Mr Bewley concludes that employers resist pay cuts largely because the savings from lower wages are usually outweighed by the cost of denting workers' morale: pay cuts hit workers' standard of living and lower their self-esteem.
Because of these human conditions, listening to employees and responding to their concerns to their satisfaction or better (at the highest standard) leads everyone to become highly motivated, highly committed, and fully engaged with high morale and innovation literally loving to come to work and at least 300% more productive than if poorly engaged.