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In today scenario Employee retention has been one of the major and serious problem that almost all organization are facing these major issue on account of various reasons be it compensation, job satisfaction, work environment or host of factors all these affects employee loyalty who as a result are constantly on verge to explore new avenues ultimately leading to employee turnover leading to retention issues and challenges. Man is a social animal who has varied need and desire to be satisfied. In today scenario compensation is un-doubtfully one of the major factors that has an tremendous impact on employee satisfaction, attraction and ultimately retention. Today's employees are aware of market scenario in terms of pay and rewards offer by other organization in the market if they are not paid less or not according to their expectations they are constantly looking for opportunity to switch on to another job and raising retention issues for the organization.