several people have touched on this, but i'll speak from personal experience: even if you get over the hurdle of them doing their work instead of screwing around, you're alienating your team from the rest of the company. i promise. as soon as everyone else hears that your people are getting stupid non-job-related stuff like that they are going to resent your team and that will trickle down to inter-department performance. i just got done dealing with a year of this at my former place of employment. we hired an interactive manager who took a few months to hire four developers for a web site project. almost immediately he started throwing gobs of money at all sorts of ridiculous stuff his team didn't need but that could "motivate" them. $1,000 chairs, lamps, painting the room red, large monitors, endless food, etc. are some of these arguably motivators/ok for the office? sure, until you realize that the rest of the people in the building had old machines, crt monitors, couldn't get reimbursed for travel appropriately, job cuts, etc. it was nothing but complete resentment that these guys got tons of perks while everyone else had to fill out forms for basic office supplies. i'm not saying it's right of fair, but it absolutely fed into constant disagreement and bad work environment between that team and everyone else. it also gave a heightened sense of entitlement to the development team who were really impossible to deal with. they were given specials perks, they felt special, and they acted like none of the rules of the place applied to them. i'm not implying causation entirely on this, but when i left the project was a year behind schedule. your mileage may vary, my 2 cents, etc, but i'd think long and hard about how what you're giving your folks can impact not only their production within your team but their ability to be productive in the rest of the organization.