One of the most discouraging challenges employees face is to start a job, train hard and then work harder, learn the systems and procedures, and then watch as someone else is hired to take on the position they've been striving for all along.

Sometimes it's necessary to go outside your doors to find the appropriate talent, but this is the case less often than you may think. Those who have been with the company for some time may lack a specific skill, but they also have a loyalty and an understanding of your company culture that a newcomer won't. Giving your seasoned associates the chance to move up will not only spur them on to greater heights within the company, it will also foster motivation among other employees to work hard and continue to develop as professionals.

Having a great work environment doesn't have to mean breaking the bank to provide perks like Google's or Virgin's. Avoiding the seven blunders above will do wonders for improving office morale and increasing employee retention--especially among the top performers you should prioritize keeping on your team.

What other tactics do you use to reward your best employees? Share your favorite strategies by leaving a comment below.