Retain Employees Without Extra Costs

Be creative with perks: Sometimes you will have to spend money to keep up morale. But it doesn't have to be a splashy party or a chic retreat. Pizza Fridays could do the trick. Or let employees dress down on days other than Friday as long as they are not meeting clients. Eat lunch occasionally with your staff in the office kitchen or cafeteria. Allow people to occasionally leave a couple hours early for family events like their children's soccer game, as long as the work gets done.

Another cheap perk to offer: sign up for employee-paid benefits like Alfac, recommends Baker, who is also author of "The Last Box: A Woman's Guide to Surviving Corporate America" (AuthorHouse). "It doesn't cost you anything and it provides them with income if they are out on disability. You're adding benefits without cost to the company."

No layoffs unless absolutely necessary: Making layoffs as the last resort "sends a powerful message to employees that they are wanted, valued and will be treated as something other than a disposable asset," recommends Catlette. "Ergo, they are more inclined to stay and work hard for you."