The high employee turnover rate at Indomaret Lhokseumawe is thought to be caused by dissatisfaction with the compensation system and lack of work-life balance. This study used a quantitative approach with a survey method, involving 43 active employees from several Indomaret outlets. The results show that compensation and work-life balance have a positive and significant effect on employee loyalty. This means that the better the compensation system and the more work-life balance employees feel, the higher their loyalty to the company. The implication is that Indomaret management needs to strengthen compensation strategies and work-life balance policies in order to create a healthy, productive work environment and be able to retain employees in the long term.
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