What is a Skills Matrix? Benefits and Examples

If you want to get the most out of your team, a skills matrix could be the unsung hero of your HR toolkit. 

It will help you assess employee competencies, identify training needs, and make informed hiring, development, and project planning decisions. Skills matrices also support your talent management processes. 

In the following guide, we’ll explain what a skills matrix is, how to build one, and how it can support better performance across your organisation. 

Whether you’re leading a team, managing workforce planning, or overseeing employee development, a skills matrix can give you the clarity you need to unlock your team’s full potential.

What is a Skills Matrix?

A skills matrix (sometimes called a competency matrix) is a visual tool for mapping out the skills and competencies of individuals or teams within an organisation. 

It lists key skills down one axis and employees or roles along the other. It then indicates each person’s level of competency in each skill, often using a numerical rating, colour coding, or another easy-to-read system. 

A skills matrix provides clear, data-driven insights into workforce capability. It allows you an at-a-glance view regarding who excels where, who might need training, and where your team might have skills gaps that must be addressed.

Why Use a Skills Matrix?

A skills matrix is an essential tool because it quickly becomes a resource for better decision-making and team development. 

Some of the key use cases for a skills/competency matrix include the following: 

Visibility Into Team Competencies

With a skills matrix, you can see what your team is capable of and where they may be underutilised. That kind of visibility is invaluable when you’re trying to assemble a project team or develop a training plan. 

For instance, say that you notice you have two employees in different departments who have strong data analysis skills; such insight could lead to better collaboration or cross-training opportunities. 

Better Project Allocation

Knowing each person’s strengths helps you assign the right people to each task. In turn, your employees will experience better morale and become more productive as they are put into roles where they are confident and competent. 

If, for instance, you are launching a new campaign and need someone with content creation skills, a skills matrix will help you spot and select whoever is most qualified for the project. 

Identifying Skills Gaps

A clear matrix also highlights the skills your team lacks, which you can use to guide training and hiring processes. You can proactively prepare for your organisation’s future needs instead of waiting for a problem to surface in the middle of a project.

For instance, you may realise that your team lacks intermediate-level coding skills, which could delay a software implementation project. 

That would be a clear signal that you need to invest in training, hire new talent, or outsource some of your coding responsibilities. 

Supporting Employee Development

Pairing a skills matrix with a centralised skill tracking platform supports meaningful career conversations. 

When your team members can see where they stand and where they can grow, they will feel more empowered to take control of their developmental journeys.

Benefits of a Skills Matrix

Adopting a skill matrix can positively impact everyone, including HR, team leaders, employees, and the business. 

For HR and Team Leaders

The key benefits of a skills matrix for HR and team leaders include the following:

• Enabling data-informed decisions about training, hiring, and team structure
• Helping identify top performers and potential future leaders
• Simplifying performance reviews and succession planning 

Your HR members can also use a skills matrix to support employee onboarding processes, tailoring the experience based on the strengths and learning preferences of new hires and allowing them to integrate into the organisation more efficiently. 

For Employees

Your workforce will experience the following benefits through the use of a skills matrix:

• A transparent view of their current skill level
• Personalised development and career growth support
• Motivation by way of seeing clear opportunities for growth

A skills matrix visualises employee development pathways; individuals who are interested in progressing in their careers will know what it takes to achieve their goals. 

For Business Strategy and Planning

Skills matrices can also be invaluable for planning and strategy development. With a one, you can do the following:

• Align workforce capabilities with strategic goals
• Reveal opportunities for optimisation 
• Stay ready for future challenges with the right mix of talent 

Using a skills matrix to help you create a learning and development strategy will also promote better efficiency and reduced waste. Team members are more likely to buy into training programs tailored to each person’s strengths, weaknesses, and goals. 

Common Challenges and How to Overcome Them

Although the overarching concept is simple, implementing a skills matrix does come with challenges. 

Here are a few common ones and how to address them:

1. Challenge: Employees under- or overestimate their abilities 
   Solution: Use a combination of self-assessment, peer review, and manager input to accrue more accurate data

2. Challenge: You need to keep the matrix up-to-date 
   Solution: Regularly review it as part of your existing HR or performance evaluation process

3. Challenge: You must select the right level of detail
   Solution: Focus on essential skills and keep the format simple so that your matrix does not become too complicated

Skills matrices provide insights about an employee’s abilities “at a glance.” A matrix that is too detailed or complex can become difficult to interpret and unusable.

Skills Matrix Examples

To help you visualise how a matrix works, here are two practical examples and tips for customising your own.

Example for a Marketing Team

(1 = beginner, 4 = expert)

The above matrix reveals strengths and potential areas for mentoring. For instance, Curtis could improve in Google Analytics with mentorship from Ben.

Example for an Engineering Team

You could use this particular matrix to inform project assignments and identify training opportunities for each employee. 

Customising Your Own Skills Matrix

There’s no one-size-fits-all answer to creating a skills matrix. You must develop yours based on the roles in your team and the skills that are most important. 

You can include the following aspects:

• Technical skills
• Soft skills
• Role-specific requirements
• Interest level in learning new skills

You can also use a spreadsheet or a dedicated HR tool to customise your matrix. You can even use a simple whiteboard approach; there’s no need to overcomplicate the process.

How to Create a Skills Matrix: Step by Step

Here’s how to create your own skills matrix:

• Define Your Purpose: Identify why you are creating a matrix and how you are going to use it
• List Key Skills: Include only the most relevant skills to keep your matrix simple 
• Choose a Rating System: Use a scale (i.e., 1-4), colour codes, or check boxes
• Gather Input: Ask your team members to self-assess and review with managers to ensure accuracy 
• Review and Update: Periodically review your matrix 
• Take Action: Use the insights you gather to create developmental plans and reorganise teams 

With these steps in mind, you are ready to build your own skills matrix and use the information it provides to unlock your team’s full potential. The question is, how will you address skills gaps and level up your team? 

Enter Klara, a human-centric skills management solution.

Learn More About Creating a Skills Matrix

If you’re exploring how to improve team performance and inform your workforce development strategies, a skills matrix can be an excellent addition to your plan. 

Once you unlock insights from it, Klara can help you leverage the data to build a more talented workforce.

Our user-friendly, cloud-based skills management platform boosts engagement and drives employee development at scale. Identify talent needs, assign tasks, and diagnose skill levels within Klara. 

Get in touch today to learn more about its capabilities!

Skills Matrix FAQs

What Is the Primary Purpose of a Skills Matrix?

A skills matrix’s primary goal is to visualise your team’s competencies. You can organise the data it provides into an easy-to-read chart, which will help you assign people to tasks they are best suited for. You can also use a skills matrix to identify and address skills gaps. 

Can a Skills Matrix Help With Performance Reviews?

A matrix supports objective, structured conversations during performance reviews. You can visualise where an employee excels and has room to grow and connect team members with development opportunities that align with their career goals. 

How Often Should You Update a Skills Matrix?

You should update your skills matrix at least every six to 12 months. If you have been investing in employee development or have launched a new upskilling initiative, consider updating your matrix more frequently.