What is a training needs assessment

A training needs assessment (TNA) is a systematic process organizations use to identify and evaluate employees’ training requirements to improve their performance and align their skills with the company’s goals.

A TNA compares an employee’s knowledge, skills, abilities, and other characteristics (KSAOs) with the required standards for a particular role or industry.

What is the purpose of a training needs assessment?

A training needs assessment is to determine the gap between an organization’s current and desired performance levels. By identifying these gaps, companies can develop targeted training programs that:

• Enhance employee skills
• Increase productivity
• Ensure the organization meets its business objectives

What are the types of training needs assessments?

There are three primary types of training needs assessments:

• Organizational
• Operational (task)
• Individual

By conducting TNAs at these three levels—organizational, operational, and individual—organizations develop relevant and effective training programs that align with business goals, enhance job performance, and address specific skill gaps within their workforce.

Organizational level

At the organizational level, companies use training needs assessments to evaluate the KSAOs of the entire workforce and how they align with business goals. This assessment provides management with a snapshot of current skills and competencies within the organization.

For example, a company’s sales revenue is not growing as quickly as its competitors. As a result, they need to realign training programs with business objectives and deliver more actionable content to improve sales performance. As a result, they deliver targeted training on negotiation strategies, handling objections, and effective closing techniques.

To conduct a successful TNA at the organizational level, collect data from sources such as:

• Business performance metrics: Analyze sales figures, customer satisfaction scores, and productivity rates to identify areas needing improvement
• Employee surveys: Conduct organization-wide surveys to gather insights on perceived skill gaps and training needs
• Focus groups: Facilitate discussions with representatives from different departments to understand common challenges and training requirements
• Strategic business plans: Align training needs with the company’s long-term goals and strategic objectives
• Competitor analysis: Compare your organization’s performance and skill sets with industry benchmarks to identify gaps

Operational (task) level

Training needs assessments at the operational level (also known as task or job level) evaluate the knowledge, skills, and abilities required from workers to achieve proficiency in specific roles. This level focuses on how well employees meet the required standards for their roles within a team or department.

For example, if a company’s customer service representatives are not meeting response time targets, a TNA at the operational level might reveal gaps in their time management and customer interaction skills. To address these gaps, the company provides training on efficient communication techniques, active listening, and customer relationship management (CRM) tools to streamline workflows.

To conduct a successful TNA at this level, collect data from sources such as:

• Job descriptions: Outline the required skills and competencies for each role
• Focus groups: Gather insights from employees about their current skills and training needs
• Industry experts and managers: Provide information on required performance standards for each role
• Publicly available industry standards: Benchmark against common standards in your industry

Additional resources: 

• Competency framework template with core, functional, and technical competencies
• Leadership competency framework template with leadership-specific competencies

Individual (person) level

At the individual or personal level, a training needs assessment evaluates an employee’s ability to perform their assigned tasks compared to expected standards. The gap between current and required skills or competencies helps identify specific training needs. The HR department can then recommend tailored learning and development programs to address these gaps.

For example, using a skills matrix, you discover that a software developer on your team needs to improve their coding proficiency in a specific programming language, such as Python. As a result, you provide the developer with targeted training on advanced Python programming, best coding practices, and debugging techniques.

Some tools and techniques you can use for individual TNAs are:

• Skills matrix: Assess and document the skills and abilities of each employee
• Performance appraisals: Review past performance and identify areas for improvement
• Self-assessments: Encourage employees to self-evaluate their competencies and training needs
• Manager feedback: Gather input from managers on employee performance and skill gaps

Additional resource: How to Create an Effective Performance Management System in Your Organization

How is a training needs assessment conducted?

A training needs assessment is conducted through several steps:

• Identify objectives: Define what the organization aims to achieve with the training
• Collect data: Use surveys, interviews, performance reviews, and job analysis to gather information
• Analyze data: Evaluate the data to identify skill gaps and training needs
• Prioritize needs: Determine the most important training needs and align them with business goals
• Develop a plan: Create a training strategy that addresses the identified needs

Additional guide: Consult our step-by-step guide to conducting an effective training needs assessment.

How does a training needs assessment benefit an organization?

A training needs assessment is a strategic tool for improving organizational performance, employee satisfaction, and compliance with industry standards.

Identifies knowledge gaps

Conducting a training needs assessment helps HR identify employees’ current skill levels and areas for improvement. By pinpointing specific knowledge gaps, organizations can direct training resources where they are most needed. Aligning learning and development (L&D) activities with company goals ensures that employees develop critical skills to achieve strategic objectives.

Example: If a software development team lacks proficiency in a new programming language essential for upcoming projects, a training needs assessment can identify this gap and enable targeted training to enhance the team’s capabilities.

Facilitate effective resource allocation

A training needs assessment helps determine the who, what, and when of workforce training. Managers can make informed decisions about upskilling employees, especially when staff resources are limited. With comprehensive data on the workforce, projects can be allocated based on employees’ talents, strengths, and skills.

Example: In a marketing department, some employees excel in data analysis while others are stronger in creative content creation. The L&D team allocates training resources to develop these strengths further, leading to more efficient project completion.

Supports compliance and risk management

A training needs assessment can ensure employees know and comply with industry regulations and standards. This helps mitigate risks associated with non-compliance, such as legal penalties or reputational damage.

Example: In the healthcare industry, a TNA might reveal that staff need additional training on updated patient privacy laws, ensuring the organization remains compliant with regulations like HIPAA.

Improve training return on investment (ROI) and save on unnecessary costs

Data-backed L&D programs ensure training initiatives meet organizational goals by equipping staff with the necessary knowledge and skills to perform at higher levels.

A well-planned training schedule: 

• Avoids unnecessary costs associated with ineffective training
• Saves time by focusing only on the areas where deficiencies or gaps exist among employees’ skills

Example: Instead of a generic training program for all employees, a needs assessment might reveal that only the sales team requires advanced negotiation training, thus focusing resources and improving the training’s effectiveness.

Empowers strategic decision-making

A training needs assessment provides a blueprint of the critical skills an organization’s workforce needs for success. It helps management understand what is required for the company’s growth and supports strategic planning for training programs that enhance workforce efficiency and profitability.

Example: A retail company conducting a training needs assessment found that customer service representatives need better conflict resolution skills. Addressing this need can improve customer satisfaction and loyalty, ultimately boosting sales.

Boosts employee engagement and retention

Employees who receive targeted training opportunities feel valued and are more likely to remain engaged with their work. Training aligned with personal career goals and organizational needs helps retain top talent and reduces turnover rates.

Example: An engineering firm identifies and addresses specific training needs for project management skills. As a result, employees feel more competent and supported in their roles, leading to higher job satisfaction and retention rates.

Strategically develop your workforce with Deel Engage

A TNA is not a one-time event but an ongoing process measuring training and development needs over time.

Deel Engage’s automated workflows can help you build a more skilled team in record time:

• Define expectations for skill mastery for every role and level in your organization
• Assess employee skills, identify strengths and weaknesses 
• Get a snapshot of skill gaps and training needs at individual, team, and organizational levels
• Create and assign training programs that address critical skill gaps
• Collect feedback on training programs to improve effectiveness

Learn more about how Deel Engage can help you build a high-performance organization.