Do You Have an Effective Suggestion Scheme? If Not Then Start One

If you do not have an effective suggestion scheme in place, it is recommended to start one.

A suggestion scheme can provide valuable insights and feedback from employees, leading to improvements in various aspects of the organization. It encourages participation, fosters innovation, and empowers employees to contribute to the growth and success of the company. Consider implementing a structured process for collecting, evaluating, and implementing suggestions, ensuring transparency and recognition for valuable contributions. By prioritizing employee input and actively seeking suggestions, you can create a more collaborative and productive work environment.

Does your business have an effective employee suggestions scheme? An increasing number of organisations in the both private and public sectors are finding that they can drive innovation and reduce cost by moving their suggestion box from the office wall to the intranet.

Siemens Automation and Drives is a good example. They employ 400 people in Congleton, Cheshire in the UK making electric motor drives. Their scheme is called Ideas Unlimited and it generates over 4000 suggestions per year of which some 3000 are implemented. The total savings are around $1.5m per year. Howard Ball administers the scheme part-time. The key is simplicity, he explained when he addressed the national conference of ideasUK, a non-commercial association dedicated to employee suggestion schemes and recognition processes.

There are no forms and no paperwork. The intranet application has just four screens – entering the idea, evaluating, accepting or rejecting and implementing. Every manager acts as an evaluator. Payments are made in the form of vouchers to a value of around $80 on acceptance of the idea. They have found that small rewards and recognition of acceptance are a better incentive than larger rewards delayed until implementation.

Another interesting aspect of the Siemens scheme is that they publish league tables of ideas implemented by departments with awards for the most successful departments. Managers are incentivised to accept and implement ideas.

Emma Akerman at Siemens suggested that a component be made out of galvanised steel instead of stainless steel. The idea was accepted and will save around £60,000 a year. She says, ‘The fact that you can put in suggestions on-line makes it easier, and knowing you can contribute ideas means you take more interest in your work.’

The main problem that had to be overcome was getting factory workers to use computers. They were not regular PC users so a training and help programme was put in place. Another thing to watch out for is evaluator overload – you have to give time and recognition to those who assess the suggestions. Ideas Unlimited has been a big success with thousands of employee ideas implemented each year. It is a powerhouse of innovation.