Introduction In the modern business world, a lot of competition has been experienced in all industries of the global economies and business people have been required to adjust their activities to the changing environment. As competition intensifies, the need for qualified people has also increased and attracting and retaining professionals in an organization has been of great importance. The high rate of employee turnover being experienced today can only be reduced by adopting better strategies of retaining employees. Employee turnover causes failure of many systems in an organization and managers should try to protect their organizations by applying the best strategies of retaining their workers. Remuneration is one of the greatest elements of employee motivation that organizations use. However, human resources managers are required to use a mixture of strategies to motivate their employees. Globalization has increased competition in the labour markets because skilled individuals can move to markets which provide better terms of employment. In this paper I will discuss the role remuneration plays in retaining staff in the expanding regional economy of Western Australia. Various theories on remuneration and employee motivation have been discussed to identify the strategies adopted by companies to retain their employees. Economy of Western Australia There have been steady growth in the economy of Western Australia and this has required many business entities to expand their operations. Western Australia contributes more than 38 percent of all the exports of Australia as per the 2009 statistics [1] . The high rate of economic growth is expected to have great pressure on the labour market because many people are required to work in all sectors of the economy. Resources available in the economy as well as the development projects being undertaken in Western Australia have provided a favourable environment for expanding business activities and this has intensified the demand for labour. Resources and construction sectors in the economy have created a high demand for labour and this has led to competition because every institution is seeking more workers. Adequate measures have been taken to reduce the shortage of labour and skills and to enable the state and the nation to tap the opportunities available [2] . To balance demand and supply of labour in the country, the Department of Training and Workforce Development has developed strategies by aligning the workforce with the needs of the industry. Population demographics in the labour market of Western Australia indicate that most of the employees are aged 35 [3] and there are projections for an increase in the median age to approximately 45 years [4] . Birth rate in Western Australia has dropped and this indicates that population would reduce drastically in the future years. Workforce participation rate in Western Australia has been estimated to be above the average even though it has been predicted that the rate may decline in the near future. The increasing demand for labour which has been coupled by the demographic trends have created a situation where there is need for investing more time and resources to attract and retain professionals and skilled workforce [5] . In the global scene, changes in demographics, improved business growth and the increasing competition for professional employees have made it impossible for managers to predict as well as achieve an