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Best Practices: Building a Skills Inventory

Learn about building a skill matrix for resource management

Why use Skills?

Instead of allocating resources primarily by role, consider using skills-based assignments to optimize your team's potential. While roles provide a useful starting point, using skills can unlock greater efficiency across your entire team.

Using skills-based allocation can:

Drive efficiency

  • by enabling team members from different roles and departments to contribute to projects where they might have previously been overlooked.

Generate cost savings

  • by leveraging existing team members with availability instead of hiring contractors or new employees.

Help deliver projects on time

  • by ensuring team members have the right skill sets for their assignments, preventing delays caused by mid-project reassignments and skill mismatches.

Improve employee motivation

  • by assigning resources to projects that align with their professional competencies, preventing the frustration and struggle that comes from skill mismatches in work assignments.


Step 1: Building a Skills Inventory from Scratch

A common mistake when implementing a company-wide skills matrix is starting with a comprehensive skills inventory of all employees to establish the organization's skills taxonomy.

This approach often results in thousands of skills with significant redundancies, creating an overly complex system that becomes difficult to manage and maintain.

In Runn, the average number of skills per employee is 5.

Instead, follow these best practices:

1. Define what constitutes a skill

  • Establish a clear, easy-to-understand definition since HR team members will typically maintain and update the system when new employees or contractors join.

  • Without a precise definition, you risk adding unrelated items like education, seniority, or certifications (these can be included separately as custom fields).

2. Establish definitions of Skill Levels

  • Runn adopts a numerical scale of 0-4. Define the descriptive terms (beginner, intermediate, advanced) for each skill level, and ensure all stakeholders share an understanding of how each level maps to a person's competency.


3. Identify project-critical roles

  • List all roles essential for project delivery within each business unit or department.

  • Initially exclude non-project roles—you can add them later.

  • Focus first on the skills needed for successful project execution.

4. Map skills to roles

  • Using your identified roles as categories, list the specific skills each role requires.

  • Job descriptions and resumes can provide guidance, but focus on skills directly related to project delivery, and keep them specific rather than generic.


Step 2: Refine the Skill Names and List

Be specific with Skill Names

  • Instead of generic terms like "Communication skills," specify what's needed for project delivery (e.g., "Digital marketing"). For technical skills, avoid broad categories; use "PostgreSQL" or "MySQL" rather than just "SQL."

Limit to 5-8 essential skills per role

  • Skip obvious skills and focus on those where competency level directly impacts project success. For instance, many roles beyond project managers require project management skills; the key is understanding their expertise level.

Finalize the list of skills

This list may end up being very long! Once you've completed the list of skills for each role and department:

  • Standardize language across all entries.

  • Eliminate duplicates by renaming similar skills; combine "UI Design," "UX Design," and "User Experience Interface Design & Research" into "UI/UX R&D."

  • Expect department-specific skills to expand usage as other teams discover relevant applications.

  • Create a master skills list while maintaining role associations in your spreadsheet.

  • Validate with stakeholders - get feedback from HR, department heads, and people managers before finalizing.

Examples

Role Name

Skills required for the Role

Project Manager

Problem Solving

Agile/ Scrum

Budget Management

JIRA

Front End Engineer

CSS Grid

Vue.js

JIRA

Progressive Web Apps

Graphic Designer

Figma/Canva

Typography

Presentation Skills

AR/VR Application Design

FAQ: How do I set up Skill hierarchies or categorize skills in Runn?

If you have a large organization and hundreds of skills, consider prefixing the skill name with a Category, Role or Team to make searching easier. For example, if you have several coding skills, you can have skills as below:

Role Name

Skills required for the Role

Project Manager

PM- Problem Solving

PM- Agile/ Scrum

PM- Budget Management

PM- JIRA

Front End Engineer

Front End- CSS Grid

Front End- Vue.js

Front End- JIRA

Front End- Progressive Web Apps

Graphic Designer

Comms- Figma/Canva

Comms- Typography

Comms- Presentation Skills

Comms- AR/VR Application Design



Step 3: Define the Skills of your staff

Typically, the People Manager (or Team Lead) should provide and validate the skills of the people they manage. If you don't have a chance to check with them, add the skill name (without Skill Level) you mapped to each role to people in that Default Role.

Although competency level is important for upskilling & properly assessing how long an assignment will take, you can add it later.


Step 4: Ongoing Data Governance

  • Resources should not edit their skills on their own.

  • The People Manager (or Team Lead) or HR should review and update their team's skill levels periodically.

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