In part two of this series, we took a look at some of the employment law issues that you need to consider before you make a hire. In this last installment, we’ll review some of the ways to recognize your top talent so you can work as hard to retain them as they work to help you grow your small business.

Chances are if you attract the best and brightest employees – and retain them – that you won’t have to worry about the types of legal liabilities we discussed in part two. So before the interview process even begins, make sure you are pulling from a healthy crop of potential candidates. You might try saving a manila resume folder full of candidates that are referred to from various sources. This stamp of approval cuts a lot of the dross out of the running.

“The mistake most employers make is plopping an ad in the help wanted section of the newspaper. The problem with that is you are assuming the best person is out there looking in the newspaper,” says Cathy Fyock, author of Hiring Source Book: A Collection of Practical Examples.

“Most recruitment activities don’t focus on the place where the best candidates are. Third party recruiters that make the big bucks call businesses that are similar in nature and ask for recommendations. The idea is to find candidates that closely match your profile.”

Check out this video on retaining top talent: