Recognition in front of peers is good for other reasons, but its not a replacement for financial reward.
This might sound strange to you, but some subset of the population won't know it. Ever heard of the Dunning-Kruger_effect[1]? Actual competence may weaken self-confidence and the unskilled might have illusory superiority.
There are also many cultural and social environments where an individual person comes from which gives them a negative self image no matter how well they are performing. It might not even occur to them they are doing a good job. Victims of abuse, for example.
Taking a second or two to say "good job" gives the person actual feedback. I'm not saying you should make a show, but job feedback is important.
[1] http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
If you want to promote any kind of sense of ownership or pride, find something they did that you didn't ask them to do and tell them that you think it's awesome. (Assuming you actually think it's awesome.) That's it.
I'm completely against patronizing, but to not signal to your employees that you value their judgement, independence and skill is... just foolish.