Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. The researcher has undertaken a survey with the help of Questionnaire, among 360 respondents using convenience-sampling methods to determine the employee perception of retention in Information Technology Industry.It can be seen that out of 360 respondents 293 (83.33%) are males and the other 67 (16.67%) are females. Thus majority of the respondents are male. It is clear that out of 360 respondents, 106(29%) are between 18 to 25 years of age, 184 (51%) are between 26 to 40 years of age and 70 (20%) are 41 and above years of age group.