UD. Istana is a family business which was established on the year 1990. The company itself is engaged in building material sector as a distributor. Besides running by family members, UD. Istana is helped by another 27 non-family members. The objectives of the research are to analyze whether compensation has impact in motivating non-family members at UD. Istana and to find out some recommendations for UD. Istana so the compensation can be improved in motivating non-family members at UD. Istana. The writer uses descriptive and correlative research method. After doing analysis to the data, the writer gets conclusions of the research which are compensation has impact in motivating non-family members at UD. Istana because tcount (6.068) is higher than ttable (2.06) than H0 is rejected and Ha is accepted. In this research model, compensation has impact towards motivation at UD. Istana for 59.6% and the rest 40.4% is affected by other factors. UD. Istana was not tried to improve their compensation before. There are a number of non-family members complained that the compensation that they receive is not balanced with their contribution at work. It caused some of them feel unmotivated in doing their jobs.