The competency matrix: a simple tool for developing a team

What a competency matrix is

A competency matrix is a document that shows:

• Which skills and knowledge are needed for different positions. For example, a manager needs the ability to lead a team, while an accountant needs knowledge of financial accounting.
• What level of those skills employees have. For example, someone is only starting to learn Excel, while someone else already builds complex spreadsheets with ease.

How it is structured

1. Competencies. A list of all the skills and knowledge that matter for the job. For example: teamwork, English, project management.
2. Proficiency levels. An assessment of how well an employee has mastered each skill. Levels can be: basic, intermediate, advanced.

What a competency matrix is for

• Assessing current skills. For example, you see that an employee handles the technical side well but lacks client communication skills.
• Planning training. If the team has gaps in certain skills, you can organise training or courses.
• Hiring. The matrix helps you understand which employees are ready for a new position, or which qualities to look for in candidates.

How it relates to succession planning

A competency matrix is a great help in developing employees and preparing them for new roles:

• Spotting talent. For example, you may notice that one employee has every chance of becoming a project lead.
• Career planning. Based on the matrix you can draw up an individual development plan: which skills to strengthen and which tasks to try.
• Preparing replacements. If a key employee leaves, the matrix helps you prepare their replacement in advance.

How to use the matrix to develop a talent pool

1. Analyse needs. Decide which skills your company will need in the future. For example, if you plan to enter international markets, foreign languages become a priority.
2. Create training programs. Organise courses or internships so employees can develop the competencies they need.
3. Track progress. Update the matrix regularly to see how employees are growing.