Whether you are in the midst of job hunting, writing job description, or forming teams, you are likely to encounter the terms “skills” and “competencies”. If you have ever thought they were interchangeable, you are not alone! While these terms are closely related, they also have distinct differences, which we will explain in this article. Find out more about AG5.com if you are looking for the best skills and competency matrix!
What are Skills?
The term “skill” has various definitions in its broad application. However, within the field of skills management, skill refers to a specific, acquired capability possessed by an individual. It refers to the particular proficiency in executing or performing a specific task. We emphasize the term “particular” or “specific” because, particularly in areas like training optimization or employee project allocation, precision is of great importance!
Understanding Skills through Examples
It is important to establish a shared understanding of skills across your workforce and organization. Without a clear framework that defines your skills taxonomy, employees and teams may interpret skills subjectively which may lead to miscommunication. For instance, let us consider a software developer role. Some skills important for this position might include:
- Java
- Data Entry
- HTML 5
- AWS Kubernetes
- Remote Work
Thus, skills are a reflection of an individual’s capabilities and competencies, laying out what they can or cannot accomplish.
What are competencies?
Competencies include a blend of abilities, motivations, and knowledge necessary to be considered proficient in executing a specific function. They serve as the foundation for assessing the capabilities of an organization’s workforce. Organizations can monitor staff skill levels, motivations, and knowledge by using competency tracking systems. That being said, it is important for managers to create competency targets for their business and provide a system for accurately tracking individual skills or sets of skills at the desired level or output.
Understanding Competencies through Examples
Competencies are most useful in achieving strategic benefits for businesses. They also provide a perspective into whether individuals can effectively perform specific skills or skill groups. With reference to the software developer example provided earlier, here are a few competency examples:
- Proficiency in Java programming language
- Capable of Back-end Language Skills
- Aptitude in Software and Digital Skills
The Importance of Skill and Competency Tracking
Differentiating between skills and competencies is important, with competencies having a broader scope than skills. A competency includes knowledge, skills, and abilities, whereas a skill is merely a component of a competency. A deep insight into both someone’s skills and competencies holds great value for businesses, hiring managers, and individuals striving for visibility into their career advancement.
Understanding a person’s skills and competencies enables businesses to make informed decisions regarding talent management, resource allocation, and training initiatives. For hiring managers, this information helps in identifying candidates who possess the required qualifications and capabilities to excel in specific roles. Additionally, individuals can use this knowledge to assess their strengths, identify areas for improvement, and identify a clear path for professional growth and development.
Utilizing Skills and Competency Matrix for the Best Result
Skills and competency matrix software plays a major role in visualizing an individual’s capabilities and contributions to a team or organization. Unlike traditional tools like Excel, this software offers the advantage of tracking, measuring, and visualizing data in real-time, irrespective of whether it is at the employee, team, or organizational level.
A matrix or framework serves as a tool for mapping out skills and competencies which provides decision-makers with a complete overview of teams and individuals. This enables easier team creation, facilitates the identification of skill gaps, and reveals hidden talents among staff. It also correlates training outcomes with skill and competency levels and helps in covering for absent employees due to sickness or other reasons.
Competency Matrix vs. Skills Matrix
A competency matrix serves organizational purposes on a broad scale, including creating a plan for recruitment, performance management, and career advancement. On the other hand, a skill matrix operates on a more tactical level, involving workforce planning, task assignment, and highlighting areas that require training and growth opportunities.
Similarities between a Competency Matrix and a Skills Matrix
The fundamental similarities shared by competency and skill matrices include:
Purpose
Both matrices are used to evaluate talent management within an organization. They help in identifying skill gaps, making predictions about future requirements, and bringing individual proficiencies in line with the objectives of the organization.
Structure
Both matrices have a grid format, wherein competencies or skills are mapped along one axis, and job roles or individuals are mapped along the other. Each cell within the grid indicates the proficiency level of the individual or role in the respective competency or skill.
Supporting career development
Both matrices contribute to career advancement by highlighting areas for improvement and identifying training needs, at an individual or team level. Organizations can implement effective training programs by conducting skill and competency-based assessments.
Application of Skills vs. Competency Matrix
When an industry is going through some significant shift, in that particular situation, It is essential to use a skill matrix instead of a competency matrix to assess the competencies of your workforce. This involves comparing their current skill set against anticipated future skill requirements.
Take, for instance, the scenario of a traditional publishing firm that deals with the emergence of digital media. To remain competitive, the company must transition from print to digital publishing. By using a skill matrix, you can evaluate the existing skill landscape within the organization and identify areas lacking in readiness for future adaptation. For instance, while proficiency in traditional publishing may be strong, skills needed for digital media, such as search engine optimization (SEO) and digital content management, may be deficient. Using a skill matrix enables you to identify these skill gaps and allows the company to amend its training and development efforts in order to create the skills necessary for adaptability and expansion.
Conclusion
Both the skills and competency matrix are used for specific functions in organizations. Sometimes, the requirements of an organization may overlap and in that scenario, it is best to have both types of matrices at hand to use them in a complementary fashion. AG5, is an excellent skills and competency matrix software. To find out more about the company, visit the official website!
