I think one issue is that market wages (or reasonably higher than market ones) for developers are so low that good talent will simply not be interested in your

I think one issue is that market wages (or reasonably higher than market ones) for developers are so low that good talent will simply not be interested in your offer, especially if you are a small company (in which case you can at least play the "job security" card, which I think has a lot of weight here). Setting up shop or working as a freelancer just pays so much better.