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Employees’ retention remainders a serious problem for healthcare industries. Protracted term and achievement of a healthcare management depends on retention of solution employees. The problems of retaining employees have base many healthcare managers and business industries. The research tries to establish the influence compensation practices on employees’ retention in healthcare sector. The analysis discovered that there is influence of compensation practices such as monetary, non-monetary and recognitions & rewards on employees’ retention in healthcare sector. It is also identified that there is influence of monetary benefits and recognitions & rewards on employees’ job satisfaction in healthcare sector. From the path analysis, it is found that there is influence of employees’ retention on employees’ job satisfaction in healthcare sector. The research concluded that growing employees’ retention can go an extensive way in rising healthcare performance, and provide quality healthcare service. Employees require believing being given feedback, provided with growth opportunities, valued and appreciated, and have faith and self-confidence in their management. Overall these retention strategies are helpful when a manager wants to stay employees within a business organization and stay costs of retention low.