Needs Analysis: Definition, Importance & Implementation

Work assessment. This involves examining the quality and quantity of output produced by particular employees.

Online assessment. This method consists of tests or a series of tests to assess an employee’s knowledge using online, multiple-choice questionnaires.

Competitive analysis. Knowing where your organization stands in comparison with your competition helps identify the areas your organization lacks and/or excels in.

3. Implement the necessary steps

According to Legault (2018), there are three steps involved in an effective needs analysis but we can divide them further into four:

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  Determining the desired outcome. This step looks into the desired performance of employees or desired business outcome. In order to get the necessary information, some of the most reliable sources are the managers and supervisors, documentation related to jobs and duties, and performance evaluations.
  
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  Determining the current outcome. Knowing the desired goal in terms of performance and business outcome leads to the next step, which is identifying the actual performance of employees to see if the goals are being met. This step can be conducted by using observation and interview methods, as well as by looking into performance metrics and reports.
  
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  Determining the cause of performance gap and the appropriate solution. Once the issue is identified, the process of digging into its root cause begins. This process involves investigating the factors that can affect the performance of employees, such as knowledge and skills, motivation, tools and equipment, etc. Knowing the problem and what causes it makes figuring out a viable and effective solution easier.
  

Does needs analysis provide resolution to every problem?

It is important to note that the main goal of needs analysis is to identify the underlying issues that affect performance and provide the appropriate training as a solution. Wilson (2020), however, states that training will not resolve a performance or productivity issue if the root cause is not the gap in the employees’ knowledge and skills.
An effective needs analysis also identifies the company’s role in the employees’ performance and productivity problems that are not training-related, such as ineffective standard operating procedures (S.O.Ps.), usability of applications and tools, outdated equipment, company policies, and others. While these issues may not involve training, needs analysis helps bring them to light in order to help upper management bridge and address the situation from their end.