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I'm going to second this. The best way to retain workers is to be pay the most in combined pay and benefits. work is transactional- it's always been transactional, really. Employees are starting to realize that, and are going to be job hopping more.
Work is inherently transactional. You pay employees for the work they do. They do work for the pay and whatever benefits get added to it. Ultimately, if people are leaving, its because they feel there's a better transaction to be made elsewhere. (and no. Donut Day and free coffee aren't 'benefits'... looking at you Clay.)
In any case, the way to retain individuals it ensure their pay and benefits keep pace with the demands of their current skill set. this means raises, increases in benefits and promotions. (Also, generally respect your employees, and stuff like that... but I'm assuming that's not really the problem.)