Employee Suggestion Schemes
"Employee suggestion" schemes are an effective way of generating cost saving initiatives. In addition to the financial benefits, there is usually a positive impact on workplace morale. Encouraging and rewarding staff to put forward cost saving ideas is likely to result in many initiatives being identified, in part due to the number of personnel thinking about reducing costs. Sometimes ideas that appear inconsequential make a significant difference. Sainsbury's saved over £60,000 after a member of staff suggested repackaging mangoes. The shop floor worker noticed that the supermarket sold greater volumes of fruit as a result of a "two for £2.50" promotion. The mangoes were supplied in boxes of five, which resulted in considerable wastage due to the odd number. Repackaging the fruit so that it was supplied in boxes of six resulted in considerably less waste. The "Tell Justin" ideas scheme has generated over 50,000 ideas to date since it's in...