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Small companies have some inherent advantages and disadvantages. On the plus side, everyone on staff really does know your name. There's also the excitement and camaraderie involved in building a new enterprise. Of course, that also means risk and uncertainty. The smaller the team, the more critical it is to attract and retain the right talent.

The winners here are striving to do just that. In scope and diversity, they prove there's no magic formula and no particular sector that stands out. The top companies stretch from coast to coast. No. 1 on the list is Halifax-based SportsDirect, a star in the world of on-line sports statistics and gambling odds. Other top picks include community credit unions, non-profit agencies and some fascinating niche businesses.

Our partners in the survey are the Queen's School of Business and Hewitt Associates, a global human resources outsourcing and consulting firm. The study was coordinated through the Queen's Centre for Business Venturing, whose mission is to improve the odds of success for new ventures.

The process began last summer, when 79 organizations from across the country registered for the study. For the most part, each employer's ranking was based on a detailed questionnaire handed out to employees. Other factors taken into consideration include information about the organization's leaders, how closely the goals of those leaders and the company's workers are aligned, and whether workplace practices and programs reinforce the employer's vision.

For more information, including instructions on how to participate in next year's survey, log on to www.business.queensu.ca/qcbv/sme or call 1-877-955-1800.

1. SportsDirect
HQ: Halifax
Industry: Media
Employees: 104
Turnover rate: 10 per cent
What they do: The world's most-read on-line media company for sports statistics, gambling odds and news. Publications include Wagerline.com and PokerFan.com.
Their story: In 1995, Paul Lavers and Joe MacDonald, two 23-year-old Halifax university students, started SportsDirect by generating sports stats on a computer in Lavers' parents' basement for on-line gambling site Covers.com.
Kudos: Top-ranked firm in the survey for work/life balance and work environment.
Benefits: Extra compensation ranges from shares in the firm after the first year to bonuses for referring successful hires.
On the horizon: "People like coming to work here because of the culture that developed over time. We need to keep that alive as we grow. At the same time, we need to develop leaders within the organization that will keep that going but also build the business." —Rob Begg, VP, Marketing

2. High Road Communications
HQ: Toronto
Industry: Public relations
Employees: 63
Turnover rate: 4 per cent
What they do: PR and marketing for high-tech firms.
Their story: When 29-year-old Hill & Knowlton exec Mia Wedgbury and two colleagues left the firm to start High Road in 1996, her boss said, "You're way too young—you don't have the experience to make this happen." Today, she heads up Canada's largest tech-specific PR agency.
Kudos: Top in the survey for career opportunities, motivated employees and senior management leadership. In an industry where workers are known to move around frequently, High Road has lost only two employees to competitors in 10 years.
Benefits: To improve communication, the firm has developed initiatives such as Operation Lunch Hour, which encourages VPs to take employees who they don't normally work with for lunch.

3. Sapient Canada
HQ: Toronto
Industry: IT services
Employees: 101
Turnover rate: 17 per cent
What they do: Sapient is an international business and technology consulting firm whose clients include BP, Harrah's Entertainment, Hilton International and Enbridge. Kudos: It ranked second in manager support.
Benefits: Biannual performance reviews are linked to promotions and increased compensation. Plus, Sapient offers two weeks of paid leave for new dads, in addition to vacation time.

4. CNC Global
HQ: Toronto
Industry: IT services
Employees: 247
Turnover rate: 15 per cent
What they do: An IT placement firm that also provides administration and payroll services.
Kudos: Ranked third for employee satisfaction with pay.
Good deeds: President (and gourmand) Terry Power regularly auctions off special dinners for employees at his home. The proceeds go to charity. Plus, CNC's Toronto branch raised $175,000 last year for organizations that include Toronto's Hospital for Sick Children, the Kidney Foundation and the Sky's the Limit (an organization that provides refurbished computers for inner-city kids).

5. Cariboo Friendship Society
HQ: Williams Lake, B.C.
Industry: Not-for-profit social services agency
Employees: 56
Turnover rate: 9 per cent
What they do: Provide shelter services, early-childhood development programs and employment counselling for the Williams Lake community.
Kudos: Highest-ranked company for corporate citizenship, with staff satisfied that their employer adds value to the community.
On the horizon: "Our biggest challenge is providing salaries to match qualifications. Most of our programs only allow a predetermined amount for salaries. The key here is our strong, supportive environment. The word 'family' is mentioned often." —Jocelyn Fransen, executive secretary

6. Mary Kay Cosmetics
HQ: Mississauga
Industry: Consumer products
Employees: 99
Turnover rate: 5 per cent
What they do: Mary Kay Canada provides marketing, product development and training for the 35,000 Canadian women who sell its products.
Kudos: Fifth for physical work environment and work/life balance.
Benefits: Top sales consultants get the loan of Mary Kay's legendary pink Cadillacs. At least once a year, president Ray Patrick meets with all employees across the country for a "coffee chat."

7. Dempsey Corp.
HQ: Toronto
Industry: Distributors
Employees: 50
Turnover rate: 11 per cent
What they do: Distribute specialty-food ingredients and chemical additives.
Their story: President Bowes Dempsey began working at the family firm as a sales rep in 1970, shortly after graduating with an MBA from the University of Toronto. Dempsey was among the first wave of businessmen to go to Korea, Taiwan and China to find suppliers.
Kudos: Second among all firms in the areas of financial compensation and recognition beyond compensation. Almost two-thirds of all new employees were word-of-mouth referrals—a high figure for any firm.
Benefits: This winter, a dozen employees went on an all-expenses-paid backcountry sales retreat in the Rockies.

8. Innovation Place
HQ: Saskatoon
Industry: Real estate development
Employees: 79
Turnover rate: 6 per cent
What they do: Develop and operate research parks for tech start-ups.
Kudos: Ranked second overall in corporate citizenship.
Benefits: Almost 75 per cent of staff received job-related training in 2004. Each year, 3 per cent of the corporation's total annual wages are earmarked for training and development.
Good deeds: Every employee in this Crown corporation is involved in the strategic-planning process so they will understand how their own jobs help the organization to meet its goals.

9. Lutherwood
HQ: Waterloo, Ont.
Industry: Not-for-profit social services agency
Employees: 211
Turnover rate: 14 per cent
What they do: Provide over 30 programs annually that serve 16,000 children, seniors, young parents, troubled youth and mentally ill individuals.
Kudos: Among the top firms for motivating employees through its corporate citizenship programs. Benefits: Lutherwood's peer mentoring program matches up new employees with more experienced colleagues.
On the horizon: "We're well aware of the competition for hiring the best and the brightest, and we've made recruitment and retention a key strategic imperative. It's not enough to engage the skills and knowledge of our employees; we must also engage their hearts." —Sandra Watt, director of human resources

10. iTrans Consulting
HQ: Richmond Hill, Ont.
Industry: Engineering
Employees: 58
Turnover rate: n/a
What they do: Provide engineering consulting services to the Toronto Transit Commission and the City of Calgary, among others.
Kudos: Scores highly for employees' conviction that the company's senior managers provide effective leadership.
Benefits: Each new employee is matched with a mentor to "provide advice and to help develop the individual's career." Those who've been there five years are rewarded with a weekend getaway for two at a local resort. Employees at iTrans also choose one of their colleagues to receive an award of excellence. The winner gets a free trip to a professional conference anywhere in North America. The company emphasizes training and development through its "lunch and learn" program and has a corporate Toastmasters club to help employees get comfortable talking to a crowd.

11. Windsor Family Credit Union
HQ: Windsor, Ont.
Industry: Financial services
Employees: 104
Turnover rate: 2 per cent
What they do: Provide financial products and services to 21,000 members, and administer assets of more than $500 million.
Kudos: Second among all firms for benefits and work/life balance.
Benefits: Employee development officer meets with new hires biweekly for the first eight weeks to help them adjust to the job.
Good deeds: In 2004-'05, Windsor Family raised almost $800,000 for community initiatives, including the Children's Safety Village, an organization dedicated to reducing childhood injuries.

12. Laurentide Controls
HQ: Kirkland, Que.
Industry: Engineering
Employees: 114
Turnover rate: 8 per cent
What they do: Sell and service equipment that manages industrial processes such as water or chemical flows through pipes.
Benefits: Laurentide covers all employee costs for continuing education programs. After employees have worked a year at the firm, they're offered incentives to buy shares; 75% of Laurentide's employees own a piece of the private business and receive quarterly shareholder bonuses.

13. The Orthotic Group
HQ: Markham, Ont.
Industry: Consumer products
Employees: 112
Turnover rate: 3 per cent
What they do: Makes shoes, sandals and insoles for people who need custom and specialty footwear.
Kudos: Ranked fourth in work/life balance and the effectiveness of performance reviews.
Good deeds: To accommodate their more than 50 Muslim employees, Orthotic Group included a prayer room when building its new headquarters in 2001.
On the horizon: "We're operating in a place that's not equipped to handle the growth we've projected. Constraints have already forced us to move some of our manufacturing capabilities into two nearby locations, creating challenges around controlling inventory and, more importantly, managing people." —Justin Shulman, director of human resources

14. Lakeside Process Controls
HQ: Mississauga
Industry: Engineering
Employees: 100
Turnover rate: 1 per cent
What they do: Sell and service automated systems that control industrial processes in industries such as gas distribution, power generation, mining, chemicals and pulp and paper.
Benefits: During the hiring process, candidates meet with several staff members to ensure they get a realistic understanding of the company. Lakeside execs believe they have a high success rate with new workers because of their comprehensive hiring process.
On the horizon: "The market for experienced talent is extremely tight, and finding skilled individuals is becoming increasingly difficult. I expect we'll continue to see this trend for some time. This challenge is further exacerbated by the need to hire people who have an attitude that's a good match with our corporate culture." —Patrina Bailey, human resources manager

15. 4Refuel Canada
HQ: Langley, B.C.
Industry: Oil and gas services
Employees: 51
Turnover rate: 8 per cent
What they do: An on-site refuelling service, launched in 1995, that also helps companies manage fuel costs by providing tools to monitor energy use. When the Montreal Canadiens and Edmonton Oilers played outdoors at Edmonton's Commonwealth Stadium in 2002, 4Refuel helped provide the power that lit the rink, allowing CBC to broadcast the game.
Benefits: 4Refuel's safety record is 15 times better than the industry norm. The company has just one incident on average for every 30,000 deliveries.
On the horizon: "Among the challenges ahead is recruiting staff to meet our growth in an ever-tightening labour market. We also need to develop and enhance the leadership skills of our management team to provide the best support and guidance for all of our staff." —Alan Raffan, CFO

16. Algorithme Pharma
HQ: Montreal
Industry: Pharmaceutical research
Employees: 302
Turn-over rate: n/a
What they do: Founded by a small team of researchers from the Université de Montréal in 1992, Algorithme Pharma specializes in clinical trials and biopharmaceutical analysis.
Kudos: Third among all firms in providing the right work/life balance for employees.
Benefits: Over the past three years, Algorithme has given $1.8-million to its employees through profit-sharing and performance bonuses. The company invests the equivalent of 6 per cent of total salaries in employee training and development. On the horizon: "Our challenge at Algorithme is to keep our close-knit culture while growing. That means open communication with employees and listening carefully to their recommendations." —Nancy Arvanitakis, marketing manager

17. Eagle Professional Resources
HQ: Ottawa
Industry: HR Consulting
Employees: 91
Turnover rate: 10 per cent
What they do: Specialize in recruiting high-tech employees for firms in Canada and the U.S.
Kudos: Third among all firms in practices that create a positive work environment.
Benefits: Eagle's profit-sharing plan can add up to 25% to employees' annual compensation.
Good deeds: Among other charitable contributions, Eagle has donated $250,000 over the past five years to the Children's Aid Foundation, an organization dedicated to improving the lives of abused and neglected children.

18. CNA Canada
HQ: Toronto
Industry: Insurance
Employees: 120
Turnover rate: 6 per cent
What they do: CNA is a property, casualty and marine insurance company.
Kudos: Fourth among participants in pay and people practices.
Benefits: Fully reimburses employees who go back to school. CNA has partnered with DePaul University in Chicago to bring leadership programs to the organization. The company also conducts an annual survey to ensure wages are competitive, and its pension and profit-sharing plans can add up to 16.5% of salary and bonus to an employee's total annual compensation. Plus, recognition programs provide monetary rewards for outstanding achievements.

19. Spectra Credit Union
HQ: Estevan, Sask.
Industry: Financial services
Employees: 132
Turnover rate: 3 per cent
What they do: Offer banking and investment services at 10 branches in and around Estevan, in southern Saskatchewan.
Kudos: Third among firms for corporate citizenship and physical work environment.
Benefits: In a recent workplace survey, employees were happiest about having supervisors at Spectra who cared about them as people.
On the horizon: "One of our biggest challenges continues to be recruiting qualified staff to rural Saskatchewan. We've been doing some internal development; however, we're always aware that the next promotion, retirement or move will create a void that will be difficult to fill." —Tami Scott, VP of human resources

20. Mega Group
HQ: Saskatoon
Industry: Consumer products
Employees: 75
Turnover rate: 12 per cent
What they do: Provide marketing, promotions and technical sales support to more than 500 independent furniture, appliance and electronics retailers.
Their story: In 1965, five furniture and appliance stores in Western Canada established a buying group and opened an office in Saskatoon. Mic LaFreniere, Mega Group's VP of member services, has been with the company for 25 years. He knows most members by name and has visited almost all of their operations.

-Compiled by Steve Brearton