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The objective of this study was to investigate the impact of Retention factors in Public and Private sector institutes. It identifies the factors which are effective in retention in private/public universities in Peshawar. The universities which are selected for study are CUSIT and IMS, UOP. The study targeted the faculty members of the Higher Education Institutions (universities) by Convenient Sampling Technique. Questionnaires were used to collect responses; 200 questionnaires were floated to the faculty members of one public and one private university. Out of 200 questionnaires, 100 responses were received. Results are varied in both sectors but some major identified employee retention factors are - Compensation, Training and Development, Supervisor Support which are positively correlated. Effective Retention measures can bring positive results to enhance commitment of employees and ultimate towards their organizations.