In a rapidly changing world, companies must adapt to the shifting stakeholder demands of the market to remain competitive in the long term. Therefore, diversity and inclusion are competitive advantages for companies facing the current "War of Talents." In particular, it is significantly vital for organizations to retain their employees as long as possible in the organization and be an "employer of choice." This research aims to analyze the affection of diversity man- agement on employee engagement moderated by retention. This study further aims to demonstrate which factors are essential for employee retention. Therefore, this Master's Thesis provides insights into which diversity and inclusion practices are required to enhance employee retention in Austria.