The role of employees in service organizations is comparable to the role of the service itself. Their Importance to the firm is critical to both service delivery and service production. There is no gainsay that, service is all about the people (employees) because they appear more often to be the most tangible clue to customers' perception of what quality service entails. It is in this light that this research was undertaken to determine the extent to which employee retention influences customer satisfaction, as well as establishing the extent to which the concept of retention is internalized by the players in the hospitality industry in Nigeria. It also ascertained the rate at which variables like; remuneration, resource strategies, product knowledge, working condition and training translates into customer satisfaction, and determine how retention is perceived by employees. A sample size of 400 employees was adopted from twenty hotels which were selected at random. One hypothesis was tested to determine the relationship between employee retention and customers' satisfaction, a z-test analysis of population proportion was also conducted. The results show a weak relationship between employees' retention and customers' satisfaction in the Nigerian hospitality industry. Based on these findings, the paper recommends that Hotel managers in Jos need to internalize the message in employee retention through improving the working condition of employees. Also, the need to upgrade employees 'service knowledge through training was advocated. Finally, the paper also advocated the need for managers to encourage employees to consolidate on their achievements in service delivery by exploring the untapped potentials that abound in the hospitality industry in Nigeria