Nowadays, taking care the welfare of the employee is very important in order to ensure them to hard work in achieve the organizational goal. The aim of the study is to establish the effect of compensation and benefits towards employee performance. The objective of this research is firstly, to evaluate the level of employee performance. Secondly, this research aims to examine the relationship between compensation and benefits towards employee performance. Lastly, determine the effect of the compensation and benefits towards employee performance. This research carried out at XYZ College. This study used the survey research method where 100 questionnaire were distributes among lectures of XYZ College with population of 100 lectures which make the sample is 80 respondents. The data collected were analysed and interpreted using the Statistical Package for Social Sciences (SPSS). Based on the result, it is found that the performance level of lecturers is at medium and high level. In addition, there is a positive correlation between compensation and employee performance. Moreover, the compensation and benefits also give a positive effect on employee performance.