I just love quoting articles from TechRepublic. Their writers really hit it on the mark. take for example the following quote:

Many companies pay as little as they can get away with in a misguided quest for better expense management. Most of these organizations experience high employee turnover and then must spend more money hiring and training newbies. In addition, this approach has hard-to-quantify opportunity costs because companies often lose profits and customers as a result of providing bad service and care while they are understaffed or using poorly trained personnel.

This is from the article “10+ dumb business decisions that can take a company down” by John McKee published on April 9th.

From that same article Mr McKee also pointed to other factors that contribute to loss of ROI and effective employees. These are growing too soon too fast, the lack of a sound maternity or paternity policy, the lack of a diverse workplace, and cutting back on after-sales services.