Mumbai, March 10, 2025: A new report from Great Place To Work reveals a significant shift in workplace culture, with burnout rates dropping from 35% to 22%, showcasing the transformative impact of innovation as a core value in modern organizations. Companies that integrate innovation into daily operations don’t just spark creativity—they boost engagement, improve retention, and reduce burnout. True innovation goes beyond occasional brainstorming or hackathons; it becomes second nature. When innovation shifts from a reactive to a proactive mindset, embedded in decision-making, teamwork, and problem-solving, organizations gain agility, motivation, and a culture where employees feel empowered to experiment and take risks. Innovation is no longer an extra—it’s essential for companies to not just adapt to change but lead it.
Recent data reveals a persistent gender innovation gap, with men reporting 47% access to innovation opportunities, significantly more than women at 39%. This structural disparity underscores the need for urgent action to ensure equal access to innovation for both genders, as failing to address this gap could stifle the creative potential of half of the workforce. Additionally, seniority and experience play a crucial role in access to innovation, with employees having over 10 years of experience and senior managers seeing the most opportunities—50% and 57%, respectively—raising concerns about innovation becoming too concentrated at the upper levels of organizations. To truly foster a culture of innovation, it must be embedded across all tiers, ensuring that every employee, regardless of seniority, has the chance to contribute.
Industries Winning at Innovation Know It’s Not a Perk—It’s a Practice. Industries like Biotechnology, IT, and Transportation invest in innovation frameworks but often struggle to fully engage employees. In contrast, Financial Services and Retail prioritize both structured innovation and employee experience, cultivating a culture where new ideas thrive and employees are more deeply involved in the process. Industries like Education & Training, Health Care, and Professional Services face challenges with both innovation practices and employee engagement, resulting in slow progress and resistance to change. On the other hand, sectors like Construction, Infrastructure & Real Estate excel at offering a great employee experience but lack structured innovation processes, limiting their full potential.
For organizations striving to boost their innovation momentum, five key drivers can act as catalysts for success. First, care for employees—when workers feel valued not just as contributors, but as individuals, their motivation and creativity flourish. Second, recognition plays a pivotal role in fueling innovation. When achievements are celebrated fairly across all levels, it encourages a culture of continuous improvement. Third, strong talent attraction practices ensure that diverse perspectives and fresh ideas flow into the organization, propelling innovative thinking. Additionally, leadership development is critical, as well-prepared leaders inspire innovation at all levels. Lastly, action on feedback is crucial. Organizations that listen to their employees, act on their input, and create an environment of trust are more likely to sustain long-term innovation.
Balbir Singh, CEO, Great Place To Work®️, India, said,.” Most leaders list innovation as one of their top priorities for business growth in 2025. Leaders understand this requires them to think differently, to challenge assumptions, and to empower their teams to experiment and take risks. A mindset shift that must embed into ways of working and become core to organization’s culture. Our latest study, based on insights from over 57 lakh employee voices, makes one thing clear—when innovation is embedded in workplace culture, everything changes. Burnout drops from 35% to 22%. Retention improves. Engagement rises. When employees know their ideas matter, when they feel safe to take risks, they don’t just follow the rules—they redefine them. They challenge the status quo, experiment boldly, and push the organization forward. Yet, many companies unintentionally slow innovation down. Unclear growth paths, siloed teams, and fear of failure—coupled with outdated policies and a lack of continuous learning—don’t just stifle creativity; they push great talent away.
He also added, “The question isn’t whether we value innovation. The real challenge is: Are we building a culture where innovation thrives? Do our people feel safe to take risks? Are we removing obstacles instead of reinforcing outdated processes? Are we turning ideas into action, or drowning them in endless approvals? The best workplaces don’t just support innovation—they make it impossible to ignore. When innovation is part of an organization’s DNA, it’s not just a competitive advantage. It’s a force that drives trust, purpose, and belonging. That’s the difference between companies that survive and those that thrive.
Research reveals that companies prioritizing innovation are 2.7 times more likely to be ready to innovate than those where it is merely an afterthought. This shift in mindset is crucial to staying competitive in a rapidly changing market. To determine where an organization stands in its innovation journey, companies must look at their Innovation Velocity Ratio (IVR)—a key metric that measures the pace of innovation within an organization. At the Frictional IVR stage, for every two employees hindering innovation, four employees are driving it forward. At the Functional IVR stage, seven employees are leading the charge for every two dragging the company behind. And at the Accelerated IVR stage, eleven employees are pushing innovation forward for every two who hold it back.
However, the path to innovation is not without its challenges. Five major barriers impede innovation momentum: lack of recognition and growth opportunities, siloed teams, fear of speaking up, an overemphasis on policies and tracking, and insufficient investment in continuous learning and development. Overcoming these obstacles will be essential for organizations to unlock their full innovation potential.