Needs assessment (or needs analysis) is a process by which an organization’s HRD needs are identified and articulated. With this information, HRD professionals learn where and what kinds of programs or interventions are needed, who needs to be included in them, and whether there are currently any roadblocks to their effectiveness. However, despite its importance, many organizations do not perform a needs assessment as frequently or as thoroughly as they might. A needs assessment can be a difficult, time-consuming process.

Managers often decide to use their limited resources to develop, acquire, and deliver HRD programs rather than to do something they see as a preliminary activity. Although it is possible to improve the organization’s effectiveness without accurate needs assessment information, the results are by no means guaranteed. In this context, the concept of need typically refers to a discrepancy or gap between what an organization expects to happen and what actually occurs. These discrepancies may become the foundation of a training or HRD need.

Diagnostic needs focus on the factors that lead to effective performance and prevent performance problems, rather than emphasizing existing problems. The goal is to determine how effective performance is obtained. Analytic needs, on the other hand, identify new or better ways to perform tasks. These needs are generally discovered by intuition, insight, or expert consideration. Compliance needs are those needs mandated by law. They most often involve mandated training programs, such as safety training, food handling, or compliance with healthcare regulations.