I have had 2 employees who left for better jobs, and returned because although they were getting more per hour, the distance, the freedom and the job satisfaction were better at my office.
I noticed a long time ago. that most of my employees have their resumes on their computers. At first I became a bit upset, but then I had to look at the bigger picture. The newest of my employees has been with me for over 4 years, so although they are always looking for the next better thing, hopefully they realize how good they really have it.
It's always hard to hire, train and motivate new staff. Perhaps the office manager should question ALL the employees as to what they like and dislike about the office. Perhaps it's also something other than money. (It's always about that)!!! Perhaps, there are other tweaks that can improve employee satisfaction.
I agree that a policy should be set forth stating that personal work is not to be done on office computers or time (I'll have to put that on my list of things to do)