This is only partly wrong, though. Happy employees stay even when paid less than they might get elsewhere, and unhappy employees leave regardless of high pay.

In my humble opinion, I'd say none of the three options are correct.

• Ping-pong table - this is an answer along the lines of free pizza and casual Fridays that so many laughably out of touch managers default to. It's liable to actually low-key insult your employees.
• Additional responsibilities - bitch, we are all drowning under work because of short staffing. I don't need another title bump and half of Travis' work after he left for a job with work-from-home.
• A raise in pay - this only works if you can raise pay so high that its worth dealing with this shitty job, and that often just isn't possible.

What workers actually ask for is reasonable staffing, work/life balance, adequate tools to do their job, and autonomy.

Right, but nobody leaves a job because they’ve been paid too much.

Pay is the baseline. If you’re not paid enough to pay your bills and live the lifestyle you want, you’ll look for employment elsewhere.