Setting up a suggestion scheme is a powerful way to harness the collective intelligence of your organization to drive innovation, improve processes, and boost employee engagement.
The success of the program relies less on the method of collection (a box or a digital form) and more on a clear, transparent, and responsive framework.
Key Steps to Create a Successful Suggestion Scheme
Creating an effective scheme requires a structured approach that ensures every idea is treated with respect and due process.
Define the Scope and Structure
First, clarify the program’s purpose and mechanics.
- Secure Leadership Buy-in: The scheme must be actively promoted and supported by senior management. Their visible commitment is crucial for its credibility and for ensuring resources are available for implementation.
- Establish Clear Guidelines: Define the types of suggestions you are seeking. Focus on areas like process improvements, cost savings, customer service enhancements, or new product/service ideas. Also, specify the preferred format—ideas should be clear, describe the current situation, propose a solution, and outline the anticipated benefit.
- Set Up the Review Committee: Create a cross-functional team to review submissions regularly. This team should include individuals from various departments and levels to ensure a broad perspective and technical understanding of the ideas. Define the criteria for evaluation (e.g., potential impact, ease of implementation, cost).
- Determine Submission Channels: Make it easy to submit ideas. This could be a dedicated online portal, an email inbox, or a physical suggestion box. Consider allowing anonymous submissions to encourage ideas that employees might be hesitant to share openly.
Focus on Transparency and Responsiveness
This is arguably the most critical component for maintaining participation over time.
- Acknowledge All Submissions: Every employee who takes the time to submit an idea should receive a prompt acknowledgement, even if it’s just a simple “Thank you, we’ve received your suggestion and the committee will review it.” A quick initial response shows that the system is active.
- Communicate the Status: Be transparent about the review process and criteria. Let the suggestor know the status of their idea—is it under review, rejected (with a brief, constructive explanation), or approved for implementation? A slow or silent system is worse than none at all, as it signals indifference.
- Provide Constructive Feedback: If an idea is rejected, explain why clearly and constructively. This respects the employee’s effort and helps them refine future submissions. If an idea is viable but not a priority right now, communicate that it is being “parked” for future consideration.
Incentivize and Celebrate Success
Rewards and recognition are essential for encouraging continued participation and reinforcing the value of the scheme.
- Offer Diverse Incentives: Don’t limit rewards to just implemented, major cost-saving ideas. Offer encouragement awards (a small token, public recognition, a gift card) for any well-considered idea, regardless of its ultimate fate. For implemented suggestions, use a tiered reward structure that aligns the reward (financial bonus, extra vacation days, prominent company recognition) with the idea’s actual or anticipated impact.
- Share Success Stories: Widely publicize implemented suggestions and give full credit to the employee(s) who proposed them. Showcase the tangible benefits—how much time or money was saved, or how customer satisfaction improved. This motivates others and validates the scheme.
Real-Life Business Examples of Suggestion Schemes
Suggestion schemes are not just a modern trend; they have been instrumental in significant innovations worldwide.
| Company | Country/Region | Suggestion Scheme Success Example |
| Amazon | United States | The concept for Amazon Prime—the fast shipping subscription service—originated as an employee suggestion from software engineer Charlie Ward in 2005. The leadership’s willingness to listen to an employee outside of product development turned it into one of the company’s most valuable business strategies with over 200 million global subscribers today. |
| Toyota (Kaizen) | Japan | Toyota’s world-renowned production system is built on Kaizen, which translates to “continuous improvement.” This isn’t just a suggestion box; it’s a culture where all employees are expected and empowered to find hundreds of small, incremental improvements to processes every year. This constant stream of minor adjustments has been a core driver of their manufacturing efficiency and quality. |
| British Airways | United Kingdom | An employee suggestion led to the idea to descale the toilet pipes on aircraft. While seemingly minor, the resulting process change led to a significant fuel cost saving for the company, demonstrating that the best cost-saving ideas often come from those closest to the day-to-day operations. |
| Arçelik (Telve) | Turkey | An employee at the global home appliance manufacturer suggested a machine that could make Turkish coffee faster and easier. This idea was forwarded to the R&D team, which developed the Arçelik Telve, the first Turkish coffee machine produced in the world. This employee-driven innovation successfully launched a new product category for the company. |
Conclusion
A suggestion scheme is an investment in your people and your future. It’s an operational process that, when executed with transparency and dedication, transforms employees from passive workers into active problem-solvers and innovators. The real value is not just in the ideas themselves, but in fostering a culture of continuous improvement where every voice is genuinely valued.