The Objectives of the Scheme Are:
- To create a centralized vehicle for the consideration and processing of suggestions and ideas related to the business for all stakeholders
- To create a tax-free reward scheme for FM Conway employees for these suggestions and ideas
- To invite dialogue and engagement from external stakeholders
- To be recognized as collaborative (from both inside and outside of the organization)
- To be recognized for innovation and continual improvement (from both inside and outside of the organization)
- To encourage challenge and provoke thought
- To create ownership and establish advocacy internally
Internal and external engagement is managed through the web link www.fmconway.co.uk/bigidea
The Scheme is Advertised As Follows:
- Inclusion in bid submissions (where relevant)
- Email (generally internal)
- Posters and coffee machines (generally internal)
- Site signage (as required and generally on strategic projects)
- New Website
- New Intranet
The scheme is administered by the Central Services department whi manage all responses and updades including arrangements for the review meetings.
Bi - monthly review meetings of the BigIdea suggestions take place every 2nd Wednesday of the month by a panel, the panel includes members of the Executive board, head office and operational colleagues who change by rotation.
Panel Members:
- Maria Pratt
- Ella Cole
Suggestions are received by Central Services and all administration is managed by them using the standard documentation (acknowledging, receipt of suggestions, advising of outcomes, liaison with payroll, meeting invitations)
Ideas Must Be:
- Original and unique
- Must relate to the activities of FMC
- Made by an employee who could not reasonably have been expected to make the same suggestion in the course of the duties of their employment
- Not be made as a result of an innovation/suggestions forum
- Must be open on the same terms to all the employees (excluding Directors)
The scheme follows the rules under Section 321 ITEPA (Income Tax (Earnings and Pensions) Act 2003 which allow these payments can be made without tax or NI being payable.
Section 321 Rules: EIM06610 - Conditions for Exemption
The conditions that must be satisfied for a suggestion scheme award to qualify for exemption under Section 321 ITEPA 2003 are as follows:
- The employer's scheme must be open on the same terms to all the employees of the employer, or a particular description of them.
- The suggestion must relate to the activities carried on by the employer.
- The suggestion was made by an employee who could not reasonably have been expected to make it in the course of the duties of their employment.
- The suggestion was not made at a meeting held for the purpose of proposing suggestions.
- The award is an encouragement award (EIM06620) or a financial benefit award (EIM06630).
If all the above conditions are satisfied, the award will be exempt from tax if, or to the extent that, it does not exceed the permitted maximum for the award. If an award that safisfies the conditions exceeds the permitted maximum, only the excess will be taxed.
Section 321 Rules: EIM06620 - The Permitted Maximum: Encouragement Awards
This is the first of 2 kinds of awards. The encouragement award is an award made for a suggestion with intrinsic merit or showing special effort. The permitted maximum for an encouragement award is £25.
Section 321 Rules: EIM06630 - The Permitted Maximum: Financial Benefit Awards
This is the second of 2 kinds of awards. The financial benefit award is an award for a suggestion:
- Relating to an improvement in efficiency or effectiveness
- Which the employer has decided to adopt
- Which the employer reasonably expects will result in a financial benefit
The suggestion maximum for a financial benefit award is the greater of:
- Half the financial benefit that the employer reasonably expects will result from the adoption of the suggestion in the first year after its adoption, or
- One tenth of the financial benefit that the employer reasonably expects to result from its adoption in the first five years after its adoption,
subject to an overriding maximum of £5,000.
The amount arrived at above is the maximum that the employer can pay, tax free, in respect of a single suggestion.