Master's Thesis from the year 2016 in the subject Leadership and Human Resource Management - Miscellaneous, grade: A, , language: English, abstract: Employee retention is one the core problems of the modern era. As firms are facing difficulties to retain their best employees in current time, employees also have the best option for them to utilize their talent in different organizations. So in this environment firms have to spend a lot on employees to retain them. If one employee leaves the organization then it can become very difficult for the organization to immediate fulfill that position. The irm has to hire the new employee after fulfilling all the procedure i.e hiring, recruiting etc. Training is also necessary for newly hired employees to became an active part of the organization and sometimes after doing lot of effort the firm does not even succeed to get the competent employees so therefore employee retention remains one of the biggest challenge for any organization to retain its best employees for the longer period. In this case the firm has to increase the salaries of employees and other benefits from time to time, promotion and other incentive to retain its employees. Training and development for capacity building is also key figure to increase employee retention. So employee retention problems exist in the business industry. Apart from the government sector, in private sector employee retention is an even more serious problem as government sector employees are not easily willing to leave the organization because they have job security in government sector but in private sector employees can move easily when they get any better opportunity. The objectives of this study are to find out: How capacity development influences and helps in retention; how emplyee empowerment effects on retention; and how promotion impacts retention.