not to overthink the process:

Identify and bridge skill gaps with Deel Engage

Deel Engage offers multiple ways to run an effective training needs analysis, whether at an organizational, occupational, or individual level:

• Create online training paths with AI to address critical needs and align training with organizational and individual performance goals
• Automate data collection using employee surveys and performance reviews
• Analyze skill gaps using advanced analytics and develop personalized training plans

Ready to multiply skills throughout your organization? Book a free Deel demo to discover all the benefits of our platform.