Digitalization is transforming the way we move and produce, encouraging the industry to use the best available technologies focusing on people. Non technological innovations, especially, Workplace Innovation (WI) will play a key role in the digital revolution and acceleration of the technological advances, improving the competitiveness of the companies. This draws attention to the importance of the innovation culture and employee engagement focused on improving employee motivation and working conditions, thereby improving labor productivity, organizational efficiency, innovation capacity, market reactivity, and, as a result, business competitiveness. WI is a combination of structural and cultural practices that boosts employees’ participation, improving the quality of work and organizational performance. These strategies aim to promote innovative work behavior to create, introduce and apply new ideas, processes and products. To address these issues this chapter analyses WI in rail sector and defines WI Scheme for rail sector. A theoretical background is presented based on a sample of 203 railway entities across European Union (EU). Then, data analysis and results are examined and the guide to implement WI scheme is defined. Finally, the results of the research, including limitations and concluding remarks are discussed.