This should be an obvious part of most managers philosophy.

If the type of job your employees are doing (and type of people you are hiring) provides more value then monetary compensation that you should be aware of that.

This is especially true in software development where many developers would do it for the love of it, if their basic necessities are covered. Many other professions are the same.

But there a many more jobs (and employees) where this is not the case and money is the best motivator.