What does it cost to replace an employee? At least 40 percent of his/her annual salary - and higher for management staff. High turnover is a sign of an unhealthy organization and poor management. But not all employee turnover is bad. Each year, you should try to weed out your poor performers to offer more opportunities for your top ones. High-performing, motivated employees can be dragged down by those who are not engaged.

Employee retention and loyalty is good for your business: It can only result in increased customer satisfaction. Here are 10 strategies to get you there:

1. Recruit right. Encourage and reward employee referrals - they can end up being your best hires. Welcome back good employees who left your organization on good terms. Hire first for attitude, followed closely by skills: You can teach anyone about your business, but changing his/her attitude is another story. If the new hire is not a good match, address the problem in the first 90 days.

2. First impressions mean a lot. A welcome sign at your employee entrance with the new employee's name can start them off on the right foot. Take them on a tour and introduce them to everyone, especially senior management. Make sure their work area, computer, and business cards are ready. Take them out to lunch. Develop a training agenda for their first weeks, which includes spending time in other departments to understand how the organization works as a whole.

3. Communicate well and often. Most employees leave a company because of their relationship with their direct supervisor. Great managers have strong coaching skills, meet regularly with their staff, listen actively to their concerns, challenge them when they need it, and earn the employee's trust. Regularly meet with each of your direct reports, at least every two weeks - more often for new employees.

4. Train to retain. Offer opportunities for staff to learn and improve both their hard and soft skills. When appropriate, encourage staff members to attend industry events and participate in associations to further their professional development.

5. Create a good work environment, whether your office has a spectacular view or is a basement cube farm. Decorate work areas. Hold department lunches. Foster a culture where internal customers treat each other as well as your external customers. People who enjoy their team members and have a little fun look forward to coming to work.

6. Catch them doing something right. What you recognize will be repeated. Some employees prefer private over public recognition. Make sure that you know what motivates each of your direct reports.

7. Compensate competitively. Be sure to benchmark salaries for key positions within your industry and geographic area every year. Guard against giving blanket raises to all employees. Spread it out based on their contributions and performance. Make sure that your benefit package is competitive and well understood.

8. Create an opportunity for growth. A good manager consistently develops employees who get promoted. Make sure to spend time with your staff at least once a year to discuss their career aspirations and to develop plans that help them achieve their goals.

9. Get to know your employees beyond their work. By showing concern about the quality of their personal life, you will improve their engagement.

10. Conduct regular employee surveys and exit interviews. Learn what employees like about working for your organization and where there's room for improvement.