This paper is a review of literature on employer engagement with vocational education and training (VET). The main conclusion is that the major form of engagement is through the competency-based training system, which is manifested through training packages. Another way employers are encouraged to engage with VET is through competition amongst training providers. This provides employers with greater responsiveness and choice. A glossary is appended. (Contains 1 table and 11 footnotes.) [Funding for this paper was made through a grant from the University of Warwick, United Kingdom.]