Employee suggestion system in building a culture of organizational improvement

The employee suggestion system is one of the simplest ways to identify process and organizational bottlenecks in a production plant. The creativity of employees in making their work easier has surprised many managers – it is usually the employees who are the first to notice opportunities for optimizing tasks. A program for submitting suggestions and ideas provides an opportunity to propose solutions to unusual problems. However, it is important not only to collect but also to implement the ideas submitted. How should an employee suggestion system be implemented? And what are the benefits of such a solution?

An employee suggestion system is a practical tool that allows employees to submit ideas for improvements that can affect the efficiency of the entire organization. This program allows you to leverage the practical knowledge of people who are involved in the implementation of processes on a daily basis, giving the company a fresh perspective on its activities and enabling it to effectively improve its working methods.

Suggestion systems can take many forms, from classic suggestion boxes to advanced digital platforms for managing submitted proposals. Creating an effective employee suggestion system allows all employees to actively participate in the process of improving the quality of work, organization, and optimization of activities.

The latest industry reports show that employee suggestion systems are an integral part of many companies’ operations. The 2023 Benchmarking Report on Employee Suggestion and Innovation Systems prepared by Sherlock Waste reveals that almost 70% of companies use an employee suggestion system, and 16% are planning to launch one. It is also interesting to note that the suggestion system is a relatively new solution in most companies – the vast majority of plants have been using it for a maximum of 5 years.

Why do companies decide to implement employee suggestion systems? The most frequently cited reasons include:

• Utilizing employee knowledge and potential
• Increasing employee engagement
• Building or strengthening a Lean Management/Kaizen culture
• Increasing process efficiency
• Reducing costs.

The suggestion system plays a key role in shaping a culture of continuous improvement because it promotes employee engagement and openness to change. An organization that implements an idea submission program becomes a place where employees feel responsible for shared results.

The first step in building a culture of continuous improvement is trust. Employees need to know that their ideas are taken seriously and that their suggestions have a real impact on the company’s development. Another important aspect is communication. The process of analyzing and implementing ideas should be transparent so that everyone can see how the submitted proposals bring concrete results. As a result, the organization becomes more flexible and ready for change, and continuous improvement becomes a natural part of its functioning.

Building an employee suggestion system requires a well-thought-out strategy that will ensure its effectiveness and team engagement.

Here are the most important steps for implementing this solution:

• Defining the objectives and scope of the system – at the outset, the objectives of implementing the system should be clearly defined. These may include, for example, process optimization, cost reduction, or waste elimination. It is also worth specifying which areas of the company’s operations are to be covered by the suggestion program.

• Choosing the right tools for submitting ideas – the system must be easily accessible and user-friendly for employees. Many companies still use paper-based methods for submitting suggestions. However, more and more companies are opting for modern platforms that enable online idea submission, which improves the efficiency and transparency of the process

• Developing an incentive system – employees should be encouraged to participate in submitting suggestions. This can be done through appropriate rewards, such as bonuses. Financial incentives will make employees more willing to share their ideas.

• The process of analyzing and implementing ideas – all suggestions submitted by employees should be carefully analyzed, and the best ideas should be implemented. It is also important to keep employees informed about the status of their proposals in order to maintain their engagement.

• Monitoring results and improving the system – the effects of implemented suggestions should be regularly evaluated and the process of collecting and analyzing ideas should be improved to make it as effective as possible.

The suggestion system fits perfectly with the Kaizen philosophy, which promotes continuous improvement of processes through small but regular changes. Employees, especially those directly involved in production or process support, are the best source of ideas for improvements.

The Kaizen employee suggestion system should be based on several basic principles.

• Suggestions should be implemented – even if the improvements have a minimal effect. Even the smallest improvement is a step towards continuous improvement of the company. In addition, implementing a small idea will be a recognition for the employee who submitted it, and this will translate into increased engagement of other people in the process of suggesting changes.

• Companies should have an independent evaluation team to determine the usefulness and potential of the ideas submitted.

• Once implemented, an idea should remain in place regardless of staff turnover. An example of this would be a situation where a new member of the evaluation team reviews ideas that have already been deemed useful. Reversing decisions without good reason can lower employee morale and commitment.

• The company should develop an effective incentive system that encourages employees to submit useful ideas. Simply submitting ideas can, for example, earn additional points during periodic performance reviews as part of employee engagement. Submitting suggestions that have been implemented can be rewarded with a bonus. If, on the other hand, a particular employee systematically submits ideas for improvements that translate into process optimization, it may be worth considering whether it would be better to utilize their potential in a different position.

In many cases, implementing a suggestion system brings with it a number of challenges. In the report discussed earlier, respondents cited the following as the biggest challenges:

• Lack of employee engagement (as much as 44%),
• Long response time to implemented ideas (38%),
• Inability to implement ideas (36%).
• Lack of time to implement ideas (30%).

It turns out that one of the most demotivating factors is the lack of feedback to employees who have submitted an idea. Imagine an employee who, in their daily work on the production line, uses a solution that is trivial to implement and allows them to do their job faster. They report it to the people responsible, but over the course of days or weeks, no one discusses the issue with them, they receive no praise, and they hear nothing about any plans to standardize based on their suggestion. Who would feel motivated in such a situation?

Meanwhile, most companies implement the lowest possible number of reported improvements – on average, this is about 40% of ideas, and this trend is declining every year. In addition, in every fourth company, at least 80% of employees have never submitted any suggestions, and only 3% of employees regularly engage in submitting ideas. However, we know that these results can be improved – the hope lies in the fact that consistent and transparent feedback to employees and the involvement of lower and senior management are considered critical factors for changing this trend.

An example of effective implementation of a suggestion system is the noSilo platform, which streamlines the process of submitting and implementing ideas in organizations. Employees can easily submit their suggestions online, directly from their workstations.

What does the whole process look like? The noSilo Good Practices module allows you to add a new idea, specifying the topic and content of the proposed change. Depending on the configuration, the person submitting the suggestion may be asked to provide additional information, such as estimated savings, implementation time, etc. It is also possible to add files, videos, and links with data that will facilitate understanding and explain the significance of the proposed change. The completed submission is sent to the system and appears on the verification list, which is accessible to supervisors and, after approval by supervisors, also to employees. At this point, all interested parties have the opportunity to exchange opinions, thanks to which they can propose further improvements. High activity around a suggestion will indicate to the evaluation team that implementing the suggestion could significantly improve work efficiency. After exchanging opinions and gathering information, the formal preparation and implementation of the good practice can begin. The documented solution becomes available to all interested parties after being placed in the Knowledge Base.

And what ideas can production plant employees submit? Examples of employee suggestions may include:

• Optimization of production processes (e.g., changes in machine retooling, better workstation layout, identification of opportunities for the use of modern technologies or automation)
• Improvement of work safety (e.g., identification of potentially hazardous areas in the workplace, introduction of additional warning systems)
• Elimination of waste (e.g., suggestions for recycling production waste or using alternative materials, installation of automatic light switches)
• Increased work comfort (e.g., improvement of work ergonomics or lighting conditions)
• Increased team engagement (e.g., proposals for incentive programs or team-building meetings).

Employee suggestion programs in manufacturing companies not only guarantee process improvement, but also increase employee engagement and satisfaction. Using the modern noSilo application for intuitive idea submission allows you to increase the effectiveness of the suggestion system, which becomes an integral part of the organizational culture and contributes to the long-term development of the company.

Bibliography:
https://sherlockwaste.com/systemy-sugestii-i-innowacji-pracowniczych-raport-benchmarkingowy-edycja-ii-2023/;
http://www.eti.uz.zgora.pl/aktualne_trendy_i_badania_w_inzynierii/ATIBWI_1.pdf#page=16;
https://www.ceeol.com/search/viewpdf?id=575685.