Projects funded during the first year of operation of the National Workplace Literacy Program were examined. Activities included a review of research literature, analyses of data from 29 of the 37 first-year projects, and site visits to 6 projects. The research literature suggested the following elements of successful workplace literacy programs: a close and collaborative relationship between workplace literacy partners; employee involvement; a literacy task analysis; clear and objective program goals; linking of workplace literacy instruction with job tasks; and instructors with experience teaching adults. Information from site visits identified four components associated with effective workplace literacy projects: (1) active involvement by project partners, such as businesses and unions, in project planning, design, and operation; (2) active and ongoing employee involvement in conducting literacy task analyses and determining worker literacy levels; (3) systematic analysis of on-the-job literacy requirements; and (4) development of instructional materials related to literacy skills required on the job. Five recommendations to improve program effectiveness were offered: (1) require workplace literacy projects to collect data; (2) lengthen the grant period; (3) develop procedures for disseminating information about successful projects; (4) require projects to evaluate effectiveness; and (5) support development of instruments to assess participant literacy levels geared for the workplace. (Appendixes include 88 references and project data.) (YLB)