ABSTRACT This study assessed the impact of motivation on the performance of public sector employees; with special focus on the Youth Employment Agency (YEA) in the Eastern Region of Ghana. The study examined motivational packages available at the Eastern Regional Directorate of the YEA and how performance of employees towards the agency’s corporate objectives is affected. The study adopted the use of quantitative techniques to analyse field data. Findings revealed that, there were enough motivation packages for the staff of YEA except that quite a number of the packages such as allowances for staff were put on hold. It was also discovered from the study that; management can adopt other motivational packages apart from the already existing ones to motivate employees in the Youth Employment Agency. The employees of the YEA were interested in fringe benefits, increased salaries, car loans, promotions, as well as being involved in the decision-making process of the agency in relation to motivation reinforcing staff. There was a positive correlation between employee performance and overall motivational packages. The influence of inadequate motivation on performance of tasks by YEA employees in the Eastern Region were absenteeism and low productivity. The study recommends that employees’ needs and opinions regarding befitting motivational packages for their welfare must constitute the basis and core component of the YEA’s motivational package.