Think of employees as not only workers in your business but emissaries spreading good news about your company and products. That's a grass roots way to drive business. Disgruntled employees don't have positive things to say about their employers. Employees all working toward a common goal improves efficiency. You don't necessarily have to pay above-market wages. There are other ways to improve employee morale through working conditions and the company environment. Bringing in pizza for Friday lunch, sponsoring a baseball team, hosting bring-your-kid-to-work day and offering flexible work hours don't cost a lot.