This study aimed to show the variables that influenced employees’ performance directly through motivation as an intervening variable at Puskesmas with Plenary accreditation at Sleman Regency. This study used primary data obtained from the results of a questionnaire at Puskesmas with Plenary accreditation (Puskesmas Mlati 2). The sample of this study used census method. The type of this research was a quantitative research. The test results showed that physical work environment variables did not affect directly towards the employees’ performance. Meanwhile, compensation had a direct effect on employees’ performance. The variable physical work environment and Compensation no effect employee performance through motivation. Keywords: Physical Work Environment, Compensation, Motivation and Employee Performance
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