The success of work-centered welfare programs depends on clients connecting to the workforce and sustaining employment. Engaging employers in welfare and workforce development policies and programs is critical to achieving positive labor market outcomes for clients. Employer involvement in welfare-to-work activities can benefit public agencies, service providers, clients, and employers alike. The following are among the steps that public agencies can take to create a more businesslike and business-ready environment: (1) provide employers with a single point of contact; (2) create a more accountable service system; (3) modify policies to maximize flexibility in service delivery; (4) invest in staff training to support a culture of employment; and (5) decentralize program activities so that more services can be delivered in the workplace. The following are among the ways agencies and providers can address employers' needs: (1) expand the pool of qualified entry-level job applicants through pre-employment job readiness programs and training; (2) reduce labor costs through financial incentives; (3) improve workers' reliability with work supports and income enhancements; and (4) help fund and coordinate customized training. Research has identified useful lessons on working with employers and designing welfare-to-work programs to meet labor market needs. (Nine resource contacts and 14 references.) (MN)