This study aims to analyze the influence of competence (X1) and compensation (X2) on job satisfaction (Y) with employee engagement (Z) as a mediating variable in Bali High Prosecutor's Office employees. The research method used is quantitative with primary data obtained directly from 119 respondents. The analysis was conducted using Smart PLS 4.0 with a variance-based approach. The results of the study show: (1) Employee engagement has a significant effect on job satisfaction (p = 2.247; sig. = 0.025), so H1 is accepted. High engagement reflects employee enthusiasm, commitment, and active participation. (2) Compensation has a significant effect on job satisfaction (p = 4.818; sig. = 0.000), so H2 is accepted. This emphasizes the importance of a transparent, fair, and competitive system to maintain employee satisfaction, productivity, and loyalty. (3) Compensation does not have a significant effect on employee engagement (p = 1.442; sig. = 0.155), so H3 is rejected. The level of financial imbalance does not directly increase employee emotional or psychological engagement. (4) Competence has a significant effect on job satisfaction (p = 3.583; sig. = 0.000), so H4 is accepted. High competence boosts productivity, self-confidence, and work quality. (5) Competence has a significant effect on employee engagement (p = 3.002; sig. = 0.003), so H5 is accepted. Employees who feel competent tend to be more motivated and connected to their work. (6) Employee engagement does not mediate the relationship between competence and job satisfaction (p = 0.483; sig. = 0.602), so H6 is rejected. (7) Employee engagement also does not mediate the relationship between compensation and job satisfaction (p = 0.139; sig. = 0.890), so H7 is rejected. This study confirms the importance of competence and compensation in increasing job satisfaction, but employee engagement is not proven to be a mediator in this relationship.
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