How to Use a Skills Matrix with Online Training Software to Build a Stronger Workforce

Knowing what skills your employees have is important. Knowing what to do with that information is even more valuable.

Many organisations maintain spreadsheets listing employee qualifications, technical capabilities, certifications, and proficiency levels. While these records provide useful visibility, a skills matrix delivers the greatest value when it leads directly to targeted employee development.

That's where online training software can play an important role.

By combining a well-designed skills matrix with digital training, organisations can move from simply documenting workforce capabilities to actively addressing skills gaps. Managers can identify what employees need to learn, assign relevant development opportunities, track progress, and continually reassess workforce capability.

The result is a more connected approach to skills management—one where workforce data informs training decisions and training outcomes feed back into workforce planning.

What Is a Skills Matrix?

A skills matrix is a structured framework that shows the skills available across a team or organisation.

Typically, employees are listed against relevant skills, with each skill assigned a proficiency level. This creates a visual overview of where the organisation has strong capabilities and where development may be required.

For example, a marketing team's matrix might include:

At a glance, managers can see individual strengths and potential gaps.

A skills matrix can support decisions about:

• employee training;
• workforce planning;
• project allocation;
• succession planning;
• recruitment;
• professional development; and
• team capability.

The existing eSkilled skills matrix guide similarly highlights that matrices can help organisations map employee abilities against required competencies and use those insights for training, recruitment, and project decisions.

However, identifying a skills gap is only the first step. Organisations then need an effective way to close it.

From Skills Matrix to Training Strategy

Consider an organisation that discovers through its skills matrix that only 30% of supervisors have advanced conflict-resolution skills.

The spreadsheet has successfully identified a problem.

But what happens next?

A traditional response might involve arranging a workshop for every supervisor. That can work, but it may not be efficient. Some employees may already have the required competency, while others may need significantly more development.

A better approach is to connect the skills matrix with an employee development strategy supported by online training software.

The process could look something like this:

Identify the required skill → Assess current proficiency → Find the skills gap → Assign relevant training → Monitor completion → Assess improvement → Update the skills matrix.

This creates a continuous development cycle rather than treating the skills matrix as a static HR document.

Why Skills Matrices and Online Training Software Work Well Together

Skills matrices answer one important question:

What capabilities does our workforce currently have?

Training systems answer another:

How can we develop the capabilities our workforce needs?

Bringing the two concepts together allows organisations to build a more structured approach to professional development.

1. Turn Skills Gaps Into Training Priorities

A skills matrix can quickly reveal areas where employees are below the desired proficiency level.

For example, a customer service department might identify gaps in:

• complaint handling;
• product knowledge;
• CRM software;
• data privacy;
• written communication; and
• customer escalation procedures.

Instead of creating a generic training program, managers can prioritise learning according to actual workforce needs.

With online training software, relevant courses or modules can then be delivered to employees who require development in those areas.

Training becomes more purposeful because it is connected to identified capability gaps.

2. Avoid Unnecessary Training

Not every employee needs every course.

Imagine requiring an experienced manager with ten years of workplace safety experience to complete the same introductory safety training as a new employee.

There may be compliance reasons for mandatory training, but for broader professional development, repeating skills employees have already mastered can waste valuable time.

A skills matrix can help organisations distinguish between:

• employees who need foundational training;
• employees who need intermediate development;
• employees ready for advanced training; and
• employees who may already demonstrate the required proficiency.

Organisations can then use online training software to deliver learning experiences that better reflect those differences.

This makes development more relevant while allowing employees to spend more time building skills they actually need.

3. Create Role-Based Learning Pathways

Skills requirements vary considerably between roles.

A frontline employee may need operational skills.

A supervisor may require coaching and communication capabilities.

A department manager may need leadership, budgeting, strategic planning, and performance-management skills.

Rather than treating professional development as a catalogue of unrelated courses, organisations can create role-based learning pathways.

For example:

New Supervisor Pathway

1. Communication fundamentals
2. Giving effective feedback
3. Conflict resolution
4. Performance management
5. Workplace compliance
6. Team leadership

Experienced Manager Pathway

1. Advanced leadership
2. Strategic decision-making
3. Change management
4. Workforce planning
5. Coaching future leaders

Skills matrix results can help determine where each employee enters the pathway.

Using online training software, organisations can then structure, deliver, and monitor these development journeys digitally.

4. Make Training Decisions Based on Evidence

Training programs are sometimes created based on assumptions.

Managers believe employees need communication training.

HR thinks leadership capabilities need improvement.

Employees request particular courses.

All of these perspectives can be useful, but a skills matrix provides another valuable source of evidence.

For instance, suppose the matrix reveals that 60% of a department meets the required technical competency but only 25% reaches the target level for project management.

That gives L&D teams a clearer indication of where development resources may have the greatest impact.

After training is delivered through online training software, assessment and completion data can provide additional evidence.

Managers can compare:

Skills before training → Training completed → Assessment performance → Skills after training.

This helps organisations evaluate whether learning initiatives are actually contributing to workforce development.

5. Improve Workforce Planning

A skills matrix isn't useful only for employee training.

It can also help organisations prepare for future workforce requirements.

Suppose a business plans to implement new software six months from now.

A skills assessment reveals that:

• 20% of employees are already proficient;
• 35% have basic knowledge;
• 30% have no experience; and
• 15% will require advanced administrator training.

Management now has useful information for planning the rollout.

Rather than waiting until implementation begins, the organisation can use online training software to establish different learning pathways for each group.

Training can begin early, reducing the risk of introducing new technology before employees are ready to use it effectively.

How to Build a Practical Skills Matrix

A skills matrix doesn't need to be complicated.

Excel or another spreadsheet application can provide a practical starting point, particularly for smaller teams. The existing eSkilled guide, for example, provides templates covering simple matrices, skills mapping, technical skills, proficiency levels, and summative skills matrices.

A useful matrix generally includes several core components.

Employee Information

Include information necessary to identify the employee, team, or role being assessed.

Depending on your organisation, this could include:

• employee name;
• department;
• position;
• manager; and
• employment level.

Avoid adding unnecessary personal information.

Skill Categories

Group related capabilities together.

Common categories could include:

Technical Skills

• software proficiency;
• machinery operation;
• data analysis;
• specialised industry skills.

People Skills

• communication;
• teamwork;
• conflict resolution;
• coaching.

Leadership Skills

• delegation;
• decision-making;
• strategic planning;
• performance management.

Compliance Skills

• workplace safety;
• privacy;
• cybersecurity;
• industry-specific requirements.

Your categories should reflect the capabilities employees actually need to perform their roles.

Proficiency Levels

A simple rating scale makes skills easier to compare.

For example:

Level 0 – No Experience
The employee hasn't developed the skill yet.

Level 1 – Beginner
The employee understands basic concepts but requires guidance.

Level 2 – Competent
The employee can perform the skill independently in typical situations.

Level 3 – Advanced
The employee demonstrates strong proficiency and can handle more complex situations.

Level 4 – Expert
The employee has extensive expertise and may be able to coach or train others.

Whatever scale you choose, define each level clearly.

Otherwise, one manager's "advanced" could be another manager's "intermediate."

Turn Matrix Results Into an Employee Training Plan

Once you've completed the skills matrix, don't immediately assign courses.

First, compare existing proficiency with the proficiency required for each role.

For example:

This turns a spreadsheet into an actionable development plan.

Training administrators can then use online training software to provide courses, assessments, resources, or learning activities corresponding to each development area.

Use Training Data to Keep Your Skills Matrix Current

One of the biggest problems with skills matrices is that they can become outdated.

An employee listed as a beginner six months ago may now be highly proficient.

Another employee may have completed a qualification.

Someone may have changed roles.

New technology may introduce entirely new skill requirements.

That's why a skills matrix should be treated as a living document.

Online training software can support this process by providing information about training participation and learner progress.

eSkilled LMS, for example, includes course management and reporting capabilities that can support organisations in monitoring training and development. The original skills-matrix guide specifically highlights using LMS reporting alongside skills matrices to track progress and keep assessments relevant.

Rather than reviewing skills only during annual performance discussions, organisations can establish regular review cycles.

Skills Matrix vs Training Matrix: What's the Difference?

These terms are sometimes confused, but they answer different questions.

A skills matrix shows what employees can do and their current level of proficiency.

A training matrix generally shows what training employees need or have completed.

For example:

Skills Matrix

Training Matrix

The most effective workforce development strategy can use both.

The skills matrix identifies capability.

The training matrix tracks development activities.

Online training software can help connect the two by managing the learning experiences intended to build those capabilities.

Common Mistakes When Using a Skills Matrix

Creating the spreadsheet is relatively straightforward. Maintaining a useful skills management process is more challenging.

Tracking Too Many Skills

A matrix containing hundreds of poorly defined capabilities quickly becomes difficult to maintain.

Focus on skills that are relevant to roles, performance, compliance, or organisational strategy.

Using Vague Proficiency Levels

Terms such as "good" or "excellent" are highly subjective.

Use clearly defined proficiency criteria wherever possible.

Relying Only on Self-Assessment

Employees can provide valuable insight into their capabilities, but self-assessment shouldn't necessarily be the only source.

Depending on the skill, organisations may also use:

• manager assessments;
• practical demonstrations;
• qualifications;
• assessments;
• workplace evidence; and
• performance data.

Identifying Gaps Without Addressing Them

A beautifully formatted spreadsheet doesn't improve workforce capability by itself.

Skills gaps should lead to appropriate action.

That might involve coaching, mentoring, recruitment, job shadowing, practical experience, or structured learning through online training software.

Failing to Update the Matrix

Skills change.

Jobs change.

Technology changes.

Business requirements change.

Review the matrix regularly so it continues to reflect your workforce.

When Should You Move Beyond Excel?

Excel is a useful starting point for skills mapping.

For a small team, it may be all you need.

As organisations grow, however, manual spreadsheets can become harder to maintain.

You may eventually find yourself dealing with:

• hundreds of employees;
• multiple departments;
• large training catalogues;
• different competency requirements;
• recurring compliance training;
• complex reporting requirements; and
• frequent employee changes.

At this stage, relying solely on spreadsheets may create unnecessary administrative work.

Combining skills data with online training software can provide a more scalable way to manage the learning side of workforce development.

eSkilled LMS is positioned for workplace learning as well as education and training environments and provides functionality for delivering and managing online learning.

Creating a Continuous Skills Development Cycle

The real value of a skills matrix isn't the spreadsheet itself.

It's the process the matrix enables.

A strong workforce development cycle could look like this:

Step 1: Define
Identify the skills required for each role.

Step 2: Assess
Determine each employee's current proficiency.

Step 3: Compare
Identify gaps between existing and required capability.

Step 4: Develop
Provide targeted learning, coaching, mentoring, or practical experience.

Step 5: Track
Use online training software to monitor relevant learning activities and progress.

Step 6: Reassess
Determine whether proficiency has improved.

Step 7: Update
Refresh the skills matrix with new information.

Step 8: Repeat
Continue the cycle as roles and organisational requirements evolve.

This transforms skills management from an occasional HR exercise into an ongoing organisational capability strategy.

Conclusion: Build a Connected Workforce Development Strategy with eSkilled

A skills matrix gives organisations visibility into their workforce. Online training software helps turn that visibility into action.

By identifying capability gaps, prioritising development needs, assigning appropriate learning, and reviewing employee progress, organisations can create a more structured approach to building workforce capability.

The strongest results come when skills management isn't treated as an isolated spreadsheet exercise. Training delivery, administration, course development, and quality learning resources all contribute to the wider learning ecosystem.

That's where the eSkilled range of solutions can support different parts of the training journey.

eSkilled SMS helps training organisations manage student administration and related processes, while eSkilled LMS provides the online training software environment for delivering courses, managing learning, and monitoring training progress. eSkilled positions its SMS and LMS as integrated solutions for RTOs, while its LMS also supports workplace learning and other education settings.

eSkilled RTO Resources provides training and assessment materials for Australian training providers, helping RTOs access resources across a broad range of training packages.

eSkilled AI Course Creator adds another layer by helping organisations turn documents and ideas into structured, interactive online courses. Its capabilities include AI-assisted course generation, quizzes, document conversion, and SCORM-compatible outputs for use with learning management systems.

Together, SMS, LMS, RTO Resources, and AI Course Creator can support different stages of training management and delivery—from administration and learning resources to course creation and digital training.

Your skills matrix can show you where the gaps are. The next step is creating a learning strategy that closes them.

With the right online training software and a consistent approach to skills development, organisations can turn workforce data into meaningful learning opportunities—and build teams that are better prepared for what's next.