How Do You Overcome Challenges in Implementing Employee Suggestion Schemes?

Friends, I have been a startup founder for the past 14 years and, having worked mostly with small teams, we never had specific programs like a suggestion scheme. I wish to hear and learn what challenges you all face in getting employee engagement/suggestion scheme implemented and whether you think technologies like Smartphone Apps could be of any help.

The outcome of the suggestion scheme is threefold: reduction in cost, reduction in process turnaround time, or reduction in consumption of resources. Any suggestion has to address at least one outcome. Since you are running a startup, your employee strength will not be that high. Therefore, why not conduct a brainstorming session? I do not know the efficacy of mobile apps for launching an employee suggestions program; nevertheless, at this stage, you may not need an app.

Idea generation by employees depends on their task motivation, mental engagement with their superior, or the company itself, etc. This is also not sufficient. To generate ideas, you need someone who provides a stimulus. I once conducted a brainstorming session with the engineers of a cement-producing plant. The plant has been in operation for the last 25 years and is rated as the 10th most energy-efficient plant. In the last five years, they have implemented over 1,000 employee suggestions. This is why they called me to conduct the brainstorming session. Against this backdrop, I was able to generate 19 innovative ideas from 39 participants. The participants openly admitted that only an external consultant could have done this. Therefore, feel free to contact me for further information.

Thanks,

Dinesh Divekar

A very interesting perspective.

There are so many interpersonal issues that most employees will not share all their ideas during internal brainstorming sessions. They are scared of ridicule for radical ideas or having obvious faults pointed out in their favorite ideas.

But does this internal brainstorming and idea sessions actually work without an outside push?

Thank you, Mr. Dinesh, for your suggestions and the illustration of how external stimuli could help in getting the team to break the ice. As I said, with small teams and office spaces that have no cubicles, I guess brainstorming is happening all the time; at least we have that culture in our little startup.

Challenges in Implementing Suggestion Schemes in Large Organizations

My point was more around what challenges big organizations (say 500+ employees) are facing in their day-to-day suggestion scheme implementations. I have been seeing some very well-implemented schemes running at a few well-known manufacturing companies around Chakan, Pune, but have no idea what percentage of companies really have such models.

Dear Sushaeel, you have written that "As I said, with small teams and office spaces that have no cubicles, I guess, brainstorming is happening all the time, at least we have that culture in our little startup." These are your perceptions. Nevertheless, what matters is that the perception does not turn out to be a myth. Whatever suggestions you have got could be like the tip of the iceberg. Like the unseen part of the iceberg, there are hidden ideas in the brains of the employees. Few are hidden unintentionally, and few intentionally.

Day in and day out, I conduct training. I have conducted training for participants from 40+ industries. My experience is contrary. Participants consider an outsider trainer like me safe to express their dissatisfaction. There is no evidence to show that small-sized company employees have small dissatisfaction.

The first sentence of my first reply in the thread read, "The outcome of the suggestions scheme is threefold, i.e., reduction in cost, reduction in process turnaround time, or reduction in the consumption of resources." Now, what was increased or decreased because of the employee suggestions scheme of your company, that you would know best.

In your company, what is the ratio of ideas generated per person per annum? What is the revenue saved per annum by implementing the ideas? What rewards did you give for the best idea of the year? Whether you run a startup or a 500-employee company or a 5,000-employee company, what matters is staying organized. Do you have organized records of idea generation and their implementation further? Do you use these records in your induction training?

Lastly, you have written that "I have been seeing some very well-implemented schemes running at a few well-known manufacturing companies around Chakan, Pune, but have no idea what % of companies really have such models." If you know these schemes, if you also know their workability at other companies, then why not implement them in your company as well? Why bother about how many companies have a suggestions model and how many do not have? How does it matter to you?

Thanks,

Dinesh Divekar

I think there is some grave misunderstanding here. The topic was intended to create a general discussion on challenges faced by fellow HR/Quality professionals (by the way, I am the founder and also play the HR role at my little startup) and thereby learn the pros and cons of running a suggestion scheme.

I see you are doing great by pitching how and why your services would be useful and effective, but that was not my point. Having worked in organizations like HSBC and Morgan Stanley in the US and the UK for 4-5 years in scenarios where there is one HR per 1000 employees, and the immediate manager has to double up as an HR, I have been through those roles too.

The way you question my interest, I feel you are challenging the very reason why this portal or group exists. I am seeking to learn and understand from others, which is not possible on other platforms.

So, please, if you have anything to share apart from questions, that would be welcome and beneficial to the larger group. I do appreciate your enthusiasm, though, so no hard feelings, please.

Regards,
Sushil

Dear Sushil, please permit me to make a general observation and an appeal to other members in this forum. If we provide full background information about ourselves and why we are raising the query, it helps members give precise answers. Otherwise, it is left to members' assumptions and perceptions of what the query is about. Had you informed us that you had worked in large organizations before starting up as a founder and your intention was to generate a general discussion, it would not have created any misunderstanding.

Hence, I appeal to all members raising a query to kindly give as much background information about themselves, the scenario, and the real reason for raising a query.

Benefits of a Staff Suggestion Scheme

Improvement in staff morale

Increase in job satisfaction

Creation of a feeling of ownership and engagement

Building of team spirit

Reduction in costs and increase in profitability

Increase in revenue inflow

And most importantly, improvement in customer satisfaction

For running a staff suggestion scheme, senior management support is vital, and the overall company culture is important.

A link to one scheme: http://www.easterncoal.gov.in/notices/empsuggscheme.pdf

Latest technology plays a role in quick and easy communication.

It can be seen that well-formatted and developed suggestion schemes mainly aim to collect ideas from operational-level employees to improve standardized procedures and raise quality. Floor-level workers are the ones who can really come up with tips.

Dunn and Lloyd (1997) offer the definition: "A suggestion scheme is a formal mechanism, which encourages employees to contribute constructive ideas for improving their organization."

If the response time to implement employee suggestions is quick, then more suggestions will come up. Many times, people are cynical—what is the point of giving a suggestion if it never gets implemented?

Idea management software tools may also be used. Even free ones like Idea Torrent can be used.

I am all for involving every section of the factory/office in idea generation and also having a reward scheme for the best ideas—not necessarily monetary in nature, but simple public recognition may be more of a motivation.

Dear Mr. Sushaeel,

In my experience, the biggest challenge in achieving employee engagement is that employers and HR don't invest enough time, money, and effort in this issue, especially in small enterprises. It doesn't necessarily mean that high salaries and generous benefits will result in engaged employees. You may find some useful suggestions at [10 Practical Ways to Buy Employee Engagement without Money](http://vnmanpower.com/en/10-practical-ways-to-buy-employee-engagement-without-money-bl215.html).

Hope this helps!

Dear Sushil, if I reply to whatever you have written in your latest, it may possibly turn into a squabble. I do not wish for that. Despite your track record of working abroad in MNCs or running start-ups for the last 14 years, you seem to have failed to read between the lines of my past posts. Quite unfortunate! I did not pitch for my services. If at all I were to do so, why would I do it for a start-up? I have provided a specific example of a session on idea generation when an external facilitator comes on board. When an internal facilitator conducts the session, regular employees tend to treat it as "पत्नी की सौंदर्यता अब मूल्यहीन है!" (the loose English translation is "wife's beauty is no longer valued!") and do not open up themselves. Moreover, this reply was addressed to Mr. Saswata Banerjee and not to you!

Clarification on Employee Suggestion Schemes

Mr. Nathrao: The poster did not ask for the benefits of employee suggestions but the challenges faced in the implementation of a suggestion scheme, and that too in big companies.

Thanks,

Dinesh Divekar

Addressing Employee Suggestions: Challenges and Solutions

Further to my above post, my discussion about benefits highlights some problem areas.

"If the response time to implement employee suggestions is quick, then more suggestions will come up."

If responses by management and practical implementation are delayed, then workers or people who give ideas become demotivated. Would a financial reward be a good idea for ideas, or would non-financial recognition be better?

Making a decision on how to record ideators is also a problem area—some suggest cash, while others suggest recognition.

I hope this clarifies.

I agree, I should have been more elaborate about my background. However, on second thought, if you might agree, I was just opening up a discussion specific to the challenges faced by HR in the implementation process. My background was quite irrelevant, I guess, for this discussion.

The beauty of the internet is that you never get to appreciate the beauty of the people who post things or, rather, appreciate the context that is clearly presented. I think the discussion got quite diverted in a different direction.

Agreed, you have a strong point about having external or third-party consultants come and train people. It would be nice to hear from other experts who have a different opinion on this and how they have succeeded.

Regards

VIETNAMHR5 - Thank you for the awesome link; quite a good read actually.

Mr. Nathrao - Quite appreciated your summary and to-the-point notes. Thank you.

Hi NASHBRAMHALL, the topic was actually at 36,000 feet and intended to trigger a generic discussion on suggestion scheme-related issues. I guess my background was irrelevant, but my apologies if that did not make it clear.