I find it saddening, and yet too usual, that managers/business owners feel that they need to "have leverage" on their employees, say, use the stick while dangling the carrot.

With the risk of coming across too philosophical/impractical I'd start with _why_. Why you as a business owner wake up in the morning? Why did you started the business in the first place? Employees that are not motivated by money or that can easily find a job anywhere else can are motivated by a vision, purpose, meaning. They can also be motivated by the inherit pleasure of working (the book "Deep Work" by Newport come to mind).

I personally identify with Jane and in a recent experiment it showed that finding a job as a senior software engineer is no trouble at all. And thus, it is the mission of the company, the problem that we are solving, SEEING the results of my work in happy customers, etc.

Companies that do that have me for the long run!