This paper aims to identify the impact of incentive schemes on factors that affect employee performance. The researcher identified three categories of employees of Singareni Collieries Company Limited such as workers, clerical staff and supervisory staff. The study explores the impact of incentives on several factors like motivation, absenteeism, employee turnover, production and productivity, employee morale, health and working conditions, team work, rewarding and work satisfaction of employees. The data were collected through questionnaire from 120 respondents of all categories. The data analysis were done based on the
mean score, independent sample z-test was used to find any difference exist among employees in pursuing incentive schemes, findings and conclusions were drawn from all the three categories of employees. On the whole general satisfaction is found among all categories of employees. The overall analysis revealed that incentives schemes are giving satisfactory results in improving employee performance apart from increasing incomes of the workers and other benefits.