Innovation keeps a company alive. But innovation doesn’t happen in a vacuum—it needs people. Engaged employees are the ones who move ideas forward. That’s why understanding how employees participate in innovation efforts is crucial for companies that want to grow. This article dives deep into real-world data and survey results about employee engagement in corporate innovation programs. We’ll go stat by stat and explore what each means, how it plays out in real companies, and what you can do about it.
1. 83% of executives see innovation as a key driver of growth, but only 28% believe their employees are adequately engaged in innovation programs
The leadership-employee gap
Most leaders agree—innovation is not optional. It’s essential for staying ahead. But here’s the issue: while nearly all top executives say innovation matters, less than a third think their teams are truly involved in the process.
That’s a big problem.
The disconnect means strategies get made at the top but never reach the front lines. It also suggests that innovation programs may not be designed with employee input or accessibility in mind. Employees often don’t know how to contribute, or worse, don’t believe they’re allowed to.
Why this happens
There are several reasons why this gap exists:
- Innovation is treated as a leadership task, not a company-wide activity
- Programs are communicated poorly, making them feel exclusive or vague
- Employees are not rewarded for innovative thinking
- Fear of failure discourages participation
What to do about it
If you’re a business leader or innovation manager, here’s what to fix:
Start with visibility: Make innovation a daily topic. Share updates, challenges, and wins across departments. Use internal newsletters or town halls to highlight ongoing efforts.
Train your managers: Mid-level managers often act as filters. If they’re not on board with innovation, it won’t spread. Train them to support and encourage team-level involvement.
Simplify participation: Don’t make employees fill out five forms or attend a workshop just to share an idea. Build informal channels—chat threads, digital suggestion boxes, or quick team huddles.
Recognize contributions immediately: Even small ideas deserve feedback. Recognize those who speak up, even if their idea isn’t used.
2. 64% of employees want to participate in innovation initiatives, yet only 29% are given the opportunity
Willing but waiting
More than half of your workforce wants to help make things better. They want to solve problems. But less than one-third are given the chance.
This shows there’s no shortage of motivation—just a shortage of access.
What’s missing?
Most companies don’t have a clear system for involving employees in innovation. And even when they do, only a select group is usually invited.
This exclusion can happen subtly:
- Innovation labs are invite-only
- Hackathons focus on engineers or marketers
- Brainstorming sessions are held at leadership offsites
Employees outside those circles are left out, despite being interested.
How to fix it
Open up your programs: Innovation isn’t just for R&D or product teams. Invite customer service, HR, and operations into the mix. They often know where the biggest pain points are.
Create multiple entry points: Not everyone wants to join a workshop. Offer other ways to engage—like anonymous surveys, one-click idea submissions, or opt-in Slack groups.
Lower the bar for entry: You don’t need every idea to be fully formed. Let people submit rough concepts. Curate and refine later.
Highlight diverse contributors: When people see colleagues like them participating, they feel more confident joining in too.
3. Companies with high employee engagement in innovation see 2.5 times more revenue growth than those without
The business case for engagement
This isn’t just about morale. It’s about money.
Companies where employees are actively involved in innovation don’t just produce more ideas—they grow faster. Nearly two-and-a-half times faster, in fact.
Why? Because innovation becomes everyone’s job. And when that happens, solutions are faster, better, and more aligned with real needs.
The growth mindset advantage
In these companies:
- Employees suggest process improvements regularly
- New product ideas come from all levels, not just top-down
- Teams experiment often and learn fast
This culture makes companies more responsive to change, which is critical in today’s economy.
How to apply this
Build innovation into job roles: Add innovation KPIs to job descriptions. It doesn’t need to be fancy—just a prompt like “Suggest two improvements per quarter.”
Tie innovation to business metrics: Track how many employee ideas make it to implementation. Measure cost savings, time saved, or revenue earned.
Share success stories: When a small idea leads to big results, tell the story. People need to see that their efforts have an impact.
Make it a habit: Create space every month for review and experimentation. Even one hour per week of “innovation time” can make a big difference.
4. 72% of innovation program leaders cite employee engagement as their biggest challenge
Not a tool problem—a people problem
Companies invest in platforms, consultants, and frameworks. But most innovation leaders say the toughest part is getting people involved.
The challenge isn’t the system—it’s participation.
The reasons behind low engagement
Some common barriers:
- Programs feel disconnected from day-to-day work
- Employees don’t trust the system will listen
- There’s no follow-up or visibility after ideas are submitted
- Innovation feels like “extra work” without reward
The solution: design for people
Think like a marketer: If you want employees to engage, promote your program like a product launch. Use clear messages, visuals, deadlines, and benefits.
Remove uncertainty: Most people won’t submit ideas if they don’t know what happens next. Explain how ideas are evaluated and what support is available.
Reward effort, not just outcomes: If someone contributes regularly, recognize that. Focus on behaviors, not just breakthroughs.
Keep it simple and consistent: Engagement grows with repetition. Don’t launch a shiny campaign and then go silent. Keep the drumbeat going year-round.
5. Only 36% of employees believe their ideas for innovation are seriously considered by leadership
Belief drives behavior
If employees think no one is listening, they won’t speak up. Simple as that.
Only about one-third believe leadership takes their ideas seriously. That’s a major barrier to engagement.
Why this matters
This isn’t just about feeling appreciated—it affects action. When people stop believing in the process, they disengage. You can have all the tools and workshops in the world, but they won’t matter if trust is missing.
How to rebuild that trust
Close the loop: Always follow up. If an idea is submitted, acknowledge it. If it’s rejected, explain why. If it’s used, celebrate it.
Create visibility: Let employees see which ideas are being reviewed or implemented. A public tracker or dashboard can help.
Involve employees in the review process: Peer voting or review panels can make the system more transparent and inclusive.
Be honest about constraints: If something can’t move forward due to budget or timing, say so. People respect honesty more than silence.
6. 91% of highly engaged employees say they feel empowered to contribute to innovation efforts
Empowerment fuels innovation
When people feel empowered, they act. It’s not about giving them permission—it’s about making them believe their contributions matter. That’s the heart of innovation engagement.
Employees who are highly engaged often say they feel a sense of ownership over their work. They believe their voice counts and their ideas are welcomed. This sense of empowerment is what turns passive workers into active innovators.
What empowerment looks like
Empowerment doesn’t mean unlimited freedom. It means clarity, trust, and support. Empowered employees:
- Know they can share ideas without being judged
- See leadership act on employee input
- Understand how their ideas can drive change
- Get the resources or time needed to explore their ideas
Without empowerment, even motivated employees hold back.
Steps to build empowerment
Train managers to be facilitators: The direct manager often has the biggest influence on whether someone feels empowered. Encourage managers to ask for input, support risk-taking, and advocate for their team’s ideas.
Make the process clear and open: When people know where and how to contribute ideas—and what happens after—they feel more in control.
Celebrate progress, not perfection: Empowerment grows when employees feel safe making suggestions, even if those suggestions aren’t fully polished. Remove the fear of being wrong.
Give space for experiments: A little autonomy goes a long way. Let teams test small changes without asking for top-down approval every time.
7. Organizations with formal innovation programs report 3x higher engagement in innovation activities
Structure matters
A well-designed innovation program creates consistency. It makes participation easier. And it signals that the company takes innovation seriously—not just as a buzzword but as a structured effort.
That’s why organizations with formal programs tend to see much higher employee involvement. When employees can point to a specific initiative, platform, or team behind innovation, they feel more confident engaging with it.
What makes a program “formal”?
It’s not just a name. A formal innovation program usually includes:
- A defined purpose and clear goals
- A budget and team responsible for running it
- Channels for employees to contribute ideas
- A process for evaluating, piloting, and scaling those ideas
Without structure, innovation becomes ad hoc and inconsistent.
Building a simple but effective program
Start small but consistent: Your program doesn’t need to be complex. Even a quarterly idea challenge or dedicated Slack channel can be a great starting point—as long as it’s maintained.
Appoint clear ownership: Someone must be responsible for running and improving the program. That ownership ensures follow-through.
Define how ideas move forward: Employees should know what happens after an idea is submitted. Map out the flow from submission to testing to implementation.
Align with company strategy: Show how innovation ties into business priorities. This keeps the program focused and relevant.
8. 45% of employees say lack of time prevents them from participating in innovation efforts
Time is the biggest barrier
Employees are not short on ideas—they’re short on time.
Almost half of surveyed employees say they’d like to participate in innovation, but their day-to-day responsibilities leave no room. This is especially true in companies where workloads are already high or teams are understaffed.
Innovation feels like a luxury
When teams are firefighting constantly, innovation starts to feel like something “extra.” That mindset is dangerous. It turns long-term improvement into an afterthought.
Even worse, employees might feel guilty spending time on innovation instead of hitting their short-term KPIs.
How to create time for innovation
Schedule it deliberately: Google famously gave employees 20% of their time for personal projects. You don’t need to go that far—but even one hour per week can make a big difference. Block it off and protect it.
Integrate innovation into existing work: Don’t ask employees to innovate “on the side.” Tie it into meetings, planning, and reviews. For example, make idea-sharing a standing item in team check-ins.
Remove low-value work: Look for tasks that can be automated, delegated, or eliminated. Freeing up even 5–10% of time creates space for creative thinking.
Reward time spent, not just results: Recognize employees who dedicate time to innovation—even if their ideas are still in progress. This sends the message that effort matters.
9. 58% of employees feel their company doesn’t provide the tools needed for innovation participation
The right tools make all the difference
You can’t expect people to build if you don’t give them the tools.
Over half of employees say they lack the digital platforms, collaboration spaces, or even simple submission systems that make participating in innovation easy.
This problem isn’t just about fancy software—it’s about usability. When it’s hard to submit or track an idea, people give up quickly.
Common tool-related barriers
- No centralized place to submit ideas
- Difficult approval processes
- Lack of feedback loops or tracking
- Tools that don’t integrate with daily workflows
Even well-intentioned platforms can be overwhelming if they aren’t intuitive or accessible.
Solving the tool gap
Start with what you already have: Sometimes the solution is simpler than you think. Use familiar tools like Google Forms, Microsoft Teams, or Notion to create idea boards or trackers.
Ask employees what they need: Run a quick survey to find out what makes it easier for them to contribute ideas. Then build your system around those needs.
Integrate with daily routines: Add innovation features into tools people already use. For example, if you use Slack, create a channel for idea sharing. If you use project management tools, add innovation milestones to projects.
Keep it light: The simpler the tool, the more people will use it. Avoid platforms that require training unless absolutely necessary.
10. Companies with structured ideation platforms see a 4x increase in employee-submitted ideas
A platform unlocks participation
When employees know exactly where to go and how to share their ideas, they do it more often. In fact, companies with structured ideation platforms see four times more idea submissions than those without.
That kind of increase can fuel a massive wave of innovation. But it only works if the platform is easy, visible, and trusted.
Why platforms work
Platforms create clarity. They tell employees:
- Where to submit ideas
- What kind of ideas are needed
- What happens after submission
- How ideas are evaluated
They also make it easy to track participation and recognize contributors.
Choosing or building a platform
Match the platform to your culture: Some companies thrive with lightweight tools like Trello or Airtable. Others need full-featured platforms like Brightidea or IdeaScale. Choose what fits your team’s comfort level.
Make it part of onboarding: Teach new employees how to use the platform from day one. Make it part of your culture, not just a feature.
Run campaigns or challenges: Don’t rely on passive engagement. Prompt employees with specific innovation challenges every quarter or month. This gives them direction and purpose.
Keep the feedback loop alive: The best platforms show status updates on submitted ideas. This transparency builds trust and encourages repeat participation.
11. 39% of employees say they never receive feedback on their submitted ideas
Silence kills motivation
Almost four in ten employees say they never hear back after submitting an idea. That silence is deadly to engagement. When there’s no feedback, people assume their idea was ignored—or worse, dismissed without review.
Over time, this breaks trust and stops future participation. Why bother sharing ideas if it feels like shouting into a void?
Feedback isn’t optional
Employees don’t expect every idea to be accepted. But they do expect acknowledgment and honesty. Even a short response like “we reviewed this and here’s why it won’t move forward” builds respect.
Lack of feedback makes innovation feel like a black hole, where ideas go in and are never seen again.
Creating a strong feedback loop
Acknowledge every submission: Even an automated “thank you” followed by a human review later is better than nothing. Acknowledge quickly, then follow up meaningfully.
Give clear reasons: If an idea is declined, explain why. Was it a timing issue? Budget? Already being worked on? Clarity builds trust.
Offer follow-up options: If the idea needs more refinement, let the employee improve it. Don’t treat submissions as a one-and-done deal.
Highlight what’s next: When an idea moves forward, share the steps being taken. Let the contributor know how it’s evolving—and invite them to stay involved.
Make feedback part of the system: Your platform or process should include feedback checkpoints. If you use a tracking board, assign statuses like “Under Review” or “In Progress.”
12. 67% of organizations with high innovation performance invest in training to support employee innovation
Training makes innovation real
Innovation isn’t just a mindset—it’s also a skillset.
The best-performing innovation programs don’t leave employees to figure it out on their own. They invest in training. That training may cover creativity, problem-solving, design thinking, or even just how to use the innovation platform effectively.
Why? Because when people understand how to innovate, they’re more confident—and more likely to act.
What kind of training works?
The most impactful training is practical and ongoing. It:
- Helps employees connect innovation to their day-to-day work
- Breaks down how to turn a rough idea into a usable concept
- Teaches tools like customer interviews or quick prototyping
- Includes real examples from within the company
Generic creativity workshops don’t work nearly as well as tailored, hands-on sessions.
How to start training for innovation
Make it role-specific: Customize your training based on what employees do. Finance teams need a different approach than product teams.
Keep it short and engaging: Micro-learning—short modules delivered over time—works better than one-off lectures.
Train through real projects: Let employees bring a problem they care about into the training. Help them build solutions during the session.
Train leaders first: If managers don’t understand the tools and thinking behind innovation, they won’t support their teams in applying them.
Reinforce regularly: Follow up with resources, playbooks, and coaching. One-time events fade fast—repetition drives habits.
13. Only 24% of companies measure employee contribution to innovation formally
You can’t improve what you don’t measure
Only about one in four companies actually track how employees contribute to innovation in a formal way. That’s a huge missed opportunity.
Without measurement, you can’t see what’s working, who’s participating, or how innovation links to business results. You’re flying blind.
Measurement doesn’t just serve leadership—it also signals to employees that their contributions matter.
What should you measure?
There are many ways to track engagement in innovation. Here are a few practical ones:
- Number of ideas submitted per team or department
- Participation rate in innovation events or platforms
- Time to evaluate and respond to ideas
- Number of employee ideas implemented
- Business impact of employee-driven innovations
You don’t need to track everything—just what’s meaningful.
Building a simple measurement system
Start with participation data: Most platforms can track how many people are contributing and how often. This gives you a basic health check.
Add qualitative feedback: Include pulse surveys asking employees if they feel heard, supported, and informed.
Tie innovation to outcomes: For example, if a new idea improves efficiency, track the hours or dollars saved.
Share results transparently: Let teams see how they’re doing. Recognition drives momentum.
Evolve over time: Your first version of tracking won’t be perfect. That’s fine. Just start measuring and improve as you go.
14. 78% of employees say peer recognition for innovative contributions boosts motivation
Recognition doesn’t have to come from the top
While leadership approval matters, recognition from peers can be just as powerful—sometimes even more.
Three out of four employees say being recognized by coworkers for innovative thinking motivates them to do more. It builds pride, confidence, and momentum.
Recognition creates a loop. When someone is celebrated for a bold idea, others take notice. They’re more likely to step up next time.
Why peer recognition works
- It feels authentic and immediate
- It reinforces the behavior in real-time
- It creates a supportive innovation culture
- It removes the bottleneck of top-down approval
And it doesn’t cost a thing.
How to build peer recognition into your program
Use your platform wisely: Add a way for peers to like, comment, or endorse ideas. Simple features like upvotes can go a long way.
Shout-outs in meetings: Make it normal for team members to recognize each other for smart suggestions or experiments.
Create peer-nominated awards: Let employees nominate one another for innovation-related achievements—monthly, quarterly, or even informally.
Highlight team wins: Sometimes innovation is a group effort. Celebrate how a team collaborated to solve a challenge.
Use stories, not stats: Don’t just show numbers. Tell short stories about employees who contributed something meaningful. It makes the recognition stick.
15. 41% of surveyed companies offer incentives for innovative ideas; of these, 63% see higher participation
Incentives work—when used correctly
Offering rewards for good ideas is one way to drive engagement—and for many companies, it works. Over 60% of those that offer incentives report higher employee participation.
But here’s the catch: not all incentives are created equal. Done wrong, they backfire. Done right, they create healthy, sustained involvement.
Common incentive types
- Cash bonuses for ideas that get implemented
- Gift cards or recognition points
- Career development opportunities
- Public recognition or leadership visibility
The best programs mix tangible rewards with recognition and growth.
Tips for using incentives well
Reward effort, not just outcomes: If you only reward implemented ideas, you’ll discourage people from sharing early-stage thoughts. Reward participation too.
Keep it transparent: Make the criteria for rewards clear. Employees should know what qualifies and why.
Avoid creating competition: You want collaboration, not rivalry. Use team-based incentives when possible.
Balance short-term and long-term rewards: Mix quick wins (like a $50 gift card) with bigger development opportunities (like mentoring or project leadership).
Don’t rely on rewards alone: Use incentives as one part of a larger engagement strategy. Trust, empowerment, and culture matter more in the long run.
16. 87% of innovation leaders believe cross-functional collaboration increases innovation engagement
Innovation thrives at the intersections
When people from different teams work together, innovation gets better. And 87% of innovation leaders agree—cross-functional collaboration makes employees more likely to get involved.
Why? Because it brings together different perspectives, skill sets, and ways of thinking. It also makes the process more inclusive. People feel like they’re building something bigger than their role.
Breaking out of silos
Most companies are siloed by default. Marketing sticks with marketing. Engineers talk to engineers. It’s efficient, but not creative.
Cross-functional innovation forces people to think beyond their day-to-day tasks. It opens up fresh ideas and uncovers problems that might otherwise stay hidden.
How to make collaboration happen
Form diverse project teams: When tackling a new challenge, don’t just pull from one department. Build teams with people from product, sales, support, finance—even legal if needed.
Run cross-functional workshops: Bring employees together for focused sessions where they solve problems as a group. Encourage curiosity over expertise.
Assign internal “innovation partners”: Pair up employees from different departments for brainstorming or shadowing sessions.
Use collaboration tools well: Platforms like Miro, Notion, or Microsoft Teams can make virtual collaboration easy and creative.
Celebrate team effort: Highlight projects that came to life because different functions worked together. Let people see the value of crossing boundaries.
17. 50% of Gen Z employees expect to be involved in innovation as part of their job
A new generation with new expectations
Gen Z isn’t looking for permission to innovate—they expect it. Half of them want innovation to be built into their roles from the start.
That’s a big shift. For previous generations, innovation might have been seen as a bonus or something for “other departments.” Gen Z sees it as a core part of their work identity.
What this means for employers
To attract and retain younger talent, companies need to rethink how they position innovation. If you treat it as a leadership-only activity, you’ll lose the next generation of high-performers.
Meeting Gen Z where they are
Offer innovation from day one: Introduce new hires to your innovation tools, platforms, and culture during onboarding. Make it clear that everyone is invited.
Let them lead small experiments: Don’t make Gen Z employees wait five years before they can contribute. Give them permission to test ideas early and often.
Incorporate innovation into job design: Write it directly into job descriptions and KPIs. Show that it’s not just encouraged—it’s expected.
Provide mentorship and access: Gen Z wants to learn. Pair them with senior employees who’ve launched successful projects. Let them see the process up close.
Celebrate boldness, not just results: This generation values purpose and creativity. Recognize risk-taking even if the idea didn’t work out.
18. 62% of employees in companies with inclusive innovation cultures feel more motivated
Inclusion fuels innovation energy
When employees feel that innovation is open to everyone—not just the loudest voices or most senior people—they feel more energized and willing to participate.
In companies where innovation feels inclusive, nearly two-thirds of employees report higher motivation. That means more creativity, more initiative, and more loyalty.
What does an inclusive innovation culture look like?
- Ideas are welcomed from all roles and levels
- There’s a mix of voices in innovation reviews
- Everyone gets a fair shot at contributing
- Language and systems don’t exclude or intimidate
It’s not just about representation. It’s about belonging.
How to build inclusivity into innovation
Use plain language: Avoid jargon or technical terms that might exclude employees from different backgrounds or roles.
Spotlight a variety of contributors: Don’t just celebrate senior staff. Highlight great ideas from interns, part-timers, or frontline workers.
Design around access: Make sure your tools and processes don’t require special knowledge or status to use. Everyone should be able to participate easily.
Host open innovation forums: Set up regular spaces—virtual or in-person—where any employee can share ideas and join discussions.
Encourage curiosity over expertise: Make it okay to ask basic questions or pitch “unpolished” ideas. That’s how inclusivity grows.
19. 48% of employees believe fear of failure holds them back from contributing ideas
Fear is a silent blocker
Nearly half of employees are holding back not because they lack ideas—but because they’re afraid of getting it wrong.
This fear can stem from past experiences, company culture, or unclear expectations. Regardless of where it comes from, it paralyzes progress.
When failure is punished or ridiculed, people stop speaking up.
What fear looks like in innovation
- Employees say things like “this might be stupid but…”
- They wait for perfection before submitting ideas
- They avoid suggesting changes in group settings
- They don’t try things that might not work
The result? Fewer ideas, slower experimentation, and missed opportunities.
How to eliminate fear of failure
Create psychological safety: Train leaders to respond to all ideas with curiosity, not criticism. Model openness at the top.
Share your own failures: Let employees see that leadership makes mistakes too—and grows from them. Tell stories of what didn’t work and what was learned.
Reward effort and risk-taking: Don’t just reward successful ideas. Celebrate the courage to test something new.
Redefine failure: Talk about failure as data. If something didn’t work, what did you learn? What will you try next?
Set up “safe zones”: Give employees opportunities to test ideas in low-risk environments. Think pilot programs, small experiments, or mock presentations.
20. Top-performing innovation programs have 5x more idea submissions per employee per year
Volume drives value
The best innovation programs don’t just get a few good ideas—they get lots of ideas. On average, five times more ideas per employee per year.
Why does this matter? Because innovation is a numbers game. You rarely get the perfect solution on the first try. The more ideas you collect, the more chances you have to find gold.
More submissions also mean a healthier culture. It shows that employees feel safe, motivated, and encouraged to share.
How to increase submissions meaningfully
Make it easy and fast: Remove friction from the submission process. No one wants to fill out a 10-question form just to suggest a tweak.
Encourage frequent micro-ideas: Not every idea needs to be big. Let employees suggest small improvements, shortcuts, or hacks.
Gamify engagement: Track and celebrate milestones like “10 ideas submitted” or “first implemented idea.” Friendly challenges can boost energy.
Prompt regularly: Don’t wait for people to act on their own. Ask direct questions like “What’s one thing we could improve in your workflow this week?”
Follow up visibly: The more people see ideas being acted on, the more they’ll submit. Visibility fuels momentum.
21. 57% of disengaged employees feel innovation is reserved for specific teams only
When innovation feels exclusive
More than half of disengaged employees believe innovation isn’t for them. They think it’s only for certain teams—maybe the product team, R&D, or the executive group.
This kind of exclusivity creates a two-tier culture. One group gets to experiment and improve. The rest are expected to execute and stay quiet.
When people feel excluded, they check out. And that’s the opposite of what innovation needs.
What this looks like in companies
- Employees are never asked for input outside of formal reviews
- All innovation activities are handled by one “special” team
- Success stories focus only on senior staff or one department
- There’s no clear path to get involved unless you’re invited
Even if unintentional, this structure sends a clear message: “Innovation isn’t your job.”
How to open innovation to everyone
Make innovation part of every job: Use phrases like “innovation is everyone’s responsibility” in internal messaging—and back it up with action.
Share success stories widely: When a warehouse worker suggests a new system or a customer service rep improves a process, tell those stories proudly.
Dismantle silos: Let departments run their own innovation sprints. Encourage grassroots projects and internal pitches.
Invite teams by rotation: Run quarterly innovation campaigns that involve different functions each time. This keeps energy fresh and ensures broad participation.
Create easy entry points: Don’t make people wait for a workshop or event. Offer always-on channels for idea sharing—no special access needed.
22. 34% of companies have a “shadow innovation” problem—employees innovating outside formal programs
Innovation happening under the radar
In about one-third of companies, employees are working on new ideas—but they’re doing it quietly, outside of the formal process. This is known as “shadow innovation.”
It often happens when official programs are too rigid, slow, or exclusive. Employees feel blocked, so they go around the system.
While the motivation is great, the lack of visibility creates risk. Good ideas might be lost. Teams might duplicate efforts. And leaders miss the chance to guide or support progress.
Why shadow innovation happens
- People don’t trust the formal process
- They think their ideas will be slowed down or dismissed
- There’s no space to test things quickly and safely
- Recognition is inconsistent or missing
Employees want to make things better. But if the system gets in the way, they’ll do it on their own.
How to support and redirect shadow innovation
Talk to your innovators: Ask employees how they prefer to share and test ideas. Learn from their workarounds.
Simplify your process: Reduce red tape. Make it easier to submit, test, and get support.
Create fast lanes: Designate a track for small, low-risk ideas that don’t need full review. Let teams move quickly.
Reward initiative—even outside the lines: If someone launches something valuable on their own, don’t penalize them. Recognize the impact and invite them into the program.
Use feedback to improve: Shadow activity is a sign that your formal system needs adjustment. Treat it as a signal—not a threat.
23. 60% of employees are more likely to contribute when leadership visibly supports innovation
Leadership makes or breaks engagement
When leaders show real interest in innovation—not just through words, but through actions—employees respond. In fact, 60% say they’re more likely to participate when they see visible support from leadership.
Leadership support doesn’t mean micromanaging every project. It means showing up, showing interest, and removing barriers.
When leaders ignore innovation, it sends the opposite message: this isn’t important here.
What visible support looks like
- Attending and speaking at innovation events
- Recognizing idea contributors in public meetings
- Personally reviewing employee suggestions
- Sharing progress updates and outcomes
- Investing time and resources into the process
It’s about being present and committed.
How leaders can drive innovation engagement
Walk the talk: Don’t just say you support innovation—show it. Sponsor an idea challenge. Join an innovation review panel.
Share your own ideas: Leaders don’t need to be perfect innovators. Sharing rough ideas shows vulnerability and invites others to do the same.
Clear roadblocks: Use your influence to remove red tape, fund experiments, or connect teams.
Celebrate progress: Recognize efforts even before results are clear. Highlight behaviors that support innovation.
Invite feedback on leadership too: Ask employees how leadership can better support innovation. Use that input to adjust and improve.
24. 76% of companies that link innovation goals to personal KPIs report higher employee participation
Tie innovation to what matters
When innovation goals are built into individual KPIs or performance plans, employees take them seriously. And in 76% of companies that do this, engagement goes up.
Why? Because employees know it’s part of their actual job—not just an optional bonus. It becomes a shared priority, with shared accountability.
What linking KPIs looks like
- Including a goal like “Contribute 2 improvement ideas per quarter”
- Tracking participation in innovation sprints or hackathons
- Including innovation in performance reviews
- Tying outcomes to career development
You’re not forcing people to be creative—you’re reminding them that creativity is valued.
How to integrate innovation into KPIs
Start simple: Add one innovation-related goal to each employee’s development plan. Make it achievable and clear.
Customize by role: A software engineer might experiment with new tools. A customer service rep might suggest a new call script. Make goals role-relevant.
Recognize the effort: Don’t wait for massive results. Give credit for trying, learning, and contributing regularly.
Involve managers: Train managers to track innovation activity during one-on-ones. Make it part of weekly or monthly check-ins.
Review and evolve: Not every KPI will stick. Review what works and adjust each quarter.
25. Only 18% of companies provide real-time tracking of innovation idea progress to employees
Visibility drives engagement
Less than one in five companies give employees real-time visibility into their submitted ideas. That’s a missed opportunity.
When employees don’t know what’s happening with their ideas, they feel forgotten. But when they can track progress—like seeing “Under Review,” “In Development,” or “Launched”—they stay engaged.
It’s the same reason we track packages or follow sports scores. Progress updates keep us interested.
Why tracking matters
- Builds trust in the process
- Shows that leadership is listening
- Encourages more idea submissions
- Reduces duplicate suggestions
- Creates a sense of momentum
People are more likely to engage when they can see the system working.
How to build transparent tracking
Use simple statuses: Even a basic tracker with “New,” “In Review,” “Testing,” “Implemented,” or “Not Moving Forward” helps.
Make it visible to all: Don’t keep it hidden. Use a shared dashboard, an internal website, or even a team board.
Automate when possible: If you use a platform, set up automatic status updates as ideas move through the pipeline.
Send progress emails: Let employees know when something changes. Even “Still reviewing” is better than silence.
Celebrate completed ideas: Move them to a “Success Stories” section and share how they made a difference.
26. 70% of employees say innovation participation makes them feel more loyal to their company
Innovation builds emotional connection
When employees are invited to innovate, something changes in how they feel about their workplace. Seventy percent say it makes them more loyal.
That’s a big deal.
Why? Because loyalty isn’t just about pay or perks—it’s about purpose. When people get to shape the future of their company, they feel more ownership. They’re not just working in the business; they’re helping to build it.
Loyalty leads to more than retention
Employees who feel loyal are more likely to:
- Go the extra mile
- Recommend your company to others
- Stay during tough times
- Be open to growth and learning
So if you’re struggling with turnover or disengagement, start by making innovation more inclusive.
How to strengthen loyalty through innovation
Ask for their ideas—and mean it: People can tell when you’re just checking a box. If you ask for input, act on it. And explain what you did.
Share wins that came from the inside: Don’t make innovation seem like a leadership-only activity. Highlight how frontline ideas have shaped the company.
Let employees shape more than products: Invite them into process changes, culture-building, and customer experience innovation.
Give people a seat at the table: Involve employees in pilots, tests, and review panels. Let them co-create the solutions they helped imagine.
Tell a bigger story: Show how your company’s innovation efforts tie into a mission. When people feel they’re part of something meaningful, loyalty grows naturally.
27. Organizations with innovation champions embedded in each department see 2x higher engagement
Local leaders drive global results
Having one innovation team is good—but having innovation champions in every department is better. Companies that do this see twice the engagement.
These champions are like internal ambassadors. They keep innovation alive in their corner of the business. They remind, support, and encourage their peers to contribute.
Without them, momentum fades fast.
What innovation champions do
- Share upcoming campaigns or events
- Help teammates submit ideas
- Surface department-specific challenges
- Give feedback on the innovation process
- Celebrate wins and share updates
They don’t need to be senior leaders—just respected, proactive team members who care.
How to build a network of champions
Nominate and empower: Ask each department to nominate someone who’s curious and motivated. Give them training and resources.
Create a regular cadence: Host monthly check-ins with champions to share updates, gather feedback, and keep alignment strong.
Give them visibility: Let others know who the champions are. Share their names in newsletters or on your intranet.
Celebrate their efforts: Recognize them for their role—privately and publicly. Their influence is powerful.
Listen to their input: Champions are your eyes and ears. Use their feedback to refine your innovation program and remove blockers.
28. 53% of HR leaders say innovation engagement is becoming part of employee performance reviews
Innovation is moving into the mainstream
Innovation used to be a bonus skill. Now it’s becoming part of how employees are evaluated—and over half of HR leaders say it’s showing up in performance reviews.
That shift signals that innovation is no longer optional. It’s part of how work is measured, recognized, and rewarded.
For employees, this creates a clear message: if you want to grow here, contribute to innovation.
What this looks like in practice
- Employees are asked to share their innovation efforts during reviews
- Managers are trained to evaluate contributions beyond KPIs
- Development plans include innovation goals
- Promotions and bonuses reflect creativity and initiative
This doesn’t mean everyone has to be an inventor. It just means innovation is part of the culture—and the conversation.
How to integrate innovation into performance reviews
Include a simple reflection question: Ask, “What new ideas or improvements did you contribute this quarter?”
Give managers a framework: Teach them how to assess innovation behaviors like curiosity, collaboration, and initiative.
Balance quantity with quality: Don’t pressure employees to submit ideas constantly. Focus on value and learning.
Link innovation to career growth: Make it clear that creativity and problem-solving are part of leadership development.
Use reviews to inspire: Share examples of great innovation from peers. Let employees see what’s possible and aspire to contribute.
29. 61% of companies with flat hierarchies report higher innovation engagement rates
Less hierarchy, more ideas
In flatter organizations, people feel freer to speak up. There’s less fear, less red tape, and fewer layers to go through when suggesting a change.
That’s why 61% of companies with flat structures see higher engagement in innovation.
When titles and approval chains don’t dominate the conversation, ideas flow more naturally.
Why hierarchy hurts innovation
- Employees worry about saying the wrong thing
- Ideas must climb multiple levels for approval
- Seniority is valued more than creativity
- People don’t challenge the status quo
Even well-meaning leaders can create bottlenecks if the culture is too formal.
How to flatten your innovation structure
Create direct access: Let employees submit ideas to the innovation team or senior leadership without needing manager sign-off.
Reduce layers of review: For low-risk ideas, skip the full committee process. Empower small teams to test quickly.
Encourage upward feedback: Ask employees for input on leadership practices, not just products or processes.
Use cross-level collaboration: Pair interns with VPs, or customer reps with engineers, to work on challenges together.
Model openness at the top: When executives are approachable and responsive, it sets the tone for the whole company.
30. Companies in the top quartile for innovation engagement experience 6x more successful product launches
Engagement equals outcomes
When innovation engagement is high, performance follows. In fact, companies in the top quartile for engagement launch six times more successful products than those at the bottom.
That’s a massive difference—and proof that engaged employees aren’t just contributing ideas. They’re driving real business value.
What “successful” looks like
- Products that reach the market faster
- Launches that meet or exceed targets
- Solutions that truly solve customer problems
- Internal innovations that improve operations
When employees help shape these outcomes, they care more—and the results are stronger.
How to move into the top quartile
Build systems that scale: Don’t rely on one-off campaigns. Create an engine for continuous idea flow, testing, and improvement.
Link product teams with the frontline: Let those who work with customers every day help shape what gets built.
Treat every role as a source of insight: A cleaner may spot a workflow issue. An intern may notice a tech shortcut. Collect input from everywhere.
Make success visible: When a product or service succeeds because of employee input, shout it from the rooftops. Tell the full story, from idea to launch.
Keep optimizing: Top innovators treat their innovation process like a product. They tweak, test, and evolve it constantly.
Conclusion
Employee engagement isn’t a soft metric—it’s a key driver of growth, loyalty, and innovation success. The survey data makes one thing clear: when employees are truly invited into the innovation process, everything changes. Better products, stronger cultures, faster growth, and deeper connections all start with a simple question:
