Abstract: A company can survive if in all their activities are supported by a high loyalty from his employees. The existence of the compensation received by employees, a comfortable working environment, as well as the burden of work in accordance with the capabilities of the factors that could cause employees last longer in the organization and creates a feeling of satisfaction in doing any work. The purpose of this study is to analyze the influence of compensation on employees’ loyalty. Data collection using interviews with the help of a questionnaire instrument which the employees of PT.XYZ were taken as target respondents. Both primary and secondary data were gathered. Secondary data were gathered from various sources such as journals, books and other related publications. Primary data were collected using questionnaire which were distributed to the target respondents. Using a purposive sampling technique, a total of 30 respondents were gathered. Various statistical tests such as validity, reliability and classical assumptions tests were employed. Using a regression analysis, it was found that compensation had a positive and significant effect on employees’ loyalty, both partially and simultaneously.It is suggested that PT.XYZ should increase its compensation both financial and non-financial so it will increase the employees’ loyalty as well.Further research on other variables such us motivation, organizational structure, and supervisor’s quality will provide a better pictures about factors that affect customer satisfaction.