Abstract

Employee loyalty is a form of positive achievement or success of a company in managing employees. This study aims to analyze the role of job satisfaction in mediating the effect of compensation on employee loyalty. This research was conducted at PT Federal International Finance Group Denpasar, Buluh Indah Branch. The population used is all employees at PT FIF Group Denpasar, Buluh Indah Branch, which is 58 people, all of whom will be sampled using the saturated sample method. The data analysis technique used is path analysis and sobel test. The results of the analysis show that compensation has a positive and significant effect on employee loyalty, compensation has a positive and significant effect on job satisfaction, job satisfaction has a positive and significant effect on employee loyalty, job satisfaction plays a positive and significant role in mediating compensation on employee loyalty. PT FIF Group Denpasar Buluh Indah Branch is expected to monitor, evaluate the compensation system and provide compensation in accordance with employee responsibilities. The results show that the research is in line with social exchange theory and the research framework which implies that one of the factors affecting employee loyalty is compensation and job satisfaction.

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