The innovation industry, like many others, is awash with buzzwords and jargon. Terms like “ideation,” “thought leadership,” and “disruption” are thrown around in boardrooms and conferences with the hopes of inspiring companies to adopt an innovative mindset. Maybe you’ve already encountered someone who calls themselves a “thought leader” promising to help with your “ideation” process. It all sounds impressive, but what’s the real question here? The true bottom line is this: Is your company actually innovating, or is it just talking about it?
Read: 8 Tech Terms and Buzzwords You Need To Know
It’s easy to get caught up in the hype. Innovation is a trendy topic—it’s cool, it sounds visionary, and everybody loves to say they’re doing it. But in reality, most companies that talk about innovation rarely follow through. The question to ask yourself is, does your company have a plan for innovation? And beyond having a plan, is that plan put into action? Do you have a culture that fosters innovation from the top down? More importantly, do you have the incentives in place to reward your employees for their innovative contributions?
Innovation: All Talk, No Action
As someone who has been in the trenches of the innovation industry, I can tell you this: most companies want to be seen as innovative, but they fall short in execution. They love the idea of innovation, but they don’t take the steps needed to actually implement it. I’ve seen countless speakers and consultants whose entire message is, “Innovation is cool! You should be innovating!” And while it’s true that innovation is important, the real question remains unanswered—how do you actually get started?
This gap between wanting to innovate and actually doing it is where many organizations falter. They know innovation is critical to staying competitive, but they don’t know how to turn that desire into reality. The focus needs to shift from just talking about innovation to developing practical steps for initiating and sustaining it.
Read: The Only Thing Worse Than All Talk, No Action
The Importance of Incentives for Innovation
My approach to innovation has always been grounded in actionable steps rather than theoretical contemplation. But there’s another side to this conversation that often goes overlooked: incentivization.
At a teacher’s conference, after one of my talks, an attendee pulled me aside and told me something that changed my perspective. The methods I had shared were great, they said, but they seemed like a lot of work. This wasn’t a complaint from someone lazy or unmotivated. On the contrary, these teachers were already going above and beyond—spending hours grading papers, preparing lesson plans, and learning new material. What they objected to was the idea of taking on even more work—without any sort of reward.
And that’s a critical point. People are often excited about the chance to innovate, but they need to feel that their extra efforts will be recognized and rewarded. Asking employees to contribute to innovation without any incentive structure is a recipe for frustration and disengagement.
Read: Best Practices and Innovation
Why Incentives Matter
I’ve spoken to executives who believe that employees should innovate for the good of the company, without expecting any additional compensation. But I disagree. If you want people to go above and beyond, you need to make it worth their while. Innovation is hard work, and it requires people to stretch their creativity, skills, and time. Why not give them a reason to be excited about it?
A perfect example of the risks of not incentivizing innovation comes from a friend who was offered a job at a major tax firm. Despite completing a lengthy training course, he turned down the offer. Why? The company required him to sign an intellectual property agreement stating that any innovation he created, even beyond his employment with them, would be company property—and he would receive nothing in return.
His reaction was simple: “Not only does this give me zero incentive to innovate, it makes me feel like the company doesn’t value its employees.” And that’s the core issue. If employees don’t feel that their efforts are valued or rewarded, why would they bother going the extra mile to innovate?
Read: Innovation Culture: Rewards & Incentives
How to Incentivize Innovation
There are numerous ways to incentivize innovation in an organization. Here are a few effective strategies:
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Rewards and Recognition: Create systems that recognize and reward individuals or teams for their innovative contributions. This could include financial bonuses, promotions, or public acknowledgment through awards.
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Innovation Competitions: Organize challenges or competitions within your organization with clear goals and attractive prizes for the winning ideas. This fosters a competitive spirit and encourages creative thinking.
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Dedicated Innovation Time: Allow employees to spend a percentage of their workweek on self-directed innovation projects. Companies like Google and 3M have long embraced this approach, and it has led to the creation of groundbreaking products like Gmail and the Post-it Note.
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Training and Development: Invest in training programs that teach employees innovation skills, such as design thinking or creative problem-solving. When employees feel their personal growth is being supported, they are more likely to engage in innovative activities.
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Idea Sharing Platforms: Implement internal platforms where employees can share their ideas and collaborate. This not only encourages innovation but also helps foster a culture of collaboration.
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Flexible Work Environment: Foster an environment that promotes flexibility and experimentation. Allow employees the freedom to explore their ideas without the fear of failure.
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Intellectual Property Rights: Employees should feel secure in their ownership of ideas and be appropriately rewarded for their contributions. Make sure to clarify intellectual property policies and reward employees who create valuable innovations.
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Innovation Grants or Funding: Provide financial support through grants for individuals or teams working on innovative projects. This encourages employees to take risks and pursue their ideas.
Building a Culture of Innovation
If you want to build a culture of innovation, you need to do more than just talk about it. Innovation requires a combination of strategic planning, practical steps, and—most importantly—a supportive environment that encourages experimentation and creativity. It’s crucial to offer rewards for innovation because people need to feel that their efforts will be acknowledged. Innovation without incentives will never be sustainable.
So, the next time you think about innovation, ask yourself: Is your company truly innovating, or just talking about it? And if you are innovating, are you rewarding the people who make it happen?
At Creative Innovation Group, we are committed to helping businesses embrace true innovation. If you have any questions or would like to discuss how we can help your business, feel free to reach out via our Contact Page. Additionally, if you’re interested in booking an inspiring keynote presentation, be sure to check out our Keynote Speaker Page for more details. For more insights, don’t miss our article, Unleashing Your Intellectual Potential: Insights from an Innovation Keynote Speaker. Let’s work together to bring your innovative ideas to life!