This study examines the impact of the rewards system on human resource management in the Metro Kalibo Water District, focusing on its influence on motivation, performance, retention, and engagement. It also assesses the effectiveness of the rewards system in performance management in terms of awareness and accessibility, as well as organizational and team dynamics. Conducted from January to December 2024, the study employed a descriptive-correlational approach using a researcher-made questionnaire administered to 136 regular employees. The findings show that 93 employees (68.4%) are highly educated, 68 (50%) received an "Outstanding" performance rating, the average length of service is 16–19 years, 38.2% hold second-level eligibility, and 40.4% have skilled-worker level eligibility. Results indicated that the rewards system had a mean impact score of 4.23, signifying a high level of influence on performance management, while its effectiveness score of 4.27 suggests it is highly effective. Statistical analyses revealed significant relationships between the impact of the rewards system and factors such as educational attainment, employment status, eligibility, salary grade, and performance rating. Likewise, the system’s effectiveness was significantly associated with length of service, employment status, eligibility, salary grade, and performance rating. These findings highlight the critical role of rewards and recognition in enhancing employee performance and overall human resource management.