This paper has presented a snapshot about the present and concerning issues of compensation
management in Habib Bank Limited along with success factors of the said bank which have
retained its employees with increase job satisfaction. The current study has concluded that the
compensation management has a direct and intense relation with the job satisfaction as well as
job motivation. Results also revealed the changing trend of compensation plans in banking sector
of Pakistan. It shows that employees and employers are getting inclined towards financial as well
as non financial rewards where appreciation, high performer certificate, delegated authority and
many other mechanisms could work well keeping the salary constant. Elaborated issues and employee concerns about the system in this research could be beneficial for both future
researchers and policy makers of banking sector of Pakistan.