Background/Purpose: Human sources are those who make the group of workers of a company. It's also recognized via manpower, skills, labour, employees etc. Human Resource department of a business enterprise performs human useful resource control. It entails various elements of the employment consisting of compliance with labour regulation and employment standards, management of worker benefits, and various other sports related to recruitment and choice of the employee. Worker retention is regarding the efforts with the aid of which employers try and retain the personnel in their team of workers. Retention turns into the strategies in place of the final results. Preserving the worker for long duration of time is known as retention. Retention strategies of the organization need to have the capacity to attract and hold their staff. Organizational effectiveness refers to a company's ability to achieve the goals it sets out to achieve. It's far the performance of the organization, group or an organization to fulfill its goal. Six Sigma is a methodology that makes a specialty of improving the overall efficiency of a business process. Objective: This work is carried out at Dinesh Foods, Kannur. Dinesh foods are a subsidiary unit of Kerala Dinesh Beedi Workers Co-op Society. The objective of this study is to observe and to recognize how worker retention facilitates in growing the organizational effectiveness of Dinesh Foods. It additionally assists to investigate diverse retention techniques followed and also the employee turnover within the unit. This work investigates the worker retention is a device for increasing the organizational effectiveness. Design/Methodology/Approach: For the purpose of study the data was collected through primary and secondary source. Questionnaire was distributed among the workers for collecting necessary data for the study, financial statement of the company to study about the financial stability of the organisation and annual report of the company. Findings/Results: This research is done to find out whether the employee retention in the organisation helps in improving the organisational effectiveness. Varies conditions applied for the hypothesis and it can be proved that the employee retention is a tool for increasing the organisational effectiveness. Based on the analysis, findings and suggestions Dinesh Foods, Kannur can give more concentration towards retaining the employees in the organisation as it is important in any organization. Conclusion: This study focusses on whether employee retention is a tool for improving the organisational effectiveness. It is found that the employee retention is a tool for improving organisational effectiveness and employee retention helps in increasing the productivity. Paper Type: Case study-based Research Analysis