Start with listening and acknowledgment

The simplest way to show appreciation is to listen, because at the heart of it, all employees want to feel seen and heard. That starts with small, everyday actions that signal their efforts matter. Saying thank you is powerful when it’s specific rather than generic. Instead of a quick “great job,” try something like, “I really appreciated how you kept that tricky client conversation calm and constructive.” Feedback that calls out the detail makes people feel genuinely valued.

It’s also important to make recognition timely. Waiting until a quarterly review to highlight good work dilutes the impact, while acknowledging someone’s contribution in the moment makes it far more meaningful. Progress deserves to be celebrated too, because persistence and effort through challenges are often just as important as the final outcome. By noticing the journey as well as the destination, you show your team that hard work and commitment never go unseen.

Create simple rituals of gratitude

Appreciation has the greatest impact when it becomes part of everyday life rather than an occasional gesture, and introducing small rituals can help embed it into a team’s culture. Regular shout-outs during team meetings, for example, encourage peer-to-peer recognition that often feels more authentic than praise delivered only from the top down. Personal touches also carry weight; remembering a birthday, marking a work anniversary, or surprising someone with their favourite snack shows you value the individual behind the role. Another effective habit is making achievements visible to everyone, whether through a dedicated Slack channel or a board in the office that highlights recent wins. These simple practices build a sense of positivity and pride across the team, reinforcing the idea that effort and success are noticed and shared.

Be thoughtful with rewards

Many startups assume that showing appreciation requires big spending, but while rewards certainly have their place, they should never replace genuine recognition. What matters most is thoughtfulness. A one-size-fits-all voucher can feel impersonal, whereas tickets to a concert someone has been excited about or an extra day off to spend with family can feel truly meaningful. Striking the right balance between financial and non-financial rewards is also key. Salary and benefits are important, but so too are flexibility, autonomy and opportunities for personal growth, all of which can be powerful forms of appreciation in their own right. Above all, take the time to ask people what feels rewarding to them. Everyone is motivated differently, and understanding those differences ensures your efforts land in the way you intend.

Watch out for common mistakes

Appreciation only works when it feels genuine and inclusive, and it can quickly lose its impact if handled poorly. One common mistake is offering too much praise without context. Recognition that isn’t tied to specific actions often comes across as empty or insincere, so it’s important to highlight exactly what someone has done well. Another trap is favouritism. If only a small number of people are consistently recognised, others will inevitably feel overlooked, which undermines the very culture you’re trying to build. It’s also worth remembering that people experience recognition differently. Some enjoy being celebrated in public, while others feel uncomfortable and prefer a private thank you. Providing options helps ensure everyone feels respected. Finally, avoid using appreciation as a disguised form of performance management. Recognition should stand on its own as an expression of value, not as a subtle way to control behaviour.

Leaders set the tone

Culture always begins at the top. When leaders place all of their emphasis on targets and deadlines, employees naturally assume that results matter more than relationships. By contrast, when leaders consistently show gratitude and recognise effort, they set the standard for the rest of the team to follow. A useful reflection is to ask yourself, “When was the last time I showed genuine appreciation to someone in my team?” If an example doesn’t come to mind straight away, it may be a sign that new habits need to be built.

Why it matters

For startups, people are the engine that keeps everything moving, and losing talent to burnout or disengagement can be particularly damaging when teams are small. A culture of appreciation helps protect against that by making employees feel valued, motivated and connected to the bigger picture. When people know their contributions matter, they’re more resilient in the face of challenges, more willing to go the extra mile and more likely to stay and grow with the company.

Creating this kind of culture doesn’t require grand gestures or big budgets. It’s about listening well, embedding small rituals of gratitude, offering thoughtful rewards and avoiding the pitfalls of insincerity or imbalance. Over time, these consistent actions build an environment where effort is noticed, achievements are celebrated, and people feel genuinely proud to be part of the journey. When that happens, the benefits extend far beyond morale, it strengthens the very foundations of the business.

For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.