In this paper, the roll of the monetary and non-monetary incentives in the employee performance is investigated. Monetary term includes salary, bonus, DA, profit sharing, gain sharing, basic pay, incentive rewards, special rewards as well as non-monetary term includes feedback of employees, job satisfaction, participation in decision making activities, healthy work environment, employees' career-oriented work, training of employees, good behavior of senior to employees, recognition, incentives on employees' productivity etc. Labour is the main element of progress in any organization.  All other factor also depends on labour. If employees are efficient in an organization, then only all the other elements can be used efficiently and only then can the full working capacity be utilized. In order to utilize the full potential of the employees, it is necessary to provide them with a clean and healthy environment at the same time; they have to be emotionally attached to the organization so that they can do their work sincerely. Taking suggestions from the employees from time to time, ensuring their important participation in the organization and implementing the best suggestions given by them, increases the morale of the employees. Along with this, the organization also gets the benefit of suggestions in new thinking. It is true that efforts should be made to make the employees mentally strong for the development of the organization, but they should also get their remuneration in the form of money. The main objective is to analyze the effect of monetary and non-monetary rewards toward employees’ performance.

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Keywords: Incentives, Employees’ Performance, Monetary Incentives, Non-Monetary Incentives, Employees’ Performance, Career Development, Working Capacity.