Suggestion Scheme Economic Benefit – It is definitively worth the commitment it requires The annual economic benefits of the suggestion systems in Japan (and elsewhere around the world) is enormous. The savings nevertheless represents only a small fraction of all efforts expended by companies to cut costs. The suggestion system would be too indirect a tool if its sole purpose were to cut costs. If evaluated only in terms of its cost-cutting potential, a suggestion system would probably be too wasteful. Each suggestion must be meticulously written, examined, rewarded and managed. Suggestion campaigns and other festivities are periodically necessary, requiring some expense to carry out. The true value of a suggestion system, however, is as a tool for encouraging each worker to consider his or her job in a progressive light to understand where he or she fits into the entire corporate structure We must realise that the suggestion system is actually an excellent tool to improve morale, developing human resources, and invigorating a company. It is valuable because it is voluntary, and its success depends on the participation and support of all employees.
Formal Employee Suggestion Systems
The term “employee suggestion systems” refers to a variety of efforts businesses make to solicit and utilize input from their employees in hopes of achieving cost savings or improving product quality, workplace efficiency, customer service, or working conditions. Companies that set up effective suggestion systems are finding that employees have great ideas that can lower costs, increase revenues, improve efficiency, or produce greater quality. Employees work together better as a team and often submit ideas as a team. And they begin to think more like managers, looking beyond the scope of their own jobs. Some companies assume that since they cultivate an open relationship between employees and management, ideas for improvements will surface informally, without explicit prompting. But experts note that formal suggestion systems encourage employees to really think about their jobs and want to participate in the operation of the company. Formal suggestion systems let employees know that their ideas are valued. Such systems may even increase motivation and foster loyalty and teamwork among employees.
Elements of a Successful Suggestion System
The goal of a successful suggestion system is to tap the reservoir of ideas and creative thinking of all employees for the improvement of the working process and products. To do so requires proper understanding by everyone of the process, management support of the system, encouragement and meaningful rewards, and a structure to make sure nothing falls through the cracks. The elements of a successful employee suggestion system can be divided into four main areas: management support, program structure, program visibility and promotion, and recognition and rewards.