The present study aims to explore the impact of various organisational attributes on employee retention and to find out the reasons for low retention rate in higher education sector in Punjab. The research is based on primary data collected through questionnaire from 125 respondents working in private universities and 125 respondents working in public universities in Punjab. The analysis shows significant positive relationship of effective communication in the organisation and maintaining of high education standards with employee retention in the higher education sector. Further, the job insecurity, insufficient pay, work-life conflicts, work load, lack of career advancement and unethical rules and regulations are the main reasons of employee turnover and low retention rate.