This study was conducted to assess business and industry's perceptions of the basic skills needed for entry-level successful employment. It also assessed business and industry's perceptions of the competencies that entry-level employees now have. Information was gathered via a basic skills questionnaire that was mailed to the personnel directors of 116 of the largest companies in Illinois (with a return rate of 44 percent--51 responses). The results of the study demonstrate a significant difference in business executives' perception of the level of basic skills important for success and the competence of secondary school graduates. This finding permeates the skill areas of writing, speaking/listening, reasoning, reading, mathematics, and science. The employers ranked especially high the skills of communication and reasoning; however, they believe that the schools are providing an inferior product in those skill areas. For example, respondents identified "writing standard English sentences" as the most deficient competency. In response to the deficiencies found in entry-level employees, many of the corporations have been forced to create their own business English or communication courses. The study concluded that changes need to be made in the educational system in order to prepare students for the technical world of work that is emerging. Some of these changes involve making school work more active and oriented toward problem solving and information processing, rather than toward the traditional teaching methods of talking to students and "filling" them with knowledge. (KC)