The study investigated the relation between Motivational Incentives and Employees Performance in the Ethio-Telecom Enterprise. In this regard the researcher has examined the importance of different motivational incentives that the company is using to motivate its employees. It is clear that motivating and retaining employees in an organization have become important and complex task for managers. This study adopted quantitative and qualitative research methods. Stratified random and purposive

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... pling techniques were also used to select the sample size from the population. Questionnaire and interview were used for data collection. Descriptive statistics such as percentage, mean value, cross tabulation have been used for data analysis. The data collected from the employees were systematically analyzed and presented using SPSS Software and Excel tables. The result has showed a positive relationship between incentives and employee motivation towards achieving better performance, however the motivational level and the employees' perception on some types of motivational incentives is varying