Employee Retention in USA for year 2005

Is it really going to be challenging for companies to retain people this year with economy growing and people trying to get the best of money/services?

I heard on NPR that this year will be the worse in a decade or so because in the past years benefits have been shrinking and pay increases have been below average and therefore the companies are expecting a mass exodus. In the past two months two employees from my department have left for greener pastures and another one will probably give in his notice next week.