The purpose of this study was to analyze the effect of compensation and motivation on job satisfaction and productivity of permanent employees at PT. Sinergi Mitra Utama in Bandung. This research is included in explanatory research. The population of this research is all permanent employees of the company PT. Sinergi Mitra Utama in Bandung, 35 employees. Based on predetermined criteria, the total sample of this study is 35 employees. Data analysis was done using path analysis. After analyzing data, several conclusions can be taken, that is : a). Work compensation has a significant direct effect on job satisfaction, b). Motivation has a significant positive effect on employee work productivity, c). Work compensation has a significant positive direct effect on job satisfaction, d). Motivation has a significant positive effect on employee job satisfaction, e). Job satisfaction has a significant positive effect on work productivity, f). Compensation affects work productivity through job satisfaction, g). work motivation has a significant positive effect on work productivity through job satisfaction.