If possible, you might try to build loyalty through other benefits such as good healthcare plans, PTO, flexible work hours, maternity/paternity leave, and possibly above all, ownership. There is potentially much to be gained in productive returns by offering employees equity or stock options, and helping them feel like they truly matter and make a difference and will share in the team's success. Without these things I have no clue how anyone can build loyalty, I think it would be very difficult.

I will say this, a lot of the struggles you have might be blamed on the last 30 years of corporate America. The employees aren't the ones who blinked first on loyalty, it was the corporations. All the benefits of the great financial successes of American companies have been sucked up by the CEOs and others at the top, and were not shared with the hard working employees. Instead they've laid off and restructured over and over again to squeeze even more out of their people to hand to CEOs and shareholders. The end result is what you're dealing with, where nobody feels like they can get anywhere and they just look up at a CEO making 100X their salary and they wonder what they are working for. Sorry man, that's our reality and that's how we've ended up with the so-called 1% and why we seem destined for a return to feudalism, more or less.