The studywas to evaluate the relationshipbetween performance appraisal system and staff retention in Enugu Electricity Distribution Company of Nigeria. The specific objectives include to; examine the relationship between employee’s rate of output produced and employee training. Examine the relationship between employee recognition and achievement of organizational goals. The population consists of 983 staff of Enugu Electricity Distribution Company of Nigeria (EEDC).The study used the survey approach. The primary sources used were the administration of questionnaire to staff. The 274 sample size of the study, the study used the Freund and Williams’s formula. 261 staff returned the questionnaire and accurately filled. The validity of the instrument was tested using content analysis and the result was good. The reliability was tested using the Pearson correlation coefficient (r). It gave a reliability co-efficient of 0.82 which was also good. The hypotheses were analyzed using f-statistics (ANOVA) tool. The findings indicated that there is positive effect relationship between employee’s rates of output produced and employee training F(95,n= 274)= 827.372,P<0.05;This indicates that there is positive effect relationship between employee recognition and achievement of organizational goals F(95,n=274)= 367.439,P<0.05.The study concluded that appropriate training and development programmes would be designed to correct deficiencies through performance appraisal. The study recommended that Performance appraisal should be encouraged in organizations to assists workers and management meets their expected target and Recognition of employees by the management should be a top issue in organization to enable workers gives out their best.