SHRM Poll Employee Suggestion Programs November 8 2010

SHRM Poll: Employee Suggestion Programs November 8, 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. Employee Suggestion Programs | ©SHRM 2010 2

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? No, 61% Yes, 39% Note: n = 517 Employee Suggestion Programs | ©SHRM 2010 3

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? Comparison by Organization’s Sector • 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. Employee Suggestion Programs | ©SHRM 2010 4

Are employees encouraged to make suggestions that affect…? • Employees are encouraged to make suggestions that affect their own departments, other departments and the organization as a whole. 99% 97% 93% 100% 90% 80% 70% 60% 50% 40% 30% 7% 20% 10% 3% 1% 0% Their own department (n = 166) Other departments (n = 165) Yes The organization as a whole (n = 178) No Note: Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 5

To what extent do employees utilize the organization’s suggestion system? 50% 44% 41% 40% 30% 20% 9% 10% 6% 0% To a large degree To some degree To a slight degree Not at all Note: n = 179. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 6

How often are submitted employee suggestions reviewed? Daily 25% Weekly 30% 28% Monthly 8% Quarterly Annually 4% Other 5% 0% 10% 20% 30% 40% Note: n = 178. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 7

Who reviews submitted employee suggestions to decide which ones will be implemented? HR 27% Management-level employees of the department or function area that would be affected if the idea was implemented 22% Executive-level staff 19% A committee of staff from across the organization 15% CEO or president 10% Board of directors 1% Other 5% 0% 10% 20% 30% 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. Employee Suggestion Programs | ©SHRM 2010 8

Who reviews submitted employee suggestions to decide which ones will be implemented? Comparison by Organization’s Staff Size • 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). Employee Suggestion Programs | ©SHRM 2010 9

In general, at what point(s) after the suggestion review do employees receive feedback on their suggestions, regardless of whether they are implemented? Within a month after the suggestion is reviewed 36% Within a week after the suggestion is reviewed 34% Immediately after the suggestion is reviewed, i. e. , within 24 hours 14% When the suggestion is implemented 13% Within three months after the suggestion is reviewed 3% Other 8% 0% 10% 20% 30% 40% 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. Employee Suggestion Programs | ©SHRM 2010 10

Who responds to employees regarding decisions about their submitted suggestions? HR 29% Management-level employees of the department or function area that would be affected if the idea was implemented 21% The employee's direct supervisor 14% A committee of staff from across the organization 11% Executive-level staff 10% CEO or president Board of directors 10% 0% Other 5% 0% 10% 20% 30% 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. Employee Suggestion Programs | ©SHRM 2010 11

Who responds to employees regarding decisions about their submitted suggestions? Comparison by Organization’s Staff Size and Sector • • 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. Employee Suggestion Programs | ©SHRM 2010 12

What kinds of incentives do employees receive if they make suggestions that are implemented? Recognition at staff meetings and/or in organization communications 40% Merchandise gift cards or other tangible items (e. g. , balloons, mugs, flowers, gifts, etc. ) 23% Cash bonuses 21% Other non-cash benefits (e. g. , a premium parking spot, massage service, etc. ) 5% Paid time off 5% A percentage of the revenue generated or costs saved by implementing the suggestion 3% Other 3% 0% 10% 20% 30% 40% 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. Employee Suggestion Programs | ©SHRM 2010 13

What kinds of incentives do employees receive if they make suggestions that are implemented? Comparison by Organization’s Staff Size • 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. Employee Suggestion Programs | ©SHRM 2010 14

To what extent does…? 50% • 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. 40% 36% 34% 26% 30% 22% 20% 22% 21% 18% 16% 9% 10% 0% The lack of available resources (e. g. , Your organization's leadership support Your employee suggestion program link money, time, staff, etc. ) justify not the employee suggestion program as a to your organization's strategic planning implementing an otherwise worthy critical component of innovation within process? (n = 170) suggestion? (n = 169) the organization? (n = 170) Not at all To a slight degree To some degree To a large degree Note: Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 15

If a suggestion is not implemented right away, is it stored in some way for future review? Yes, in all cases, 24% No, 14% Yes, in some cases, 62% Note: n = 160. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 16

How often are previously submitted suggestions reviewed again? Annually 32% Quarterly 26% Monthly 16% No set process for reviewing previously submitted suggestions (i. e. , it varies) 9% When a similar idea comes up in the organization or through the employee suggestion program 8% Weekly 4% Other 5% 0% 10% 20% 30% 40% 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. Employee Suggestion Programs | ©SHRM 2010 17

Does your organization track the financial value of implemented suggestions (e. g. , cost savings, staff time savings, etc. )? No, 55% Yes, 45% Note: n = 165. Only respondents whose organizations have a formal system for employees to submit suggestions were included in this analysis. Employee Suggestion Programs | ©SHRM 2010 18

Does your organization track the financial value of implemented suggestions (e. g. , cost savings, staff time savings, etc. )? Comparison by Organization’s Staff Size and Operations Location • • 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. Employee Suggestion Programs | ©SHRM 2010 19

Demographics: Organization 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% Note: n = 452. Percentages do not total 100% due to rounding. Employee Suggestion Programs | ©SHRM 2010 20

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% Note: n = 452. Percentages do not total 100% due to rounding. Employee Suggestion Programs | ©SHRM 2010 21

Demographics: Organization Sector Privately owned for-profit organization 51% Publicly owned for-profit organization 20% Nonprofit organization 18% Government sector 11% 0% 10% 20% 30% 40% 50% 60% Note: n = 440. Excludes other organization sectors. Employee Suggestion Programs | ©SHRM 2010 22

Demographics: Organization Staff Size 30% 29% 19% 20% 19% 10% 5% 0% 1 to 99 employees 100 to 499 employees 500 to 2499 employees 2500 to 24999 employees 25000 or more employees Note: n = 353. Percentages do not total 100% due to rounding. Employee Suggestion Programs | ©SHRM 2010 23

Demographics: Other Does the organization have U. S. -based operations (business units) only or does it operate multinationally? U. S. -based operations 75% Multinational operations 25% Note: n = 427 Is organization a single-unit company or a multiunit company? 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% Note: n = 479 • 15% of organizations indicated that employees at their work location were unionized. Note: n = 450 Are HR policies and practices determined by the multi-unit corporate headquarters, by each work location or both? 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% Note: n = 319 Employee Suggestion Programs | ©SHRM 2010 24

SHRM Poll: Employees Suggestion Programs Methodology • • 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 For more poll findings, visit: www. shrm. org/surveys Follow us on Twitter: http: //twitter. com/SHRM_Research Employee Suggestion Programs | ©SHRM 2010 25