Recognizing everyone has their own patterns and giving them the autonomy to maximize work given their own patterns is certainly important. Of course step 0 of this prescription is hiring someone who is trustworthy and self-aware.

I completely agree, and that is why we will have a completely web based system so that I can hire contractors all over the U.S. and let my normally onsite employees work from home a day or two a week. Instead of me saying, "Work at home tomorrow", they will choose the day and I will OK it. Obtaining input from employees makes them feel valued and important. Besides, I trust that they will know when it's OK to work at home.

I also plan to ASK each person what a good reward would be (everybody is different), and make sure to thank them. I understand that it's their job, but it goes a long way to boosting everyone's morale and productivity by saying you appreciate them.

A friend's boss wanted to buy her a small token of appreciation for successfully completing a huge project, and my friend jokingly said she wanted a Hummer. The boss bought her one - a diecast collectible H2, and 6 years later my friend still says that was the best gift she's ever gotten :)