Exactly this. We just gave all our devs a significant raise - way above the norm, and way way earlier than we would. We're acknowledging the reality of demand, scarcity and wage inflation. My co-founder (also my wife) and I immediately felt our blood pressure drop once we did that.

Market conditions are making it hard to retain and very hard to hire. We've done a bunch of other stuff to recruit - which I described in another comment here - and it's making a huge difference. Employers who don't respond to these market conditions are in for a rough ride.