Employee suggestion programs final

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Employee suggestion programs final

  1. 1. SHRM Poll: Employee Suggestion Programs November 8, 2010
  2. 2. Employee Suggestion Programs | ©SHRM 2010 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. 2
  3. 3. 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? Yes, 39% No, 61% 3 Note: n = 517
  4. 4. 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. 4 Comparison by Organization’s Sector
  5. 5. Employee Suggestion Programs | ©SHRM 2010 Are employees encouraged to make suggestions that affect…? 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Their own department (n = 166) Other departments (n = 165) The organization as a whole (n = 178) 99% 93% 97% 1% 7% 3% Yes No 5 Note: 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.
  6. 6. Employee Suggestion Programs | ©SHRM 2010 To what extent do employees utilize the organization’s suggestion system? 0% 10% 20% 30% 40% 50% To a large degree To some degree To a slight degree Not at all 6% 44% 41% 9% 6 Note: n = 179. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.
  7. 7. Employee Suggestion Programs | ©SHRM 2010 How often are submitted employee suggestions reviewed? 0% 10% 20% 30% 40% Other Annually Quarterly Monthly Weekly Daily 5% 4% 8% 28% 30% 25% 7 Note: n = 178. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.
  8. 8. Employee Suggestion Programs | ©SHRM 2010 Who reviews submitted employee suggestions to decide which ones will be implemented? 0% 10% 20% 30% 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 5% 1% 10% 15% 19% 22% 27% 8 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.
  9. 9. Employee Suggestion Programs | ©SHRM 2010 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
  10. 10. Employee Suggestion Programs | ©SHRM 2010 In general, at what point(s) after the suggestion review do employees receive feedback on their suggestions, regardless of whether they are implemented? 0% 10% 20% 30% 40% 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 8% 3% 13% 14% 34% 36% 10 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.
  11. 11. Employee Suggestion Programs | ©SHRM 2010 Who responds to employees regarding decisions about their submitted suggestions? 0% 10% 20% 30% 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 5% 0% 10% 10% 11% 14% 21% 29% 11 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.
  12. 12. Employee Suggestion Programs | ©SHRM 2010 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. 12 Comparison by Organization’s Staff Size and Sector
  13. 13. Employee Suggestion Programs | ©SHRM 2010 What kinds of incentives do employees receive if they make suggestions that are implemented? 0% 10% 20% 30% 40% 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 3% 3% 5% 5% 21% 23% 40% 13 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.
  14. 14. Employee Suggestion Programs | ©SHRM 2010 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. 14 Comparison by Organization’s Staff Size
  15. 15. Employee Suggestion Programs | ©SHRM 2010 To what extent does…? 0% 10% 20% 30% 40% 50% The lack of available resources (e.g., money, time, staff, etc.) justify not implementing an otherwise worthy suggestion? (n = 169) Your organization's leadership support the employee suggestion program as a critical component of innovation within the organization? (n = 170) Your employee suggestion program link to your organization's strategic planning process? (n = 170) 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 15 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.
  16. 16. Employee Suggestion Programs | ©SHRM 2010 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% 16 Note: n = 160. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.
  17. 17. Employee Suggestion Programs | ©SHRM 2010 How often are previously submitted suggestions reviewed again? 0% 10% 20% 30% 40% 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 5% 4% 8% 9% 16% 26% 32% 17 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.
  18. 18. Employee Suggestion Programs | ©SHRM 2010 Does your organization track the financial value of implemented suggestions (e.g., cost savings, staff time savings, etc.)? Yes, 45% No, 55% 18 Note: n = 165. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis.
  19. 19. Employee Suggestion Programs | ©SHRM 2010 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
  20. 20. Employee Suggestion Programs | ©SHRM 2010 Demographics: Organization Industry Industry Manufacturing –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% 20 Note: n = 452. Percentages do not total 100% due to rounding.
  21. 21. Employee Suggestion Programs | ©SHRM 2010 Demographics: Organization Industry (continued) Industry Consulting 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% 21 Note: n = 452. Percentages do not total 100% due to rounding.
  22. 22. Employee Suggestion Programs | ©SHRM 2010 Demographics: Organization Sector 11% 18% 20% 51% 0% 10% 20% 30% 40% 50% 60% Government sector Nonprofit organization Publicly owned for-profit organization Privately owned for-profit organization 22 Note: n = 440. Excludes other organization sectors.
  23. 23. Employee Suggestion Programs | ©SHRM 2010 Demographics: Organization Staff Size 29% 29% 19% 19% 5% 0% 10% 20% 30% 1 to 99 employees 100 to 499 employees 500 to 2499 employees 2500 to 24999 employees 25000 or more employees 23 Note: n = 353. Percentages do not total 100% due to rounding.
  24. 24. Employee Suggestion Programs | ©SHRM 2010 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
  25. 25. Employee Suggestion Programs | ©SHRM 2010 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 25 Methodology For more poll findings, visit: www.shrm.org/surveys Follow us on Twitter: http://twitter.com/SHRM_Research

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