Bridging the Skill Gap to Reduce Attrition: The Role of PMKVY in Enhancing Workforce Retention in Semi-Formal Sectors

In the evolving landscape of the global workforce, marked by digital disruption, automation, and rising attrition, upskilling and reskilling have become vital strategies for organizational sustainability and employee retention. This research paper examines the role of structured skill development initiatives in improving workforce retention, with a focused case study on the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) India’s flagship skilling program. Drawing on theoretical foundations such as Human Capital Theory and the Psychological Contract, the paper explores global and Indian trends, analyses workforce development patterns, and highlights the correlation between training interventions and reduced turnover rates. Through real-life examples and data-backed findings, the study demonstrates that targeted reskilling initiatives significantly enhance job satisfaction, formalize employment, and improve tenure, especially in semi-formal sectors. The paper concludes with strategic recommendations for HR leaders, L&D professionals, and policymakers to create adaptive, learner-centric, and retention-focused skill development ecosystems.