Competency matrices – how to effectively manage employee development?

The employee competency matrix is an essential tool in modern companies, allowing them to create individual development paths for each employee, regardless of their position. Effective management of staff competencies has a key impact on the smooth running of processes within the company. Efficient communication and the elimination of information silos enable ever-higher efficiency rates to be achieved, which translates into competitiveness for the company. How do intelligent competency matrices help to effectively improve employee skills and manage their development?

What is a competency matrix and where is it used?

macierz kompetencji kolorowy na ekranie urządzenia

A competency matrix (also known as a skill matrix) is an essential tool for every manager, streamlining effective human resource management. The matrix contains information on the current level of skill development of team members. The solution enables analysis of gaps between the current and expected levels of competence and efficient identification of areas requiring improvement.

Employee competency matrices allow for advance planning of employee development – this applies to both individuals and the entire team. Why is this so important? One of the serious problems associated with improper competency management is the lack of employee replaceability. A transparent formula allows you to define areas requiring additional staff training in order to maintain continuity of information and fully utilize human potential.

The competency matrix usually takes the form of an Excel table. It contains employee data and selected competencies with an assigned value indicating the current skill level of employees, for example:

1 – untrained employee
2 – employee undergoing training
3 – employee can perform work under the supervision of another person
4 – employee can perform work independently
5 – employee can perform work independently and has the competence to train new employees.

However, some decide to abandon the numerical system in the employee competency matrix and replace it with another method of assessment, such as symbols. We have used this solution in the noSilo smart competency matrices – in our case, the numbers 1-5 have been replaced by a circular progress chart. Where did this idea come from? Assessing an employee’s competencies can motivate them to take action or, on the contrary, cause them to take a critical approach to their own work and, as a result, become discouraged. By using a progress chart, the employee does not see a number that defines them, but a gap to fill, which can be a more effective incentive to improve their competencies.

Why does your company need a competency matrix?

Nowadays, it is difficult to imagine well-coordinated and effective work without using employee skill matrices, especially in manufacturing plants. Employee competency matrices allow you to:

Organize the process of acquiring knowledge and guarantee employees the scope of knowledge used in a given position – without unnecessary overload of information that they will not use in practice anyway,
Plan a step-by-step development path for each position,
Manage employee rotation, plan shift handover, business trips, vacations, or training,
Identify competency gaps and plan additional supplementary training for current employees and introduce necessary changes in the onboarding of new people,
Avoid unnecessary costs associated with downtime and the need to make changes to the production plan as a result of staff shortages,
Make more informed decisions about external and internal recruitment.

How to create a skills matrix?

Creating a matrix of employee skills requires proper preparation and planning. It is worth seeking the support of people who currently work in a given position. Developing a list of daily responsibilities will help determine the skills necessary to perform tasks properly. Involving employees in the process of building a skills matrix can also strengthen motivation and a sense of appreciation among those supporting the creation of a new solution.

How to build a competency matrix to properly plan and assess your employees’ skills? Here is a step-by-step guide to preparing a matrix!

Distinguish between different positions. We will expect different qualifications from production workers, different ones from management, and yet others from office workers.
Define all the skills expected for a given position. An employee’s competency card should include both soft and hard skills relevant to the selected area and process, including the ability to operate machines, tools, and programs that the employee will use in their work.
Define the standard by which you will assess the level of competence, i.e., the scope of activities that must be fulfilled in order to determine that an employee can perform work at each of the five levels mentioned above.
Identify the people and solutions that will enable you to fairly assess the level of competence of your employees.

It is worth paying particular attention to the last point in preparing the competency matrix, i.e., the method of assessment. To obtain a true picture of an employee’s skills, it is a good idea to use several methods of assessment. One of them may be consultation with the immediate supervisor, who observes the problems and progress of each employee on an ongoing basis. In addition, it is worth implementing checklists to test theoretical and practical knowledge – such tests will provide irrefutable evidence confirming a specific level of skill. Combining several employee skill assessment systems will give you a true picture of each person’s qualifications.

When an Excel competency matrix is not enough…

Although at first glance, competency matrices in Excel seem to be a good solution, practice shows that this method of managing employee competencies is unclear, unintuitive, and time-consuming. Looking at any competency matrix template, it is easy to see the problems that can negatively affect the smooth running of processes in a company.

Qualification matrices cover both soft and hard skills, and all employees from different departments are subject to assignment. Companies with large workforces can easily get lost in the chaos of information, causing managers to waste time analyzing files.
Every error in a file translates into errors in work planning and change management. In industries such as manufacturing and logistics, a lack of precision in calculating available resources means a risk of delays in the timely execution of processes.
Communication errors and problems and ambiguities in the assignment of responsibilities result in wasted team potential and inefficient work, causing the company to lose money..

Competency matrices — examples

Employee competency matrices will only fulfill their role if they are properly adapted to selected groups of employees. It is therefore crucial to divide the matrix into the main areas of the plant. Identifying competencies depending on the position will allow you to maximize the potential of the skills matrix and obtain a clear picture of the qualifications of all employees. How to create such a division? In the case of a manufacturing plant, it may, for example, cover four areas: production, team and process management, quality management, and maintenance.

Competency matrix in production

The skill matrix for production workers should focus primarily on knowledge of operations and machine operation. The qualification standard can be assessed, for example, on the basis of hours worked on a given machine and verification of the quality of the processes performed (e.g., number of errors made, need for corrections, amount of waste generated, etc.). The competencies of each employee should be identified for each machine and operation (e.g., conventional milling machine, CNC milling machine, machining of a specific part).

Competency matrix in quality management

The competency matrix for quality management personnel should take into account standards for the implementation of all operations. Skills should be classified both in terms of areas (e.g., production, administration) and individual processes. Each activity carried out in a company has different characteristics, and the person responsible for verifying the quality of a given operation must have extensive theoretical and practical knowledge in this area and be familiar with the applicable standards. Competency matrices should also take into account knowledge of the equipment used for quality verification (e.g., various types of measuring devices, microscopes, etc.).

Competency matrix in maintenance

The skill matrices for maintenance workers should also include a division into selected areas, where each area has an internal structure divided into different positions (e.g., foreman, mechanic, electrician). In the case of technicians, the verification of competences should include, among other things, knowledge of selected processes, knowledge of the machines and tools used in the process, machine operation licenses, and the ability to set up machines and equipment. It is worth planning the development of competencies in such a way that maintenance employees assigned to a given machine or group of machines are versatile and can deal with most problems. This will eliminate numerous problems, such as the need to call in external service personnel or machine downtime due to the absence of a qualified person authorized to perform a given operation.

Management competency matrix

The skill sets required of management staff may also vary depending on the area and the specific nature of the position. We will expect different qualifications from people managing human resources than from those managing processes and projects within the company. Management staff must have a certain level of knowledge of both team management and processes. It is therefore necessary to determine what level of competence is expected for a given position. In both cases, the common ground will be skills related to proper work organization, conflict resolution, coping with stress, and the ability to use the software used in the company. It is also worth considering internal and external training courses on improving team and process management skills.

noSilo platform – practical employee development management through intelligent competency matrices

The noSilo platform is an integrated management system that includes a module supporting the standardized development of employee competencies. Intelligent competency matrices are used for effective human resource management in the company. All information is available in one place, and the clarity and intuitiveness of the platform allows you to quickly identify gaps in qualifications and plan the development path for each employee.

Unlike standard methods of managing employee competencies, such as matrices created in Excel, the noSilo platform is characterized by data transparency, comprehensiveness, and ease of use. Competency matrices work smoothly and allow you to quickly identify inconsistencies in training, authorizations, or competency validity—even with data on thousands of employees. Intelligent qualification matrices standardize the onboarding process for new employees or those transferred to other departments, and allow for effective human resource management in the event of absences, departures, or changes in the production plan.

The automated implementation process uses technical and practical knowledge that has been collected and documented in an attractive form, increasing the effectiveness of training processes. Instructional videos, on-the-job training, and documents such as SOPs (Standard Operating Procedures) can also be assigned to individual machines and competencies.

Eliminating information chaos and optimizing competency development management

The intelligent competency matrices that form part of the noSilo platform are an innovative solution that brings a number of benefits to both manufacturing companies and their employees.

A structured training process allows employees to become independent more quickly.
Improved communication and the elimination of information chaos translate into more effective process implementation.
Instant access to competency matrices enables efficient change management and production planning, including by department or process.
Insight into the level of competence and the established development path motivates employees to continue working on improving their qualifications.

Do you want to increase the effectiveness of your team and take employee competency management to the next level? Contact us and schedule a no-obligation meeting, during which we will present a demo of the system showing more of our platform’s capabilities!

Bibliography:

https://mfiles.pl/pl/index.php/Zarz%C4%85dzanie_kompetencjami;
https://nosilo.io/zarzadzanie-kompetencjami/;
https://mfiles.pl/pl/index.php/Komunikacja_wewn%C4%99trzna.