Government and industry initiatives to promote workplace innovation have accelerated, yet these efforts have not yet translated into improvements that employees perceive as meaningful. A survey of employees reveals that while a vast majority (85.1%) report their companies have attempted to introduce workplace innovation, a significant portion (37.1%) have not observed any tangible outcomes. Key reasons for this disconnect include a lack of substantive change, inadequate communication, and an excessive work burden. Furthermore, more than half of employees with ideas for improvement do not voice them. This is compounded by weak institutional support, as only 27.2% of firms have a dedicated innovation department. Our analysis indicates that employees’ perception of innovation outcomes is more positive in organizations that balance productivity with worker well-being, foster inclusive decision-making, and empower staff. Achieving sustainable innovation will therefore require a strategic redefinition of goals, the establishment of a dedicated innovation team, and the expansion of opportunities for employee participation.