Advice for higher education institutional business officers, instructional heads, and continuing education and community services personnel regarding collaborative efforts with employers and government resources is offered as part of the American Council on Education's Higher Education/Comprehensive Employment and Training Act (CETA) Project, which was supported by the Fund for the Improvement of Postsecondary Education. An institution that collaborates in employee development efforts such as CETA can offer a range of possible contributions, including assessment services, basic skill development, job training, counseling services, and job development and placement. The use of existing instructional programs by CETA students is widespread, especially in community colleges. In some cases, special programs are developed and conducted for only CETA students (i.e., class size programs). For many public institutions, when CETA prime sponsors totally fund class size offerings, they can design or customize the class to suit students' needs. Colleges and universities often have outstanding student service and continuing education components to provide career counseling and support to the unemployed. Opportunities for the four-year school to participate in CETA-type manpower development programs also exist, especially in the research and development area (i.e., curriculum guides and staff development expertise). The following aspects of higher education/CETA collaboration are addressed: contract and auditing routines and procedures, risk management and insurance, administrative costs, and personnel considerations. Advantages of participation to the institution, instructional faculty and staff, students, and the private sector are discussed; and six brief case studies of collaborative projects are presented. (SW)