Global markets, general computerization and digitalization, as well as technological development often force to redefine competencies of current employees. At present, employees are functioning in a very dynamic, diverse and multicultural environment. The changing expectations of employers and market requirements result in the need to continuously develop and enhance competencies. Therefore, it is important for employees to develop competencies, which are desirable on the job market, to be able to work in the numerous professions of the future. This publication presents categories and types of competences, as well as trends in the development and changes of competencies of employees. Possibilities of improving competencies have been indicated. Challenges faced by the higher education system as well as relevant expectations towards graduates of higher schools have been defined. An assessment of the demand amongst entrepreneurs for selected competencies of employees (creativity, entrepreneurship, teamwork, communicativeness) has been carried out in the light of the conducted research in selected European Union countries.