If you pay people according to value you get happy value-generating employees. If you pay people the minimum of what you can get them for- you get the minimum

If you pay people according to value you get happy value-generating employees. If you pay people the minimum of what you can get them for- you get the minimum - unhappy, less productive employees that eventually leave your company. There is no free lunch. Just because they aren't the type of person to get counteroffers or move to the bay area doesn't mean they don't recognize their value or won't feel taken advantage of.