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Employers play a critical role in the national vocational education and training (VET) system as the ultimate users of the skills developed through training. However, little is known about how training operates within organisations. National collections of statistics in Australia and overseas have produced evidence of the scale of employer expenditure on training and what training employers provide for their workers. However, how employers make decisions about training remains something of an unknown. This study is an attempt to identify how employers make decisions about training. The data produced by the National Centre for Vocational Education Research (NCVER) in its biennial Survey of Employer Use and Views of the VET system (SEUV) were analysed and four different types of training were focused on: vocational qualifications; the employment of apprentices and trainees; nationally recognised training; and unaccredited training. The study found that the process of making decisions about training in organisations is complex and is influenced by a wide variety of factors. Policy-makers in the VET area should be aware that one-dimensional approaches such as training levies to increase the level of employer training are unlikely to be successful. A more sophisticated and nuanced approach to encouraging employers to invest in the training and development of their workers is necessary. The need for skills, including specific skills for the business and raising the overall level of workforce, is the major factor driving those Australian organisations that adopted these forms of training for their employees. Employers need to take a more strategic approach to skills in enhancing their competitiveness and, as a consequence, place training in a more central position in their strategic planning. The study also provides evidence that training is becoming more integrated with other human resource objectives in some Australian organisations. In light of this and the use of training by employers to meet skill needs, registered training organisations (RTOs) need to take a more business-oriented approach to their relations with employers.