Research on newly graduated nurses' competence development and associated factors is relatively scarce. Data for this longitudinal, descriptive, correlation study were collected during 2012-2014 from 318 Finnish nurses to explore their competence development during the first 3 years after graduation and to estimate the extent to which given work-related factors predicted change in competence. Data were analyzed using NCSS 10 statistical software. Nurses' initially fairly high level of competence showed an increase in the third year, as measured by the Nurse Competence Scale. Empowerment increased minimally, whereas perceptions of practice environment, ethical climate, and occupational commitment decreased. Willingness to leave the profession and dissatisfaction with current job and nursing profession increased. Empowerment, satisfaction with current job and quality of care, time from graduation, and work experience explained 25.6% of the change in competence. Competence development was modest but increasing. Willingness to leave the profession was concerning. Factors enhancing or preventing competence development need further studying and developing proactive interventions. J Contin Educ Nurs. 2017;48(1):29-39.