This research project investigates the impact of managing cultural diversity on employee retention within a business context, specifically focusing on Sainsbury's. The study explores the roles of managing cultural diversity, identifies challenges such as cultural differences and gender inequality, and determines effective strategies for maintaining diversity in the workplace. The research employs both primary and secondary data collection methods, including a survey of 50 samples. The findings reveal a significant negative impact of inadequate diversity management on staff retention, highlighting the importance of recruitment and selection practices. The report provides recommendations, such as training and equal opportunities, to improve diversity management and mitigate potential negative consequences on efficiency. The literature review covers the roles of managing cultural diversity, the challenges faced by companies, and the various ways firms can maintain a diverse culture, including recruitment, policy enforcement, and training programs. The study emphasizes the importance of creating a positive and inclusive work environment to enhance employee engagement and productivity. The research concludes with recommendations for companies to improve their diversity management practices.