KAKAI MWANAIDI2024-11-132024-11-132024-08-30https://hdl.handle.net/20.500.12311/2291This study investigated the relationship between compensation management and employee performance in local governments, with a focus on Mbale District Local Government. The research was guided by specific objectives to assess the relationship between recognition and employee performance, determine the impact of promotion on performance, and examine the effect of delegation on employee performance. The study found that recognition significantly enhanced employee performance, as employees felt more valued and motivated. Promotions were also positively related to performance, with opportunities for career advancement boosting employee productivity and satisfaction. However, the effect of delegation was less pronounced, indicating that while employees appreciated autonomy, its direct impact on performance was limited. The study concluded that effective compensation management, particularly through recognition and promotion, plays a crucial role in improving employee performance. Recommendations included implementing structured recognition programs, providing clear promotion pathways, and refining delegation practices to enhance overall performance. These findings underscore the importance of comprehensive compensation strategies in fostering a motivated and high-performing workforce in local government settings.enThesis