High-performing colleagues desire and deserve praise from their leaders. Team members feel appreciated and recognized for their work when they receive praise. While some people need more of it than others, no one outgrows the need to hear they are doing things well, especially from their leader.
The distinction between praise and encouragement are often blurred, but your post articulates it perfectly.
Once you intentionally make the distinction, you can see it pop up everywhere.
This is especially important as praise can often be mistaken for flattery.