NEW YORK (CNNMoney.com) -- To be considered a great workplace, fat paychecks and big benefits packages aren't everything.

Communicating clearly with employees and encouraging staff to voice their opinions are also critical, according to the Society for Human Resource Management (SHRM), which released its annual list of the "Best Small & Medium Companies to Work for in America" Monday.

Badger Mining, based in Berlin, Wis., topped SHRM's list of best small employers. Among medium-sized companies, Exton, Pa.-based Analytical Graphics ranked No. 1.

"These companies stand out because their employees find them to be places where they can trust the management, have pride in their work and have fun at work," said Robert Levering, cofounder of the Great Places to Work Institute, which selected and ranked the companies, in a statement. "Other companies have much to learn about how to both be productive and do right by their people."

Badger Mining, which is family-owned and privately held, produces a million and a half tons of specialized sand each year for industrial use. Badger Mining dedicates 10 percent of its budget to safety training and, as a result, has the lowest incident rate in its industry.

All employees can participate in a profit-sharing arrangement; they are not charged any premiums for standard health coverage or basic long-term-care coverage; and everyone receives $200 in personal finance advice each year.

Analytical Graphics was ranked the best medium-sized company to work for in America for the third year in a row. The information technology company holds annual business review meetings for all employees, quarterly town hall meetings and weekly Story Time meetings where departments share information about what's happening around the company.

The company also provides an on-site gym and free meals to make employees' lives easier.

This is the third annual release of the list - which recognizes the top 25 small companies, defined as those with 50 to 250 employees; and the top 25 medium companies, which includes those with 251 to 999 employees.

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