Abstract: The purpose of this paper is to describe the impact of the compensation schemes on factors that affect the
performance of employees. The study explores the impact of incentives on a variety of variables, including motivation,
absenteeism, employee turnover, production and performance, employee morale, health and working conditions, teamwork,
rewards and employee satisfaction. Data were obtained by questionnaire from 120 respondents in all categories. The data
analysis was carried out on the basis of the mean score, an unbiased study of z-test was used to find any disparity between
employees in the compensation schemes, and observations and conclusions were drawn from all three groups of employees.
General satisfaction is seen in all forms of workers. The overall study showed that reward programmes produce satisfactory
results in improving the productivity of workers, apart from increasing employees' salaries and other benefits.
Keywords: Absenteeism, Incentive, Motivation, Performance, Reward