This paper examines the impact of childcare assistance on employee retention as part of a work-life balance practice based on empirical evidence drawn from IT Sector in Hyderabad, India. A total of 300 samples with 30 samples (Assistant Managers, Managers, and Sr. Managers) from each company had been included from the Ten IT companies based on simple random sampling. Managerial personnel from HR, Marketing, Finance, Operations and Technical functions are included in the study. The study shows that when the average childcare assistance score increases, the average employee retention score also increases proportionately. The study reveals positive correlation and significant association between Employee Retention and childcare assistance. The findings of the study shows that majority of the managerial personnel are able to increase their retention levels with the help of childcare assistance as one of the important work-life balance practice. The study concludes with a conceptual framework which explains how spillover theory helps in increasing employee retention and also how management and co-worker support helps in smooth implementation of childcare assistance in increasing Employee Retention as a part in achieving work-life balance.