A key factor in the successful development of workplace learning is employer engagement (Leitch, 2006; DfES, 2007). However, despite numerous approaches by government in the United Kingdom to bring together employers, providers and learners so that economic success is generated by a skilled and flexible workforce, there continue to be challenges and fragmentary engagement. This article examines the policy context for employer engagement. It discusses the recent initiatives which have attempted to bring employers centre stage, particularly through the creation of foundation degrees (FD) in England. The article reports on a small-scale study of a Foundation Degree in Public Service Management (FDPSM) and identifies important challenges that need to be resolved if the aims of government, expressed through the Leitch Review of Skills (2006) and the Further Education Bill (2007), are to be achieved.