Conducting training needs assessments: Analysis template and guide

As a New Zealand business leader, you’re likely juggling a dozen priorities at once. Recruitment, retention, compliance and growth, all vying for your attention. In the midst of this, training often feels like a “nice-to-have”, rather than a strategic necessity. But when your team lacks the skills to execute your strategy or when compliance gaps emerge, that “nice-to-have” quickly becomes a critical operational risk.

Investing in training is so important and it’s important to invest wisely.  A structured Training Needs Assessment (TNA) ensures every dollar you spend on learning and development (L&D) directly supports your business goals and boosts productivity.

That’s why we’ve created a practical training needs assessment template that you can use to plan out where and how you’ll invest your cash. It’s designed to be simple to use but comprehensive enough to capture the data you need.

Download the training needs assessment template by filling in the form on the right. 

What is a training needs assessment?

A training needs assessment is a systematic process used to determine the gap between the skills your workforce currently has and the skills they need to meet your business objectives. It’s not about guessing what courses might be interesting or ticking boxes for the sake of it. It is about gathering data to make informed decisions about where to invest your training budget for the highest return.

This goes beyond just technical skills. It involves looking at your organisation holistically to see where a lack of knowledge, skills, or abilities is holding you back.

A TNA helps you answer three critical concerns: where training is needed, what specifically needs to be taught and who needs to be trained.

Training needs assessment vs training needs analysis

You will often hear “assessment” and “analysis” used interchangeably and in many practical conversations they mean the same thing. However, for those who like precision:

Analysis is the process of breaking down the “who, what, and where” of your training gaps. It’s the investigative phase where you gather data. Assessment is the evaluation of that data to form a judgement or a plan.

For the purpose of this guide, we treat them as part of the same vital exercise: understanding your team’s capability gaps so you can fix them.

Why a training needs assessment is important for New Zealand businesses

The “she’ll be right” attitude is a classic Kiwi trait but it doesn’t belong in strategic planning. Operating without a clear view of your training needs can lead to wasted budget on irrelevant courses, frustrated employees who feel unsupported and serious compliance risks. 

Here’s how training planning can help your business. 

Strategic benefits

Training is a powerful lever for performance improvement. When you align training with your business strategy, you aren’t just upskilling individuals; you are building organisational capability.

Improved productivity is achieved when employees know exactly how to use their tools and follow processes, which leads to greater efficiency. Better retention is another clear advantage. Recent industry data shows that a lack of development opportunities is a leading cause of resignation in New Zealand. Demonstrating investment in employee growth builds loyalty and strengthens your team.

Succession planning is also a strategic benefit worth noting. A robust training needs assessment can help you:

1. Highlight high-potential employees
2. Map out the specific skills and experiences they need to move into future leadership roles
3. Reduce key-person risk, which is particularly important for the long-term sustainability of small to medium-sized businesses

By structuring your approach in this way, you create a solid foundation for both immediate performance gains and enduring business resilience.

Compliance and wellbeing benefits

New Zealand’s regulatory environment is strict when it comes to health, safety and fair employment practices.

The Health and Safety at Work Act 2015 sets clear expectations for businesses. As a PCBU (Person Conducting a Business or Undertaking), you have a primary duty of care to ensure your workers are properly trained and competent to do their work safely. A thorough training needs assessment will highlight where safety competency gaps exist, allowing you to address them before any incidents occur.

Fairness and good faith are equally important. Under the Employment Relations Act, acting in good faith requires you to approach performance issues fairly. For example, if an employee is underperforming, a training needs assessment can help determine whether a skill gap is to blame. This gives you the chance to provide support and targeted training first, rather than moving too quickly to disciplinary action. This distinction matters when aiming to avoid personal grievance claims.

Maintaining employee wellbeing is also vital. When people have the right training, they become more confident in their abilities. Employees who feel insufficiently trained may become stressed or anxious, so targeted training is an effective way to help staff manage their workload and maintain positive mental health.

Levels of training needs assessment

To get a complete picture, you can’t just look at individual employees in isolation. A robust assessment happens at three distinct levels.

Organisational level

This is the big-picture view. Here, you assess the alignment between your overall business goals and your workforce capabilities.

Ask yourself: Where is the business going, and do we have the people to get us there?

For a New Zealand exporter, this might mean assessing if your team understands new trade compliance regulations for the UK or EU markets. For a construction firm, it might be about readiness for new sustainable building standards. If you are introducing new technology, like an AI-driven customer support tool, the organisational assessment identifies that the entire support function needs digital upskilling.

Task or operational level

At this level, you zoom in on specific jobs, roles or processes. You identify the Knowledge, Skills and Abilities (KSAs) required to perform a specific job at the expected standard.

This is critical when roles change. For example, if your admin team is moving from manual data entry to cloud-based accounting software, the “task” has changed. A TNA at this level compares the new requirements (cloud software proficiency) against the current standard operating procedures. It ensures that the training is relevant to the actual work being done, rather than generic training that doesn’t apply to day-to-day reality.

Individual level

This is the most granular level, focusing on the specific employee. It answers:

Does this specific person have the skills to do their specific job?

You find these gaps through performance reviews, observation and direct feedback. In New Zealand, handling this level requires sensitivity and a focus on “good faith.” It is about support, not punishment. If an employee is struggling, an individual assessment helps you tailor a development plan specifically for them, rather than sending the whole team on a course that only one person needs.

How to conduct a training needs assessment

Conducting a TNA doesn’t have to be an overwhelming administrative burden. By following a structured framework, you can gather the necessary data efficiently.

Step 1: Identify business goals and skill gaps

Start with the end in mind. What are you trying to achieve this financial year?

To get started, take these steps:

1. Review your strategic plans carefully. Ask: are you expanding into a new region or launching a new product? Each goal will require new or different skills within your team.
2. Analyse your HR metrics. For instance, if you notice high turnover in a particular department, this could point to a need for better management skills. High injury rates usually indicate gaps in health and safety training.
3. Consult with department heads. Their insights often reveal bottlenecks and highlight critical skill gaps you might otherwise miss.

By following this process, you’ll gain a clearer view of both the skills you require and where your main risks or opportunities for improvement lie.

Example: A local logistics company wants to reduce delivery errors by 20%. The skill gap might be in using the new tracking scanners or in customer communication protocols.

Step 2: Assess team and individual competencies

Once you know the goals, you need to measure current competency. You can use several methods here – consider these approaches:

• Surveys and questionnaires – These are useful for gathering information from a large number of employees quickly. They make it easy to pinpoint where staff feel less confident.
• Observation – By watching employees as they perform their roles, especially in manual or customer-facing jobs, you gain detailed insight into current capability.
• Self-assessments – Ask team members to assess their skills against a competency framework. This helps highlight areas where further development may be needed.
• Performance appraisal data – Review feedback and results from previous appraisals to identify patterns or persistent gaps that need addressing.

Each method can be effective on its own but you will often get the clearest picture by combining them. For example, start with a team-wide survey to highlight broad areas of weakness, then use one-on-one discussions or direct observation to explore issues in more depth.

Remember, when gathering competency data, clear communication is essential. Clearly explain the purpose and use of the data to your team, and always comply with privacy requirements under the Privacy Act 2020.

Step 3: Analyse and prioritise training needs

You will likely find more training needs than you have budget for. This step is about triage.

When analysing and prioritising training needs, review three key factors: urgency, impact, and cost-benefit.

First, determine urgency by asking if the training is required to address a compliance issue. For example, meeting WorkSafe health and safety requirements must always take priority and cannot be deferred.

Next, consider impact. Evaluate whether the training will directly support your business goals. For example, upskilling your sales team in negotiation skills is likely to yield more immediate results than providing advanced Excel training to a designer.

Finally, weigh up cost versus benefit. Assess whether the potential advantages justify the investment. The cost of training should be measured against the possible losses that could result if the skills gap is left unaddressed.

By working through these steps in a structured manner, you can focus your training budget on areas that will make the greatest difference for your business.

Step 4: Create a training action plan

Now, turn your findings into a plan.

When creating your training action plan, focus first on setting clear learning objectives. For instance, replace vague statements such as “improve communication” with specific outcomes like ensuring team members can effectively de-escalate customer complaints using the LEAP method.

Next, select delivery methods that reflect your team’s range of needs. This could mean on-the-job mentoring, external workshops, e-learning modules or attending relevant conferences. Use the following steps to guide your planning:

1. Identify which training methods fit the skills gap and workforce size.
2. Match delivery with learning styles — for example, practical demonstration for technical skills or online modules for regulatory updates.
3. Schedule training sessions in a way that minimises disruption to business as usual.

Budgeting is the final step. Calculate both direct costs, such as course fees, and indirect costs, like the time team members spend away from everyday duties. Document these alongside your objectives and planned activities to ensure everything is clear and aligned with your business priorities.

By using a structured action plan with measurable objectives, appropriate training methods, and a realistic budget, you will maximise the impact of your development investment.

Analysing results and measuring success

A TNA is not a one-off event; it’s a cycle. Once you have delivered the training you must measure if it worked. Did it close the gap?

Metrics to track

To measure how effective your training has been, use a combination of metrics and approaches. A good way to start is by tracking employee reaction through post-training surveys. This gives insight into whether your team found the training useful and relevant.

Next, assess learning outcomes. You can do this by:

1. Testing employees formally to confirm they have acquired the intended knowledge.
2. Asking for skill demonstrations to ensure practical understanding.

Monitor on-the-job behaviour over time. Managers should observe if new skills are consistently applied three months after training, as lasting change is the real goal.

It’s also important to evaluate results at the organisational level. Look for measurable progress on business objectives, such as:

• Reduced delivery errors. For example, achieving a 20% decrease after targeted training.
• Lower lost time due to injury, showing better health and safety practices in place.

Finally, review the return on investment. Compare the full cost of your training initiative, both time and money, against the financial benefits gained, such as reduced errors or improved productivity. Establishing clear cause and effect between training and outcomes will help you decide where to focus future investment.

Common mistakes to avoid

Even with good intentions many businesses trip up on the execution. Avoiding common mistakes will save you time and help ensure your training investment delivers results.

First, be cautious about copying overseas models directly into your workplace. While global best practices can be valuable, they do not always suit New Zealand’s unique environment. For example, aggressive sales training courses from the US may not resonate with New Zealand teams or customers, who generally value a relational approach.

Another mistake is neglecting consultation with your staff. Under New Zealand employment law, you need to consult employees about changes affecting their work. If you exclude them from the training needs assessment, resistance and misunderstandings can easily arise.

It’s a common misconception that training is the solution to every performance issue. Sometimes, poor outcomes result from broken processes, unsuitable software, or workplace culture challenges. In these cases, training alone cannot fix the root problem and may even waste resources.

Finally, avoid treating all staff the same when it comes to development. A one-size-fits-all approach does not work in practice. Make sure your assessment process considers the experience, role and needs of each employee. A seasoned team member is unlikely to benefit from the same training as a new graduate. Tailoring your approach leads to better outcomes and a more engaged workforce.

Using Employment Hero to simplify training management

Managing this process manually can become a spreadsheet nightmare. This is where having the right tools makes a difference. Employment Hero’s platform allows you to streamline the entire lifecycle of training and performance management.

Our performance management features enable you to conduct comprehensive performance reviews, keep notes for casual check-ins and recognise work well done. Your team can also get access to our learning management system (LMS), which has thousands of engaging courses that employees can complete when it suits them.

Download your free training needs assessment template

Don’t leave your team’s development to chance. A structured approach ensures you are building a resilient, compliant and high-performing workforce ready to tackle the unique challenges of the New Zealand market.

Ready to get started? Download the free training needs assessment template by filling in the form on the right.

The information in this article is current as at 30 November 2025, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. Some information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.