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The study sets out to explore the role of psychological contract in the relationship between learning and development (L&D) factors and intention to stay within engineering firms, based on the social exchange theory, a popular framework about psychological contract and maintenance of the employee-employer relationship. The exploration of current L&D (individual and organizational) initiatives will contribute theoretically as well as empirically towards an understanding of how to retain workers by examining a range of variables, from personal and organizational factors. The methodology used in this conceptual paper is a critical literature review that sparks argument on the subject discoursed. This paper addresses the gap by providing a discussion on the challenges of employee retention. The evaluation using L&D initiatives will not only create a holistic evaluation process, but it will also assist in fostering a sense of obligation to stay among employees in the organization.

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