I worked at a company that had a great work culture. My manager was awesome, there were tons of side benefits, in general everybody worked reasonable hours and got to leave work at work. But they were bleeding talent because they weren't keeping up with market rates for salaries.

The side benefits and the extra motivations are important, particularly for long term satisfaction and sustainability, but those things alone won't cut it if you're paying 70% of the market rate in the area.