TL;DR
- A competency matrix is a visual tool that tracks competencies by measuring skills, proficiencies and their workplace application.
- The competency grid compares knowledge, abilities, qualifications and behaviours across individuals and teams.
- Core components include people, required competencies, a rating system, scale, required level, score, evidence and currency.
- Unlike a skills or capability matrix, it tracks proven performance. Who performs to standard, and can you prove it?
- For HR and L&D teams, it makes competency gaps visible and supports ISO 9001 evidence requirements.
Finding and keeping employees with the right knowledge, skills and experience to support your business goals has never been more difficult.
The world is experiencing a global skills crisis, making it challenging to bring talented individuals into a company. This has seen many businesses focusing their efforts on training and employee retention strategies to combat the pressures and stress of the modern workplace. They’re upskilling, reskilling and identifying skill gaps in their teams.
However, while this focus on workplace skills is important, it’s critical for organisations to also measure, track and develop competencies within their workforce. A competency matrix is an essential tool for helping businesses in this endeavour.
In this article, we look at:
- Competency matrix meaning
- The difference between a competency matrix, skill matrix, and capability matrix
- Core components of a competency matrix
- The benefits of having one
- Examples of a company-wide, technical team, nursing, and engineering competency matrix
- Steps for creating an effective matrix
- A free, customisable competency matrix template to get you started.
What is a Competency Matrix For Employees?
A competency matrix is a visual tool that organisations use to map, assess, and track employees’ proven skills, knowledge, and behaviours against the requirements of their role.
What is the Difference Between Competency, Skills, and Capability Matrices
Competency, skills, and capability matrices all map employees against what the organisation needs. Each one measures something different, based on the distinctions between skills vs capabilities vs competencies. Understanding these differences helps organisations choose the right matrix for each purpose.
Competency Matrix vs Skills Matrix
A competency matrix records whether employees apply their skills to a required standard on the job. Organisations use it to answer: ‘Who performs to standard, and can we prove it?’
A skills matrix records which skills each employee has and at what level. Organisations use it to answer: ‘Who has this skill?’
Competency Matrix vs Capability Matrix
A competency matrix focuses on individuals, confirming each person meets the standard for their role. Organisations use it to decide who can be assigned to specific tasks.
A capability matrix focuses on teams, showing whether their combined skills cover the work required. Organisations use it to answer: ‘Can this team deliver what’s required of them?’
Competency Matrix Template FREE Download
Companies use various competency matrix formats, from Excel spreadsheets to specialised software. However, creating your own matrix from scratch can be a time-consuming task. That’s why we’ve done the legwork for you!
Our free, downloadable competency mapping template is customisable to meet your business needs and goals. Using it is as simple as filling in the competencies you want to track and the employees whose proficiency you want to measure. You can apply it to individuals or full teams as needed.
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Download our competency matrix template today.
Core Components of a Competency Matrix
People
The individuals whose competencies you’re tracking. A matrix can be company-wide, reflecting all employees across your workforce. It could also focus on a specific team. The first helps you gain a more complete overview of abilities and proficiency levels across your organisation. The second supports more targeted development.
Required Competencies
These are the tasks and skills that you’re checking proficiency against. They can also include licences and qualifications that need to be held. For example, required competencies for a company-wide competency matrix may include emergency evacuation, manual handling, or cyber security awareness. These are competencies that everyone should have, regardless of their role. A team-specific matrix goes deeper. Workers in an electrical team may require a current electrical licence, working at heights, and switchboard fault diagnosis.
Rating System
A rating system is key to an effective competency matrix. Two approaches are common, and some matrices use both. A proficiency scale uses competency matrix levels and scoring to rate each worker. Office and professional teams tend to use this, since their competencies develop by degrees.
Rating systems often differ between companies. Some use scales of 0-5 or 0-10. However, they can be as simple as a 4-point scale:
- 0 (No competency)
- 1 (Basic competency)
- 2 (Intermediate competency)
- 3 (Advanced competency)
A competency standard assesses each worker against defined criteria. Workers are either competent or not yet competent. High-risk industries tend to use this, since partial competency isn’t safe on high-consequence tasks.
Scale
A rating scale explains what each rating means, and what a worker must be able to do to achieve it. This could be a description of each proficiency level, or a standard that defines what competent looks like.
For example, if you’re tracking switchboard fault diagnosis, basic competency could mean performing routine checks under supervision. Intermediate could mean diagnosing and rectifying common faults unsupervised. Advanced could mean resolving intermittent faults and verifying the work of others.
Required Level
Different tasks and roles may require different competency matrix levels. This could be a minimum proficiency level, or a set of competencies the role must be competent in. For example, a technician may only require basic competency for switchboard fault diagnosis. A supervisor would likely need intermediate competency, as they are the person the technician would turn to if a problem occurred. A specialist would need advanced competency for addressing complex faults.
Score
Competency matrix scoring represents where each worker currently stands. This could be a proficiency level, or competent or not yet competent. For example, if a supervisor needs intermediate competency but they score a 1, reflecting basic competency instead, there is a gap that needs to be resolved.
Evidence and Verification
A score on its own is a claim. An effective competency matrix also needs to reflect evidence that backs the score up. This could include photos and videos of a task being performed, assessment results, eSignatures, or a certificate issued by a training provider. Linking to a central repository of evidence means anyone reviewing the matrix can see the proof behind the score.
The matrix should also include details of who assessed the employee and when they signed off on their competency. For example, a nurse scored as competent in medication administration should have a named assessor and a date attached. Without those details, you have a score but no way to defend it.
Currency
Licences expire, certificates lapse, and skills fade without practice. Currency tracks expiry dates and statuses to ensure competency scores hold up over time. For example, it may indicate upcoming expiries or reflect enrolments in refresher training. Some organisations also include an offboarding field to show that an expiry doesn’t need to be followed up on.
Benefits of Competency Matrices
1. Improved External Hiring
An effective competency matrix enables organisations to identify existing abilities and where fresh talent may be needed. This can inform external hiring processes, providing guidance on the skills and proficiencies that would boost performance and overall operations to achieve organisational success.
2. Enhanced Internal Recruiting
On top of identifying skill gaps that could be filled by new hires, a competency matrix can improve internal recruiting. By tracking employees’ competencies and proficiencies, businesses can more easily identify employees who are the right fit for specific roles and projects. This has the potential to improve employee performance, enhance operations, and guide succession planning.
3. Clear Career Paths
By listing the competencies required for specific roles, matrices help employees identify growth opportunities and reduce career stagnation. It helps them better understand where upskilling and reskilling will prepare them for future job opportunities within a company. This improves employee engagement, boosting retention and helping companies promote a culture of continuous professional development.
4. Targeted Training Programs to Meet Goals
Effective competency mapping and tracking helps companies create employee development plans that align career aspirations with business goals. They can also adopt employee training methods that meet workers’ preferred learning styles and effectively develop skills in specific areas that add value to operations.
5. Improved Employee Retention
A 2022 study highlights the relationship between employee competencies, stress levels and performance. It shows that the more confident employees are in their abilities, the less stress they experience, helping them work more productively and effectively. By tracking competencies, companies can leverage employee skills and train them in new and relevant areas, boosting confidence in their work. This is just one of the ways that training increases employee retention, as happy workers are unlikely to seek new job opportunities.
6. Prepare for the Future
Tracking competencies helps companies understand existing employee skills and identify areas for future training. For example, a business may not immediately need artificial intelligence skills within their IT team. However, tracking which employees have these competencies or could be trained in them can guide future developments. This improves adaptability, preparing businesses to meet changing industry standards and market demands.
Competency Matrix Examples
Company-Wide Competency Matrix
A competency matrix for employees across an organisation tracks the competencies every employee needs, regardless of role. These are usually pass or fail. Someone is either competent in manual handling or they are not, so a graded scale adds little value.
Technical Team Competency Matrix
A technical team matrix tracks skills that sit on a spectrum. The example below looks at the technical skills of an IT team. Someone can write code at several levels of independence, so a graded scale tells you more than a yes or no. The scores show each person’s current level compared to the required level for their role. Employees whose level is above the requirement are highlighted as well.
Nursing Competency Matrix
This example looks at a single competency across a nursing team: medication administration. By focusing on one skill, it shows every component of the matrix in a single view. This includes the evidence on record for the employee and verification details.
Engineering Competency Matrix
This engineering example also follows a single competency in depth. You can see that two engineers are scored above the required level. This presents an opportunity for the organisation, as these workers could be a good fit for promotion or training others.
Steps for Creating an Employee Competency Matrix
1. Identify the Scope of Your Competency Matrix
It’s important to start the competency mapping process with a clear idea of what you want to accomplish. Developing a competency matrix for a specific role or position will be a different process from developing one for an entire organisation. Sometimes multiple competence matrices are necessary for effective tracking.
2. Define Required Competencies
Determine the core competencies and skills required to meet your organisational goals. This will help you build a core competency matrix that optimises performance, supports specific positions and tasks, and shapes your company culture.
Start with essential employee competencies that apply across departments. Ensure they are measurable, adaptable, and aligned with your objectives. These could include:
- Emergency evacuation
- Manual handling
- Cyber security awareness
From there, consider creating competency matrices for specific projects, departments, and teams. Be sure to include tailored competency requirements, as these may not be easily transferable to other roles. For example, the competencies required by an electrical team would not directly apply to a nursing team.
3. Set Your Rating Approach
Decide whether to use a proficiency scale, a competency standard, or both. For a proficiency scale, define what is required at each level. For a competency standard, define the criteria a worker must meet to be deemed competent. Ensure that these requirements are specific, measurable, and aligned with company needs. It’s essential that these details are shared, so that employees, leadership teams, and management all understand what is required at each level of proficiency. Clear details ensure everyone is on the same page, and each employee is measured against the same criteria. This is especially important when measuring competency across different departments, offices, or sites.
4. Determine Assessment Methods
The next step is assessing employees’ existing competencies. Using different types of assessment will help you to more easily measure skills, knowledge, and their application. For example, self-assessments see employees evaluating their own competencies, while 360 performance reviews see peers and managers providing input on employee abilities. High-risk tasks usually need stronger evidence, such as a qualified assessor observing the task being performed.
5. Complete the Competency Grid
With an established framework and insight into existing competencies, it’s time to fill your competency matrices. List the competencies along one axis, and employees along the other, and complete the grid by indicating each person’s rating. Record the evidence behind each rating, along with who assessed it and when. You may want to include examples of their work and further steps to develop targeted training and development plans. Ensure that the matrices are also integrated into HR processes to streamline administration.
6. Evaluate and Update
Once the competency matrix has been implemented, the process isn’t finished. In order to make the most of your competency matrices, it’s important to regularly evaluate and update them. This will ensure that any changes, such as employee development or new recruits expiring licences, or scheduled reassessments, are recorded. Keeping an up-to-date competency matrix will ensure that it is always useful and can be relied upon for making data-driven decisions.
What makes a Competency Matrix Effective?
1. Provides Clear and Comprehensive Competencies
A matrix of competencies should be clear and comprehensive for specific roles and departments. Time, research and careful consideration of competency requirements will help you leverage this tool to enhance your operations and meet organisational goals.
2. Clearly Defined Proficiencies
Management and employees should be able to easily identify which proficiency level they fall under when reviewing a competency matrix. This will help them recognise areas of improvement and skills that they can work towards.
3. Consistent Assessment
For a competency matrix to provide accurate information, the same assessment methods need to be used to measure specific competencies across employees. Different methods can be used to assess different abilities and collect data, allowing for more accurate results. However, the same method must be used each time when measuring a competency, rather than switching tactics. Continuous assessment is also critical in tracking competency development over time.
4. Provides Insights For Training and Recruitment
Once created, your matrix should actively guide competency training, recruitment, and career development. These data-driven decisions will ensure that training and recruitment efforts fill skills gaps and enhance team strengths. Using a skills gap analysis tool alongside your competency matrix can provide even deeper insights. It can look into which capabilities need development and where training will have the greatest impact.
5. Adaptable to Meet Changing Company Goals
As markets evolve, businesses must develop new skills and competencies to meet changing demands. An adaptable competency matrix that can be adjusted as company goals shift will help you more easily manage change within and outside of your organisation.
How Does Cloud Assess’ Competency Matrix For Employees Work?
Cloud Assess is a training and assessment platform built for organisations in regulated, high-risk industries. Organisations use it to deliver training, assess competency, and track compliance in one place.
Cloud Assess’ competency matrix connects to training and assessment activities. This means that when an employee is assessed, the grid is automatically updated with their results. It also means organisations get a real-time view of competency, including who’s training in which areas. In practice, you can:
- Map roles, then see the gaps. Job Role Mapping sets the competencies each role requires. The matrix cross-references those role profiles against your people, so competency gaps show in real time.
- Verify competency in high-risk roles. Organisations run dedicated Verification of Competency (VOC) workflows for safety-critical tasks. Assessors use them to confirm workers can perform each task to standard.
- Capture evidence in the field. Workers upload photos, videos, and audio from a mobile device. Digital signatures capture sign-off with audio or video for authenticity.
- Stay ahead of expiries. Cyclical Assessment manages recurring requirements with expiry dates and automated reminders. Currency is tracked for you.
- Spend your training budget where it counts. Analytics prioritise spend against your largest competency gaps, rather than spreading it evenly.
Want to see how this would work for your team? Explore Pricing or chat with us today to see how Cloud Assess can help you build a smarter, compliant workforce.
Frequently Asked Questions (FAQs)
Competencies Matrix FAQs
What changes when designing a competency matrix for remote teams?
Designing a competency matrix for remote teams changes how competency is verified, not what the matrix contains. Nobody is standing beside the worker watching them perform. So evidence like photos, video, and work samples replaces direct observation, and a supervisor at the worker’s location often verifies performance instead.
What does an auditor look for in an ISO 9001 competency matrix?
ISO 9001 asks you to determine the competence needed for each role, and keep evidence that people meet it. Clause 7.2 sets no format, so a standard competency matrix already covers most of it. What an auditor tests is whether your records hold up.
Who should own and maintain a competency matrix?
Someone in HR, training, or WHS, depending on what your competency matrix tracks. Assessors update individual scores, but one person needs to own the structure itself. A named owner keeps the matrix current, preventing role requirements from drifting out of date without anyone noticing.
What is the difference between a competency matrix and a training matrix?
A training matrix records what someone has completed. A competency matrix records what they can do. Course attendance does not prove capability, so a competency matrix tracks assessed performance and the evidence behind it.
Can the competency matrix be effectively integrated with performance management systems, and if so, how?
Yes. A competency matrix can be integrated by mapping competencies to specific performance criteria. This supports targeted training and development plans and performance evaluations based on clearly defined requirements.
What are the best practices for communicating the findings of a competency matrix to the team?
Communicate competency matrix findings by providing constructive feedback that focuses on training and development opportunities. Creating personalised action plans and fostering an open environment where employees feel supported can also help teams proactively work toward enhancing their competencies.
How do I measure competencies objectively?
Use predefined, measurable criteria for each competency. Combine self-assessments with manager reviews, and consider different assessment methods or performance-based metrics to ensure accuracy.
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