The practices on HRM at different levels in an institution has been considered as a field of interest by many researchers for several years due to expansion in industries and innovation that enables an organization for effectively utilizing the human resource. The new era of technology has seen significant growth in the communication industry where service providers are growing which makes it important for the company to take care of the employees so as to increase their performance. A study signifies the importance of HR practices. Several samples were considered that were taken from a random set of employees from a particular area so as to test the hypothesis. Regression analysis is performed using SPSS so as to find the importance of every variable associated with the performance of the employee. According to the study a relationship between the compensation plans and the performance of the employee was found.