Rewards and punishments shape behavior in powerful ways, but they often rob people of their internal self-motivation to perform. When team members are motivated more by the inherent enjoyment and meaning found in the desired actions than by the material consequences of those actions, they are said to be
When it comes to incentives, no loophole goes unexploited!
Beware the "cobra effect" when the incentives are all external rewards.
Reminds me of the book, Work Redesign by Hackman/Oldham - Everything described in this post is backed by their research done way back in the 1970s. One of my fav books in my reference library.