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HR Glossary

HR terms frequently used by HR professionals.

Capacity gaps 

What are capacity gaps?

Capacity gaps represent a significant difference between an organization’s goals and objectives. As a result, an organization fails to follow its mission and vision.

Why do capacity gaps occur?

Capacity gaps occur and widen when:

  • The board involved in making operational decisions is not qualified or does not exist
  • Performance issues or excessive turnover are not addressed
  • Leaders are detached from the rest of the organization
  • The organizational communication structure is not well-defined

What are the key indicators of an overly wide capacity gap in an organization? 

Key indicators of widening capacity gaps are:

  • Too few employees to manage the workload
  • More employees but less work accomplished
  • Employees not having the skills to complete tasks

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