A skills matrix, also referred to as competency matrix or capability matrix, is a tool to map the necessary and available skills for a team or project. A completed skills and competency matrix visualizes the skills that are required, the skills that are available, and the skills that are missing.
What should be included in a skills matrix?
A skills matrix is a grid that displays employees’ names corresponding with the following components:
- Skill/Competency/Capability – Each element that is required to carry out the project.
- Proficiency – A number value placed on each employee’s level of proficiency for every required skill.
- Interest – A number value for how motivated each employee is in applying themselves to or developing the required skills.
Let’s have a look at a skills matrix example of a people analytics task force:👉🏻 Skills Matrix Template
How to create a skills matrix
The following steps will help you formulate a skills matrix:
1. Define the relevant skills
Start by working with key stakeholders to determine the pertinent skills and core competencies needed to form a team or complete the project. This will also isolate the criteria for assessing team members’ performance. Evaluating which skills are missing helps prevent the team from missing deadlines, internal conflict, or other costs later on.
Stay focused on the primary requirements to streamline the skills matrix.
For the best results in improving team performance, managers and HR collaborate on creating skills matrices.
2. Assess team members on their current skill levels
The second step is to evaluate team members on their current skill levels. You can mix and match different assessment methods, such as:
- Competency testing
- Self-evaluation
- Performance review data
- 180-degree feedback instrument, which gathers input from individuals, their peers, and their direct manager
- 360-degree feedback instrument, which also includes feedback from additional parties, such as customers or direct reports
For each skill, rank a person’s proficiency. Here is an example of a five-point scale:
- 0 = No experience or knowledge
- 1 = Limited experience or knowledge
- 2 = Reasonable experience or knowledge
- 3 = Considerable experience or knowledge
- 4 = Expert experience or knowledge
You can also use a different scale, but make sure you’re consistent.
3. Determine a person’s interest in working on the proposed tasks
Discovering who has the right competencies is only half the battle. Employees must have the ambition to use and develop the required skills to stay engaged with their work.
For each skill, have employees indicate their level of interest in it. This can be a very straightforward rating system:
- 1 = No interest in applying this skill or knowledge
- 2 = Interested in applying this skill or knowledge
4. Incorporate all information in the skills matrix and act on the insights
You can use the data from your competency matrix to understand which proficiencies you have on board and where the deficiencies are. The visual nature of the skills matrix helps you see the strengths and opportunities for improvement quickly and clearly.
Put the information into action by setting goals for what still needs to be done. This may include developing a plan for conducting skills training or recruiting new employees to fill in a skills gap.
5. Keep the skills matrix up to date
To have relevant data at your fingertips, you need to keep skills matrices current with updated data. Continually reviewing them is also the way to track and monitor the progress and impact of learning and development investments and prepare for future needs.
The ever-evolving business climate compels organizations to access relevant, up-to-date data to make swift decisions and changes. Skills matrices reveal the makeup of your workforce’s skill sets. With this knowledge, you can maximize the available talent and develop the areas that need attention to advance organizational goals.
Performance Review is an annual employee performance appraisal in which the results, competencies and development of employees are evaluated, which helps to plan the following year, revise salaries and pay bonuses. It is a mandatory part of Performance Management and fits perfectly with MBO, KPI, OKR.
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