Psychological empowerment is the oil that lubricates the exercise of learning. Talented and psychological empowered human capital is becoming the prime ingredient of organizational success. If an employee is psychologically empowered, that means that he feels free to express his ideas and thus the employees would perform better in the job. Psychological empowered human capital is becoming the prime ingredient of organizational success. A critical feature of successful teams, especially in knowledge-based enterprises, is that they are invested with a significant degree of psychological empowerment, or decision-making authority. Psychologically empowered employees are always an asset to any organization because they will be self-driven and motivated to perform well in their work. This research will enable us to know what the impacts of psychological empowerment on employee retention are. For the research, the sample units were 75 faculties of 5 technical institutes in Durg and Bhilai. Questionnaire was used to collect the data. The analysis of the data was done through SPSS software, using Regression analysis. Through this research it was found that psychological empowerment does contribute to employee retention.