The Learning and Skills Network's (LSN's) think tank, the Centre for Innovation in Learning, in association with the 157 Group, the Association of Learning Providers (ALP) and the Association of Colleges (AoC), has undertaken timely and important research into how to support and improve employer engagement in the further education (FE) and skills sector. An e-survey of providers across the sector was undertaken between March and May 2010 to identify the challenges faced by the sector in relation to employer engagement and the ways they would like to see a support programme implemented. This was followed by a focus group meeting with staff across the FE and skills sector to validate and expand on the implications of the survey findings. This research provides a rich picture of how employer engagement is working on the ground. Although there is clearly still scope for improvement, particularly in relation to the strategic positioning of providers within the FE and skills sector, effective ways of supporting and increasing employers' take-up of flexible and relevant learning opportunities for their workforce have become embedded over recent years. Providers have also shown innovative responses to overcoming challenges to furthering their employer engagement and a picture is emerging of a sector developing a more commercial focus in their service offer, which seeks to clearly demonstrate the business impact of their services. Employers will pay for services if there is a clear relationship between perceived benefits to their business performance and/or the bottom line and what providers offer. Appendices include: (1) Survey respondents by job role; (2) Survey respondent by region; (3) Survey respondent by type of provider; (4) Range of occupational sectors respondents are working in; (5) What employer engagement activities is your organisation currently involved in?; (6) Current employer engagement activities separated by provider type; (7) Percentage of employer-related income at full cost recovery; (8) How much do you expect demand for Level 3 training or higher to change in your area in the coming year?; (9) What sort of support would providers like offered in the coming year as part of a professional development programme; (10) Support needs by region; and (11) Support needs preferred by type of training provider. A bibliography is included. (Contains 7 tables, 11 figures, and 12 footnotes.)