As a business entity, each company has performance (performance) to be achieved through its business activities, performance shows positive results achieved and performance appraisal is the periodic determination of the operational effectiveness of an organization, the organization and its employees based on the goals, standards and criteria set previous. It is also used to suppress undue behavior and to stimulate and enforce desirable behaviors, through timely feedback of performance results and rewards, both intrinsic and extrinsic. Good performance one of the most important human resources in a company that employees because employees as the main driver for the smoothness of the company. So the utilization of employees as human resources must be treated well, in order to work effectively and efficiently and have high work productivity. Ideal situation in the company is when the company get maximum benefits from its workforce in achieving these goals, while from the employee they expect to get reward or compensation from the company so as to meet the needs in accordance with the role and contribution. This study aims to provide a description of the effect of compensation, work motivation on employee performance productivity. This research was developed based on validity test and reliability test with descriptive statistic method. Statistical data analysis with classical assumption test and hypothesis test. The result of hypothesis testing showed that there is or no effect of compensation on employee work productivity, there is or no influence of work motivation to work productivity of employees.
