I was always doing battle with my former employer over what i perceived to be lazy employees, but on reflection i guess they were always aware of it.
They swanned in at 9am, i was always in at 8.30, then they talked for 20 mins about last nights Eastenders ( i bloody hate that programme!), then the conversation usually turned to what they had to eat for tea, meanwhile i'm taking all the calls !!!!!
I had a regular pay upgrade and even got overtime for being the office "tape monkey" for our system upgrades.
The chatty employees got a small payrise each year inline with inflation - my point is, my incentive was to work hard, keep my head down when all around where chatting and that was seen by the boss and each year i was rewarded with an over inflation payrise. As part of that i was the one taken out by reps for lunches (working of course) but that was my natural work ethic, so in that case incentives were not necessary.