HomeBlogs
Strategic Workforce Planning
Strategic Workforce Planning
Talent Strategy
Aaditya Mandloi
Written by :
Aaditya Mandloi
January 10, 2025
16 min read

How to Create a Skills Matrix

Table of contents

Text Link

A skills matrix is essential for organizations to visualize and manage employee capabilities to align talent to tasks. It clarifies how to define strengths, skill gaps, and the direction of workforce development. It makes building a new team, scheduling skills training, or preparing for upcoming projects easy.

In this article, let's navigate through a step-by-step guide to creating a skills matrix. Also, find out how beneficial a skills matrix is and how it can improve team performance with real examples reflecting actual usage. 

What is a Skills Matrix?

A skills matrix is essential for organizations to visualise their workforce skills and competencies. It offers a systematic overview of internal analysis that enables organizations to view the capabilities of their employees by mapping them against jobs, tasks, or projects.

In general, a skills matrix is presented as a grid or a table that denotes each employee's proficiency across various skills, enabling managers to determine strengths, weaknesses, and areas of development.

Organizations can use a skills matrix to save time and costs when placing employees in the right place or planning staff training opportunities. Succession management, workforce planning, and filling skill gaps have been made easier through it, making it a core building block for improving team performance and organizational effectiveness.

Bridge the skills gap in your organization. Get a clear view of your workforce's capabilities with iMocha's AI-driven skills gap analysis.
Book a demo

Why is a skills matrix important for organizations?

A skills matrix is an integral part of any organization because it gives a clear, structured view of workforce capabilities in an easily manageable way to handle talent and strategic planning.

Here is why it matters:

  • Identifies Skill Gaps: Finds out where employees are deficient in their skills so that organizations can target their training and development programs accordingly.
  • Better Resource Allocation: The managers can assign people to the right task or project depending on their expertise.
  • Improved Workforce Planning: Provides assistance in succession planning, talent development and preparation for future skill needs.
  • Enhance Team Performance: Offers a foundation for fostering collaboration through understanding the strengths and weaknesses of teams and balanced workloads.
  • Facilitating Employee Growth: Clarifies employees' skills and helps instil motivation for upskilling and growth.
Finding it challenging to discover skill gaps and plan employee development? Take help from iMocha’s skills intelligence platform.
Book a demo

Steps to Create a Skills Matrix

Here are the top six steps to create a skills matrix:

1. Define Goals and Scope

Before you start, define the reason behind creating the skills matrix. Know what has to be accomplished, whether it is closing skill gaps, improving resource allocation, or better training programs. Define boundaries of the departments, teams, or projects covered. Clear objectives ensure the matrix remains focused and actionable.

2. Identify Key Roles and Skills

Make a list of all the company's crucial roles and the skills needed for such roles. Break down the tech, soft, and speciality skills relevant to particular jobs. Take the time to work with managers or team leads to understand role-specific and technical skills requirements completely. 

3. Create a Skill Level Framework

The defined skill level must be graded so proficiency levels can be measured easily.

Examples of frameworks include:

  • Beginner (Basic understanding)
  • Intermediate (Can do some things with guidance)
  • Advanced (Can operate independently)
  • Expert (Can do it proficiently and can teach or lead others)

This framework defines how skills should be assessed and compared among employees.

4. Gather Employee Data

Collect data about employees' current skills with the help of self-assessments, managers' feedback, and skill-assessment platforms. Encourage honest skills and reflection among employees to gain the best results. Businesses can also use surveys, interviews and automated data collection.

5. Populate the Skills Matrix

Next, data should be organized into grid or table formats. One axis should have the names of employees, while the opposite can list skills. Then, fill the cells with the respective levels of proficiency based on the data gathered. Indicate skill levels using colors, numbers, or symbols, signifying high, medium, or low levels.

6. Analyze Update Regularly

Lastly, review the matrix to identify gaps in skills, over-resourced profiles, and training areas. It also helps form a roadmap for development actions, contextualizing them within the business objectives framework. Regularly reviewing and refining the matrix ensures it is relevant according to employees' evolving and growing skills.

Seeking a solution to organize and track employee skills? Explore our skills matrix software list, designed to provide a comprehensive view of individual capabilities.

Struggling to define the right skills in the company? Get in touch with iMocha and streamline the identification process for your skills.
Book a demo

Skills Matrix Example

IT Skills Matrix

Skills John Doe - Network Engineer Jane Smith - Cybersecurity Analyst Alex Johnson - Software Developer
Proficiency Interest Proficiency Interest Proficiency Interest
Networking 3 1 2 0 1 1
Cloud Computing 1 1 4 1 2 0
Python Programming 5 1 3 1 4 1
Cybersecurity 2 0 5 1 1 0
Data Analysis 1 0 2 0 3 1
Agile Methodologies 2 1 3 1 3 1


Proficiency Level:
Rating between 1 (Beginner) and 5 (Expert).

Employee Interest Level: Rating of 0 (No interest) or 1 (High interest).

How Skills Intelligence Surpasses the Traditional Skills Matrix? 

Skills intelligence is an advanced method of managing workforce skills driven by AI and real-time data collection. Unlike a traditional skills matrix, which is manually updated, skills intelligence offers dynamic insights by consistently evaluating data from different sources.

It empowers businesses with predictive analytics, automated updates, and personalized learning pathways, making it a superior tool for strategic talent management.

Key differences:

  • A traditional skills matrix needs manual data management and periodic updating, while skills intelligence brings dynamic data and real-time updates by AI. 
  • A typical matrix differs in limited customization and scalability, while skills intelligence is highly customizable and easy to scale for the global workforce. 
  • Skills intelligence improves analytics with AI-driven insights and predictive capabilities, supporting forward skill planning while enabling proactive decision-making. 
  • Skills Intelligence also cuts off static reporting as it integrates seamlessly with all relevant HR tools, providing automated data-driven decision support for optimal workforce management.
Feature Skills Matrix Skills Intelligence
Data Management Static and requires manual updates Dynamic, real-time data collection and updates
Data Collection Method Periodic assessments, often manual Continuous, AI-driven data collection from multiple sources
Customization Limited, often standardized Highly customizable to meet organizational needs
Scalability Challenging to scale for large organizations Scalable for global and diverse workforces
Analytics Capability Basic, lacks predictive features Advanced analytics with AI-driven insights and forecasting
Tracking Skill Proficiency Manual ratings (1-5) AI-driven, deeper insights into skill levels and proficiency
Employee Development Reactive, focusing on current skills Proactive, focuses on future skill needs and gaps
System Integration Limited integration with other HR tools Seamless integration with HR and business systems
Forecasting Future Needs No ability to predict future skill requirements Predicts future skill gaps and trends using AI
Automation Level Requires manual updates and management Fully automated updates and insights based on real-time data
Decision-Making Support Relies on static reports and manual input Provides real-time, data-driven decision-making support
Employee Engagement May not actively engage employees due to static nature Engages employees by offering personalized learning and development insights

Conclusion

Traditional methods for creating a skills matrix can be tedious and static. On the contrary, using iMocha for AI-driven skills intelligence allows businesses to bring dynamic real-time insights.

Its features include customizable assessments, automated updates, and advanced analytics, which track skills accurately and proactively address the gap. It pulls with existing HR systems and helps organizations create a scalable, future-ready skills matrix that drives data-rich decisions and improves employee development.

Get a comprehensive view of your talent. Understand your employees' skills and potential with iMocha Skills Intelligence and identify opportunities for growth.
Book a demo

FAQs

What information should be included in a skills matrix?

Aspects included in a skills matrix should be names of employees, roles, and relevant skills under assessment for technical or soft competencies. Proficiency levels indicate how well the skill is mastered, typically rated from beginner to expert.

It highlights the skill gaps and recommends training for the course of action in creating development plans. Evaluation dates or timelines can also help in tracking progress. Such a structure helps align the organization's workforce capabilities with business goals.

How can a skills matrix be used for talent management?

The skills matrix drives performance management through effective development tracking. It keeps hiring managers informed through skills that are better suited to external recruitment and, above all, drives workforce management. It also helps with effective talent management, succession planning, and resource optimization. 

How often should a skills matrix be updated?

For relevance, a skills matrix must continually be updated. Annual updates can include new skills brought into the organization, while changes following project completion and training would reflect recent progress.

Revising the matrix as the market needs change is a proactive talent strategy. Frequent updates keep it fluid and actionable, driving smarter decision-making and better workforce management.

Like the post? Share it!
Enhance talent-based decision-making with Skills Intelligence.
Book a demo now!
By clicking on the above button I agree to
iMocha's Terms of Service, Privacy Policy, and GDPR commitment.

More from iMocha

Internal Mobility
Why hire new candidates, when you can upskill/reskill existing employees for new job roles, teams, or locations within your organization. Read our blogs on Internal Mobility to know more!
Read more
Employee Skill Gap Analysis
Is a 'Skills Gap' impeding your organization's progress? Explore our specialized blogs to discover best practices, current trends, and the latest market insights on proactively addressing and bridging skills gaps.
Read more
Strategic Workforce Planning
Align your talent with your business objective and develop future-ready workforce with our intuitive blogs on Strategic Workforce Planning.
Read more
Embark on your talent journey with us! Subscribe to our blogs now!
By clicking on the button below I agree to
iMocha's Terms of Service, Privacy Policy, and GDPR commitment.