Engaging employees provides an unwritten, psychological contract between the organization and employee which results in mutual benefits, trust, and commitment. Employee engagement has a very direct and strong relationship on the productivity of the employees and thus impacts the entire organizations productivity. This is very relatable in case of educational institutions as they are highly employee/ human resource driven. Therefore retention of employees is very crucial. The study is an attempt to explore the relationship between employee engagement and employee retention. Sample of 389 employees working in Higher Education Institutes from Delhi and NCR is taken. Correlation and regression analysis is used to examine the relationship between work engagement and employee retention. Results reveal that there exists a positive correlation between work engagement and employee retention and employee engagement is a significant predictor of employee retention.