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This document reports on research into the views of Further Education (FE) Colleges about FE-employer links. The research aimed to: identify colleges’ views on what is effective in establishing good relationships with employers; gain an understanding of what has not worked well for colleges in trying to establish such relationships; identify barriers to colleges’ responsiveness to employers; identify incentives that might help colleges be more responsive to employer needs; and identify examples of good practice. Data were collected by means of telephone interviews with 133 college principals and 23 heads of department, as well as 8 case studies of good practice. The study found that colleges engage with employers in a variety of ways, from initial planning and marketing of college provision through course design and delivery to evaluation. Two thirds of colleges have business units which, although varying from institution to institution in form and function, generally are involved in marketing, course design, delivery and evaluation processes. More colleges are planning their introduction. Joint work between colleges is reported by over half the principals surveyed, however most of the joint work is project specific. While in general colleges engage with employers through their governing bodies, there are a variety of other consultative forums. The three main reasons for engagement with employers were: the needs of learners for courses directed towards employment; the generation of income for the colleges; and to make a contribution to the wider economic development of the area. The risks of employer engagement were perceived to be in the area of loss of core focus for the institution. Three types of barriers were identified: systemic barriers external to the college; internal college weaknesses; and employer failure to perceive the value of workforce development and perceptions that college provision does not meet employer needs.