The community-managed mental health sector is facing a crisis. Funding is less certain, demand for services is increasing, and retaining a skilled and competent workforce is proving a challenge. In order to respond to this workforce crisis a literature review was conducted on the effectiveness of higher education scholarship programmes, as a workforce strategy to encourage mental health workers to remain in the community sector and to determine the key elements in the design of a successful scholarship programme. The review focused on whether undertaking tertiary studies influenced workers' intentions to remain in their chosen area of work and their future career plans; however evaluations on the successful provision of higher education scholarships and their influence on workforce retention proved limited. The review resulted in the development of a list of key elements that may contribute to the successful design and delivery of an industry focused, higher education scholarship programme.