The emergence of a knowledge-based economy (k-economy) has spawned a "new" notion of workplace literacy, changing the relationship between employers and employees. The traditional covenant where employees expect a stable or lifelong employment will no longer apply. The retention of employees will most probably be based on their skills and knowledge that can create advantages for the company over its competitors. Employers invest in the skills of their employees to improve productivity and the profitability of the company. Training costs can be substantially higher than that of general or academic education but are justified when the value of the company's earnings and productivity exceed the cost of the training. Numerous empirical studies regarding entry-level employee competencies from the perspective of employers have been conducted in both industrialized and developing nations. The results of the studies found that employers prefer certain types of entry-level competencies of the prospective employees. This article provides an overview of workplace literacy from the perspective of the employers and also reviews pertinent literature regarding Malaysia's transition toward a k-economy. (Contains 2 tables.)