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Having committed employees is essential to improve the performance of an organization. Compensation is a major factor that affect the commitment of employees as revealed in literature. Thus, adopting the appropriate compensation strategy may increase employee commitment. In this light, this study examined the effect of compensation policy on employee commitment in Care Homes Northwest England UK. The aim of the study is to examine the effect of compensation policies on employee commitment. To achieve the aim of the study, three hypotheses were tested to ascertain the relationship between three types of compensation policies: guarantee pay, variable pay, and employee benefit. Fifty employees of Care Home Northwest England UK were conveniently sampled, and data analysed using Pearson correlation and ANOVA. The study recommends that since guarantee pay and employee benefit demonstrate a stronger relationship with employee commitment compared to variable pay, Care Home Northwest England UK should consider the combination of guarantee pay and benefit to increase employee commitment and retention.