As nice as it is for employees to receive recognition, it's also great for them to get tangible rewards. Once again, these don't always have to be major. Give salary increases without being asked. Your employees know what other people earn. They know what salaries you're giving to new employees, and they know what others doing the same job across town are receiving.
Nothing makes an employee feel more valued than an unasked-for raise.
No one likes to work in an environment where they're going to get scolded. The surest way to drive employees out is to berate them. Instead, when something doesn't turn out the way you hoped, instead of looking for those responsible, concentrate on understanding how to avoid the problems in the future. Employees feel a stronger sense of ownership when they actually have ownership. Various methods enable employees to have a longer-term stake in your company, including stock options, employee stock ownership plans, profit sharing plans.