The Ethiopian textile and apparel industry is proliferating but struggling with high employee turnover rates. To tackle this issue and ensure stability, growth, and increased revenue, it is essential to implement effective employee retention strategies. This study aimed to identify retention factors, assess current practices, measure employee satisfaction, and propose a retention strategy model. The research involved structured questionnaires and interviews with operator-level employees and HR managers in Bole Lemi and Hawassa Industrial Parks. Five hundred questionnaires were randomly distributed across 31 companies, and the data were analyzed using ordinary logistic regression in SPSS. The study revealed that training and management support, promotional opportunities, compensation, and job design practices significantly and positively affect employee retention. However, the physical working environment had an insignificant effect. Based on these findings, the researcher proposed a retention strategy model for the Ethiopian apparel industry. By focusing on the identified drivers, companies can enhance their employee retention efforts and improve organizational performance. The findings suggest that factors like career development, leadership support, and appropriate rewards are crucial for retaining talent in the growing textile and apparel sector.