Further education (FE) colleges in England are facing a reduced level of support from local and central government and an increased level of competition for customers. At the same time, the demographic trends mean a reduction in numbers in the age group that, traditionally, has provided the most full-time and part-time FE students. FE colleges will, therefore, have to find new clients, particularly in the field of updating and retraining for industry. This document is an attempt to provide assistance to colleges in the development and implementation of a college-wide policy for effectively ascertaining and meeting the changing needs of employers. It includes: (1) discussions on, and guidance relating to, the development of a college policy for determining the needs of employers; (2) guidance on the techniques that can be used to ascertain the needs of employers; and (3) examples of how some colleges have organized themselves to meet the needs of employers and the techniques used to determine such needs. The report contains checklists about developing policies for senior management and staff who must implement market research policies. A 21-item annotated bibliography is included. (KC)