Salary is never the number one reason why quality employees will be loyal to your company, however, ensuring you pay them well can reap benefits in multiple ways. A high salary can never replace a great culture, training and development, career progression and acknowledgement/recognition. In fact, that can be the reason why in some companies (a high salary is paid mining as an example); to make up for a lack in these aforementioned areas.
In regard to wages, companies can operate more efficiently and become more productive if they pay wages above the award level. Here are four different theories on how applying this strategy may be beneficial.