The perfect employee for your company may be just a neighborhood away. Hiring friends is something that many business owners stay away from because a working relationship may ruin a personal one if there is ever conflict in the workplace. But your friends, neighbors, or family members may know a good person looking for a great job. Ask around at your church or fitness center, and check with people that you currently do business with for a reference.

If you are involved in your local Chamber of Commerce, you will be surrounded by other professionals who can help you out, and you can return the favor when the moment arises. They may know someone seeking a job or be on the lookout themselves.

Being visible in the community will help you attract the best applicants when you need them. Sponsor a sports team, participate in community fundraisers, and patronize local businesses whenever possible. Spend your advertising dollars in areas that will give you the best exposure. Become a household name in the neighborhood and when you're looking for people to help your business succeed, they'll want to work for you.

Set up an employee referral program at your company. Who could be better at selling someone on the idea that your company is a great place to work better than the people who are already there? Offer a program that works something like this: Refer a friend or family member for a job opening. If they are hired and pass the introductory period, receive a $100 bonus on your next paycheck.

Get in touch with former employees who left on good terms and ask if they know anyone looking for work. Since they were once employees at the company themselves, they can describe the job to someone who may be interested and send them to you for an application. If you hire them, send a thank-you card to the person who sent them, along with a gift certificate to a local store or restaurant.