Imagine if your team approached their work like entrepreneurs. Spotting problems, thinking up new solutions, and taking ownership of their ideas.
That kind of mindset isn’t reserved for Silicon Valley startups; it can thrive in any company, big or small.
But it doesn’t happen by accident.
You have to build an environment that nurtures, rewards, and supports innovation.
And even though most businesses say they want innovation, when it comes down to it, they’re not actually set up for employees to innovate.
Too many approvals, too much fear of failure, and zero incentive to think outside the box. Does it sound familiar?
So, how do you make your workplace the kind where employees don’t just show up for a paycheck but actually want to create, experiment, and innovate?
Why Employee Innovation Matters
Employee-driven innovation is the key to sustained business growth.
When employees are empowered to think creatively and contribute, businesses benefit from:
- Increased productivity and efficiency
- Higher employee engagement and retention
- Faster problem-solving and adaptability
- A competitive edge in the market
According to a 2023 McKinsey study, companies with a strong innovation culture experience 45% higher revenue growth compared to those that don’t prioritize innovation.
Practical Ways to Turn Employees into Innovators
Most companies say they value innovation, but here’s the reality: only 21% actually meet their innovation goals. (NTT Data, 2023)
What’s holding them back?
It’s not a lack of great ideas. It’s the failure to capture, develop, and implement them.
Employees see opportunities for improvement every day, but without the right systems in place, those ideas go nowhere. Here’s how to turn employees into innovators?
#1 Make Employees Feel Safe to Speak Up
Google did a study on what makes teams effective (Project Aristotle), and guess what?
It wasn’t the smartest people or the hardest workers—it was psychological safety. In other words, employees felt safe throwing out crazy ideas without worrying about looking stupid.
At Pixar, they have something called a “Braintrust” where no idea is too wild.
If you want employees to innovate, you need to create a workplace where they know their ideas will be valued, not shut down.
#2 Stop Making Innovation a “Side Project”
If employees have to work on innovation in their free time, they won’t do it. That’s why Google’s 20% time (where employees spend 20% of their time on passion projects) led to Gmail, Google Maps, and even AdSense.
Not every company can afford to give employees a full day per week for side projects, but you can:
- Dedicate a few hours per month to creative problem-solving sessions
- Host hackathons or innovation days
- Use tools like InspireIP’s Innovation Challenge to capture and refine ideas
Running company-wide innovation challenges allows employees to tackle real business problems creatively.
#3 Encourage Cross-Team Collaboration (And Break the Silos!)
Ever noticed how the best ideas come when different perspectives collide? That’s why Amazon has the Two-Pizza Rule—teams should be small enough to be fed by two pizzas, keeping things agile and collaborative.
How to break the silos:
- Mix up departments for brainstorming sessions
- Pair engineers with marketers, designers with sales reps
- Use digital collaboration tools (Trello, Miro, InspireIP’s Idea Capture)
Also, you must encourage diverse perspectives.
A room full of like-minded individuals might agree on everything, but they won’t push boundaries. Diversity in thought leads to richer ideas.
What You Can Do: Foster an inclusive environment where all voices are heard. Encourage debates and discussions that challenge the status quo. This melting pot of ideas can lead to groundbreaking innovations.
#4 Reward the Hustle—Not Just Success
Let’s be honest: if innovation doesn’t lead to something—a promotion, a bonus, even just recognition—it won’t happen.
3M gets this.
Their Golden Step Award celebrates employees who develop successful new products. And guess what? That’s how Post-it Notes were born.
Not every idea will succeed, but rewarding the effort makes employees more likely to try. Some easy ways to do this:
- Public shoutouts in meetings
- Spot bonuses for innovative ideas
- A fast-track promotion path for employees driving real change
#5 Give Employees the Right Tools
Would you ask a chef to cook a gourmet meal with a plastic knife? No. So don’t expect employees to innovate without giving them the right tools. Some must-haves:
- Idea management software (like InspireIP) to submit, track, and refine ideas
- AI-powered brainstorming tools (like Inventor Assistant) to help with ideation
- Digital collaboration tools for remote teams
More essentially, create a Framework for Internal Value Creation.
Having a clear path for employees to bring their ideas to life is crucial. However, only 21% of organizations feel they’re hitting their innovation targets.
What You Can Do: Set up a straightforward innovation process where team members can pitch ideas, get feedback, and see their concepts in action. This not only boosts morale but also keeps the innovation engine running.
#6 Get Rid of Red Tape (And Let Employees Make Decisions)
Netflix’s culture of freedom and responsibility is legendary. They don’t require multiple approvals for every little decision, and guess what? Their employees take ownership and deliver.
If every idea has to pass through five managers, two legal reviews, and a six-month waiting period, innovation will die.
How to fix this:
- Give teams autonomy over certain projects
- Set up a fast-track approval process for employee innovations
- Trust your employees (seriously, it works)
Empower Employees with Decision-Making Authority!
#7 Turn Employees into Entrepreneurs (Intrapreneurship!)
Imagine if your team approached challenges with the same gusto as startup founders. A recent study found that a whopping 74% of workers are eager to pick up new skills to stay relevant and advance in their careers.
Intrapreneurship is just a fancy way of saying: let employees act like startup founders within your company. Atlassian nails this with ShipIt Days, where employees get 24 hours to work on whatever innovation they want.
Why this works:
- Employees are more engaged when they own their ideas
- Companies benefit from fresh, out-of-the-box thinking
- It creates a culture where creativity is actually encouraged
#8 Keep Employees Plugged Into Industry Trends
Innovation doesn’t happen in a vacuum. If your employees aren’t constantly learning, they’re falling behind. Encourage:
- Conference attendance (or virtual events if budgets are tight)
- Internal knowledge-sharing (Slack channels, weekly newsletters)
- Online learning courses (LinkedIn Learning, Coursera, Udemy)
Simple tweaks like these keep employees inspired and aware of what’s happening beyond your company walls.
#9 Use Real-World Examples to Inspire
Sometimes, employees just need to see what’s possible. This is the most easiest way to see how to turn employees into innovators. Here are a few famous innovations that started with an employee’s idea:
- Post-it Notes (3M) – An employee experimenting with adhesives.
- Gmail (Google) – Born from Google’s 20% time.
- PlayStation (Sony) – Proposed by an employee, later turned into a global hit.
- Starbucks Mobile Ordering – A barista’s idea that revolutionized customer convenience.
Seeing success stories makes innovation feel real and achievable.
#10 Make Innovation Part of Your Company’s DNA
Innovation isn’t a one-time event—it’s a habit. Companies that do this well bake it into everything:
- Leadership talks about it all the time
- Employees are recognized for effort, not just success
- Performance reviews include innovation as a key metric
A pro tip: Make Brainstorming Accessible Anytime, Anywhere
Innovation doesn’t stick to a 9-to-5 schedule. With many employees working remotely or on flexible schedules, it’s essential to keep the idea exchange flowing.
What You Can Do: Implement digital platforms where team members can toss around ideas whenever inspiration strikes. This ensures that no brilliant thought gets left behind, no matter where or when it pops up.
Ready to Make Innovation Happen?
Now that you know How to Turn Employees into Innovators, creating a culture where employees feel empowered becomes easier.
To innovate isn’t rocket science, it’s about trust, the right tools, and a company-wide commitment to doing things differently.
If you want to make this happen at scale, tools like InspireIP can help streamline everything from capturing ideas to turning them into real innovations.
So—what’s the first thing you’re changing in your company to fuel innovation? Let’s make it happen.
