This study aims to determine the effect of perceptions regarding the implementation of reward and punishment on the performance of contract employees at H. L. Manambai Abdulkadir Hospital. Using a quantitative descriptive method and multiple regression analysis, the research involved 100 respondents selected through simple random sampling. The results show that employees’ perceptions of rewards have a positive and significant effect on performance. Meanwhile, punishment also has a positive effect, but it is not statistically significant. Simultaneously, reward and punishment together have a significant impact on improving employee performance. Positive perceptions are formed when there is clarity in rules and expectations, as well as fair, consistent mechanisms for administering rewards and punishments, supported by open communication between management and employees. With proper implementation, reward and punishment can serve as effective strategies to enhance the performance of contract employees in the hospital environment.
