This article provides a reflective perspective on the role that research-led teaching plays in the development of future arts workers in higher education. It explores the challenges faced by lecturers developing curricula in the performing and creative arts and argues that the increasing focus on employability can conflict with universities' traditional aim of developing conceptual and critical thinkers. The article charges that the UK's higher education sector is rapidly transforming itself into a two-tier system, which is serving to dichotomize vocational and academic learning even further. It concludes with a call for universities, students and employers to reject the false dichotomy between vocational and academic learning and perceive education in a more holistic, longitudinal sense, which might in turn develop more balanced graduates who excel in networked knowledge, conceptual and theoretical imagination and critical, lateral thinking.