A living wage definitely helps. It doesn't have to be super high...But if you're paying the very least you can to your employee, and it doesn't even match industry standards... Expect them to leave. If your employee is good... they should be making above the average pay, not below it. So short changing them on salary makes them feel like theyre not appreciated.
The #1 thing I like is when we do something new... My boss asks my opinion on how I would do it. On what would be easy for me, whether its to print, or to install. Then I'm not wasting my time, or the companies trying to do something thats flawed.
It helps if you're willing to help your employee advance his career / skills... I've been offered so many courses, everything from Graphic design to vinyl installs, to a week long course across the country, all expenses paid. It shows that while you're investing yourself and your time in the Company, they're willing to do the same for you.