Rewarding and recognising ideas

SUGGESTION SCHEMES

Suggestion schemes can be a simple and cost-effective way to engage employees, generate ideas and improve business performance, says a report in a recent issue of People Management.

According to research conducted by People Management in association with recruitment and consultancy firm Reed, some 46% of organisations have a suggestion scheme in place. But although most thought they had a positive effect, one in ten felt the reverse was true.

Encouraging innovation

The report explores why suggestion schemes can fail and what HR can do to encourage innovation. The key, it seems, is for the "top management team to be on board". It's also essential to "react quickly" when ideas come in.

Another major issue is how to reward ideas. "Employers therefore need to ensure that rewards sufficiently incentivise people to come up with ideas -- and be aware that some financial rewards can prove to be decisive," the report says.

Want to know more?

Title: "Good ship enterprise", by Steve Smethurst, People Management, 25 November 2004.

Availability: To subscribe to People Management visit www.peoplemanagement.co.uk

Posted 20 December 2004