Skills gap analysis is a strategic process used in human resources to identify disparities between the skills an organization currently possesses and the skills it needs to meet its objectives. It involves a systematic assessment of the skills and competencies of the workforce to determine areas where training or recruitment is necessary.

Example
Suppose a technology company aims to transition from traditional software development to cloud-based solutions. A skills gap analysis involves assessing the existing skills of the software development team to identify gaps in cloud computing expertise. Based on the analysis, the HR department can develop targeted training programs or hire professionals with the required cloud computing skills to bridge the gap and support the company's strategic shift.