Two themes of best human resource management practices--employee empowerment and engagement have been considered a fundamental tool to increase the retention within any organization. This research paper utilized a qualitative-descriptive design through secondary sources of data collection, which centered on the case of Volkswagen Group, its retention rates and various programs offered to employees. The analysis establishes the link between employee retention and the two variables of employee empowerment and engagement. It has been revealed that employee empowerment and engagement are significant links to retention. Moreover, both empowerment and engagement contribute to a more open, innovative environment, faster decision-making, and more importantly, create loyalty and organizational commitment. The company under study serves as an excellent example of high retention rates as well as a company that focuses a lot on its employees and their happiness within the organization despite its concerns in the past.