Conducting a needs analysis is an important step for organizations seeking to effectively implement training and development for their employees. The reason that a needs analysis is so important is that it answers questions about the training and development process. The most basic question it answers is whether a specific program is appropriate for an individual employee.

A thorough analysis will clearly identify training needs and facilitate instructional design, which helps to ensure that the organization is making a good investment of its time and resources. A needs assessment can be conducted at three different levels of analysis. The most macro level of analysis is the organization level. An organization needs analysis produces information about what type of training or development is required or appropriate for the organization to provide.

The middle level of assessment is the job level. A job needs analysis provides information on the type and scope of training or development required for someone to be successful in a specific position. The most micro level is the person level. This level of analysis lets managers know if a specific employee needs and/or is ready to participate in a specific training or development program. Although individual employees participate in training, that training is either paid for or provided directly by an organization. And all organizations want to be sure that they are making wise investment of training resources.

The organization level needs to address the question of whether training or development should be provided from multiple perspectives. One perspective focuses on the technical. Another looks at the organization’s strategy and culture to determine whether training and development align before considering technical needs or opportunities. In needs analysis, we also ask if the organization has policies in place to reward employees for development. Individuals are more likely to learn and then use new knowledge and skills if they are held accountable.