Employee suggestion schemes often get bad press.

That is often because they are implemented and managed badly.

I was chatting to one of our Pabasso - Peer Advisory Board Associates members the other day about their suggestion scheme which prompted me to write this blog.

To be effective suggestion schemes need to be well-launched, well-managed, well publicised and well rewarded. No wonder so many suggestion schemes fall short.

if it’s going to be effective a successful suggestion scheme requires commitment and ownership.

All employees should be incentivised to look for ways of improving processes and creating innovative ideas.

I love the expression ‘we have no monopoly on good ideas’ and business leaders should encourage this mantra.

There is an argument that all constructive (I have received a few unconstructive ones in my time!) suggestions should be acknowledged and rewarded in some way - whether they are taken up or not!

Good suggestion schemes have proved to be so valuable that they are even recognised by HMRC who have tax breaks for suggestion schemes:

They recognise 2 kinds of awards:

1, Encouragement awards - for good suggestions, or to reward your employees for special effort. Encouragement awards are exempt from tax and National Insurance up to £25.

2, Financial benefit awards - for suggestions that will save or make your business money. Financial benefit awards are exempt up to £5,000 (subject to meeting certain criteria)

There are many great examples of how suggestion schemes have added great value to organisations, not least the British Airways employee who suggested descaling the aircraft's toilet pipes and saved the company nearly £600k per annum in fuel costs!

However, please make sure your suggestion scheme is not just looking for tangible big wins, many small changes can be made in an organisation that can make a big difference and these should be equally encouraged.

There is a great quote from Julian Richer of Richer Sounds regarding suggestion schemes: "A good suggestion scheme is like having an oil well in your backyard. There is no more valuable tool for management."

There is a plethora of information (including that from Julian Richer) on the web and in print about implementing good suggestion schemes so what's stopping you from reviewing and relaunching yours or implementing one?

Who doesn't want their own oil well?

We currently have a vacancy in one of our Yorkshire-based Pabasso – Peer Advisory Board Associates boards so if you would like to know more about how we at Pabasso – Peer Advisory Board Associates help leaders of established businesses progress through shared experiences, expertise, and support, please do not hesitate to get in touch. 

If you would like to know more about how we at Pabasso – Peer Advisory Board Associates help leaders of established businesses progress through shared experiences, expertise and support, please do not hesitate to get in touch.

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