A skills matrix is a tabular tool that systematically captures the abilities and competencies of employees and compares them with job requirements. It helps HR professionals identify skill gaps, plan training programs, and meet ISO 9001 requirements. Typically, hard skills, soft skills, and certifications are displayed in columns, while rows list individual employees.

What Is a Skills Matrix?

Definition and Synonyms

The skills matrix is a structured instrument for personnel development. It visualizes in tabular form which abilities, certifications, and competencies individual employees, teams, or entire departments possess. In practice, it is also referred to as a qualification matrix, competency matrix, or capability matrix.

The structure follows a simple principle: employee names are listed in the rows, relevant qualifications in the columns. At the intersections, the respective competency level is entered – for example, on a scale from 1 (no knowledge) to 4 (expert). This creates a clear picture of existing and missing skills.

Difference: Skills Matrix vs. Competency Matrix

Although the terms are often used interchangeably, there is a subtle difference. The skills matrix primarily focuses on measurable abilities such as hard skills – concrete capabilities like programming languages, machine operation, or foreign language proficiency. Formal credentials such as certifications, licenses, and training completions are also captured.

The competency matrix goes one step further: it additionally includes soft skills such as teamwork, communication strength, or problem-solving ability. Knowledge and personal attitudes can also be part of a competency matrix. For most HR applications, however, this distinction is academic – both tools serve the same purpose.

Why Is a Skills Matrix Important?

Benefits for HR Professionals

A well-maintained skills matrix brings structure to personnel development. Instead of having competency data scattered across various Excel lists, folders, or only in the heads of individual managers, it consolidates all relevant information in one place.

The key benefits at a glance:

The matrix makes hidden potential visible. Perhaps an employee in accounting knows a programming language that would be valuable for an upcoming project. Without systematic documentation, this knowledge often remains untapped.

It enables an objective target-actual comparison. The target-actual comparison shows the difference between the required qualifications for a position and the actually existing skills. These skill gaps become visible at a glance.

Training planning becomes more targeted. Instead of offering training programs using a one-size-fits-all approach, HR teams can invest exactly where there is actual need. This saves budget and increases effectiveness.

Personnel decisions become more well-founded. Whether promotion, project staffing, or succession planning – with an up-to-date skills matrix, you make decisions based on facts rather than gut feeling.

ISO 9001 Requirements

DIN EN ISO 9001:2015 sets out specific requirements for competency management in Chapter 7.2. Organizations must determine the necessary competencies for activities that affect the quality management system. Additionally, it must be ensured that employees possess or acquire these competencies.

A skills matrix is a suitable tool for meeting these standard requirements. It demonstrably documents which qualifications are present and what measures are being taken to close gaps. During audits or certifications, an up-to-date matrix is an important evidence document.

Industry-specific standards such as IATF 16949 for the automotive industry or standards in medical technology and aviation also require comparable competency documentation.

Creating a Skills Matrix: Step by Step

1. Define Relevant Competencies

Before building a matrix, you need to clarify which skills are actually relevant for your company or department. Use job descriptions, process documentation, and strategic company goals as orientation.

Typical categories include technical qualifications such as software knowledge or machine operation, methodological competencies such as project management or analytical skills, and certifications and licenses such as driver's licenses, welding certificates, or IT certifications.

A team meeting can help identify the right requirements. Managers and experienced employees often know best which skills are truly needed in day-to-day operations.

2. Establish a Rating Scale

A uniform scale ensures comparability. A four-level rating has proven effective: Level 1 indicates no knowledge, Level 2 indicates basic knowledge requiring support, Level 3 means independent application, and Level 4 designates experts who can guide others.

Alternatively, some companies use a scale from 1 to 5 or symbolic representations such as traffic light colors. What matters is that each level is clearly defined and understood equally by all participants.

3. Capture Target and Actual Values

For each position or role, first establish the target value: What level of competency does someone need to perform this task well? Then capture the actual value – the current status of the respective person.

Actual assessment can be done through self-evaluation, supervisor assessment, or a combination of both. Important: Involve employees early and communicate transparently what the data will be used for. This increases acceptance.

4. Derive Actions

The real value of the skills matrix shows in deriving concrete actions. For small competency gaps, on-the-job training by colleagues or assignment of suitable tasks is often sufficient. Larger gaps require internal training or external professional development.

Sometimes the matrix also shows that certain competencies are missing in the company and need to be filled through recruiting. In this case, it provides valuable guidance for the job posting.

Skills Matrix: Example and Template

A typical skills matrix in Excel could be structured as follows: The first column contains the names of employees, the following columns contain individual competencies such as Excel proficiency, SAP, project management, or English. Each cell contains the rating value.

Additionally, you can insert a target row that defines the requirement value for a specific role. Color coding helps to quickly identify gaps – for example, red for deviations and green for met requirements.

For getting started, a simple Excel spreadsheet is sufficient. With growing complexity or multiple locations, it's worth switching to specialized HR software that offers automatic evaluations and reminders for expiring certifications.

Legal Framework

ISO 9001:2015 Chapter 7.2

The quality management standard requires organizations to determine the necessary competencies for activities that affect the QM system. These competencies must be documented and verified. During audits, an up-to-date skills matrix can serve as evidence.

Works Council Co-determination

If the skills matrix is built using a questionnaire or systematic data collection tool, co-determination rights under applicable labor laws may apply. In Germany, for example, Section 94 of the Works Constitution Act (BetrVG) gives the works council co-determination rights regarding personnel questionnaires.

Also, for training measures derived from the matrix, the works council has participation and co-determination rights under Sections 96 to 98 BetrVG. Early involvement of the works council is therefore advisable.

Data Protection (GDPR)

Qualification data is personal data under the GDPR. Its collection, storage, and processing must be lawful. Ensure transparent information for employees, purpose limitation of data, and appropriate technical protection measures.

Frequently Asked Questions About the Skills Matrix

What Is the Difference Between a Skills Matrix and a Competency Matrix?

The skills matrix focuses on measurable abilities, certifications, and hard skills. The competency matrix is more comprehensive and also includes knowledge, attitudes, and soft skills. In practice, both terms are often used interchangeably – for most applications, the distinction makes no practical difference.

Is a Skills Matrix Mandatory Under ISO 9001?

ISO 9001:2015 does not literally prescribe a skills matrix. However, Chapter 7.2 requires organizations to systematically determine, document, and ensure competencies. A skills matrix is a proven and recognized tool for demonstrably meeting these requirements.

How Do I Create a Skills Matrix in Excel?

Enter employee names in the rows and relevant competencies in the columns. At the intersections, enter the rating, for example on a scale from 1 to 4. Add a target row for the requirement value and use conditional formatting to highlight deviations in color.

Which Rating Scale Is Suitable for a Skills Matrix?

A four-level scale has proven effective: Level 1 for no knowledge, Level 2 for basic knowledge, Level 3 for independent application, and Level 4 for expert level. It's important that each level is clearly defined and uniformly understood by all participants.

Does the Works Council Need to Be Involved with the Skills Matrix?

If data collection is done via a questionnaire, the works council may have co-determination rights under applicable labor laws. Also, derived training measures may trigger co-determination rights. Early coordination is advisable.

How Often Should a Skills Matrix Be Updated?

A review should take place at least once a year. Additionally, an update is advisable after completed training or certifications, with job changes or new employees, and before audits or certification reviews.

Conclusion

The skills matrix is a simple yet effective tool for strategic personnel development. It creates transparency about existing and missing competencies, enables targeted training planning, and helps meet standard requirements such as ISO 9001.

For getting started, an Excel spreadsheet is sufficient. With growing company size and increasing compliance requirements, however, switching to specialized software solutions is worthwhile. What matters is that the matrix is regularly maintained – only then does it retain its value as a decision-making foundation.

If you want to close skill gaps through recruiting, objective aptitude assessment methods can help identify the right candidates. The digital platform Aivy offers scientifically validated assessments that objectively capture the abilities and potential of applicants – providing a well-founded basis for hiring decisions.

Learn more about objective aptitude assessment with Aivy

Sources

• DIN EN ISO 9001:2015 – Quality management systems – Requirements. German Institute for Standardization (DIN), 2015. https://www.din.de
• Works Constitution Act (BetrVG), particularly Sections 94, 96-98. German Federal Ministry of Justice. https://www.gesetze-im-internet.de/betrvg/
• ifaa – Institute for Applied Work Science: Knowledge Management Compact – Information, Instruments, Methods, Practical Examples. 2017. https://www.arbeitswissenschaft.net/
• RKW Competence Center: Competency Matrix - Skills Matrix (perso-net). https://www.perso-net.de/rkw/Kompetenzmatrix_-_Qualifikationsmatrix