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Employee Suggestion Programs


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Employee suggestion programs: solving problems and saving money

From the smallest businesses to the largest corporations, the goal is the same: cut costs, save money, improve services, conserve resources and improve morale. Municipal governments, who must strive to do more with less, share the same goal. Employees are the best resource to accomplish this goal and monetary awards offer an incentive to identify problems and provide possible solutions. We have sample legislation from several communities that have employee suggestion programs in place. The suggestion must be a definite, constructive, original idea or a new application of an old idea that results in a defined cost savings. The legislation sets restrictions on eligibility for receiving awards. Some communities have established a committee to review the suggestions and offer recommendation on the amount of the cash bonus relative to the merits of the suggestion.

 
Carteret, B. NJ: Ch. 50

Amherst, T. NY: Ch. 12

Mendon, T. NY: Ch. 14

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Carteret, B. NJ
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Chapter 50

Suggestion Award Committee

§ 50-1. Creation.

To show appreciation to borough employees and others who suggest ways to cut costs, save money or improve services for the people of Carteret, a Suggestion Award System and Committee are hereby created.

§ 50-2. Membership; Chairperson.

Such Committee will consist of the Mayor and Council of the Borough of Carteret and will be chaired by the Council Chairman of the Public Works Committee, who will examine each suggestion received and report to the Committee on the same.

§ 50-3. Evaluation of suggestions; awarding bonus.

The Mayor and Council will then evaluate each suggestion, and, if favorably approved, a cash bonus relative to the merits of the suggestion will be established by the Mayor and Council, and the same will be awarded to the person who made the suggestion.

Amherst, T. NY
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Chapter 12

Employee Suggestion Program

§ 12-1. Purpose.

The purpose of the Town of Amherst Employee Suggestion Program is to secure for the Town of Amherst and its taxpayers the maximum benefit from the conservation of Town resources. The Program recognizes that the employees of the Town represent an unlimited source of ideas for better ways to serve the public. Monetary awards are intended to offer a significant incentive for employees to become involved in the creative process and to amplify the capabilities of management. The Program recognizes that every employee will, by identifying problems and providing possible solutions, become, in a very real sense, a part of the creative management team.

§ 12-2. Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

ELIGIBLE EMPLOYEE -- All Town employees, whether full-time, part-time, or volunteer, are eligible to submit suggestions. Former employees are also eligible as long as the suggestions were submitted prior to separation of service with the Town, such separation was voluntary, and the suggestions are implemented within one year of submittal. Department heads and supervisors, where supervisors' job responsibilities call for them to seek methods to improve operations or services, shall not be eligible for cash awards for suggestions which deal with operations under their own supervision. They may, however, receive cash awards for suggestions that deal with operations other than those under their supervision or assigned general responsibility. Elected officials of the Town may never receive cash awards.

MERIT AWARD BOARD -- Consists of the following individuals: the Town Board of the Town of Amherst and two private citizens with business backgrounds, to be appointed annually by a majority vote of the Town Board at the Town reorganization meeting.

  1. The Merit Award Board shall have the power and duty to make rules and regulations pertaining to the payment of employee awards. All decisions of the Merit Award Board regarding the worthiness of a suggestion for an award and the amount of such award shall be final and binding and shall not be subject to review in any court or before any other body, except as provided for in the rules and regulations promulgated in accordance with this local law.

  2. Members of the Merit Award Board shall not receive any salary or compensation for service as members of such Board. However, Town Board members will continue to receive their regular salaries as provided by law.

SUGGESTION REVIEW COMMITTEE -- Consists of the following individuals: the Director of Personnel; the Director of Finance; three private citizens with business backgrounds, to be appointed by the majority of the Town Board (these individuals shall not also serve on the Merit Award Board), and a department head, as designated by the Town Board.

  1. The Suggestion Review Committee shall receive all suggestions, as defined above, review them and forward its recommendations to the Merit Award Board for final determination. The Suggestion Review Committee may use other resources in order to complete its investigation/analysis.

  2. The Suggestion Review Committee shall have the power to make all rules and regulations implementing the receipt of suggestions by employees, the review of such suggestions by the Suggestion Review Committee, and the criteria for determining which suggestions shall be forwarded to the Merit Award Board. All decisions of the Suggestion Review Committee shall be final and binding and shall not be subject to review in any court or before any other body, except as provided for in rules and regulations promulgated in accordance with this local law.

  3. Members of this Suggestion Review Committee shall not receive any salary or compensation for service as members of the Committee.

SUGGESTION -- A definite, constructive, original idea or a new application of an old idea, submitted in writing by one or more eligible Town employees, which is intended to do the following: increase productivity; conserve Town resources; reduce Town costs; or improve the morale of Town employees. The suggestions must not be the kind which employees are reasonably expected to develop in the course of their regular duties.

§ 12-3. Procedures.

All necessary procedures for the submission and review of suggestions or for the awarding of monetary awards will be established by the Suggestion Review Committee or the Merit Award Board, respectively, subject to the following guidelines:

  1. All suggestions become the property of the Town of Amherst upon their receipt, and all decisions of the Merit Award Board or the Suggestion Review Committee shall be final and binding and nonreviewable, except as provided for in the rules and regulations promulgated in accordance with this local law.

  2. Duplicate suggestions cannot be given consideration for cash awards. If duplicate suggestions are dated on the same day, the time received in the Town Personnel Office shall govern, and the first filed shall be the only one eligible for award.

  3. In order to be eligible for a cash award, a suggestion with tangible benefits must result in at least $1,000 in projected savings during the first year after implementation.

  4. The amount of the cash award shall be 10% of the first year's tangible monetary benefit, with no cap.

  5. All employees who have a suggestion adopted, either individually or in collaboration with others, will receive an Employee Suggestion Award Certificate and a letter of commendation, both of which will become a permanent part of their personnel record.

  6. All monetary awards will be charged to the budget or department which benefits most from the suggestion.

  7. Rules and regulations adopted pursuant to this local law shall govern the character and quality of acceptable suggestions, the method of submission and the procedures for their review, the manner in which the suggestions will be passed on to the Merit Award Board, the value of awards, the issuance and payment of such awards, and any other policies and procedures as may be deemed necessary or appropriate for the proper administration of this local law.

  8. Nothing herein shall be construed to change or otherwise modify the terms of any collective bargaining agreement existing between the Town of Amherst and any duly organized employee union of the Town of Amherst.

§ 12-4. Funding and expenditure of moneys.

The Town Board is hereby empowered to fund and expend moneys for the purpose of this local law.

§ 12-5. Severability.

If any clause, sentence, paragraph, or part of this local law or application thereof to any person or circumstances shall be adjudged by any court to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof or the application thereof to other persons and circumstances but shall be confined in its operation to the clause, sentence, paragraph, or part thereof and the persons and circumstances directly involved in the controversy in which such judgment shall have been rendered.

§ 12-6. When effective.

This local law shall take effect immediately upon filing with the Secretary of State of the State of New York, pursuant to the Municipal Home Rule Law of the State of New York and the Code of the Town of Amherst.


Mendon, T. NY
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Chapter 14
Employee Suggestion Program

§ 14-1. Purpose.

The purpose of the Town of Mendon Employees Suggestion Program is to secure for the Town of Mendon and its taxpayers the maximum benefit from the conservation of town resources by offering monetary and honorary awards to eligible town employees. The program recognizes that the employees of the Town of Mendon represent an unlimited source of ideas for new ways to better serve the public. This offering is intended to afford significant incentives for employees to become involved in the creative process and to amplify the capabilities of management. The program recognizes that every eligible employee will become, by identifying problems and providing possible solutions, in a very real sense, part of a creative management team.

§ 14-2. Definitions.

As used in this chapter, the following terms shall have the meanings indicated:

AWARDS -- A monetary "award" shall be given to the submitter(s) of a suggestion which is adopted by the town and whose tangible benefits result in at least two hundred fifty dollars ($250.) in savings within the one-year period beginning at implementation.

  1. The amount of cash "award" paid for an adopted suggestion shall not exceed ten percent (10%) of the first full year's tangible savings, as determined by the Suggestion Review Committee and approved by the Town Board. The percentage paid shall be as set forth in the Rules and Procedures, which may be amended from time to time as deemed necessary.

  2. Honorary "award" certificates shall be given to those who submitted adopted suggestions which saved less than two hundred fifty dollars ($250.) in the first full year of implementation or to those who submitted adopted suggestions, but were ineligible for a cash "award."

  3. All decisions regarding the worthiness of a suggestion and the amount or eligibility of an "award" shall be final and binding and shall not be subject to review in any court.

ELIGIBLE EMPLOYEE -- With the exception of the Town Finance Officer and elected officials, all employees of the Town of Mendon, whether full-time, part-time, seasonal or appointed volunteers, are eligible to submit suggestions to be considered for monetary or honorary awards. However, suggestions for monetary awards must not be the kind which employees are expected to develop in the course of their regular duties. Also, department heads and supervisors, where their job responsibility calls for them to seek methods to improve operations or services, shall not be eligible for cash awards for suggestions dealing with operations under their control. They may, however, qualify for cash awards for suggestions that deal with operations not under their control. Anyone may submit a suggestion to be considered for an honorary certificate award.

SUGGESTION REVIEW COMMITTEE -- A committee consisting of five (5) people, which shall include two (2) members who are private citizens of the town, two (2) members who are employees of the town, all of whom are appointed as provided for in the Rules and Procedures, and the town's Finance Officer.

  1. This Committee's duties shall be to review all suggestions offered and to refer all such suggestions with comments as to the worthiness and practicality of each of them to the Town Board for its approval or rejection.

  2. For those suggestions that are approved for study by the Town Board, it shall also be the duty of the Suggestion Review Committee to determine the tangible monetary savings for the first year after the suggestion is implemented.

  3. Rules and Procedures governing this Committee shall be established as provided for in a separate document which may, from time to time, be amended as deemed necessary.

  4. Members of the Suggestion Review Committee shall receive no salary or compensation for their services as members of this Committee.

SUGGESTIONS -- A definite, constructive and original idea, or a new application of an old idea, submitted, in writing, by one (1) or more eligible town employees, which is intended to either increase productivity, conserve town resources or reduce the town's operational costs. An improvement in town employees' morale is hoped to be a by-product of this program. All "suggestions," once submitted in writing, shall become the property of the Town of Mendon.

§ 14-3. Rules and Procedures.

Additional Rules and Procedures for the submission and review of suggestions and the approval of awards shall be established by the Town Board in a separate document called "Rules and Procedures." Upon consultation with the Suggestion Review Committee, these may be amended from time to time as deemed necessary. However, in no event shall they change the facts as presented in this chapter.

§ 14-4. Funding.

  1. All monetary awards will be charged to the budget of the department(s) which benefit from the adopted suggestion.

  2. The Town Board is hereby empowered to fund and expend moneys for the purpose of this chapter.

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