We all know that employee engagement matters. Yet again and again, studies point to a pervasive lack of it (for instance, a recent Gallup report indicates that only 13 percent of employees worldwide are engaged), as well as the incredible costs of this problem. No one can deny that disengaged employees are less productive, less innovative, less collaborative…less everything that leads to successful organizations. Yet, despite all the handwringing, no one seems to know what to do about it.

That’s not particularly surprising; after all, it’s not like companies have the money to spend on lavish perks or formal “engagement” initiatives these days, nor do busy leaders have the time to obsess over such matters. Everyone’s just trying to survive.

But hold on—there’s some good news here. Tmployee engagement needn’t be expensive or difficult to implement. Engagement is really just another word for on-the-job happiness…and we intuitively know that happiness is connected to the simple things in life. So why not apply that principle to the workplace?

Over the years, I’ve found that simple things like gratitude, respect, and autonomy make people far more happy than, say, big salaries and corner offices. Here are eight inexpensive (or free!) strategies that you can use to start transforming your workplace environment:

Catch people doing things right. Everyone knows how embarrassing and stressful it is when the boss catches you doing something wrong. And for most employees, those negative feelings can linger (and impact performance) for hours, days, or longer. That’s why, if you don’t want your team to dread your presence in their workspace, you need to start each day with the intention of catching as many people as possible doing well. Not only can praise improve your employees’ perception of you, it’s also an incredible morale and motivation booster.

Praise them publicly (and then praise them some more). Even if they brush off praise or downplay their achievements, everybody loves to be recognized and complimented in front of their peers. So don’t stop with a “mere” compliment when you catch an employee doing something right—tell the rest of the team, too! Whether correctly or incorrectly, many employees feel that their leaders take them for granted and point out only their mistakes in front of the group, so make it your daily mission to prove that perception wrong.

Handle mistakes with care. In business, mistakes are going to happen. You don’t have a choice about that. What you can choose is how you as a leader handle them—and by extension, what kind of impact they have on your company. Sure, lambasting an employee who has dropped the ball may make you feel better in the short term, but it’ll negatively impact that employee’s self-confidence, relationship with you, and feelings for your company for much longer.

Don’t be the sole decision maker. Maybe you’ve never put much emphasis on the thoughts and opinions of your employees. After all, you pay them a fair wage to come to work each day and perform specific tasks. As a leader, it’s your job to decide what those tasks should be and how they should be carried out, right? Well, yes—strictly speaking. But according to Patkin, this unilateral approach to leading your team sends the impression that you’re superior (even if that’s not your intent) and also contributes to disengagement.

Help your employees grow. As a leader, there’s a lot you have to deal with on a daily basis: meeting quotas. Making sure procedures are followed. Keeping up with advances in your field. Learning and disseminating company policy. Putting out fires. The list goes on (and on, and on). But no matter how full of “stuff” your plate may be, don’t lose sight of the fact that a crucial part of leadership is developing your people.

Remember that business is personal. The truth is, people don’t care how much you know (or how good you are at your job) until they know how much you care. Your employees will be more loyal and more motivated if they feel valued as individuals, not just as job descriptions. So get to know each team member on an individual basis and incorporate that knowledge into your regular interactions. For instance, if you know that John in Accounting has a daughter who’s applying to college, ask him which schools she’s considering. Or if Susanna in HR just came back from vacation, ask to see a few pictures.

Make it a family affair. Whenever possible, engage your employees’ families in a positive way. In addition to holding contests with family prizes and inviting loved ones to company celebrations, make sure that your team members’ families know how much they’re appreciated by your company. Having a leader validate all the hours each employee spends at work will be remembered far longer than a bonus (really!). Plus, when spouses and kids know what Mom or Dad does at work and are “on board” with it, your employee’s performance will be buoyed by support from the ones he or she loves the most.

Re-recruit your best people. Since the buck stops with you, it can be tempting to focus the bulk of your help and encouragement on your lower performers. If I can help Ted and Tina boost their numbers, the thinking goes, this entire department will be better off. Plus, I just don’t want to explain their dismal performance to my boss. While it is your duty to help your weak links move up in (or out of) your organization, don’t allow them to distract you from your most valuable players.

If there is one thing I would like to tell all leaders at all levels and in all industries, it’s that you have nothing to lose and everything to gain—including an improved bottom line—by making your organization as happy a place to work as possible. While a lack of employee engagement is certainly a costly problem, its solution doesn’t have to be.