With economies and business becoming knowledge intensive, the role of education industry has immensely risen in significance. This has given rise to a highly competitive landscape in higher education, with faculty retention as a major challenge for the institutions leading to negative consequences in terms of education quality, stakeholder satisfaction and rankings. This paper discusses the factors influencing faculty retention in HEIs in India within the framework of Social Exchange Theory. The sub dimensions of HR climate were explored using Principal Components Analysis. The relative importance of sub dimensions in forming the overall climate was estimated and the effect of HR climate on faculty retention was studied with Organizational Commitment and Organizational Trust as mediators employing a hierarchical components model in the PLS-SEM analysis. The results indicate that HR climate has a significant positive effect on faculty retention through organizational commitment and organizational trust as partial complementary mediators. Findings have significant theoretical as well as practical implications in extending the present knowledge regarding the subdimensions and effect of HR climate on faculty retention and the suggested measures to be taken in implementing effective HR Management systems in the Higher Education Institutions.