Today’s guest post is written by Susan M Heathfield
The pitfalls of an ill-conceived employee suggestion program are multiple, legendary and most frequently – avoidable. A carefully constructed employee suggestion program that is launched with organizational commitment, clarity and ongoing communication can positively impact your bottom line and your employee motivation and enthusiasm. An ill-conceived, hastily launched, undefined employee suggestion program can turn people off and generate ill will, cynicism and misunderstanding.
#1 Does Your Company Need an Employee Suggestion Program?
Before launching an employee suggestion program, consider your corporate culture. Are you currently receiving fresh and thoughtful ideas? Are employee suggestions already percolating to the surface at staff meetings and in casual conversation? If so, maybe more informal methods for cultivating new ideas are warranted rather than a full-blown employee suggestion program.
Perhaps you can schedule departmental brainstorming sessions or generate ideas about particular topics during portions of your weekly staff meeting. You can set a day a month for a luncheon at which every employee is asked to submit at least one idea. You can ask your managers to bring three employee ideas to each manager’s meeting. Creativity serves you well in idea generation.
If not, I’d begin by asking what about your culture is currently stifling ideas? Will these issues continue to exist when you implement an employee suggestion program? If so, your successful employee suggestion program must eliminate or circumvent these road blocks.
I am not traditionally a fan of employee suggestion programs since they are unwieldy, difficult to keep up with, time consuming, can cause more hard feelings than positive outcomes and must be strictly managed.
#2 Elements in a Successful Employee Suggestion Program
I have seen few employee suggestion programs succeed, but the employee suggestion programs that did succeed shared common success elements. You may take a pause at the number of factors I consider significant to the success of an employee suggestion program, but these are factors common to any successful work process that takes employee time and offers the possibility for significant rewards and recognition. If you pursue an employee suggestion program, the following must happen for success.
Appoint a Cross-functional Suggestion Review Team
A cross-functional team must review the suggestions which must be acknowledged within 48 hours. If this team is all managers, or all directors, it can be perceived as out of touch or blocking change. It will, however, have the power to implement the suggestions it receives. If it involves other employees, the process can be time-consuming and perceived to serve self-interests. Senior management agreement and ownership become a second step in the approval process. People on the team must be willing to change and willing to ask “why not” rather than “why”?
Finance, especially, and all other departments must be represented on the suggestion review team. If the managers or directors review suggestions, the review must be part of a regularly scheduled meeting, with suggestions distributed and considered in advance. If the team meets more often than monthly, it becomes more work than people are usually willing to do. Rotate members of this team 4-6 times a year, but not all members at once, if a cross-functional employee team is your selected suggestion review vehicle. The choice of team members for the suggestion review team should reflect how business is generally accomplished in your culture. A senior manager needs to champion the employee suggestion program and sit on the evaluation committee. This lends credibility to the employee suggestion program and makes suggesters feel important.
#3 Establish Guidelines for Your Employee Suggestion Program
You’ll need to set guidelines such as which topics are open to suggestions. These will likely include ideas that affect cost savings, quality, productivity, process improvements, revenue-generation and morale-enhancement.
Otherwise, as a client in Florida discovered when he promised $25 per employee suggestion; he received a series of employee suggestions such as: put an ice cream machine in the lunch room, put a corn popping machine in the lunch room and any employee who meets their daily production numbers should be able to go home no matter the time of day.
An employee suggestion needs to be more than a suggestion. It must provide some detail about how the proposer thinks the suggestion should be implemented. It is easy to dash off an idea, I would require that additional detail accompany the idea – not a full blown action plan – but at least more detail than an idea. Definitely require the “why” and “how” the idea will impact the company, including a cost savings analysis. At the same time, within these parameters, the suggestion process should be simple. I once knew a company that had a three page employee suggestion form whose managers wondered why they didn’t receive any employee suggestions.
Ideas that are integrally connected to a person’s job should not be considered, or should be dealt with differently. At Toyota, millions of suggestions are generated each year. It is my understanding that the reason they have so many employee suggestions is that the employees are closely focused on improving their own jobs. The employee thinks of an improvement idea, shares it with his or her supervisor and then, if warranted, the idea is implemented immediately. There is no time-consuming process or group of managers that must consider most ideas. In this scenario, managers must be able to reward people who come up with ideas that fit the parameters of the program.
#4 Rewards and Recognition in Your Employee Suggestion Program
The reward for implemented suggestions must be clearly defined on the front end. If the employee suggestion is a cost savings idea, in many employee suggestion programs, the employee receives a percentage of the cost savings: often this award can equal five-twenty percent of the proven cost savings.
When thinking about your employee suggestion program, recognize that cost savings are hard to “prove” if you don’t have good numbers defining the process before the employee suggestion is implemented. So, often the first step in a cost saving suggestion implementation is to “measure” the process to make sure you know how the process is currently performing.
Other, less measurable process ideas need a standard reward designated. Often, the recognition is most important to the employee.
Rewards can include merchandise with the company logo, gift certificates, lunch with a manager of the employee’s choice, a quarterly award dinner and points toward purchasing more expensive items from catalogs.
Indeed, given the difficulty of measuring the outcome of many employee suggestions, some companies offer these recognition rewards even when the ideas added to the bottom line substantially. In my experience, this is not as motivating as the employee receiving a portion of the savings realized during a defined time period such as a year.
Susan Heathfield is a Human Resources expert. She is a management and organization development consultant who specializes in human resources issues and in management development to create forward thinking workplaces. Susan is also a professional facilitator, speaker, trainer, and writer. About.com Guide