I agree on your points, we pay our staff above award wages. However from personal experience, I have found that while most appreciate what you are doing... Others will still try to take advantage and slack off, ultimately they don't last long and end up loosing their jobs.

Also depending on the industry, paying well and having a good work environment, can lead to your staff frequenting their place of work on their days off and bringing their friends along to spend money also.
If your making decent profits.... Reward the people who help make you that profit!