1) Communication – the single greatest contributor to low morale is lack of communication.
2) Getting the hiring process right – a lot of churn results from bad hiring.
3) Culture and Fit – Employees leave because they don’t feel like they fit in.
4) Promote from within. Create a career path for your most talented people.
5) Assess yourself, your team, and your company.
6) Pay your team well.
(Full Story: A VC: Retaining Your Employees)