dc.description.abstract | Fertilizer needs in Indonesia continues to increase along with the increased demand from the plantation sector. PT. Pupuk Kalimantan Timur (Pupuk Kaltim) is one of the Indonesia’s strategic industrial companies that produces fertilizer. The objectives of this research are to know the perception of employees regarding financial compensation and engagement and the effectiveness of financial compensation system for increasing engagement in Pupuk Kaltim either simultaneously or partially. There are salary, incentives, and complementary compensation (fringe benefit) as the financial compensation. The analytical tools used are descriptive analysis and F-test and t-test analysis. Descriptive analysis showed that the employees feel the payroll system in Pupuk Kaltim is already good. F-test analysis showed that the salary, incentives, and complementary compensation effectively influence engagement simultaneously. In conclusion, only the salary and complementary compensation influence engagement partially, whereas the incentives had no influence for engagement | en |