I arrive at Serrano's coffee bar in Eugene, Ore., at 7:50 each morning, 10 minutes before I'm due at work. There are usually 15 people waiting to get their coffee, but I never worry that I'll be late, because the café's staff moves customers through the line quickly and efficiently. When it's my turn to order, the cashier greets me enthusiastically by name and pours my usual 12-ounce strong with room for cream-it's a great way to start the day. Serrano's is an excellent model for attracting and retaining first-rate employees. But how do they do it?

The first step in hiring is finding great candidates. Before you begin the interviewing process, be clear about the qualities you are looking for in a position. If the job is cashier, for example, you'll want someone who is cheerful, optimistic and energetic. These qualities may not be quite as important for a dishwasher position. And if you're looking for a barista, you'll want to hire someone who is capable of working quickly and competently in a fast-paced environment. By entering the interviewing process knowing exactly what type of person you need to fill each position, you will save time and avoid hiring the wrong applicant.

You may need to interview numerous individuals to find the right fit, but it's worth the time and effort. When you write your help wanted ad, be sure to define the characteristics you are looking for in the individual you want to hire-hopefully, job seekers who do not possess these qualities will not apply. Look for energy and personality when hiring entry-level employees. You can always train them to perform the job, but it's not easy to teach someone who lacks enthusiasm how to be friendly and outgoing. Of course, you'll also want them to be clever enough to balance the till, make quality beverages and interact with customers intelligently.

Appearance is also very important for an employee who has direct contact with your customers, as is demeanor, ability to make eye contact, and voice and speech quality. Pay close attention to all of these factors during the interviewing process.

Previous experience may or may not be important to you when hiring. Some managers prefer to hire baristi who have no experience behind an espresso machine. This way they can teach new hires proper drink-making techniques without having to help them overcome any bad habits they may have picked up in a previous job. Other employers prefer to hire experienced baristi if the work environment is fast-paced and new employees must begin to prepare drinks immediately with minimal training.
   
During the initial phone interview, explain the position, hours and wages and ask the candidate if the job interests her. Listen to your applicants' voices; are they excited by the prospect of having this job? Are their phone voices pleasant? You can discover a lot about an applicant in the first minute of a phone interview.

If you decide you want to meet a candidate, schedule a short first interview. This will help you determine whether or not the person is a good fit for the job and your business. Does he or she make eye contact when speaking to you? Is she able to answer your questions intelligently? Was he friendly and did he smile? Trust your gut instincts!

After narrowing down your field of candidates, you may want to bring in several people for a second interview. At this time, examine their applications and work histories and be sure to check references. Do they have previous coffeehouse experience? (Again, this may or may not be important to you.) If an applicant is a student, will the job fit into his or her schedule? Why did he leave his last position? How long did he work for previous employers? You may not want to hire someone who has only worked for short periods of time at a variety of different positions, no matter how dynamic his personality may be.

Okay, now that you have found and hired the perfect candidate, so how do you keep her? I asked Serrano's manager Ann LeTourneau how she retains such extraordinary employees. She believes it's necessary to develop open lines of communication to alleviate tension or potential problems. "Two-way communication is key," she says. "I encourage my staff to come to me if there is a problem. By doing this, I feel I maintain a healthy work environment that keeps us all on track."

In addition to good communication, LeTourneau credits her success to being a hands-on employer. She works beside employees during the busiest hours of the day, she covers breaks and lunches, and she fills in for employees who call in sick. "I show them that I know the job and that I'm not afraid to do the same work they are doing," she says. "They always know they can count on me."

Another key to hanging on to your best employees is motivation. As an employer, you must understand what it takes to motivate employees and be able to adapt your management style to each individual personality. What inspires one employee may not inspire another. Even though your employees are part of a team, you must deal with them as individuals and find the best way to motivate each of them. Be sure to commend employees for a job well done and reward them when possible. A half-pound of roasted coffee or a free after-shift drink will show employees that you value the work they do for you.

Respect is another must. To gain the respect of employees, you will need to become an expert and learn everything there is to know about your product and your operation. You must also be passionate about your business if you expect your employees to care. Also, be sure to stress the importance of great customer service and product quality. If you instill in them the value of doing well and turning out the best product possible, they will take pride in their work. As a result, their attitude, customer service skills and loyalty to you will increase.

Making sure employees understand the policies, procedures and rules of your operation will also go a long way in keeping them satisfied. If they don't understand their roles and responsibilities, it could lead to frustration for you and your staff. It is essential that employees know what is expected of them and that they understand that they need to work together as a team for the good of the business. An excellent way to do this is to develop an employee handbook that establishes policies and procedures in writing. Remember, each position has numerous job responsibilities. It is unfair to expect a newly hired employee to remember each one of them. Provide employees with a checklist of duties for each position to make it easier for them to complete each assigned task. They will thank you for it and take comfort in knowing what their responsibilities are.

One of the most valuable things you can do to retain employees is invest in training. By helping your staff become more knowledgeable, they will realize that you truly value them. A highly trained and educated staff will take more pride in their work, have better morale, perform at an elevated level, and gain more personal fulfillment. And by continuing to train your employees, you will keep them challenged and interested in their jobs.