Written for planners and practitioners in employability skills development programs, this handbook provides information and resources for designing and implementing competency-based instruction. Chapter 1 provides an introduction to basic terms and concepts that make up a competency-based system. It describes four skills required for one to be considered "ready to work" or employable: pre-employment competencies, work maturity, educational skills, and occupational skills. Chapter 2 presents a process and resources for planning a competency-based employability skills development process. Techniques are detailed for building a workplan, gathering information to define competencies, laying out the set of competencies and performance indicators, and reporting the process. Chapter 3 focuses on assessing competencies. Topics covered include purposes for assessment, methods, instrument development or selection, and organizing the assessment process. Chapter 4 on program management considers developing management goals. Chapter 5 offers a model for individualizing employability training. Examples of individual planning forms are provided. Chapter 6 looks at recordkeeping and reporting, including audiences and data sources. Selected forms are provided. Appendixes, amounting to approximately one-third of the handbook, include a listing of resources, sample competency development plan, sample competency sets, and starter lists of published instruments. (YLB)