Innovation is often seen as a side project for startups that only occurs during periods of down time. But in today’s fast-paced business environment, a strong innovation culture is key to attracting top talent and staying competitive.
People want to play an active role in shaping a company’s direction and supporting its success. However, findings from Dell’s Innovation Index show that many employees still don’t feel empowered to innovate in their roles.
Around two in three (64%) respondents believe that their organization’s culture is holding them back from being as innovative as they want to be. Stifling innovation can harm retention too – 59% of leaders say that people have left the company because they weren’t able to innovate enough.
This is a vital area that startups can capitalize on. It’s challenging to compete for top talent, particularly if you’re going up against large companies who can spend longer on recruitment and offer higher salaries. A forward-thinking culture of innovation can be a draw for skilled employees and help you to build an engaged, loyal workforce.
Provide the time and headspace to innovate
The top barrier to innovation is a lack of time due to heavy workload. This can be tricky to overcome in startups, where founders and early employees usually need to wear lots of different hats.
However, an innovative business isn’t built in the odd hour here and there. If you’re serious about fostering a culture of innovation, it needs to be prioritized and given the same weight as other business-critical work.
A good place to start is by allocating a set number of hours each month to support innovation. It could be used to attend an event, tune into a webinar, test out new technology or explore a potential idea.
Schedule a meeting at the end of the month for each team member to share how they used the time and what they learned. The aim of these meetings should be to spark discussion and encourage creative thinking, rather than bring fully fleshed out ideas to the table. They will also keep your team accountable and ensure they’re using the hours available.
Create an inclusive and welcoming culture
Innovation is powered by new ideas. Your employees have unique backgrounds and lived experiences, and can bring valuable perspectives into your business. It’s up to you to foster an environment where they feel empowered to speak up and share their ideas.
This sounds straightforward, but it isn’t always easy if you’ve got a small team and you’re used to being the sole decision maker. You might know your business better than anyone, but an innovative culture isn’t built with one person’s input.
Create a safe space for employees to share their ideas and feedback, whether it’s in one-to-one meetings or a dedicated team-wide chat channel. Be open minded about suggestions and be able to consider the merits of new ideas in a meaningful way, even if they go against your own opinions.
As your team grows, make sure you’re still encouraging innovation from the bottom up. The last thing you want is to create an echo chamber, so be proactive about reaching out to junior employees and getting feedback from all corners of your business.
Be prepared to “fail fast” and learn
In order to develop a culture of innovation, a certain amount of failure is inevitable. Innovation is about being bold and experimenting with something new, whether it’s a marketing strategy or a product feature.
When it works, it can help your startup attract new customers, deliver value and stay competitive. When it doesn’t, it’s disappointing but you’ll have gained useful lessons that can be turned into success in the future.
As a leader, it’s important to have the right attitude. While you should approach new projects with caution and due diligence, prospective hires will want to know that you’ll continue to support new ideas and experiment if something doesn’t work out.
Offer training and mentorship to build skills
Other common barriers to innovation are a lack of technology or digital fluency, and the lack of aptitude. This can have a knock-on effect on employees’ confidence, as well as their ability to move out of their comfort zone and test new ideas.
Providing training opportunities can upskill staff, improve morale and accelerate innovative ideas. This training can range from books and educational videos to accredited training courses, depending on your startup’s needs and budget.
It’s a good idea to support any training with mentorship or, if your startup is big enough, the ability to shadow a more experienced member of staff. There can be a gulf between learning theory and putting new skills into practice, and innovative startups are fueled by action. Having a mentor can help employees test out new skills and build their confidence in new areas of the business.
Build excitement about your startup’s potential
It’s no coincidence that ChatGPT reached 100 million monthly active users just two months after it launched. There’s a real buzz around new technologies like Generative AI and a sense of excitement about what they will offer in the future.
While larger organizations can be bogged down in bureaucratic processes, startups are well-placed to build on this enthusiasm. There’s greater freedom and flexibility to test out new tools, which can lead to trailblazing new products and services.
For industry disruptors like fintech and medtech startups, employees have the chance to play a hands-on role in potentially world-changing innovations. It’s a no-brainer to factor this into recruitment and create excitement about where your startup could go in the future.