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The purpose of this paper is to identify the relationship between knowledge sharing, competency development, affective commitment, and Gen Y employees’ intention to stay.

Based on a review of extant literature and using social exchange, and social constructivist approach, this study develops a theoretical rationale behind developing a conceptual framework to retain employees of the Gen Y segment.

Knowledge sharing in the organization has a great potential to foster competency development and generate a sense of affective commitment and intention to stay of employees of Gen Y.

A conceptual framework of knowledge sharing for competency development could assist HR managers in fine-tuning their retention strategy for Gen Y employees. The future work should carry out the empirical validation of the suggested conceptual framework.

Organizations should focus on knowledge sharing to enhance absorptive capacity, which fosters competency development. The framework suggests an approach of generation-specific retention strategy.

This study contributes to the literature in human resources pertaining to knowledge sharing as a competency development intervention and develops a linkage between knowledge sharing and Gen Y employees’ intention to stay. The study is one of the first of its kind to address knowledge sharing and competency development in the context of Gen Y retention.