Skill training and placement are important steps towards improving employment opportunities for rural youth, but getting a job does not necessarily mean that employment will continue. The Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDUGKY) provides rural youth with skill training and placement support. However, retaining beneficiaries after placement remains a challenge, as a substantial proportion of beneficiaries leave their jobs shortly after joining. This study examines the factors associated with early employment retention among DDUGKY beneficiaries in Kerala, with particular attention to work–life balance and compensation. This study is based on primary data collected from 217 DDUGKY beneficiaries and uses a quantitative research design. The proposed relationships were examined using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. The findings show that work–life balance has a significant negative relationship with turnover intention (β = −0.263, p < 0.001), whereas the effect of compensation is negative but not statistically significant (β = −0.077, p = 0.292). Work-life balance also emerged as the stronger predictor of turnover intention in comparison with compensation. The findings suggest that conditions surrounding employees’ working lives may be important for retaining rural youth after placement, particularly during the early period of employment. The study provides evidence from the Kerala context and points to the need for greater attention to post-placement working conditions in DDUGKY.