Retention of employees has become one of the main challenges for human resources professionals. Employment opportunities have sky rocketed in the recent years and employees today have numerous choices. There is a great demand for skilled and experienced labour. Therefore, it has become very hard for organizations not just to attract the best talent but also to retain them. Studies in the recent years have shown that managing employee retention has become a top priority to HR professionals leaving behind employee relations issues, performance management issues, etc (Taylor, 2002).Top most priority when it comes to managing employee retention is to understand why employees quit. It is only when HR professional understand the intrinsic motivators of the employees that they can effectively manage employee retention. There are various challenges or issues that HR managers face with respect to employee retention and following are few important ones:Theoretically, numerous reasons can be pointed out for employees quitting the company. But studies and researches have shown that the number one reason that employees leave their job is the relationship they have with their immediate supervisors or managers. Whatever are the policies, culture or human resource strategies of a company, at the end of the day employees communicate and deal with their immediate supervisor or manager (Halpern &. Lubar, 2003). Employees’ perception of the company depends on the interaction with their supervisor or manager.