We've heard a lot lately about banks and brokerages giving big bonuses to retain the best and brightest. It's an article of faith that if you want good help, you pay well and give perks to keep employees happy and loyal.

At least you do if the employees are executives. Somehow that belief doesn't trickle down to the bottom-rung workers who -- until now -- have been regarded as a cost rather than a resource.

I say "until now" because a new study shows that better treatment of low-level and line workers increases profits in companies large and small, in all sectors, and around the globe.

"Do Unto Others ... " isn't just the right thing to do, it's the profitable thing to do.

The results of the six-year study surprised even its authors, Jody Heymann and Magda Berrera of McGill University in Canada. They expected to find that, yes, you could provide bottom-rung employees with benefits and still be profitable. Instead they found that you should provide such benefits because doing so increases profits.

The benefits that proved useful to both employer and employees fell into five categories, some of which are more suitable to large corporations and some of which can be implemented by even the smallest business.

1. Support employee health - Sick employees can't come in to work; if they do, they are less efficient and make others sick. Absenteeism costs money.

2. Train and provide career opportunities - When companies offered training and promoted from within, they experienced lower turnover, greater efficiency, and easier recruitment. The employees who were promoted tended to be better managers because they knew what the jobs below them required. Support for such things as learning English as a second language led to greater efficiency as workers communicated better. Everyone works harder when advancement is possible.

3. Offer incentives - Incentives may be higher pay, profit-sharing or more autonomy in their work. A small, socially responsible baking company (they donate to nonprofits and are environmentally conscious) instituted a stock-option program. In one year, the research found, sales increased by 74 percent and stock options increased in value by 40 percent.

4. Engage line workers and act on their recommendations - Offer rewards for spotting errors or good suggestions. Employee suggestions can save far more than the award program costs. The lower-level worker sees things, important things, that never come to the attention of the executive office.

5. Ensure that companies and communities grow together - A community with good schools can provide better workers: Support schools. A reputation for paying fair wages may minimize negative community reaction to new stores or factories.

The report's conclusion is, to me, riveting given the recent financial market debacles:

"When it comes to evaluating firms, Wall Street had gotten in the habit of rewarding companies that cut wages, jobs, and benefits to employees, and punishing those that make such long-term investments ... As practices on Wall Street and in firms are being rethought, along with the role of the public sector in rendering the investment process more transparent, one of the areas needing a new approach is the evaluation of and reporting on long term investments in employees."

Yes!

Geri Stengel is founder and President of Ventureneer, an online education and peer support service

Apple Inc.’s latest Supplier Responsibility report indicates the company has stepped up its audits and training at a number of locations around the world.

The report says the company conducted on-site audits at 102 facilities in 2009, up from 83 in 2008, and trained 133,000 workers, supervisors and managers, a sharp increase from 27,000 a year  earlier.

“During most of our audits, suppliers stated that Apple was the only company that had ever audited their facility for supplier responsibility,” the report declares. Its audits have involved facilities in China, the Czech Republic, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and the U.S.

Apple’s code of conduct for suppliers covers expectations in five key areas: labor and human rights, health and safety, environmental impact, ethics and management commitment.

And the company has issued standards on a number of topics including dormitories, juvenile worker protections, medical non-discrimination, pregnancy non-discrimination, prevention of involuntary labor, wages and benefits, and working hours.

Apple said previous audits have revealed “a complex recruitment process” which has sometimes resulted in workers paying fees in excess of legal limits, in part due to fees involving third-party labor agencies helping recruit workers from other countries.

The company said it requires suppliers to repay overpaid fees and workers have been reimbursed more than $2.2 million in overcharges over the past two years.  Apple says its standard limits recruitment fees to the equivalent of one month’s net wages.

"Management Commitment" Gets Lowest Rating

It said it has found problems with suppliers in Taiwan, where companies often use contract workers from countries such as the Philippines, Thailand and Vietnam, and has conducted training and other programs to improve hiring practices.

Apple said its audits of 102 facilities last year included 22 repeat audits and 80 first-time audits.  Its summary of audit results indicated that the category of “management commitment” had the poorest results, with a 61%  rating for both compliance and for systems in place.

“Ethics” fared highest, 95%  in compliance and 86% with systems in place; labor and human rights scored 72% in compliance and 67% in systems; health and safety, 76% compliance and 74% systems.

Apple said audits turned up 17 “core violations” in 2009, including eight for excessive recruitment fees; three for hiring underage labor;  three for improper disposal of hazardous waste; three involved falsification of records.

Apple audits found 55 facilities that did not have “dedicated personnel accountable for compliance with all categories of Apple’s Code,” and it has required formal training programs for both workers and managers.

The company said it will “continue to terminate business when suppliers have repeat core violations or their practices suggest that they do not take our Code seriously.”