Employees are far more likely to function at their best, and stick with your business over the long term, if they see you investing in them.

Budgeting for skill training and competitive increases in pay can result in long-term paybacks to your business.

Focus on retention over recruiting. Since the fees and lost productivity tied to finding and training the right talent for your company may cost you 15 to 40 percent of an employee's first year compensation, it makes fiscal sense to retain rather than replace your team members. Keep workers happy and productive through benefits programs that encourage long-term service.

• Set up recognition and reward programs that provide employees with evidence that they're appreciated. Educate team members on how your business works, and provide bonuses for actions that improve the bottom line.
  
• Use updated employee forms in 2008.
  
• Create a job description for each employee.  Every employee should have a clear, written understanding of why they're on your team, what they should be doing, and how their performance is measured.
  
• Involve your team members in gathering information for these descriptions, which can be a fun and effective exercise for both you and your workers. And check out examples of templates for job descriptions on line.
  
• Perform an HR audit of your processes. Walk yourself through a step-by-step review of your hiring and HR practices, evaluating their accuracy and compliance with legal guidelines.

Taken from coloradoan.com