Human capital is widely regarded as the most valuable asset of any organization. In manufacturing industries particularly, sustaining a motivated, skilled, and committed workforce directly determines operational output and long-term competitiveness. This study investigates the relationship between employee engagement and employee retention at Bhargave Rubber Private Limited, Madurai an ISO/TS 16949 certified manufacturer of industrial and automotive rubber components including oil seals, O-rings, and moulded rubber products.

Using descriptive and analytical research methods, primary data was gathered from 119 employees across all departments via a structured Likert-scale questionnaire. Statistical techniques including Pearson correlation, regression analysis, and one-way ANOVA were applied using SPSS. Results reveal that employee engagement is the single strongest predictor of retention (r = 0.81, β = 0.48), explaining 74% of variance in retention outcomes (R² = 0.74). Job satisfaction (r = 0.75), organizational support (r = 0.73), and work environment (r = 0.69) also emerged as significant, though comparatively moderate, drivers. ANOVA confirmed statistically significant differences in engagement across age groups (F = 4.850, p = 0.003), with mid-career employees exhibiting highest engagement. The findings advocate for targeted HR strategies focusing on recognition programs, participative management, structured onboarding, and continuous skill development to enhance both engagement and long-term employee commitment.