This is a reply not just to you, but to several similar posts at once:
1) I don't have trouble maintaining employees, and it is precisely because I am careful to hire someone that won't quickly leave.
2) We don't have the best pay nor all that much room for positional growth, but it is a great environment and very stable. I am careful to disclose as much as possible about the goods and bads of the position so there are no unreasonable expectations.
3) I don't count contract work as job hopping. It is not the same thing, and it is usually apparent based on the resume.
4) The type of positions I am hiring for are not project oriented as many posts have assumed. It is departmental management, training, systems administration, and support.
5) I agree that people should be moving on if they are stagnating, but I can't have that be every 1 to 2 years, we simply don't have the resources to deal with that type of turnover in a small company.