Working smarter and for better companies also got me working harder. I simply work harder when I'm working for a company I care about, on a job I care about, when I feel appreciated and have the freedom to contribute in a way that works for me.
If you make me care less about the job and worry more about money, that's not going to help my productivity. If you want passionate and productive workers, you've got to give them something to be passionate about, but you also have to make sure they don't have to worry about money. If they're thinking about how they'll make rent or how they're going to pay for some unavoidable expenses, they're not thinking about how to solve an interesting problem for you.
If you make me care less about the job and worry more about money, that's not going to help my productivity. If you want passionate and productive workers, you've got to give them something to be passionate about, but you also have to make sure they don't have to worry about money. If they're thinking about how they'll make rent or how they're going to pay for some unavoidable expenses, they're not thinking about how to solve an interesting problem for you.