ABSTRAKTingginya tingkat pergantian karyawan pada sektor konstruksi menuntut pemahaman mengenai faktor-faktor yang dapat meningkatkan retensi karyawan, khususnya kompensasi dan budaya organisasi. Penelitian ini bertujuan untuk menganalisis pengaruh kompensasi terhadap retensi karyawan melalui peran mediasi budaya organisasi pada karyawan PT Unggul Jaya Beton Plant Babat Lamongan. Penelitian ini dilatarbelakangi oleh pentingnya mempertahankan karyawan melalui pemberian kompensasi yang sesuai serta pengembangan budaya organisasi yang positif dan kondusif. Penelitian ini menggunakan pendekatan kuantitatif. Populasi penelitian adalah seluruh karyawan PT Unggul Jaya Beton Plant Babat Lamongan dengan jumlah sampel sebanyak 36 responden. Data dikumpulkan melalui penyebaran kuesioner menggunakan skala Likert. Analisis data dilakukan menggunakan metode Structural Equation Modeling–Partial Least Square (SEM-PLS) dengan bantuan perangkat lunak SmartPLS 4. Hasil penelitian menunjukkan bahwa kompensasi berpengaruh positif dan signifikan terhadap budaya organisasi maupun retensi karyawan, serta budaya organisasi berpengaruh positif dan signifikan terhadap retensi karyawan. Budaya organisasi juga terbukti memediasi secara parsial (partial mediation) pengaruh kompensasi terhadap retensi karyawan. Oleh karena itu, peningkatan retensi karyawan dapat dicapai tidak hanya melalui pemberian kompensasi yang adil dan sesuai, tetapi juga melalui penguatan budaya organisasi yang positif, komunikasi yang efektif, kepemimpinan yang mendukung, serta lingkungan kerja yang kondusif. Penelitian ini memberikan kontribusi teoretis dengan memperkuat bukti empiris peran mediasi budaya organisasi dalam kerangka Social Exchange Theory, serta kontribusi praktis berupa rekomendasi kebijakan kompensasi dan penguatan budaya organisasi bagi perusahaan.ABSTRACTThe high employee turnover rate in the construction sector calls for an understanding of the factors that can improve employee retention, particularly compensation and organizational culture. This study aims to analyze the effect of compensation on employee retention through the mediating role of organizational culture among employees at PT Unggul Jaya Beton’s Babat Lamongan Plant. This study is motivated by the importance of retaining employees through appropriate compensation and the development of a positive and supportive organizational culture. This study employs a quantitative approach. The study population consists of all employees at PT Unggul Jaya Beton Plant Babat Lamongan, with a sample size of 36 respondents. Data were collected through the distribution of a questionnaire using a Likert scale. Data analysis was conducted using the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method with the assistance of SmartPLS 4 software. The results indicate that compensation has a positive and significant effect on both organizational culture and employee retention, and that organizational culture has a positive and significant effect on employee retention. Organizational culture was also found to partially mediate the effect of compensation on employee retention. Therefore, improved employee retention can be achieved not only through fair and appropriate compensation but also through the strengthening of a positive organizational culture, effective communication, supportive leadership, and a conducive work environment. This study makes a theoretical contribution by strengthening the empirical evidence of the mediating role of organizational culture within the framework of Social Exchange Theory, as well as a practical contribution in the form of recommendations for compensation policies and organizational culture enhancement for companies.