What does the term 'skills gap' refer to?

The term 'skills gap' specifically refers to the difference between the skills that are required for a job and the actual skills that employees possess. In the context of talent management, recognizing a skills gap is crucial for organizations as it highlights the areas where their workforce may not meet the demands of the business, which can impact productivity and overall performance. This understanding enables companies to identify training and development needs, align educational programs, and fulfill hiring practices to better match skillsets with job requirements.

While options that mention mismatches in job expectations and employee performance, discrepancies in skills across countries, and gaps in skills due to lack of training can relate to broader discussions about workforce effectiveness, they do not capture the specific definition of 'skills gap' as clearly as the correct option. Hence, the selection accurately reflects the core concept and its implications for talent management.