This report presents issues associated with incentives for training existing workers in small to medium-sized firms, identified through a small sample of case studies from the retail, manufacturing, and building and construction industries. While the majority of employers recognise workforce skill levels are fundamental to the success of the business, their understanding and support of the national vocational education and training sector varies markedly. Employers and employees tend to prefer informal, on-the-job training because the returns to the enterprise are more immediate. Accredited training which is supported by employers and employees is mainly driven by external mandates, such as occupational health and safety, licensing and contractual requirements and industrial awards. Appended are: Stakeholder consultations. (Contains 1 table.) [For "Training of Existing Workers: Issues, Incentives and Models. Support Document," see ED495139.]