How to use competency & skills matrix in 1on1 and performance reviews
November 10, 2025
Performance conversations can be tricky.
They’re supposed to inspire growth, set direction, and strengthen trust - yet too often they feel vague, subjective, or even uncomfortable.
That’s where a competency matrix comes in.
When used well, it’s not just an HR tool - it’s a shared language for growth.
It helps both managers and team members understand what’s expected, where they stand, and what progress actually looks like.
From experience, a well-designed matrix solves some of the most common, and costly problems we see in teams:
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Misunderstandings after “clear” meetings.
We’ve all been there: a call ends, everyone nods in agreement, but weeks later it turns out people understood things differently.
Suddenly, there’s rework, frustration, and lost time (and money). A clear competency framework keeps expectations aligned long after the meeting ends. -
Unclear growth direction.
Building a matrix forces you to ask tough questions: What does our team really need? What kind of skills matter most for our future?
Creating it is an act of research and reflection - a process of defining what “good” means in your context. It’s not easy, but incredibly valuable.
(And yes - there are plenty of templates to help you get started.) -
Performance reviews that feel disconnected.
Without structure, feedback often sounds random or personal. A matrix brings objectivity and focus - it connects performance with skills, not personalities.
It shifts the conversation from judgment to development.
Here’s how to use a competency matrix effectively during 1:1s and yearly reviews - and why it works so well.
1. It turns feedback into actionable, clear goals.
A good competency matrix breaks down growth into specific, observable behaviors.
Instead of saying “you should be more proactive,” you can say:
“At the next level, proactivity means identifying blockers before they happen and communicating them early.”
This transforms feedback from abstract advice into a concrete goal that your teammate can act on.
No guesswork, no ambiguity - just clarity.
During 1:1s, this makes progress measurable. During performance reviews, it creates a shared understanding of what “growth” actually means.
2. It makes growth understandable and fair.
The matrix makes expectations visible to everyone - not hidden in a manager’s head.
That transparency builds trust.
It helps team members see how their role evolves, what skills are valued, and what’s next on their path. And for managers, it reduces bias: evaluations become based on consistent, structured criteria, not gut feeling.
When people understand the system, they engage with it.
They start driving their own development - instead of waiting for direction.
3. It helps teams grow together.
A competency matrix doesn’t just show where someone is - it also highlights where the team stands as a whole.
In 1:1s, it helps identify who needs more mentoring.
In performance reviews, it helps align the team’s strengths with upcoming business goals.
It’s also a great way to spot patterns: maybe several people struggle with communication, or ownership, or technical depth.
That insight turns performance data into a strategic growth plan for the whole organization.
How to bring it into your next 1:1
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Review the matrix together.
Go through each skill or behavior point by point.
Mark what’s already achieved as done, add comments where clarification is needed, and move the remaining ones into in progress or goals.
This shared review creates alignment and removes assumptions - both sides leave the meeting with the same understanding of where things stand. -
Focus on real examples.
Each point in the matrix can become an actionable growth or project goal.
Discuss concrete situations or deliverables that demonstrate a skill in action - it makes feedback tangible and progress visible. This also helps translate abstract competencies into everyday work. -
Encourage your teammate to co-create the matrix.
Ask for their input: what skills feel missing, outdated, or not fully relevant?
Inviting people to shape the matrix themselves helps them reflect on what truly matters - and turns the tool into a source of insights for the entire organization. It’s one of the simplest ways to keep your competency model alive, relevant, and genuinely useful.
It’s simple - but it changes the tone completely.
The matrix becomes a map, not a checklist. It builds ownership, not evaluation.
In the end…
A competency matrix helps turn performance reviews into growth conversations.
It makes feedback actionable, expectations transparent, and development a shared journey - not a mystery.
When used regularly in 1:1s, it stops being a tool for judgment - and becomes a tool for progress.
