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This study examines the effects of Management Relationship and Compensation & Benefits on Intention to Stay, with Employee Engagement as a mediating variable at PT Kawasan Industri Terpadu Batang (PT KITB), an industrial-estate and special-economic-zone operator characterized by service, project, and cross-functional coordination activities. An explanatory quantitative design was applied using data from the 2025 Employee Engagement Survey conducted in February 2026. The questionnaire was distributed to all 162 employees; 78 complete and usable responses were obtained, yielding a response rate of 48.15%. The data were analyzed using PLS-SEM with SmartPLS. The model explained 65.2% of the variance in Employee Engagement and 60.4% of the variance in Intention to Stay. Management Relationship affected Employee Engagement (β = 0.347; p = 0.008) and Intention to Stay (β = 0.329; p = 0.015). Compensation & Benefits affected Employee Engagement (β = 0.568; p < 0.001), but had no significant direct effect on Intention to Stay (β = 0.189; p = 0.173). Employee Engagement affected Intention to Stay (β = 0.367; p = 0.015). The indirect effect of Management Relationship through Employee Engagement was not significant (β = 0.128; p = 0.132), whereas the indirect effect of Compensation & Benefits was significant (β = 0.208; p = 0.023), indicating indirect-only mediation. Employee retention at PT KITB therefore requires strong management relationships and compensation and benefits policies that effectively foster employee engagement.

Keywords: Management Relationship, Compensation & Benefits, Employee Engagement, Intention to Stay, Employee Retention