Purpose: This study analyzes how employee retention is influenced by factors like safety health environment, job satisfaction and motivation. Methodology/Sampling: This research is quantitative in nature, where 250 survey questionnaires have been distributed within the employees of pharmaceutical industry in Pakistan. SPSS and AMOS have been utilized to analyze the direct and mediating effect of variables. Findings: This study confirms that employee retention is a significant outcome of safety health environment. Moreover, the levels of job satisfaction and employee motivation equally mediate the relationship between safety health environment and employee retention. Practical implications: The findings of this paper suggest that the pharmaceutical firms in Pakistan and specifically in Lahore should foster the health protection policies, and in turn it would help enhance the satisfaction and motivation of staff, resulting in the retention of capable employees.

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