The subject of this master's thesis is internal marketing in service companies using the A1 company as an example. Internal marketing is essentially a financial and non- financial way of motivating employees by managers and company owners. Motivation is key for an employee's efficiency and willingness to work. In service companies, this motivation is even more important due to the direct relationship with customers and can become the main factor in gaining a competitive advantage in the market. Although internal marketing is a relatively new concept in Croatia, it is becoming more and more common due to the high demand for labor. Today, when the labor market is global, companies worldwide must approach the acts of motivating and rewarding workers seriously so that these workers do not look for work elsewhere. Since Croatia is only the 53rd country in terms of GDP in the world, labor force goes to more developed and richer countries. For this reason, it is crucial that all companies in Croatia apply internal marketing tools so that employees do not have a reason to leave. A1 was selected as an example of representation or non-representation of internal marketing in Croatia. A survey was conducted with the aim of determining how represented internal marketing is in A1 and whether the selected company is a positive example for the Republic of Croatia. For research purposes, a survey was conducted among the employees of A1. In the survey, questions were asked about their satisfaction in the workplace, work equipment, rewards for a job well done, office perks, and the like.