Improved perceived performance and talent retention are great challenges for most of the organizations in the world, and leading organizations of today are stating that the human is most important resource for them behind their success but beside this, it is tough job for management of organization to manage human in organizational work climate which is combination of different factors towards improve perceived performance and talent retention. The intention of this research was to evaluate the influence of different factors of organizational work climate on improvement of perceived performance leading to talent retention in services sector firms of Pakistan. Five major factors pertain to organizational work climate were taken as independent variables such as role clarity, relevant nature of work, teamwork, rewards and fairness. This research work was limited to conduct quantitative survey through close ended questionnaire from sample size of 201 Manager Operations of commercial banks of Pakistan. Philosophy stance of positivism is used whereas statistical test of correlation, regression and sobel are used to for analysis the relations and impact of variable. The finding indicated that there is significant role of work climate on improvement of perceived performance leading to talent retention. 1. Introduction Employee performance and talent retention are great challenges for most of the firms in the world and successful organizations of today are stating that the human is most important asset for them behind their success. These organizations are constantly improving their work climate towards build a good image of their employment brand to attract existing employees and talent of other firms to survive in global talent war. In past people look for companies who can hire them for work, but now in the age of innovation, the organizations are looking for people. This is a century where work is distinguished by unprecedented stages of talent movements, where employees are want to fulfil their own personal desires, which lead to increasing apprehension among organizations concerning the employees' retention. At its heart, the management of employee performance and talent retention are just issue of job satisfaction, which means it is matter of anticipating the need in favour of human capital and then fixing out a strategy to meet it. These situations emphasized to researchers to review the factors which influence on employees' job satisfaction towards improve the perceived performance and talent retention (Cappelli, 2008). The job satisfaction of employee is complex phenomenon and many research studies have conducted, where scholars have discussed numerous definitions and factors involved in employee job satisfaction such as: compensation, fringe benefits, work climate, job security, retirement benefits, health facilities, career development, trainings, recognition of work, supervisor behavior, work autonomy, team work, size and structure, effective communication, safe working environment, lenient working hours, ins...