Money and benefits are important, but candidates are generally more interested in working with a company that is doing “neat stuff”. Your interviewers need to be trained to act as “salespeople” for your company and relate all the neat technical projects that are being worked on. This is especially true when you can have a technical employee interviewing a technical candidate. They will be able to relate on a technical level as to what is going on.
Another idea is to place testimonials on your company’s web site from current employees on their work and projects. These testimonials would be able to highlight what life is like at your company and more details on specifics on the work and projects. Also, the testimonials can note how management treats the employees and any other perks that the company offers.
Knowing that good candidates are always in demand, it usually winds up that the company that is able to hires these candidates, does the best job of explaining the positive aspects of employment.