Compensation is very important for employees and organization because compensation is the source of income for the employees and their families. Compensation also is an image of social status for employees. Thereby, good compensation is capable to guarantee satisfaction of organizations members which in turn enable organization to obtain, look after the employ a number of people with various positive behavior and attitudes and work productively for their job performance to achieve organization's goals. Compensation is a reward from company to the employees because of their contribution effort and mind. The research is conducted at Garuda Plaza Hotel Medan, was conducted to examine the effect of compensation on employee's performance. The simple linear regression equation: Y = 24.115 + 0.226 X. The result of coefficient of determination (R2) is 0.051. It means that the 5.1% of employee's job performance is influenced by compensation and the remaining 94.9% is influenced by other variables outside this research. The result of hypothesis z-test indicates that Z-count value obtained is 2.122 that will be compared with Z-table (1.96). Therefore, hypothesis alternative (Ha) is accepted that compensation has significant influence employees job performance at Garuda Plaza Hotel Medan