Abstract: In todays economic upheavals, downsizing, layoffs and mergers have cost hundreds of workers their jobs in banking sector of Pakistan. Many more have been shifted to unfamiliar tasks within their banks and wonder how much longer they will be employed. Adding to the pressures that workers face are new bosses, computer surveillance, fewer health and retirement benefits, and the feeling they have to work longer and harder just to maintain their current economic status. Workers at every level are experiencing increased tension and uncertainty. They are undergoing Job Stress, to be precise. This study examines the relationship between Job Stress and Employee Retention and consequences of high stress on bank employees of banking sector of Pakistan.