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With the comprehensive opening of the global economy, the intensification of market competition and the increasingly prominent value of human resources, all trades and professions are facing unprecedented challenges. In order to remain competitive in the market, human resource management plays an increasingly important role. As an important part of human resource management, enterprise performance management can be used as a key tool to drive the release of employees' potential, which has attracted more and more attention from enterprises. More and more performance management-related systems have been introduced into enterprises. However, in the system introduction and implementation process, there are different degrees of problems, such as ""mechanically copied"" and ""process"". Therefore, according to the specific situation of different enterprises, it is necessary to formulate the corresponding performance management system to maximize the role of motivating employees. This paper explores enterprise performance management's influence on the employee incentive effect. The implementation of enterprise performance management and its influence on employee incentive are analyzed through the literature review, case analysis and empirical analysis. Research has found that effective enterprise performance management can significantly improve the work enthusiasm and satisfaction of employees, thus enhancing the overall performance of enterprises and promoting all-round development. At the same time, this paper also discusses the key factors affecting the incentive effect of enterprise performance management, and puts forward the corresponding optimization suggestions