With all the awareness and work on mental health being done, the software industry is often left out. The study aims to find commonly reported physical and psychological factors linked to employee's mental satisfaction and loyalty to the organization and then, in their light, gauge the current scenario of software houses of Lahore, Pakistan. The study finds literature published since 2000 and develops a questionnaire to look into environment provided by software houses. The findings show how the physical environment is likeable for the employees but their loyalty and mental health is being compromised by a number of psychological factors, including biased rules and limited growth opportunities and how this impacts their desire to quit. Also, the findings of this study prove that software industry needs to take the mental wellbeing of its employees seriously as qualitative software products influence all walks of life.