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Article
Overview: The pitfalls of an ill-conceived employee suggestion
program are many and most frequently avoidable. A carefully constructed employee
suggestion program that is launched with organisational commitment, clarity and
ongoing communication can positively impact both your bottom line and your employee
motivation and enthusiasm. An ill-conceived, hastily launched and poorly communicated
employee suggestion program can turn people off, generate ill will and cynicism,
and ultimately reduce motivation.
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Key Takeouts:
- The ability to
innovate is today's strongest business competitive advantage. To harness the creativity
and expertise of their people, businesses need an effective means of stimulating
and managing new ideas, thus ensuring continued revenue growth.
-
Employee Suggestion Programs need to be well-managed, given the appropriate infrastructure,
and supported by senior management in order to realise their potential for driving
innovation.
-
Employees who are motivated and know they will be listened to can become a company's
greatest asset in the quest for new ideas and smarter ways of doing business.
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"None
of us is as smart as all of us" -- Kenneth Blanchard
The
key to becoming an industry leader is innovation, according to recent research.
A survey conducted by PricewaterhouseCoopers found that more than 75% of CEOs
of fast-growing companies cited innovation as their strongest competitive advantage.
Yet, despite the critical importance of developing new ideas for business longevity,
few companies have robust processes and infrastructure in place to manage innovation.
In
the past, many organisations used the traditional suggestion box - whether physical
or virtual - as their primary method of encouraging employees to suggest improvement.
This approach has commonly failed to produce useful results. All too often, employees
feel that any suggestion for innovation would not be taken seriously by management,
or that ideas would not be given the attention they deserve. The
challenge for businesses today is to provide a simple yet effective means of leveraging
the creativity, knowledge and expertise of their employees to gain a competitive
advantage through the generation of additional revenue and cost reduction. Employee
Suggestions Can Benefit Your Business There
are many documented cases of employees saving companies thousands of dollars through
innovation. A case in point is General Motors Corporation, where in just one quarter
employees suggested 44,000 ideas. One plant alone saved $900,000 through the implementation
of new ideas. It
is estimated that approximately 37% of submitted suggestions have the potential
to save an organisation money, time, or become more effective. Employee suggestion
programs can also positively affect staff morale, by demonstrating to employees
that they and their ideas are highly respected.
Keys to creating an Innovation Culture
Here
are twelve tips on establishing an employee suggestion program that can improve
business processes, identify new ways to reduce costs and create new ways to market
products: 1.
Top Management Support - it's crucial that employees know that top management
is supportive of their involvement and that employee participation is vital for
the business to succeed. A recent US survey found that only 38% of workers felt
their managers were "very willing" to listen to new ideas and suggestions
for improvement.
Senior management must create a culture of innovation that encourages all people
across the organisation to share their ideas and insights.
2.
Manage Ideas - establish an Ideas Management Process where all employees and
suppliers can contribute. Keep the process simple. If the suggestion program is
too complex, people will not participate. Make sure suggestions include a business
case for implementing the suggestion, its value/benefit, who it will impact or
affect and the implementation/cost estimation strategies. The submission and review
process can be easily managed electronically, and there are a number of software
packages available for this purpose.
3.
Dedicate Resources to Innovation - establish a new role of Director of Innovation
or set up dedicated innovation or "Concept Development" teams. This
visibly demonstrates the commitment of management to the initiative. It is not
the role of the Administrator to accept or reject suggestions, but to act as a
liaison between employees and management. The
Administrator must respond to suggestions promptly - within 48 hours - to acknowledge
receipt and advise how the suggestion will be treated. Employees need to know
that their suggestions are taken seriously. The Administrator's performance should
be evaluated according to the number of suggestions submitted and accepted.
4.
Appoint a Cross-functional Suggestion Review Team
to evaluate the merit of suggestions. Members of this team should represent all
departments, and be rotated 4 - 6 times each year. Provide training before the
program is rolled out, and choose members carefully. Members of the team must
be open to change, and be prepared to ask "why not?" rather than "why?"
5.
Focus - traditional suggestion programs encouraged employees to give their
ideas on any topic at any time. This random approach tends to disrupt business
processes, or was so broad it was difficult to manage effectively. Instead, use
short term, focused business challenges to encourage employees to solve specific
problems quickly. Targeted initiatives are more likely to result in suggestions
that get implemented.
6. Create Awareness - managers often don't know that good ideas
exist. Create a hub for ideas sharing - physical and virtual - that get people
talking. Publicise the program through intranets, newsletters and at staff meetings.
7.
Innovation Skills - train your workforce on
the foundations of creative thinking, and train management to lead the process.
If the workforce is skilled at developing ideas, they will create more ideas.
More innovation skills means higher quality ideas
and more creative solutions.
8.
Manage Expectations - only some suggestions
will be implemented, so set the expectation up front so that employees don't get
frustrated or disillusioned with the program. Ensure that you have good internal
marketing, a good selection of business-focused topics, and a thoughtful reward
and recognition approach. Also make sure you protect the organisation's intellectual
property by ensuring that employees understand their legal rights around ownership
of ideas and rewards.
9.
Eliminate "Threatened Manager" Syndrome -
Some managers may feel threatened when their subordinates receive recognition.
So be sure to encourage and reward managers who actively solicit employee involvements.
10.
Rewards - the reward for implemented suggestions should be clearly defined
up front. If the suggestion is a cost saving idea, reward the employee with 10%-20%
of the first year's savings that their suggestion reaps. However, cost savings
can be hard to prove, so make sure you "measure" the process before
applying the suggestion. For other, less measurable suggestions, consider a range
of rewards such as merchandise, gift certificates, award dinners, public recognition
etc.
11.
Anonymity Option - provide a confidentiality
option in unionised environments. Many unions discourage employee involvement
programs because some suggestions may result in lost jobs. To protect employees
who make suggestions, remove their name and any identifying information until
the Advisory Committee has reached a decision about whether or not to implement
the idea.
12.
Give Feedback to employees with suggestions in private, especially if the
idea is rejected. It's important to keep the employee informed as to the progress
of their idea in the review process. A popular approach is to include the suggester
on any implementation team. If a suggestion is accepted, make sure you communicate
the timeframe for implementation to the suggester.
Conclusion
Innovation
is one of the keys to thriving in today's cut-throat business environment. What
sets innovative companies apart from the rest is their ability to leverage the
talent and motivation of their people. A well-designed and executed Employee Suggestion
Program can enable organisations to consistently capture, build and develop new
ideas, directly impacting revenue growth and ensuring long term business success.
1.
Calculator: The Money Your Innovation Isn't Making - http://www.imaginatik.com
2.
An Effective Employee Suggestion Program Has a Multiplier Effect http://www.refresher.com/!ftmultiplier.html
3.
Idea Chain - http://imaginatik.com/web.nsf/docs_key/doc_prod_ideachain
OR
PeoplePulse
Staff Suggestion Tool
4.
An Effective Employee Suggestion Program Has a Multiplier Effect - http://www.refresher.com/!ftmultiplier.html
5.
Harness the Power of an Employee Suggestion Program: Beyond the Suggestion Box
- Employee Suggestion Program Musts http://humanresources.about.com/od/quality/a/suggestion_pro.htm
6.
Key Principles of Successful Idea Management - http://www.imaginatik.com/web.nsf/docs/idea_best_practice
7.
Building Innovation: Don't Pass the Buck" - http://www.imaginatik.com/web.nsf/docs/comp_news_1058
Other
Resources:
Australian-based employee
reward program - 'Cloud 9 Rewards' http://www.cloud9rewards.com.au/
Idea
Central - http://www.imaginatik.com/web.nsf/docs/prod_idc_overview
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About Regent Recruitment
Regent Recruitment is a recruitment consultancy that assists leading Australian
employers to attract and retain talented staff on a contract, temporary or permanent
basis. Whether we are filling one permanent role or recruiting contract staff
for a 400-seat call centre, we deliver an exceptional recruitment service.
Unlike other recruitment consultancies, Regent
Recruitment is unique in that it combines the capabilities of a large-scale multinational
recruitment operation with exceptional service levels typically only associated
with small boutique agencies.
How
can we assist you?
We would welcome the opportunity to have a confidential
meeting to discuss your staffing needs in more detail. If
you are interested, in the first instance please call Howard Mereine, General
Manager, on (03) 9909 7150 or e-mail Howard at hmereine@regentrecruitment.com.au. We
look forward to speaking with you.
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This article was licenced by Regent Recruitment for the Regent
Recruitment client newsletter.
Written by Victoria Small and edited by Paul Quinn, Quinntessential Marketing
Consulting Pty Ltd.
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The
views and opinions expressed in this document are those of the authors and do
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