one incentive that works for me, is the sign i have on the bulletin board: "there are too many good, qualified electricians in this area that truly need a job, for me to put up with any slackers, who wont carry their share of the load, and be happy about it!"
i give one warning, then their out on their dead a**! and, your absolutely right about the condition of our economy. one good thing about it, perhaps the only good thing, is we can afford to be very, very picky about our people. as an employer, you dont have to put up with a bunch of nonsense.
on the positive side, i give paid days off for a "completed job well done", free tickets to sporting events for cost- cutting, good decision-making, and good final inspections.
we have a company bar-b-que every year, on July 4th, for employees and their families, free of charge, of course.........and a family Christmas party every year, with "santa" and gifts for the kiddies, and i hand out bonus checks and employee gifts myself.
just a few suggestions....
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gramps