As the information technology industry continues to evolve rapidly, many companies have started using microlearning to develop their employee skills. This study attempts to examine the impact of microlearning on the use of hard skills and retention of IT employees in Chennai city. An Explanatory research methodology has been used, where the sample was chosen using a convenience sampling method from 144 IT employees in Chennai city. Data analysis has been done using Smart PLS to perform Structural Equation Modelling (PLS-SEM). The results showed that the accessibility of learning content and knowledge retention helped greatly to increase the on-the-job application of hard skills. But at the same time, no statistically Significant effect was found for Learning Flexibility. In addition, on-the-job application of hard skills became the most significant predictor of employee retention and mediator of the relationship between microlearning dimensions and employee retention. Therefore, microlearning contributes to employee retention through on-the-job application of hard skills, but the significance of Learning Flexibility needs more study to be consistent with the learning preferences of employees.