The Relationship Between Compensation and Job Satisfaction on Employee Retention

This study aims to examine the relationship between compensation and job satisfaction on employee retention based on previous research findings. The method used is a qualitative approach through literature review by reviewing reference books and national journal articles relevant to the topics of compensation, job satisfaction, and employee retention. The results of the study indicate that the effect of compensation on employee retention is inconsistent and is strongly influenced by individual perceptions, generational characteristics, and organizational context. High compensation does not always guarantee employee retention in the company. Conversely, job satisfaction has been shown to have a more consistent and stronger relationship with employee retention. These findings indicate that employee retention strategies need to be designed holistically by balancing compensation aspects and efforts to improve job satisfaction to create sustainable working relationships.