This paper explores some basic facts about one of the very important aspect of HRM that is
Compensation Management and how it affects the job satisfaction and employee retention in
banking sector of Pakistan. This paper seeks to add some contribution towards the compensation
management in the banking sector of Pakistan. Researchers have analyzed the success factors of
one of the leading bank of Pakistan as a case study in current research in order to explore the
leading satisfactory factors, issues and challenges regarding compensation policy of the case
study bank. A sample of 450 employees of case study bank has been selected for current research
using questionnaire and in depth interviews as leading technique of data collection.