To determine how best to connect public work force services in Texas with employers' needs, a study reviewed literature on employer involvement in government-sponsored training programs. Study activities included the following: review of findings from two recent national surveys on employer training, identification of states most strongly committed to reforming and linking their work force efforts more closely to employer needs, and interviews with Texas employers. Findings indicated that traditional approaches to involving private employers had limited success. Clashing cultures impeded employer engagement. Shareholder returns drove the business world, regulations ruled the public sector, and public program staff were not motivated to market services. Employers held negative images of government. Indiana, Massachusetts, Michigan, North Carolina, and Wisconsin were developing demand-side, market-based work force systems more responsive to employer needs than traditional programs. Third-party intermediaries, networks, and consortia arrangements held promise. Employers lacked awareness and good information. A proposed approach to employer engagement has would include the following: putting them first, providing basic services, targeting them for specialized services, conducting market research, developing marketing and sales strategies, meeting their education and training needs, and developing economic relationships with them. An action plan focused on what state government could do to promote employer engagement. (Appendixes contain 45 references and employer interview guide.) (YLB)