Retaining employees has become an important issue for the companies because retention helps the organizations to achieve their goals. This study intends to identify factors used to increase employees' retention. Specifically, this study examines the relationship between person-job (PJ) fit, work engagement (WE), and employees' retention. The study also determines the role of WE as a plausible mediating variable between PJ fit and employees' retention. The study was conducted among 268 engineers in semiconductor companies in Northern Region of Malaysia. The Structural Equation Modeling (SEM) was utilized and it found that PJ fit has positive inclination towards employees' retention and WE. The study also shows WE as positively affecting employees' retention serving as a mediator in the relationship between PJ fit and employees' retention.