Last week I was on the phone with a potential client and they asked me to explain in one page the advantages and practical steps to implementing an employee skills tracking system in their company. Here it is I hope you find it useful.
The benefits of a skills tracking system are considerable. The enterprise receives an in depth picture of where skills fulfill specific requirements and where they fall short (gap analysis). A skills baseline is developed. Responsibilities are put in place for fulfilling baseline requirements.
In due course, company performance always increases with more informed skills management. Through:
- Smarter needs and skills based hiring
- Identifying employees with relevant skills, qualifications and experience for particular jobs or projects.
- Recognize skill gaps and create needs-based recommendations for training and development for individuals or teams.
In establishing skills accountability, managers and employees are finding new validation for the adage “what gets measured gets managed, and what gets managed gets better.”
Your five steps for implementing your skills management system:
- Scope the Skills Management System (SMS)
- Define the purpose of the SMS
- Define the scope of the SMS
- Define roles and responsibilities that are covered by SMS
- Design the Skills Management System
- Define the elements that SMS covers
- Define the system interfaces (external and internal)
- Define the actual skills themselves
- Define the skill scoring system.
- Define how each skill is scored, assessed and recorded (competency assessment)
- Define the training and development program for each proposed Skill
- Implement the Skills Management System
- Have employees and managers record Skills against the defined Skills list.
- Train against the skills gaps.
- Monitor and reassess
- Assess and maintain Skills Management System
- Update Skills in response to change
- Review the output and impact of the SMS on Key Performance Indicators
- Indicators (KPIs)
- Verify and audit the Skills Management System
- Review and feedback
- Refresh and improve the SMS
FAQ
What are the five steps to implement skills tracking?
Scope the system by defining purpose and roles, design it by defining skills and scoring methods, implement by recording skills and training against gaps, assess and maintain by updating skills as needs change, and verify through audits and continuous feedback loops.
What is a skills management system and why implement one?
A skills management system (SMS) provides an organized way to track, score, and analyze employee capabilities against job requirements. It enables smarter hiring, better project staffing, targeted training recommendations, and gap analysis that directly improves company performance.
How does skills tracking improve hiring decisions?
Skills tracking establishes a baseline of what capabilities your organization has and needs. This data enables needs-based and skills-based hiring, so you recruit for actual gaps rather than guessing. It also helps you identify internal candidates before looking externally.
What is skills gap analysis and how does it work?
Skills gap analysis compares current employee capabilities against role requirements to identify where skills fall short. The enterprise receives a detailed picture of where skills meet specific requirements and where they do not, forming the basis for targeted training and development plans.
How should you define a skill scoring system?
During the design phase, define a clear scoring scale, determine how each skill is assessed and recorded, and establish who does the scoring. The scoring system should be consistent across the organization so that proficiency data is comparable and actionable.
Why does skills accountability improve workforce performance?
The principle that what gets measured gets managed applies directly to skills. When employees and managers have accountability for maintaining and developing defined competencies, performance naturally improves because expectations are clear and progress is tracked.
How often should you update your skills management system?
Skills should be updated in response to business changes, new technology, evolving role requirements, and completed training. Regular review cycles tied to performance indicators ensure the system stays current and continues to drive value for the organization.
What KPIs should track skills management system effectiveness?
Review the output and impact of the SMS on key performance indicators like hiring quality, time-to-fill positions, training completion rates, skill gap closure speed, and project staffing accuracy. These metrics validate whether the system is delivering its intended business outcomes.
How do you scope a skills management system correctly?
Define the purpose of the system, its scope within the organization, and which roles and responsibilities it covers. A well-scoped system focuses on the skills that matter most to business outcomes rather than trying to track everything at once.
What role does training play in skills management implementation?
Training bridges the gaps that skills tracking identifies. During implementation, you record current skills, identify where employees fall short of requirements, and then train against those specific gaps. Ongoing monitoring and reassessment ensure training investments are producing results.