Our businesses are built on more than just spreadsheets and inventory. Whether you’re running a tasting room on Highway 290, a boutique on Main Street, or a landscaping crew servicing the Hill Country, your most valuable asset isn’t your equipment—it’s the person standing next to you.

But as any local small business owner knows, keeping good people is harder than ever. We often think the answer lies solely in the paycheck. While competitive wages are vital, a recent Harvard Business Review article by researcher Zach Mercurio suggests we might be overlooking a powerful, cost-free tool: 

Affirmation.

Mercurio’s research, "The Power of Affirmation at Work," makes a critical distinction that every Fredericksburg manager should hear. There is a world of difference between praise and affirmation.

Praise vs. Affirmation

Praise is about the "doing." It’s saying, "Great job closing those sales today," or "Thanks for cleaning the kitchen." It’s a reaction to a result.

Affirmation, however, is about the "being." It is the act of recognizing a person’s inherent value and the specific way they contribute to the world. For a micro-business where the "team" might only be two or three people, affirmation is the glue that creates loyalty.

According to Mercurio, effective affirmation consists of three simple pillars. Here is how we can apply them right here in the heart of the Texas Hill Country:

1. See the Person, Not Just the Employee

In the rush of a busy Saturday morning, it’s easy to see your staff as "worker bees." Affirmation starts by noticing the human being. Instead of focusing on business tasks as the day starts, ask your colleagues about their family or their plans when their shift is over. Acknowledge the person behind the apron. Mercurio notes that when people feel "seen," their motivation triples.

2. Recognize the Effort, Not Just the Outcome

We usually wait for a "big win" to say something. But in a small business, the "grind" is where the work happens. Affirming the effort means noticing the way someone works—their patience with a difficult tourist, their attention to detail in a Sunday house rental, or their reliability during the August heat. Try saying, "I noticed how much patience you had with that large group earlier. That’s a tough skill, and I really value that you bring that to this shop."

3. Connect the Work to its Impact

This is the most powerful step. Mercurio argues that people need to know their work matters to someone else. In Fredericksburg, we aren't just selling products; we are creating memories for visitors and providing essential services for neighbors. Don’t just tell your bookkeeper they did a good job on the taxes. Tell them, "Because your records are so organized, I was able to sleep soundly last night knowing our business is on solid ground. You give me peace of mind."

What’s the bottom line, you might ask. For the micro-business owner, you don’t need a massive HR department or a "corporate culture" initiative to improve morale. You just need to be observant.

When we affirm our employees, we aren't just "being nice." We are building a resilient culture. A person who feels valued for who they are is less likely to jump ship for a little higher hourly wage down the road.

This week, as you open your doors, look past the tasks and the to-do lists. Find one specific thing a team member does that makes your life—or a customer’s life—better. Tell them exactly what it is. In the long run, those few words might be the best investment you make all year.