While admiring Muthu krishnan for his success, I have my own apprehensions that such a sweet experiment may leave a bitter taste in employer's mouth after some time for the folowing reasons.
1)As Tajsateesh pointed out, once it is stopped after they become regular, the employees may think that they were gaining when they were absenting and loosing when they are regular and likely to go back to their old behaviour.
2)It sends a wrong signal to other employees who are regular and and punctual and the damage will be more if a regular and delinquent employee are neighbours or live in close neighbour hood, because thier families and their children share the information when they meet in the evening for play and chit-chat .The children of the regular employee may think that the father of their friends does not go to office and yet brings sweets to them in the evening and our father goes to office regularly but brings only bitter goud (Karela) to be a side dish for the meal in the evening.
3) It amounts to pampering a child going errands with a chocolette who gets habituated to this practice to bargain for himself more for listening to his parents.
However Iam not to discourage any one to experiment with his ideas.
In my view, the better and long lasting solutions to a nagging problem like absenteeism will be :
1) Be careful at the time of recruitment. Look not only for job fit but also look for culture and ethical fit
of the employees.
2) Try to engage employees in their work beacuse a disengaged employee may resort to a negative behaviour as is this.
3) Try to know the reasons for their absenteesim as some learned members suggested and take steps to accomodate the problem of the employees withi the frame work of company;s policies.
Hope this helps
B.Saikumar