This study investigates how financial and non-financial incentives jointly influence employee motivation and performance within the corporate sector of Karnataka, India. Data were collected from 260 employees using a structured questionnaire and analysed through Two-Step Cluster Analysis and Independent Samples t-tests. Results reveal statistically significant differences between employees who receive only financial incentives and those who receive both financial and non-financial rewards, with the latter reporting higher motivation, satisfaction, and perceived organisational support. These findings support Herzberg’s Two-Factor Theory, Vroom’s Expectancy Theory, and Self-Determination Theory, emphasising that sustainable motivation requires extrinsic and intrinsic reinforcements. The study concludes that a balanced incentive system enhances employee effectiveness and organisational success, offering managerial recommendations for the development of policies.