The primary objectives of this research study are to critically outline the concepts of compensation and benefits and their influence on employees’ performance and motivation. Moreover, the research study also tends to identify the major causes that lead towards the ineffectiveness of compensation and benefits along with its impact on Subway towards attaining competitive success.According to the recent trends observed in the fast-food service industry, it can be viewed that organizations generally seek to formulate various policies and regulations with the aim of gaining superior competitive position over their major rivals. In this context, the Human Resource (HR) policies of the organizations are often recognized to provide incomplete or insufficient beneficial aspects to their staff members. Therefore, the rationale of this research can be determined based upon critically assessing the importance of compensation and benefits that can be regarded as major elements of Human Resource Management (HRM) of an organization.Armstrong (2011) critically stated that the offering of an adequate compensation package or any financial incentive can build a productive relationship between the organizations and their respective employees. Therefore, the organizations must need to be ensured providing justifiable compensation and employee benefits. The process would significantly support the employers along with the employees to gain substantial support in attaining considerable growth (Armstrong, 2011). In relation to the present HR policies practiced by Subway, it can be affirmed that the organization should highly focus on providing justifiablecompensation facilities to the employees in order to increase its overall business performance and willingness towards attaining the organizational goals.