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Employee Suggestion Scheme

Definition, Explanation

The employee suggestion scheme is next to the continuous improvement process (CIP) and employee inventions a part of innovation or idea management. The continual corrective procedure represents guided brainstorming with a moderator and a regularly recurrent process, whereby the suggestions of improvement are distinguished by spontaneous brainstorming. In order to be able apply the idea, the companies and institutions field a defined processing procedure. In contrast to employee inventions, which are stipulated by the Employee Invention Act, the suggestion scheme is regulated in the company agreement or collective agreement. Every stimulus and idea is regarded as a suggestion of improvement that

• is voluntarily rendered by an employee and exceeds his/her own field of duties
• is not a patentable invention
• improves a product or process or suggests a solution for a company problem
• simplifies, accelerates working methods and working processes or makes them safer
• helps to prevent mistakes, improves quality, reduces manufacturing costs and leads to increases in efficiency

A part of the company agreement or the collective agreement is the payment of an improvement suggestion. Usually the fee orientates towards the amount saved. For example; 10-20% of the savings during the first year or a fixed sum for small improvements that are targeted towards saving money to a lesser extent, but concern safety at work. The improvement suggestion can involve all areas: technical improvements as well as organisational, commercial and social. They do not need to be new; they can be copied and adapted from other departments, companies and institutions.

Payment is effected in the form or cash premiums or material premiums. The companies can also carry out special actions or competitions, in order to increase the number of improvement suggestions. In the meantime, it has been recognised that this instrument

• realizes savings and improves quality
• contributes towards permanent product and process innovation
• promotes the motivation and identification with the company
• supports the development of the employees
• is a performance benchmark for the company culture and illustrates the company's innovative ability

Tips, Checklist

• Clarify how the employee suggestion scheme is institutionalised in your company: software, central department, through superiors
• Submit your idea in writing or in the available software process, even if you are not sure whether the idea is part of your field of duties
• Map the benefit. What will be improved by your idea and what does it bring? If possible, illustrate the monetary profit in an exemplary calculation
• If you do not get any feedback on your suggestion, enquire. Try to find out which department is processing it and whether there are any questions. Ensure it is assessed neutrally
• Do not only illustrate the problem but also the solution
• The employee suggestion scheme is not an instrument for giving feedback or to express employee satisfaction
• Make use of the idea database within your company to generate further ideas, improve existing ones or adapt them to one's own conditions
• Describe your idea as precisely as possible. In the case of larger ones, you can orientate towards drawing up a business plan
• Inform your superior and involve him/her in your thoughts. That usually pays off in assessing your suggestion and gives you an advantage in the case of an employee assessment
• As a manager, take on an adoptive function for employee ideas. Promote and support your employees in making improvement suggestions and ideas. In this way, you create an innovative and creative environment

Last update: 04/07/2010