While I agree with everything else stated so eloquently in Mr. LaFond's article, I have an issue with morale being boosted via a pay raise.
It is widely known that expenditures rise to meet income. And as is the nature of people in our society, pay raises are typically devoted to obtaining new material things or. Rare is the person who deposits fresh new money into a savings account.
Usually, by the second or third paycheck, the employee finds themselves with the same relative income/expenditure profile - but perhaps with a new motorcycle, car, wardrobe, etc. And most quickly lose sight of the fact that the new motorcycle, car, wardrobe, etc. is tied to the pay raise they received.
Throwing pay at a morale problem is usually short-lived and not very effective (the return on investment is minimal).