This study was initiated with a view to understand the generation Y employees’ significance and their role in the development of the Educational institutions and various ways to retain the generation Y employees so that the company can ensure energetic work force. Generation Y employee are well known for their technology advancement which help them perform the job more efficiently and effectively. However, this generation also has the reputation of job-hopping. According to some of the studies, their average tenure in an organization is one to three year only. Due to their job-hopping characteristic, the organization is now facing the high turnover rate. High turnover rate will affect the organization negatively in both financial and performance aspect. This paper summarizes academic literature on employee retention driver and found that there is require conducting a research on the factors that help to retain the Generation Y employee in the aspect of Personal growth. The Personal growth was chosen because most of the organization already implemented the reward management, therefore the organization just need to align their reward strategic by meeting the need of Generation Y employee in order to retain them more effectively. This may consume less time and resources compare to implementation of a new strategy to retain the Generation Y employee. Personal growth has been derived from the review. Well-structured questionnaire was developed and 200 employees were surveyed and the results are analysed using SPSS v20 through which discussions were done for this study.