In the current competitive business environment, automotive industry is facing a lot ofrnchallenges particularly getting the qualified employees and retaining them. This studyrnprovides an overview of evidence of the effect of incentive schemes on employee performancernin Nyala Motors S.C, The objective of this research was to assess and examine thernrelationship between incentive schemes and employee performance. The theoretical part ofrnthe study introduces different theories of incentives, motivation and performance. Thernquantitative research approach used through primary data collected from 96rnrespondents.Probability sampling has been chosen because the respondents were selectedrnusing stratified sampling technique. A structure Likert Scale format questionnaire has beenrnused for data collection. The questionnaire consist of two parts; the first part ofrnquestionnaire comprises demographic respondent data while second part comprises threernvariables questions. The data obtained were analyzed using Statistical Packages for SocialrnScience (SPSS) program, descriptive analysis, normality test, reliability test,rnmulticollinearity test, Personâ€™s Correlation and Multiple Liner Regression were conducted inrnorder to interpret the data. Statistical analysis were performed with the data in order to testrnthe three main research hypotheses. The main findings indicate that there is high andrnmoderate relationship between financial and non-financial incentives on employeernperformance and has a high positive significant effect incentive schemes on employeernperformance within the company. To improve employees work performance, the researcherrnrecommended that adopting different kind of incentive schemes, seek and obtain feedback onrnhow employees perceive incentives and develop a sound retention and attractionrnmechanisms. This study will help the company management to an implementation ofrnincentive schemes system