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Among all employee related problems,employee attrition is one of the key problem in the today's scenario. Attrition is said to be gradual reduction in number of employees through resignation, death and retirement. When a well-trained and well-adapted employee leaves the organization for any of the reason, it creates an empty space in an organization . This study helps in knowing why attrition occurs, reasons for employee attrition, challenges faced by managers in retaining employees and also suggest some measures in retaining employees.