I think Joel already wrote the book on this (http://www.joelonsoftware.com/items/2006/08/09.html http://www.joelonsoftware.com/items/2006/08/09.html). For good

I think Joel already wrote the book on this (http://www.joelonsoftware.com/items/2006/08/09.html http://www.joelonsoftware.com/items/2006/08/09.html). For good developers, the only motivation you need is already intrinsic to them, that is the desire to do awesome work and be recognized for this by their peers. Just facilitate this, sit back and enjoy the show. Lame rewards confuse the picture and (a) piss off the guys who are bound to feel slighted, and (b) dilute genuine motivation with a perceived need to look good to managers.