Let’s not sugarcoat it—employees are not okay right now. The economy is rocky, layoffs are everywhere, and stress is at an all-time high. Morale is low. Trust is fragile. And yet, this is exactly when organizations need fresh thinking, resilience, and innovation the most.
So how do companies—especially midsize businesses, nonprofits, and government-facing firms—keep innovation alive when their people are running on empty?
Here’s the truth: You don’t innovate through your people. You innovate with them. And that means supporting them differently, especially now.
Be Radically Transparent (and Human)
People aren’t looking for perfect answers. They’re looking for honesty.
Instead of vague updates or polished talking points, share the full context behind your decisions. Acknowledge what’s hard. Let your employees in on what’s uncertain and how you’re navigating it.
Think about the power of statements like ““We don’t have all the answers. But here’s what we know, and here’s how we’re moving forward—together.”
Transparency builds psychological safety, which is the foundation of trust—and trust is the foundation of innovation. It should also help control the rumor mill.
Prioritize Purpose Over Productivity
In times of stress, more hustle isn’t the answer—more clarity is.
Reground your team in why their work matters. Eliminate busywork. Focus your people on projects that spark momentum and meaning. And don’t wait for a product launch to celebrate—small wins count too.
People don’t burn out from working hard. They burn out from working hard and feeling like it doesn’t matter.
Give People Room to Create (Without Fear)
In uncertain times, employees often retreat into safety zones—doing only what’s expected. But innovation requires space to experiment. Create low-stakes ways for people to try new things. That might look like:
- A one-week innovation sprint
- A “safe-to-fail” pilot program
- Cross-functional problem-solving jams
Reward what’s learned, not just what works. Make these lessons learned part of what gets highlighted following an innovation effort.
Get Serious About Mental and Emotional Health
Stress isn’t a vibe—it’s a barrier to creative thinking. Companies that want innovation can’t ignore well-being. That means:
- Giving real flexibility, not performative “wellness days”
- Encouraging time off, starting with leadership
- Creating safe spaces for peer support, especially as DEI efforts are cut
When people feel seen and supported, they’re more open to taking smart risks and thinking differently.
Make Innovation a Team Sport
Right now, too many people are innovating in isolation which makes great ideas hard to see. Or they aren’t innovating at all.
Bring teams together to solve real problems. Use tools like design thinking or hackathons to unlock creativity across silos. And don’t overlook underrepresented voices—diverse teams often spot the game-changing ideas others miss.
Collaboration restores connection. Connection builds courage. And courage drives innovation.
Invest in your Managers – They are on the Front Line
Middle managers are stretched thin, expected to maintain morale while delivering results. But they’re also the biggest influence on team culture. Support them with:
- Tools for empathetic, flexible leadership
- Real autonomy to support their teams
- Clear permission to innovate, not just enforce
When your managers feel empowered, your people will too.
Final Thought
You don’t need a flashy innovation lab to keep your edge right now. What you need is a workplace where people feel safe, seen, and supported enough to try something new.
Because innovation doesn’t die in hard times—it just hides behind burnout, fear, and disconnection. But when leaders lean in with empathy and clarity, innovation rises again—this time, rooted in resilience.
While this article was written in 2022, there are lessons to be learned from this Ripplematch’s article. It contains a list of companies and the programs they have implemented that prioritize mental health. On the list is Influence & Co, which rewrote their mental health policy “while also discussing its creation with their team – to reflect the needs of their employees”.
Read other topical blog entries here.
Want to talk more about keeping your team engaged and future-ready? Let’s Connect!
