The aim of this action research study was to identify learning outcomes for assessing work-related transferable skills during undergraduate psychology sandwich year placements as part of an ongoing cycle of development of the placement. The merits of assessing such skills are considered in relation to the role of universities in preparing undergraduates for the world of work together with National Vocational Qualifications and other assessment frameworks. Focus group discussions with final year ex-placement students contributed to the development of questionnaires to identify transferable skills. The questionnaires were administered to current placement students and their employers. Focus group and questionnaire responses were generally supportive of the idea of skills assessment. Possible learning outcomes and their incorporation into placement year assessment along the lines outlined by James (2000) are discussed. The importance of moving on to devise an assessment package to help placement students become reflective, autonomous learners is emphasised. (Contains 2 tables.)