Enforcement ofthe ASEAN Economic Communityin 2015 had an impactonthe existence of Small and Medium Enterprises.Dian Convectionis one of the small and medium enterprise sengaged in the manufacture of jeans clothes. Dian Convectionhas been running his business for two years and is currently Dian Convection has a staff of about 10 people.The purpose of this study was to measure the effect of compensation to the employee's competency in Dian Convection. Associative method used in this study to find out how much influence the compensation of employee competence in Dian Convection. Types of research objectives used is Causal Research, this target is used to test hypotheses about causal relationships. The population in this study were employees at Dian Convection, amounting to 10 people while sampling techniques performed by Isaac & Michael (1981: 192) in Sukardi (2004: 55) determined that with a population of 10 people, the sample to be taken is 10 people. Types of statistics used are parametric statistical regression analysis simpleBased on the calculation results obtained statistically significant level of 0.013 <0.05, meaning that there is a significant influence between the compensation of the employee's competency in Dian Convection with massive influence was 74.5%. Based on this it can be concluded that the compensation that has been done by Dian Convection is going well and gives a very significant effect.