Employee Suggestion Systems

The term "employee suggestion systems" refers to a variety of efforts businesses make to solicit and utilize input from their employees in hopes of achieving cost savings or improving product quality, workplace efficiency, customer service, or working conditions. These efforts range from simply placing suggestion boxes in common areas to implementing formal programs with committees to review ideas and rewards for those that are adopted. The ideas generated can range from simple quality of work life improvements, like putting a refrigerator in the coffee room, to larger streamlining issues that can save the company thousands of dollars per year, like switching all salespeople's cellular phones from individual contracts to a group contract with a discount vendor. "Suggestion programs create a win-win situation," Kate Walter wrote in HR Magazine. "More involvement and input for employees and improved efficiency and cost-savings for employers."

"Companies that set up effective suggestion systems are finding that employees have great ideas that can lower costs, increase revenues, improve efficiency, or produce greater quality," said Charles Martin, author of Employee Suggestion Systems: Boosting Productivity and Profits. "Employees work together better as a team and often submit ideas as a team. And they begin to think more like managers, looking beyond the scope of their own jobs."

Some companies assume that since they cultivate an open relationship between employees and management, ideas for improvements will surface informally, without explicit prompting. But experts note that formal suggestion systems encourage employees to really think about their jobs and want to participate in the operation of the company. Formal suggestion systems let employees know that their ideas are valued. Such systems may even increase motivation and foster loyalty and teamwork among employees. And these benefits come in addition to the positive impact employee suggestion systems can have on a company's bottom line. "There's no denying that the real expert is the person who does the job; therefore, that's the best place to go when improvements are sought," consultant Tomas Jensen, president of the Center for Suggestion System Development, told Susan Wells as published in HR Magazine. "Millions of dollars are being saved by listening to the company's greatest asset—its human resource." Wells went on to discuss a study by Employee Involvement Association (EIA) which uncovered savings of more than $624 million in 2003 in 47 companies in which 450,000 people participated in programs.

ELEMENTS OF A SUCCESSFUL SUGGESTION SYSTEM

"The goal of a successful suggestion system is to tap the reservoir of ideas and creative thinking of all employees for the improvement of the working process and products," Robert F. Bell wrote in IIE Solutions. "To do so requires proper understanding by everyone of the process, management support of the system, encouragement and meaningful rewards, and a structure to make sure nothing falls through the cracks." The elements of a successful employee suggestion system can be divided into four main areas: management support, program structure, program visibility and promotion, and recognition and rewards.

Management Support

The first element of a successful employee suggestion system is to demonstrate buy-in from top management. Managers must show enthusiasm and commitment toward the program if it is to generate the desired results. A small business owner might begin by sharing his or her vision for the company with employees. Employees who understand the company's overall mission are more likely to submit valuable ideas that will help the company achieve its goals. The next step might be to make sure line managers support the suggestion system and do not feel threatened by it. It is also important for managers to raise the topic frequently in meetings and incorporate the positive results of employee suggestions into periodic progress reports. Managers should also be encouraged to submit suggestions themselves, although they should not generally be rewarded for ideas that fall under their normal strategic planning responsibilities.

Program Structure

The next element of a successful employee suggestion system is structure. Experts recommend placing responsibility for program development and implementation with a single administrator. This person should begin by selecting a committee of employees—from all parts of the organization and representing various demographic groups—to help administer various phases. The administrator and employee committee should then develop clear rules to guide employee efforts in providing suggestions. Suggestion programs tend to be more successful when employees are encouraged to make reasonable suggestions within the parameters of their own work experience. "The real goal is to generate as many ideas as possible, and, over time, to improve the quality of the suggestions through feedback and encouragement," Bell noted. It is important to develop a clear policy statement that covers all aspects of the suggestion program and make sure that both managers and employees understand it. If employees view the process as open and above-board, it will help eliminate any suspicion about how ideas are reviewed and rewarded.

Program Visibility

Another important element of successful employee suggestion programs is visibility. After all, employees cannot be expected to participate in a program if they are not made aware of it. Experts recommend launching suggestion programs in a highly public manner, with announcements, newsletters, parties, etc. Employees should come away with the idea that management intends to give full consideration to all suggestions and plans to act on the best ones in a timely manner. The suggestion system itself should also be widely publicized and promoted. Examples of possible systems include the familiar suggestion box with written forms; the old-fashioned bulletin board for posting ideas and results; a special toll-free telephone line to allow employees to phone in suggestions; or more sophisticated systems based on e-mail or postings to a dedicated Web site. Once the system has been introduced, it is important to follow up with ongoing promotional activities in order to maintain employee interest.

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