This study focuses on understanding how reward and recognition practices affect employee motivation and performance in the IT industry in Pune. In today’s highly competitive work environment, organizations need to keep their employees motivated in order to improve productivity and retain skilled talent. Reward and recognition play a key role in this process by encouraging employees to perform better and stay committed to their work. The study looks at different types of rewards, including monetary benefits like salary, bonuses, and incentives, as well as non-monetary recognition such as appreciation, awards, and promotions. It examines how these factors influence employees’ motivation levels. The research also highlights the benefits of effective reward systems, such as improved job satisfaction, increased productivity, and stronger employee engagement. At the same time, it points out certain challenges, including lack of fairness, transparency, and delays in recognizing employees’ efforts. The data for this study was collected through questionnaires from IT employees in Pune. The findings suggest that both rewards and recognition have a positive impact on employee motivation and performance. However, most employees prefer a balanced combination of financial and non-financial rewards. Overall, the study concludes that well-designed reward and recognition practices help organizations enhance performance, reduce employee turnover, and build a positive and supportive work environment. Keywords: Reward, Recognition, Employee Motivation, Employee Performance, IT Industry, Pune