If a significant share of your employees optimise in the sense of doing the least of work possible, without getting fired, you have a huge problem anyways. Usually, given the right conditions, people have intrinsic interest in doing a good job. Even if their motivation is more of the extrinsic type, there is more to it than getting paid.

Yes, it only works in a high trust society where there’s plenty of jobs and people actually care about doing a good job (any company will have incentives, people can’t just sit around and do nothing, lots of social pressure too if you’re a slacker). But hey, that’s been mostly true (until recently, I hear immigrant unemployment is really high, while “local” unemployment is close to zero, but the official statistics sit in the middle at around 7% I think, much higher for the youth).