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The article analyzes the modern researchers theoretical ideas regarding the concept of professional competencies. The problem of professional competencies formation and development is essential under the current circumstances, as competition among production organizations increases every day. Moreover, employers are interested in highly qualified workers who are ready to achieve effective production results and contribute to the prosperity of companies via the implementation of theoretical knowledge and practical skills. The purpose of the article is to analyze the process of formation of professional competencies among employees. In this article, special attention is paid to the analysis of the most important competencies and skills of employees necessary for the full functioning of labor relations in the production process. Also, in this article, the competence-based approach to the implementation of practice-oriented training at the university for the preparation of potential employees, who are able to compete and adapt to the emergence of the latest modern technologies, has been examined and analyzed. The introduction of a competence-based approach into the higher education system is a new step in the training of highly qualified personnel who has not only a set of theoretical knowledge, but is also ready to implement the practical skills to solve various production tasks. An employee, who has received a high-quality higher education, a rich theoretical set of knowledge and practical skills, will apply his / her abilities in his work, demonstrating high efficiency. The results are presented via practical recommendations for employers and educational organizations concerning the employees formation of professional competencies.