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Human resources are the most important assets owned by the company. Company goals can be realized if they have competent and skilled human resources, therefore the company must maintaining employee retention. The study was conducted at the Badan Pendapatan Daerah Provinsi Bal with 37 employees as respondents. Data analysis technique used is path analysis and multiple test. Compensation has a positive and significant effect on employee retention. compensation has a positive and significant effect on employee job satisfaction. In addition, this study also proves that job satisfaction has a positive and significant effect on employee retention. The results prove that compensation has a positive and significant effect on employee retention by mediating job satisfaction. Based on the results of the study it is recommended that organizations pay more attention to the provision of compensation and job satisfaction felt by employees, so that contract employees prefer to stay. Keywords: Employee Retention, Compensation, Job Satisfaction
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