We have fair level of understanding about the cost of high employee turnover; however, our knowledge regarding how employers adjust themselves to counter the problem is very much limited, particularly in developing countries like Ethiopia. Hence, this study was conducted with the purpose of throwing a light on the uncharted part of employee retention in Ethiopian higher education. The study identifies determinants of academic staff retention by employing a mix of descriptive statistics, factor analysis and multiple regression techniques. A sample of 380 active academic staff was selected from three major public universities. Besides, unstructured interview was conducted with 15 lecturers who had left their respective universities. The result indicates that academic staff willingness to stay in their current institution is contingent on leader's qualities in building an environment that guarantees participation and fosters concern for followers, availability of a reward system that is competitive and fair, a range of benefit packages, prevalence of fair human resource policies and practices, and perceived attractiveness of cities/towns where the institutions are located. The study explains the limitations of the ongoing attempts aimed at retaining the academics and highlights actions that must be taken to improve employee retention.