Summarize:

The employment relationship starts with a paycheck, and in the end, paying good wages is still the best way to keep employees happy. An employee who is paid more than the market rate is a happy employee—but more than that, they’re an employee who wants to do whatever they can to stay at your firm. They have something in their employment relationship with you that’s difficult to find elsewhere.  Good wages aren’t the same thing as “competitive wages.” An employer paying competitive wages is paying as close to the median wage as is possible, while an employer paying good wages is paying at the level they need to pay to keep the best employees. An underpaid employee is an employee who will resent their employer sooner or later. Resentful employees are the kinds of employees most likely to come into legal or personal conflict with their employers. What counts as employer sponsored benefits in the US (paid time off, health and retirement insurance) are provided for or mandated by the government in almost every other country. The implication being, what is considered a “benefit” in the US is considered a right in most other areas of the world. By offering a benefits package that not only covers the basics like health and retirement, but goes above and beyond, an employer can attract and retain the most qualified employees. Think about offering perks like employee development programs (such as continuing education and credentialing), company stocks as compensation, and phased retirement programs. These signal to your employees that you’re as committed to them as you expect them to be to you. There are few things that wreak more havoc in an individual’s private life than unpredictable work schedules. It is one of the strongest signals an employer can send that an employee's time is unimportant. Very few people live to work—most are working to live. When last-minute scheduling changes consistently interrupt important personal events, it kills morale. Workplaces with low morale are breeding grounds for conflict between employers and employees and between employees themselves. And it’s a rational reaction—if an employer doesn’t value an employee’s time, they don’t value the employee. And an employee who isn’t valued by their employer will only value the job as long as they can’t find one that pays better. Behaviors like sexual and racial discrimination and harassment not only undermine the human dignity of their targets, but they vastly increase the likelihood of conflict between employers and employees (in the form of legal action).  No one deserves to be a target of ridicule because of how they were born. Employee complaints of harassment or discrimination must be seriously investigated and swiftly addressed. Failure to do anything less can be perceived as an endorsement of the discriminatory behavior. These types of complaints are often difficult to verify. However, most employment arrangements in the US are at-will, meaning that the employer can fire the employee for any reason. There’s no obligation to retain an employee suspected of harassment just because it can’t be proven they committed an offense on a specific time and day. Therefore, it behooves an employer to look beyond the immediate circumstances of the complaint and examine the totality of the suspected employee’s behavior. Check social media posts, company emails, and the experiences of others to get a true feel for the employee’s attitudes. Finally, an employer can avoid conflict with employees by showing their appreciation for their employees. Recognize and reward team and individual performance. While a little recognition won’t compensate for low pay or poor benefits, it shows the employer is willing to go the extra mile. You can show appreciation in a variety of ways. Throw holiday parties. Hold quarterly prize-drawings. Give birthday presents. Use your imagination.
Pay good wages. Offer strong benefits packages. Issue predictable schedules. Protect your employees from predatory behavior from other employees. Show your appreciation.