The study investigated the relation between Motivational Incentives and Employees Performancernin the Ethio-Telecom Enterprise. In this regard the researcher has examined the importance ofrndifferent motivational incentives that the company is using to motivate its employees. It is clearrnthat motivating and retaining employees in an organization have become important and complexrntask for managers. This study adopted quantitative and qualitative research methods. Stratifiedrnrandom and purposive sampling techniques were also used to select the sample size from thernpopulation. Questionnaire and interview were used for data collection. Descriptive statistics suchrnas percentage, mean value, cross tabulation have been used for data analysis. The data collectedrnfrom the employees were systematically analyzed and presented using SPSS Software and Excelrntables. The result has showed a positive relationship between incentives and employeernmotivation towards achieving better performance, however the motivational level and thernemployees’ perception on some types of motivational incentives is varying