employee suggestion programs final

SHRM Poll: Employee Suggestion Programs

November 8, 2010

Employee Suggestion Programs | ©SHRM 2010 2

Key Findings

• Less than half of organizations have a formal employee suggestion program. About two out of five organizations reported that they have a formal system for employees to submit ideas through a mechanism such as a suggestion box, e-mail or online application.

• Who has responsibility for reviewing and responding to employee suggestions? HR was most frequently tapped to review employee suggestions, followed by management-level employees of the department or function area that would be affected by the idea if implemented. The same held true for responding to employees regarding decisions about their suggestions.

• What incentives do employees receive for suggesting ideas that are implemented? Employees whose ideas are implemented are most likely to receive recognition at staff meetings and/or in organization communications.


Does your organization have a formal system for employees to submit their suggestions and/or ideas through a mechanism such as a suggestion box, e-mail or online application?

Yes; 39%

No; 61%

Note: n = 517

Employee Suggestion Programs | ©SHRM 2010

Does your organization have a formal system for employees to submit their suggestions and/or ideas through a mechanism such as a suggestion box, e-mail or online application?

• Publicly owned for-profit organizations (49%) were more likely than privately owned for-profit organizations (33%) or government agencies (24%) to report that their organizations have a formal system for employees to submit their suggestions and/or ideas.

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Comparison by Organization’s Sector


Are employees encouraged to make suggestions that affect…?

Their own department (n = 166) Other departments (n = 165) The organization as a whole (n = 178)0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%99%

93%97%

1%

7%

3%

Yes NoNote: Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.

• Employees are encouraged to make suggestions that affect their own departments, other departments and the organization as a whole.


To what extent do employees utilize the organization’s suggestion system?

To a large degree To some degree To a slight degree Not at all0%

10%

20%

30%

40%

50%

6%

44%

41%

9%

Note: n = 179. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.

eesen

Can you reverse the options, so you start with "not at all"?


How often are submitted employee suggestions reviewed?

Other

Annually

Quarterly

Monthly

Weekly

Daily

0% 10% 20% 30% 40%

5%

4%

8%

28%

30%

25%



Who reviews submitted employee suggestions to decide which ones will be implemented?

Other

Board of directors

CEO or president

A committee of staff from across the organization

Executive-level staff

Management-level employees of the department or function area that would be affected if the idea was implemented

HR

0% 10% 20% 30%

5%

1%

10%

15%

19%

22%

27%

Note: n = 170. Excludes respondents who answered, “N/A, no set review process.” Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Percentages do not total 100% due to multiple response options.


Who reviews submitted employee suggestions to decide which ones will be implemented?

• Smaller organizations (100 to 499 employees) were more likely than larger organizations (25,000 or more employees) to report that HR reviews submitted employee suggestions (63% and 10%, respectively).

9

Comparison by Organization’s Staff Size


In general, at what point(s) after the suggestion review do employees receive feedback on their suggestions, regardless of whether they are implemented?

Other

Within three months after the suggestion is reviewed

When the suggestion is implemented

Immediately after the suggestion is reviewed, i.e., within 24 hours

Within a week after the suggestion is reviewed

Within a month after the suggestion is reviewed

0% 10% 20% 30% 40%

8%

3%

13%

14%

34%

36%

Note: n = 154. Excludes respondents who answered, “N/A, employees generally do not receive feedback following the review of the suggestion.“ Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Percentages do not total 100% due to multiple response options.


Who responds to employees regarding decisions about their submitted suggestions?

Other

Board of directors

CEO or president

Executive-level staff

A committee of staff from across the organization

The employee's direct supervisor

Management-level employees of the department or function area that would be affected if the idea was implemented

HR

0% 10% 20% 30%

5%

0%

10%

10%

11%

14%

21%

29%

Note: n = 140. Excludes respondents who answered, “N/A, no set response process.” Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Percentages do not total 100% due to multiple response options.


Who responds to employees regarding decisions about their submitted suggestions?

• By Staff Size: Larger organizations (2,500 to 24,999 employees) (50%) were more likely than smaller organizations (100 to 499 employees) (14%) to report that management-level staff in the affected department of function area responded to employees who submitted suggestions.

• By Sector: Publicly owned for-profit organizations (47%), privately owned for-profit organizations (36%) and government agencies (44%) were more likely than nonprofit organizations (4%) to report that management-level staff in the affected department of function area responded to employees who submitted suggestions.

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Comparison by Organization’s Staff Size and Sector


What kinds of incentives do employees receive if they make suggestions that are implemented?

Other

A percentage of the revenue generated or costs saved by implementing the suggestion

Paid time off

Other non-cash benefits (e.g., a premium parking spot, massage service, etc.)

Cash bonuses

Merchandise gift cards or other tangible items (e.g., balloons, mugs, flowers, gifts, etc.)

Recognition at staff meetings and/or in organization communications

0% 10% 20% 30% 40%

3%

3%

5%

5%

21%

23%

40%

Note: n = 95. Excludes respondents (75 people total, 44%) who answered, “N/A, employees do not receive incentives for their suggestions." Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Percentages do not total 100% due to multiple response options.


What kinds of incentives do employees receive if they make suggestions that are implemented?

• By Staff Size: Larger organizations (25,000 or more employees) (36%) were more likely than smaller organizations (1 to 99 employees) (14%) to report that employees who make suggestions that are implemented receive merchandise gift cards or other tangible items.

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Comparison by Organization’s Staff Size


To what extent does…?

0%

10%

20%

30%

40%

50%

22%

36%

16%

40%34% 36%

20% 21%26%

18%

9%

22%

Not at all To a slight degree To some degree To a large degree

Note: Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.

• Despite nearly one-half of organizations reporting to a large degree or to some degree that their employee suggestion program links to their strategic planning process, most organizations indicated a lack of leadership support for the suggestion program as a critical component of organizational innovation . More than one-third of respondents also believed that a lack of available resources justified not implementing otherwise worthy suggestions.


If a suggestion is not implemented right away, is it stored in some way for future review?

Yes, in all cases;

24%

Yes, in some cases; 62%

No; 14%



How often are previously submitted suggestions reviewed again?

Other

Weekly

When a similar idea comes up in the organization or through the employee suggestion program

No set process for reviewing previously submitted suggestions (i.e., it varies)

Monthly

Quarterly

Annually

0% 10% 20% 30% 40%

5%

4%

8%

9%

16%

26%

32%

Note: n = 100. Excludes respondents (38 people total, 28%) who answered, "N/A, previously submitted suggestions are not reviewed again.“The response categories "no set process" and "when a similar idea comes up" were recoded from write-in responses for "other." Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.


Does your organization track the financial value of implemented suggestions (e.g., cost savings, staff time savings, etc.)?

Yes; 45%

No; 55%



Does your organization track the financial value of implemented suggestions (e.g., cost savings, staff time savings, etc.)?

• By Staff Size: Larger organizations (25,000 or more employees) (90%) were more likely than smaller organizations with 1 to 99 employees (39%) or 100 to 499 employees (37%) to report that their organizations track the financial value of implemented suggestions.

• By Operations: Organizations with multinational operations (61%) were more likely than organizations with U.S.-based operations (39%) to report that their organizations track the financial value of implemented suggestions.

19

Comparison by Organization’s Staff Size and Operations Location


Demographics: Organization Industry

IndustryManufacturing –other 15%

Health care, social assistance (e.g., hospitals, clinics) 11%

Services –professional, scientific, technical, legal 10%

Government/public administration—federal, state/local, tribal 7%

Financial services (e.g., banking) 6%

Other services (e.g., other nonprofit, church/religious organizations) 5%

High-tech 5%

Educational services/education 4%

Retail/wholesale trade 4%

Transportation, warehousing (e.g., distribution) 4%

Construction, mining, oil and gas 4%

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Note: n = 452. Percentages do not total 100% due to rounding.


Demographics: Organization Industry (continued)

IndustryConsulting 3%

Insurance 2%

Services—accommodation, food and drinking places 2%

Utilities 2%

Association—professional/trade 2%

Manufacturing—auto/auto-related 2%

Arts, entertainment, recreation 2%

Telecommunications 1%

Biotech 1%

Real estate, rental, leasing 1%

Publishing, broadcasting, other media 0%

Pharmaceutical 0%

Other 6%

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Demographics: Organization Sector

Government sector

Nonprofit organization

Publicly owned for-profit organization

Privately owned for-profit organization

0% 10% 20% 30% 40% 50% 60%

11%

18%

20%

51%

22

Note: n = 440. Excludes other organization sectors.


Demographics: Organization Staff Size

-10%

0%

10%

20%

30% 29% 29%

19% 19%

5%

23



Demographics: Other

24

Note: n = 479

U.S.-based operations 75%

Multinational operations 25%

Single-unit company: A company in which the location and the company are one and the same

35%

Multi-unit company: A company that has more than one location

65%

Multi-unit headquarters determines HR policies and practices

48%

Each work location determines HR policies and practices

2%

A combination of both the work location and the multi-unit headquarters determine HR policies and practices

50%

Is organization a single-unit company or a multi-unit company?

Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both?

Does the organization have U.S.-based operations (business units) only or does it operate multinationally?

Note: n = 427

Note: n = 319

• 15% of organizations indicated that employees at their work location were unionized.

Note: n = 450


SHRM Poll: Employees Suggestion Programs

• Response rate = 20%• Sample comprised of 523 HR professionals randomly

selected from SHRM’s membership• Margin of error is +/- 4%• Survey fielded October 8–October 22, 2010

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Methodology

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