File this one away in the "things that make you go hmmmmm" department.  This article in Science Daily (hat tip: Guy) suggests employee bonuses work WAY better then pay raises in motivating employees:

Giving a 1 percent raise boosts employee job performance by roughly 2percent, but offering that same money in the form of a bonus that isstrongly linked to a job well done can improve job performance byalmost 20 percent, finds a new Cornell study on the relationshipbetween pay and performance.

Full study here.