Employees are believed to be an association's most important asset, but associations do not consider this reality and still see them as a cost in their accounting reporting (Ahmed and Kolachi, 2013). In association, employees are the most critical resources through which each of the goals and destinations are adept. Compensation and benefits play the important role of defining employee loyalty. Compensation is a profitable tool in the hands of the administration that adds to the authoritative vitality and can have a decisive impact on the behavior and profitability of employees. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay The need to keep turnover rates low and stay in business has pushed the employer to focus on employee well-being and staff retention over customer satisfaction (Sethi, 2012). Compensation plays an essential role in attracting, motivating and retaining capable employees. According to Ibrahim and Boerhaneoddin, compensation encourages effective employees to stay employed for longer periods of time. Furthermore, Ibrahim and Boerhaneoddin proposed that generous rewards retain employees and ultimately lead to job satisfaction, commitment, and loyalty. Implementing a well-planned retention strategy not only reduces turnover rates but motivates employees to maintain job performance productively (Scott, 2013). According to Adam (1963) equity theory, there is a direct relationship between the fair or unfair distribution of resources and employee performance. Through the previous studies, it has been clarified that compensation plays an important role in job satisfaction which led to employee retention. Before we continue, we should understand the three components of compensation: compensation (money or salary, commissions, overtime), benefits (health care, vacation, retirement fund), and non-financial (training and development). Before the 1970s, there was almost no concept of an employee loyalty program, the human resources department was only engaged in organizing picnics and ceremonies. But over time, not only have technologies changed, but theories on human resource management have also changed. William, McDaniel, and Ford (2007) recommend that the organization should increase its benefits if it cannot increase its compensation to meet job satisfaction. Compensation can have a direct influence on employee retention. This study will mainly focus on designing to analyze the impact of compensation and benefits on employee retention. As mentioned in most studies/research, there is an impact of compensation and benefits on employee performance, employee motivation, employee satisfaction, etc. in different sectors. So now we will analyze what types of compensation and benefits elements are most effective in retaining employees in the banking sector because generally it seems that in the banking sector most employees are changing jobs due to better packages and structures. The scope of the study is generally used in general industries but we are focusing on banking industry because in banking industry their employees change jobs extensively due to better structures and packages compared to other industries. So it helps HR departments in designing compensation and benefits policies and through this study the organization may not lose theirs”