Less than half of organizations have a formal employee suggestion program. HR is most often responsible for reviewing suggestions, followed by management in affected departments. The most common incentive for implemented ideas is recognition. Suggestions are usually reviewed monthly and feedback provided within a month. Larger organizations are more likely to track cost savings from suggestions.

1. SHRM Poll: Employee Suggestion Programs
November 8, 2010

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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