Fingerhut's IMPACT program: How employees'
ideas save firm $70-million over 19 years

What does a lunchroom napkin have to do with saving $70- million? Let Sue Parent tell you.

Parent, the Employee Program Specialist for the Fingerhut Corporation, St. Cloud, MN, says the firm's IMPACT Suggestion Program involves all of the company's 10,500 employees in four states. She works with 52 committees in Minnesota, Tennessee, Florida and Utah. The committees are made up of employees, with one project manager.

"Employees get a sense of leadership and control. That's what makes our program a success," says Parent. "The target group for the IMPACT program is our hourly employees."

Parent particularly likes one suggestion that two employees submitted written on a lunchroom napkin. The idea came from a consolidator and a sorter who had lunch together one day. They decided that if they combined their efforts it could reduce handling time. The suggestion was a successful one.

Another idea: How to put pay charts into the pay envelopes. Up until recently, the pay charts were folded, then inserted into the envelope. One employee asked why the charts had to be folded when they fit into the envelope unfolded. This suggestion alone saved the company $14,000!

This is exactly how Parent and Fingerhut want their employees thinking. “We want the employees to continually be looking to see how they can do their job better.”

Fingerhut uses some simple, but obviously effective ways to reward employees for their suggestions…in a program that’s saved $70-million over 19 years.

The company made up its own lottery tickets.  When an employee submits a suggestion they receive a lottery ticket and can win cash or various gifts.   When an employee completes their first project, they receive a watch from the company.

Says Parent, "Credit goes to the employees for the success of our IMPACT program. Not everyone can be a leader, but this allows them to play a leadership role.”


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