Restaurant workers are paid far less than other occupations, but low wages actually mean higher costs for restaurants, a report published last week by Cornell University and Restaurant Opportunities Centers United shows.

The report, "Taking the High Road"—which included interviews with owners and various workers of 33 fine dining, quick-serve and other restaurants in eight U.S. cities including Chicago—found restaurant owners who pay their employees a livable wage with benefits and opportunities for advancement can still make a profit.

That's because happy employees result in less turnovers, according to the report.

Currently, about 90 percent of restaurant workers do not receive paid sick days, vacation days or health insurance through their employer, which, according to the report, results in the restaurant industry’s high turnover rate.

Restaurants are estimated to lose $4,000 to $14,000 per employee turnover, according to figures provided in the report.

Saru Jayaraman, co-director of the Restaurant Opportunities Centers United, a national organization that advocates for fair restaurant wages, said there are some short-term costs associated with investing in workers.

“But those costs are more than offset by the long-term gain that comes from retaining a dedicated and motivated workforce,” Jayaraman said in a press release.

The restaurant chain Houlihan’s of Chicago was one out of nine restaurants the report considered a “high road” establishment because of its healthy workplace environment.

Houlihan’s, located at 111 E. Wacker Drive, offers its employees five paid sick or vacation days after working with the company for a year.

The restaurant also prefers to promote from within to ensure trust and loyalty, said general manager Stephen Hughes, who started as a server at the restaurant when it first opened and worked his way to the manager position.

Hughes said providing five paid sick or vacation days has been “generally positive” for the company.

“The employees always ask about it and when they are eligible,” he said.

But overall, Hughes said he looks at investing in his employees “dollar wise.”

“It always takes a few thousand dollars to train people,” he said. “The more (employees) you keep around, the less you have to spend.”

Employee turnover also has non-quantifiable costs, said Rosemary Batt, associate professor of Human Resource Studies at the Industrial and Labor Relations School at Cornell University and one researcher of the report.

“Restaurants require tight coordination and trust between staff, particularly in the busiest hours, to be successful,” Batt said in the release. “When you lose someone in the team due to turn over, it affects the whole team disproportionately."

Workers at the Chicago restaurant Freshii’s were also interviewed for the report, which was funded by the Ford Foundation.