A skills matrix is a framework that companies use to visualize the skills employees possess and the level at which they possess them. This framework is commonly used to determine what is required in a team to complete a project or task successfully.
Aspect
Skills Matrix
Competency Matrix
Definition
A Skills Matrix is a tool used by organizations to assess and track the skills possessed by their employees. It helps in identifying skills gaps, training needs, and optimizing resource allocation.
A Competency Matrix is a broader tool that evaluates not only skills but also the knowledge, behaviors, and attributes required for effective job performance. It assesses employees’ overall competencies.
Focus
Skills Matrix primarily focuses on the specific skills and abilities possessed by individuals. It categorizes skills into different levels, such as beginner, intermediate, advanced, or by proficiency.
Competency Matrix has a broader focus, encompassing skills, knowledge, behaviors, and attributes that contribute to job performance and organizational success. It evaluates employees’ overall competencies.
Components
A Skills Matrix typically includes a list of skills or competencies required for a job or project and assesses individuals’ proficiency levels in each skill. It may use a simple matrix format with skill names and ratings.
A Competency Matrix includes a more comprehensive set of competencies, often categorized into knowledge, skills, behaviors, and attributes. It assesses individuals’ proficiency or competence in each category.
Measurement
Skills in a Skills Matrix are usually measured on a proficiency scale, such as levels (e.g., basic, intermediate, advanced), numerical ratings (e.g., 1 to 5), or binary (e.g., yes/no).
Competencies in a Competency Matrix may be measured using various rating scales, including qualitative descriptions, numerical ratings, or behavioral indicators.
Purpose
Skills Matrices are primarily used for assessing technical or job-specific skills. They help organizations ensure that employees possess the required skills for their roles.
Competency Matrices are used for a more holistic assessment of employees. They consider not only technical skills but also soft skills, behaviors, and knowledge critical for job success.
Employee Development
Skills Matrices are often used to identify skill gaps and tailor training and development programs to improve specific skills.
Competency Matrices support broader employee development by identifying gaps in competencies and guiding comprehensive training and development plans.
Job Matching
Skills Matrices are valuable for matching individuals to specific roles based on their technical skills, ensuring a good fit for job requirements.
Competency Matrices consider a broader range of attributes and behaviors, aiding in matching individuals to roles where a holistic set of competencies is crucial.
Recruitment and Selection
Skills Matrices may be used in the recruitment process to assess candidates’ technical skills and determine if they meet job requirements.
Competency Matrices can assist in selecting candidates based on their overall suitability and alignment with the organization’s core competencies and values.
Performance Evaluation
Skills Matrices can be used for evaluating individual performance, primarily focusing on technical skill development and achievement.
Competency Matrices support a more comprehensive performance evaluation, including assessing employees’ behaviors, attributes, and overall contribution.
Succession Planning
Skills Matrices are essential for identifying potential successors based on their technical skills and readiness to take on specific roles.
Competency Matrices play a significant role in succession planning by considering the broader competencies required for leadership and key positions.
Organizational Alignment
Skills Matrices are aligned with specific job roles and their skill requirements, ensuring that employees can perform their tasks effectively.
Competency Matrices contribute to organizational alignment by evaluating employees against a set of core competencies aligned with the company’s values and goals.
Adaptability
Skills Matrices may require frequent updates to reflect changes in job requirements or technology advancements, making them adaptable to evolving skill needs.
Competency Matrices are more stable over time as they encompass a broader set of competencies. However, they may still require periodic review and adjustment to remain relevant.
Complexity
Skills Matrices are simpler and more straightforward in structure, making them easier to create and maintain.
Competency Matrices are more complex due to the diverse range of competencies they assess, requiring more effort to develop and manage.
Customization
Skills Matrices are often customized for specific job roles or projects, tailoring the list of skills and proficiency levels accordingly.
Competency Matrices can be highly customized to align with the organization’s unique competencies and values, allowing for a more personalized approach.
Data Collection
Skills Matrices rely on data collection related to specific skills and proficiency levels, often through self-assessment, manager assessments, or training records.
Competency Matrices require a more extensive data collection process, including behavioral observations, 360-degree feedback, and assessments of knowledge and attributes.
Implementation Effort
Skills Matrices are relatively easier to implement due to their simplicity, making them suitable for organizations looking for a quick skills assessment solution.
Competency Matrices require more extensive planning, data gathering, and alignment with organizational goals, making their implementation effort higher.
Integration with HR Systems
Skills Matrices can be integrated into HR systems and software for skills tracking and reporting.
Competency Matrices, due to their complexity, may require more sophisticated HR software solutions to effectively manage and report on competencies.
A competency matrix is simply another name for a skills matrix.
While each matrix serves the same purpose irrespective of the name it is given, there do exist some differences between the way employee skills and competencies are defined.
Furthermore, for a skills matrix to be complete, both skills and competencies must be included.
In the next sections, we’ll define each term and how they contribute to organizational performance.
How are skills defined?
In the context of skills management, a skill is a learned ability that allows a person to proficiently perform or execute a particular task.
Another way to think of skills is that they clarify what a potential recruit can and cannot do.
Skills are said to be granular because they describe specific competencies such as:
C++.
Data entry.
HTML.
Programming, and
Quality assurance.
How are competencies defined?
While skills are specific and granular, competencies tend to be broader and are used to describe the capabilities of an organization’s workforce.
It is also important to note that multiple skills comprise a single competence.
Within competencies themselves exist three elements:
Ability
A measure of how well an employee can perform a particular skill.
In other words, can the employee apply the skill in a reasonable amount of time with a reasonable amount of energy?
Multiple abilities can form capabilities that, like competencies, are used to describe skills more broadly.
Knowledge
Information that is obtained and understood via study and experience.
Employees with knowledge can describe a subject in the absence of physical exposure to it via comprehension and memorization of facts.
Desire
A measure of an employee’s interest to perform, develop, and maintain competency in a skill.
Those with the ability and knowledge but without sufficient desire will find that their competency diminishes.
How can organizations benefit from competencies?
Tracking systems are used to monitor employee ability, knowledge, and desire to ensure the organization benefits from a certain level of competence.
To realize these benefits, the employee must be able to perform a skill (or group of skills) in a valid way.
For example, the group of skills a HR manager must be competent in include:
Effective communication.
Proficiency in recruitment, onboarding, and payroll platforms.
Soft interpersonal skills such as active listening, social awareness, and accountability.
How can organizations benefit from skills or competency matrices?
Organizations can also use these matrices to:
Determine if specific skills or competencies are missing
This will necessitate corrective action such as training of existing employees or recruitment of new employees.
Set clear job expectations
Skill and competency matrices set clear expectations around the attributes required for a specific role. This has implications for performance reviews and KPIs.
Improve employee engagement and motivation
Lastly, these matrices can be used to match employees with roles that suit their unique skill set. This results in motivated employees and happy customers.
Key takeaways:
There is no difference between a skills matrix and a competency matrix. Both serve as frameworks to analyze employee skill sets, identify skill gaps, improve employee engagement, and set clear job expectations.
The skills matrix does differentiate between skills and competencies, however. In short, skills are specific and granular abilities with multiple skills forming a single competency.
Competencies also tend to be broader than skills and are used to describe the capabilities of an organization’s workforce. To benefit from these competencies, organizations use tracking systems to monitor employee ability, knowledge, and desire.
Key Highlights:
Skills Matrix & Competency Matrix:
Both serve as frameworks to help companies visualize employee skill sets.
They are often used interchangeably but have nuances in their definitions.
Definition of Skills:
A learned ability that allows a person to proficiently perform a specific task.
Examples include C++, Data entry, HTML, Programming, and Quality assurance.
Definition of Competencies:
Broader than skills, they describe the capabilities of an organization’s workforce.
A single competence can be made up of multiple skills.
Three elements within competencies are:
Ability: How well an employee can perform a skill.
Knowledge: Information obtained and understood through study and experience.
Desire: Employee’s interest to perform, develop, and maintain competency in a skill.
Benefits from Competencies:
Organizations use tracking systems to monitor the three elements of competencies: Ability, Knowledge, and Desire.
To benefit from competencies, the employee must be competent in a group of skills like those needed for an HR manager.
Benefits from Skills or Competency Matrices:
Identify missing skills or competencies.
Set clear job expectations and performance review benchmarks.
Improve employee engagement by matching roles to unique skill sets.
Key Takeaways:
No inherent difference between a skills matrix and a competency matrix.
Skills are specific and granular, while competencies are broader.
Multiple skills form a single competency.
Organizations use tracking systems to ensure the benefits from competencies are realized.
Related Frameworks, Models, Concepts
Description
When to Apply
Skills Matrix
– A grid that displays individuals’ abilities across various skills, showing what skills are covered and identifying any gaps. It helps in planning for training, development, and team assignments.
– Ideal for teams to visualize skill levels and plan development activities, suitable for both small teams and large departments.
Competency Matrix
– Similar to the Skills Matrix, but includes behavioral and technical competencies. It’s used to assess and display levels of proficiency across a range of competencies.
– Useful for HR to manage career paths, succession planning, and comprehensive employee development programs.
Performance Management System
– A systematic process by which an organization involves its employees in improving organizational effectiveness in the accomplishment of its mission and goals.
– Critical for ongoing assessment and development of employee performance, aligning individual achievements with business objectives.
Training Needs Analysis (TNA)
– A process that helps organizations identify the skills and knowledge gaps within their workforce, so that they can deliver the most appropriate training.
– Applied prior to designing training programs to ensure that training meets the actual needs of the workforce and the business.
Job Evaluation
– A systematic way to determine the value/worth of a job in relation to other jobs in an organization. It helps in designing a fair and equitable pay framework.
– Necessary for establishing a fair compensation structure that reflects the relative value of each job in an organization.
360-Degree Feedback
– A feedback process where employees receive confidential, anonymous feedback from the people who work around them, including peers, managers, and direct reports.
– Utilized for comprehensive performance reviews that include insights from various perspectives within the organization.
Succession Planning
– A strategy for passing on leadership roles, and ensuring that businesses continue to run smoothly after key people move on to new opportunities, retire, or pass away.
– Essential for maintaining continuity and preparing for the future leadership needs of an organization.
Employee Onboarding
– The process of integrating a new employee into the organization and its culture, equipping them with the necessary knowledge and skills to become effective members of the team.
– Important for ensuring that new hires are successfully acclimated to their roles and the company, boosting long-term retention and effectiveness.
Talent Acquisition Strategy
– A long-term approach to identifying, attracting, and hiring talented individuals to meet organizational needs.
– Applied in strategic HR planning to ensure a steady pipeline of skilled personnel ready to fill key roles.
Organizational Development (OD)
– A field of research, theory, and practice dedicated to expanding the knowledge and effectiveness of people to accomplish more successful organizational change and performance.
– Necessary for improving organizational results through strategic interventions in change management and employee development.
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Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
