I don't have employees now (I like it that way) but have dealt with them in the past, hell I've even been one from time to time. The thing about employees is they will come to expect handouts if they don't have to go the extra mile to get it. I personally believe that unless that person is doing something that is making your business more profitable (outside of what is expected) then why are you paying them more? A bonus for showing up on time in the proper clothing? NO! That is what they are paid their regular wage to do. How about if you show up on time wearing your uniform I'll let you work today? What I have found to be effective is to give 'team' or 'crew' bonuses for above par efficiency and productivity. This is something that save you money therefore should be rewarded. By giving these incentives on a team basis, employees will work to motivate each other. Don't make it a competition as someone else pointed out, that causes hard feelings and bad moral. Another thing to keep in mind is that incentives do not have to be monetary. Updated equipment and days off come to mind.