This study investigates the impact of various ergonomic and workplace factors on employee retention, aiming to understand how organizations can foster a supportive work environment to enhance employee satisfaction and reduce turnover. Using structural equation modeling, the research examines key variables, including workstation design, proper lifting techniques, task rotation, anti-fatigue mats, ergonomic tools and equipment, break scheduling, and work-life balance. The findings reveal that these ergonomic factors significantly influence employee retention, with proper lifting techniques and ergonomic tools showing the strongest positive associations. The analysis demonstrates that employees who experience a supportive ergonomic environment are more likely to stay with their organization, thus emphasizing the importance of these factors in retention strategies. Additionally, work-life balance is shown to moderate the relationship between ergonomic practices and retention, suggesting that employees who feel their organization values their personal well-being are more likely to remain committed. Fit indices, such as the RMSEA, CFI, TLI, SRMR, and GFI, confirm the robustness of the model, indicating a good fit with the observed data. The study’s conclusions highlight the need for organizations to invest in ergonomic improvements and work-life balance initiatives to maintain a stable and productive workforce. While the study offers valuable insights, its limitations include the cross-sectional design, reliance on self-reported data, and the specific organizational context, which may limit the generalizability of the findings. Future research could expand on these findings by exploring additional variables and conducting longitudinal studies across diverse settings to provide a more comprehensive understanding of employee retention dynamics.