Compensation is any form of award given to employees in return for their contributions to the organization. Employee performance is a work result that can be achieved by a person or group of people in an organization both quantitatively and qualitatively, in accordance with their respective authorities and
responsibilities in an effort to achieve organizational goals. This study aims to see how the employee's performance is seen from the compensation of the related
company. This study examines the effect of compensation on employee performance
in a manufacturing company. The results showed that compensation has a close
relationship with employee performance, moreover compensation has a significant positive effect on employee performance. This indicates that if the compensation is getting better, the employee's performance will also increase.
Keywords: compensation, employee performance