Just my two cents, which really means: take what you want and leave the rest.
And, I can be quite the curmudgeon, so feel free to take that into account also.
For most people, money is not the motivation. Study after study after study has concluded the same thing. Money is nice. Yes, we all work so that we can do things, have things...and it takes money to do things, have things. If we all were motivated merely by money alone, wouldn't we all be dealing in porn and illegal drugs?
I am willing to bet that the low morale and negative attitude issues you both are facing stem from the employees feeling under-valued. And organizations all over the world under-value their workers.
How many times have these employees been asked what they want, what they need, and have your organizations ever made any attempt to acknowledge that? My guess is that one of two things have happened: No one has ever asked them for their opinion, or, if they have been asked, their feedback has never been acted on (at least never acted upon in a way that is visible to them).
Has anyone ever gone to them and said "Nice job. You really made a difference today."? Do you know how much further a well-deserved pat on the back goes compared to just throwing money (incentive, bonus, award) at them?
When was the last time someone told you that you did a fantastic job that really made a difference....and how did that make you feel?
I'm willing to bet everything that I am that when you heard that, you were more than motivated to get your butt into the office the next day to do it again.
If morale is low, if attitudes are wrong...how will money make a difference? Last year, we all had investments and retirement accounts. Now that money has vanished. Where did it go? Who had it? Who has it? Was it ever really real?
But riddle me this...over the past 12 months, have you had occasion to feel spectacular about one of your accomplishments? Despite the fact that your retirement/savings/house value was eroding out from under you? (Since Open To has scored a new job in this economy, I'm willing to bet that was one of those spectacular feel moments.)
If you want to change attitudes, change loyalties, create a dynamic and motivated workforce...ask them what they need to get 'r done. Dig for the root cause of the angst, and take steps to change the culture. Undoubtedly money will be part of the feedback that you receive. But I bet you find that overwhelmingly, it is not the root.