The purpose of this paper is to examine the extant literature on compensation and turnover. This paper briefly traces the history of compensation-retention research over the last four decades and discusses how there has been a shift in the focus and importance given to compensation as a means to influence retention. There has been a shift in the role played by compensation, but the very objective of compensation remains the same and will continue to be so. Through this review, a few research gaps have been identified which can advance our understanding of the effects of compensation on turnover. Thus the paper strives to pave the direction for future research in the area so as to gain a holistic view of the relationship between compensation and turnover. [ABSTRACT FROM AUTHOR]