Business and Technology · Learning and training at work

How to Identify Training Needs in ACCA BT

Updated 11 October 2026 · Fact-checked

Identifying training needs means finding the gap between the skills, knowledge and behaviour people need and what they have now. Organisations analyse this at three levels: organisation, job and individual. To answer exam questions, define the required standard, measure current performance, spot the gap, then choose the training that closes it.

Understand Identifying Training Needs

A training need is a gap between what an employee can do now and what the job or the organisation requires. If there is no gap, training wastes money. If the gap is real, training can fix it, provided the cause is a lack of skill or knowledge.

Organisations look for gaps at three levels. At organisational level, you ask where the business is heading. New strategy, new technology, new laws or entry to new markets all create new skill demands. At job level, you ask what each role requires. This uses job descriptions, person specifications and competence frameworks. At individual level, you ask how each person performs against that standard. Appraisals, observation, test results and error rates all show gaps.

The result is a skills gap analysis: required skills minus current skills. Managers then rank the gaps by urgency and cost, and match each one to a method such as on-the-job coaching, courses or e-learning.

Not every performance problem is a training problem. Poor performance can come from weak motivation, unclear instructions, faulty equipment or bad systems. Training only helps where the cause is a lack of knowledge or skill. A good analysis checks the cause first.

Training needs also appear as sudden triggers: a new system is introduced, a promotion happens, customers complain, or an audit finds repeated errors. Exam questions often give you a short scenario with one of these triggers.

Key formulas to remember

Training gap: Training gap = Required standard of performance − Current standard of performance; Use it as a way of thinking. Training is justified only if the gap is caused by lack of skill or knowledge.
Three levels of analysis: Organisational level → Job level → Individual level; Organisational asks what skills the strategy needs. Job asks what the role requires. Individual asks who lacks what.

How to solve Identifying Training Needs questions

Use this method for any question on how to identify training needs or analyse a skills gap.

1Read the scenario and decide which level is being tested: organisation, job or individual.
2State the required standard. For example, the strategy, job description or competence framework.
3State current performance, using evidence from the scenario such as errors, complaints or appraisal results.
4Name the gap clearly in one sentence.
5Check the cause. Is it lack of skill or knowledge, or is it motivation, systems or resources?
6Suggest the source of evidence or method to confirm the need, such as appraisal, observation, tests or feedback.
7Match the need to a sensible training response and link it to the scenario.

Quickest way: Level, Standard, Gap, Cause

When to use it: Use it for objective test questions where you have about a minute per mark.

Spot the trigger word: strategy or new system means organisational; job description means job; appraisal or errors means individual.
Pick the answer that compares required with actual performance.
Eliminate options that jump straight to a training method before any gap is found.
If an option points to a non-training cause such as pay or faulty tools, treat it with care. It is usually right only if the question asks about causes.

Common mistakes in Identifying Training Needs

Treating every performance problem as a training need.
Training feels like the obvious fix.
Fix: Check the cause first. Training fixes lack of skill or knowledge, not poor motivation or bad systems.
Mixing up the three levels.
The levels sound similar and scenarios overlap.
Fix: Link each level to its question: where is the business going, what does the role need, who falls short.
Confusing identifying needs with evaluating training.
Both sit in the same chapter.
Fix: Identifying happens before training and finds the gap. Evaluating happens after training and checks results.
Naming methods such as lectures or e-learning when asked how to identify needs.
Students recall delivery methods more easily.
Fix: Identify sources of evidence: appraisals, observation, tests, customer feedback, job analysis and strategic plans.
Ignoring the organisation's strategy.
Students focus only on the individual employee.
Fix: Always ask whether new products, technology, regulation or markets create future skill needs.

Worked examples

Example 1

A company is moving all its accounting to a new cloud system next year. Which level of training needs analysis does this trigger mainly relate to, and what should management do first?

Show the solution

The trigger is a change in business systems, which affects the whole organisation.
This is organisational level analysis, because it looks at future skills needed by the business.
The first step is to define the skills the new system requires.
Next, compare these with the skills staff have now to find the gap.
Only then choose training methods.

Answer: It relates mainly to organisational level. Management should first define the skills the new system needs, then compare them with current skills to find the gap.

Example 2

A sales manager notices that one new salesperson makes many pricing errors, while others in the team make few. Explain how the manager should decide whether training is needed.

Show the solution

This is individual level analysis, as one person falls short.
Set the required standard, using the job description and the team's error rate.
Gather evidence by reviewing errors, observing the salesperson and discussing the problem in appraisal.
Check the cause. Is it lack of product or pricing knowledge, or is it unclear price lists, system faults or low motivation?
If the cause is lack of knowledge, plan training such as coaching on the pricing system. If not, fix the real cause instead.

Answer: The manager should compare the salesperson's performance with the required standard, gather evidence, and check the cause. Training is justified only if the errors come from a lack of skill or knowledge.

Exam tips

Link your answer to the scenario. Name the trigger, such as new technology or high error rates.
Write the level in your answer. Examiners reward clear use of organisational, job and individual.
In multiple response questions, select only the stated number. Choose evidence sources, not training methods, when the question asks how needs are identified.
Expect questions that ask whether training is the right solution. Look for non-training causes in the scenario.
Keep identification separate from evaluation. Identification comes first.

Practice questions from Learning and training at work

Identifying Training Needs: frequently asked questions

What are the three levels of training needs analysis?

They are organisational, job and individual. Organisational looks at strategy and future skill needs. Job looks at what each role requires. Individual looks at how each person performs against that standard.

How do organisations identify training needs?

They use appraisals, observation, tests, performance data, customer feedback, job analysis and strategic plans. The aim is to compare required skills with current skills and find the gap.

What is a skills gap analysis?

It compares the skills an organisation or role needs with the skills people actually have. The difference is the skills gap, which training or recruitment can then address.

Is poor performance always a training need?

No. Poor performance may come from low motivation, unclear instructions, faulty equipment or poor systems. Training helps only when the cause is a lack of skill or knowledge.