⚠️This fact has been debunked
Extensive research found no credible source for the '$7,000 per suggestion' statistic. While employee suggestion programs do generate savings, reported averages vary widely: some sources cite $1,000+ per employee annually, others report $70,000-$100,000 per 100 employees yearly. Individual suggestions range from hundreds to millions in savings. The specific $7,000 figure appears to be fabricated or misremembered.
The average company saves over $7,000 for each employee suggestion that is enacted!
The Truth About Employee Suggestion Program Savings
You've probably heard the claim: "The average company saves over $7,000 for each employee suggestion that is enacted!" It sounds impressive, specific, and motivating. There's just one problem—nobody can actually prove it's true.
Despite extensive searches through business research, HR studies, and industry reports, this exact figure doesn't appear in any credible source. It's become one of those "facts" that gets repeated so often it sounds legitimate, but lacks any verifiable origin.
What the Real Data Shows
Employee suggestion programs do save companies money—just not in such tidy, uniform amounts. The actual savings vary wildly depending on the type of suggestion and the company's size.
According to research from the Employee Involvement Association, organizations with active suggestion programs save between $70,000 and $100,000 per 100 employees annually. Breaking that down, it's roughly $700-$1,000 per employee per year—significantly less than the viral $7,000 claim.
But here's where it gets interesting: individual suggestions can range from pocket change to corporate windfalls.
Real-World Success Stories
Some employee ideas generate genuinely massive returns:
- Centrica saved $24.5 million from employee suggestions, with a single idea about text-based customer service saving $5.9 million alone
- Balfour Beatty achieved £58 million (over $70 million) in cost savings, including one suggestion to combine draining pipes that saved $222,000
- Costco's employee suggestion program is projected to save roughly $100 million annually
- A Washington state employee suggested using pre-translated letters instead of translation services, saving over $225,000 yearly
Toyota's Long Game
Perhaps the most famous example is Toyota, which has received around 50 million suggestions over the life of their program. In 2023 alone, employees submitted 810,000 ideas. While Toyota doesn't publish exact dollar figures, the cumulative value over decades is estimated in the billions.
The key to Toyota's success? They don't just pursue big ideas. They implement small, incremental improvements—many saving just a few dollars—but at massive scale.
Why the Myth Persists
The "$7,000" claim is appealing because it's specific enough to sound researched but vague enough to avoid scrutiny. It's the kind of statistic that gets cited in PowerPoint presentations, HR newsletters, and motivational talks without anyone checking the footnotes.
The truth is messier but more interesting: some suggestions save nothing, some save millions, and most fall somewhere in between. The value isn't in hitting a magic number—it's in creating a culture where employees feel empowered to speak up.
So the next time someone quotes that $7,000 figure, you can smile and share what the real data shows. Employee suggestions are valuable, just not in the neat, uniform way viral statistics suggest.