Work environment is also a big issue. I've known great developers (a few of which have written code every Python developer uses every day) who've made their employment decisions based on how they'll be treated, who they'll be working with, and with what tools they'll be working (and even what they'll be working on....Open Source development has a strong allure for many developers, beyond mere money). Aeron chairs have a reputation for being a "boom era boondoggle", but if you don't provide a good chair, you won't keep a good developer sitting for long. Great recent hardware to work on is a given. Big monitors, a given. Whatever software and hardware they need to be comfortable: trackball or fancy mouse, weird keyboard, monitor stand, etc. Likewise for snacks and their favorite beverages.

As a startup, I'm running cheap. But, when it comes time to hire folks, I'm stocking the damned fridge with the best stuff money can buy, buying great chairs and huge monitors, and anything else I can to make working for me and with me the best work experience of their lives. Even if it costs $5000-$7500 right off the bat to equip a developer, that's chump change compared to the opportunity cost of hiring a new one to replace him if he leaves. And it's a small percentage of their total compensation package. (And we have that wonderfully alluring Open Source thing going for us, so we won't lose folks just because they don't get to see their code set free.)

Reckon we could hire Resig? I hear he likes Perl.