ABSTRACT : The purposes of tis study is to investigate the role of compensation in improving workmotivation and employee performance at RSUD Madiun. Qualitative research methods were used to gain an indepth understanding of the impact of compensation on employee work motivation and performance. Data wascollected through in-depth interviews with employees of RSUD Madiun, and content analysis was used toanalyze the data. The results showed that compensation has a significant role in improving work motivation andemployee performance. Compensation that is fair and in line with employee contributions can encourageintrinsic and extrinsic motivation, which in turn improves employee performance. An in-depth discussion wasconducted to illustrate the relationship between compensation, work motivation, and employee performance.The conclusion of this study is the importance of good compensation management in creating a workenvironment that motivates and supports improved employee performance.
KEYWORDS ::Compensation, Motivation, Performance, Employee