<![CDATA[Employee retention is a crucial issue in human resource management as it reflects an organization’s ability to retain competent employees and support organizational sustainability. A high level of employee turnover may result in increased recruitment and training costs as well as reduced organizational effectiveness. Therefore, organizations are required to implement appropriate human resource management practices, particularly those related to compensation and job satisfaction. This study aims to analyze the effect of compensation and job satisfaction on employee retention at PT MD. This research employs a quantitative approach using a survey method. The population of this study consists of all employees of PT MD, totaling 32 employees. Due to the relatively small population size, a saturated sampling technique was applied, in which all members of the population were used as research samples. Data collection was carried out through a questionnaire measured using a semantic differential scale, while data analysis was carried out using simple and multiple linear regression analysis using SPSS software. The results of this study indicate that compensation has a positive and significant effect on employee retention. Job satisfaction also has a positive and significant effect on employee retention. Furthermore, compensation and job satisfaction simultaneously have a positive and significant effect on employee retention at PT MD. These findings suggest that fair compensation and a high level of job satisfaction play an important role in enhancing employee loyalty and encouraging employees to remain with the organization]]>
