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Originally Posted by Devils'Advocate
Try telling that to the call centers. They found that rewarding those with good attendance worked far better than punishing those with bad attendance.
As for "fire the slackers", that doesn't work. In government you can only fire those with cause. I've tried that route once... you document, you record work done, you track arrival times and departure times. Either by the end of the year of documenting someone they either get the hint or we take further steps and go into a disciplinary hearing between the employer and the union. It is a long drawn-out process. However, you can only introduce things into evidence that can be observed on the job. If someone calls in sick, I don't have any proof that they are not sick. If someone continually calls in sick I can't present that at any disciplinary hearing as they can just claim "bad immune system".
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Sadly the latter part is equally true in a non-union environment. Outside of the extreme, there's no such thing as firing with cause. In my experience there's firing with cheque, which avoids being sued, and firing without cheque, which is always open to lawsuit.