International Journal of Marketing & Human Resource Research e-ISSN: 2746-4040 Vol. 4, No. 2 April 2023 74 The Influence of Satisfaction and Compensation on Employee Performance at Hotel Peninsula Palembang Anggi Prissilia 1) , Juhaini Alie 2) , Muhammad Kurniawan, DP 3) 1),2),3) Universitas Indo Global Mandiri, Palembang, Indonesia Email: anggiprissilia1998@gmail.com 1) , juhaini@uigm.ac.id 2) Abstract The objective of this study is to analyze the effect of satisfaction and compensation on employee performance at Hotel Peninsula Palembang. The data collection technique in this study was by questionnaire and obtained a total sample of 55 employees. The data analysis used is multiple linear regression analysis model. The test results indicate that satisfaction (X1) has a significant effect on employee performance (Y). While compensation (X2) partially significant effect on employee performance (Y). The test results also show that satisfaction (X1) and compensation (X2) simultaneously have a significant effect on employee performance. This research is expected to be taken into consideration by the company to improve the performance of its employees. Keywords: Compensation, Performance, Satisfaction 1. Introduction Every company is required to have good management. Good company management can increase the effectiveness of the company so that it is able to compete with other companies. Human resources which is one of the important factors and has the right role in a company. Managers should understand that success in improving performance and productivity must involve employees because employees are one of the main sources of power to increase the goals of the company to be achieved. Rivai and Sagala (2013) that satisfaction is an evaluation that describes a person's feelings of being happy or unhappy, satisfied or dissatisfied at work. Widodo (2015) that job satisfaction is a pleasant psychological condition or employee feelings that are very subjective and very dependent on the individual concerned and his work environment and job satisfaction is a multidimensional concept, he can use attitudes as a whole or refer to one's job. There is motivation from the organization in the sense of giving motivation or encouragement to employees. Providing motivation is a process of motivating employees in such a way that they work sincerely. Motivation is a power within a person that will influence the intended direction, intensity, and sustainability of voluntary actions to realize the goals that have become common goals. And it can be seen clearly that the organization will succeed in achieving its goals and objectives if all components of the organization try to display optimal performance, one of which is by providing good motivation (Deni Wicaksono 2020). The relationship between satisfaction and employee performance compensation is that if the compensation in the form of a salary given is large enough it can improve employee performance to be optimal. Compensation is very important for employees because the size of compensation will affect job satisfaction and performance (work performance) of employees. Thus, increasing employee performance will improve individual, group, and organizational performance (Hardiyana 2013). This research was conducted at the Peninsula Hotel Palembang, this company is engaged in services in the city of Palembang. This company evaluates employee performance every month