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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
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Methodology
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