You say this, but money is also part of respect. Many employers do not index raises to inflation, so you're literally working for less each year you stay with that employer. Yes, you absolutely need to treat employees like humans and not numbers, but compensation is part of the respect you show employees. Ignore it at your peril.
> It works well, if you want transient, highly-capable people that will not stick around, and will not be there, when the fecal matter hits the air circulation device.
Anecdotally, the most capable people I have worked with are there to solve problems, and if they run into a problem that can't be solved (mostly because of organisation politics/culture) then they recognise the futility of trying and move on.
Not being there when the excrement hits the fan is just a byproduct of not sticking around in a dysfunctional environment.