Training Needs Analysis: What is it and How to Conduct it Effectively?

Training need analysis

Conducting a training needs analysis is the most crucial tool for every learning and development professional. In today’s competitive workplace, it is essential to make employees skilled for performing complex tasks effectively. Undoubtedly, by providing the training, you can make your employees perform efficiently up to a certain level of performance. Ultimately, companies and businesses investing in employee training have experienced 24% higher revenues. According to a study, 40% of employees leave their jobs who don’t receive any training within the first year of joining, affecting their performance and revenue. This showcases the importance of employee training to make them perform efficiently.

However, most organizations understand the significance of employee training but skip a crucial step of conducting a training needs analysis. Training needs analysis is the first step in creating a compelling, engaging, and successful training program.

What is Training Needs Analysis?

Training needs analysis refers to the process that an organization goes through to evaluate all the training needs of employees and complete them in a certain amount of time to allow your workforce to perform their jobs effectively. With training needs analysis, you get a bird’ eye view of your business and its goals before executing any concrete training. It helps you understand the gaps between existing and desired skills, knowledge, and attitude.

The necessity of a needs analysis arises due to numerous organizational issues like decreased sales, low customer satisfaction, changing technology, etc. However, this does not mean that every problem can be solved with a needs analysis. On the contrary, when organizational issues arise because of a lack of skills, knowledge, or attitude, training needs analysis is feasible.

What are the different methods of conducting Needs Analysis?

There are numerous methods of carrying out a needs analysis. However, not all methods are appropriate for every business. It is crucial to select a method that effectively suits your goals.

Let’s look at various methods of conducting analysis:

  • Questionnaires
  • Observation
  • Interviews
  • Evaluating work
  • Assessments
  • Competition Analysis


Questionnaires are a great place to determine how competent your employees are, what skills they want to learn, what are their interests, what would they like to receive training on?


Regular observation is an effective training needs analysis method. You can conduct multiple observations. However, it is essential to make your employees aware that these observations are only for training purposes and not punitive.


Conducting direct meetings with managers and supervisors can help you determine the future needs of an organization and what steps are required to accomplish them.

Evaluating Work:

It is crucial to evaluate if produced work meets the appropriate skills, knowledge, and abilities you expect in a specific job position. Moreover, you can quickly determine the areas of improvement.


Analyze your employee knowledge with short MCQs, quizzes, etc

Competition Analysis:

Finally, it is essential to know where you stand in your industry, what your closest competitors are doing, is their customer satisfaction is enhanced, etc. This way, you can quickly identify the areas of improvement to stay competitive in the market.

How to conduct Training Needs Analysis?

Let’s look at four key steps in conducting an effective needs analysis for accomplishing your organization’s goals and boost business performance.

  1. Create a Workforce Profile:

The first step involves creating an accurate workforce and company profile to determine the knowledge and skills needed for specific job roles and responsibilities. For this, you require vital information like learner demographics, education, experience, etc. Furthermore, this information can be aggregated in a spreadsheet to extract meaningful and actionable insights.

  1. Ensure Compliance Requirements:

Non-compliance leads to the downfall of many organizations. Therefore, it is crucial to consider the required licenses and regulations that your organization needs.

In order to execute business operations smoothly and safely, organizations must meet compliance regulations like codes of conduct or legislative requirements. Also, you can map your compliance regulations with your company profile to examine what training needs to be conducted for covering business and employees.

  1. Source and Analyze existing Training Materials and Methods:

After identifying the education requirements of your employees, it is crucial to look at your current training. This is where most of the time is spent during a needs analysis. Your existing training materials and methods will be sourced, analyzed, and mapped against your compliance requirements, company, and workforce profile to examine various skills gaps. Moreover, a close review of your training material is taken to summarize training materials, including learning outcomes, content overview, usage statistics, etc. A Learning management system data is beneficial throughout this step.

  1. Develop Recommendations:

After examining your existing organization, its goals, objectives, training methods, it is essential to develop recommendations for training. You can look in the following areas to develop recommendations:

  • Training Delivery Methods
  • Employee Onboarding and Offboarding patters
  • Skills Gaps
  • New Technologies
  • Regulatory Requirements
  • Tracking Progress
  • Accessibility Concerns

The recommendations will be personalized according to the organization’s needs.


The ultimate goal of a training needs analysis is to make your training more targeted and effective. You can quickly determine your employee’s needs to accomplish organizational goals and deliver consistent employee training to stay competitive.

At KloudLearn, we can help you grow your business by fine-tuning your training and get the most out of it. You can source, measure, and improve your training program with actionable insights on training performance at the course and user levels. To learn how we help transform your enterprise training and boost business performance-  book a demo with us.


How do you do a training needs analysis?

Identify the targeted business results. Employee conduct should be linked to desired business goals. Determine training requirements. Competencies should be evaluated. Determine the gaps in performance.

What are the different types of training needs analysis?

performance, analysis, target population assessment, training needs, and task analysis, which identifies training needs relevant to the organization's job.

What is the importance of training needs analysis?

It enables firms to investigate the gaps in employee performance, abilities, and knowledge. In many circumstances, it should be in the correct format so that senior management can understand the significance of the proposals.

What does a training needs analysis include?

It identifies reasons and solutions for defects. It can be viewed as a process of finding and accounting for gaps between what should be happening and what is happening.

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