About reward - from my colleagues blogs

Rewarding Rules:
Rule #1:
If an employee expects it, it may no longer be viewed as a rewardMany employees now expect bonuses, company cars, cell phones, financial planning services, and great healthcare plans as part of the packages. They are no longer useful as special reward or recognition tools.

Rule #2:
Rewards need to match your employees' needs and wantsHow would you like to be recognized? Many managers wrongly asume that everyone likes or wants the same types of rewards and recognition. Ask your employees what kind of recognition or reward they most appreciate.

Ten Sentences That Will Help You Retain Your Best Employees
You really made a difference by.....
I'm impressed with...
You got my attention with....
You're doing top quality work on....
You're right on the mark with....
One of the things I enjoy most about you is...
You can be proud of yourself for...
We couldn't have done it without your...
What an effective way to...
You've made my day because of...

Be creative when you think of ways to recognize your employees. Here are some hints
#1. Time
Give an outstanding employee the afternoon off. Let another sleep late. Thank a whole team by giving them a Friday off. Let them decide when to use their gift of time.
#2. Toys
What toys might they want? A cappucino machine? A dart board in the lounge? A Volleyball court between buildings?
#3. Trophies and Trinkets
What small memento or trophy would be meaningful? It could be a customized plaque, a coffee cup inscribed with a personal thank-you note, or a refrigerator magnet with the perfect message.
#4. Opportunity
What special or unique opportunities might your employees want? The chance to be part of a steering committee or to give a presentation to the senior team? Choice about the next project or achance to learn something new?
5#. Fun
Would your employees like taking an outing on company time? Playing hooky together and going to a movie? Having spontaneous pizza party in the office some afternoon?
#6. Freedom
What kind of freedom might they want? Flextime? Freedom to work from home, to dress casually, to change the way they do some of the work? Freedom to work without supervision? Freedom to manage a budget?

Bottom Line
Over and over, research has told us that money is not the major key to keeping good people. People want recognition for work well done/ Asses your pay scale to be sure it's fair. Then praise your good people. Find creative ways to show your appreciation, and you will increase the odds of keeping them.