The New York Times wrote a really interesting article about research that shows that profits increase in line with staff pay:
Thinking Outside the Big Box

Traditional business practice has always taken as read that squeezing employees pay boosts profits. Why is that belief so unfounded?

Generally, organisations that pay their  staff well do so because they value their input. They tend to treat them well in many other ways. One of the most invigorating drivers of growth of an organisation’s output and profitability comes from the staff who actually do their work, and who have direct contact with customers. They see first hand how to improve quality, services and efficiencies in ways that customers want. Organisations that treat staff well find staff are empowered to pass their thinking back to management. Organisations that see staff as nothing more than an expensive means may listen to ideas for improvement, but they rarely value them.

Organisations engaging in positive universal values engage with values such as trust, respect, integrity, openness, cohesion, fairness. When they are being authentic in their engagement, they do so with anyone the organisation engages with, which includes employees, suppliers, customers and the community.

There are a variety of benefits to organisations that engage effectively with values. As the article above shows, improved profitability is just one of the benefits.