A profitable business is one that succeeds in making some gains after deducting all the expenses required to run the business. Employees comprise one the most important components of a business. With this in mind, balancing profitability and keeping employees happy go hand in hand.
If a business becomes too focused on profitability, it can compromise business ethics and values by cutting the cost of production, underpaying staff, or overlooking customer satisfaction. This would naturally lead to internal and external conflicts. Internal conflicts would arise from unhappy staff if the business is suddenly unable to pay them a living wage. The unhappy staff could easily start sabotaging the business, which would affect the products and services offered, and the customers' willingness to remain loyal. Customers could in turn move their business elsewhere, or sue the business for offering unsatisfactory products or services.
To avoid any conflicts between profitability and paying staff a living wage, a good business will invest in a strategy and plan that balances these two components without affecting the quality of the products and services.
In the service industry, keeping this balance is even more critical as the staff serve as the face of the business. A happy and satisfied staff will treat the customers well, which leads to repeat business and increased profitability. A business that is committed to paying its staff well is likely to have invested in a holistic and balanced business strategy that weighs in all the aspects of a good business.