How to Encourage Employees to Share Ideas: The 500 Yen Rule
Most Indian offices punish new ideas without realizing it. See how a Japanese factory's simple 500 yen rule turned 800 employees into 10,000+ ideas in a year.
If you want employees to share more ideas, pay for every idea, not just the good ones. Mirai Kogyo, a Japanese company, gives employees ₹300 per idea regardless of quality, and collects 10,000+ ideas a year from 800 people. With 65% of Indian firms now investing in soft-skill training, the missing piece is simple: reward participation, not results.
TL;DR- Mirai Kogyo pays every employee ₹300 (500 yen) per idea, useful or not, and gets 10,000+ ideas a year from 800 people.
- Most Indian offices punish ideas instead of rewarding them, so employees learn silence is safer than suggestions.
- The 500 Yen Rule works because it removes judgment from the first step: an idea is paid for before anyone decides if it's good.
- Indian managers can start small: reward submission, not just approval, and track how participation changes in 90 days.
Why Do Employees Stop Sharing Ideas at Work?
Most employees don't stop having ideas, they stop saying them out loud. A suggestion box with no key, a manager who says "focus on your own work first," and a culture where new ideas invite criticism instead of curiosity all teach the same lesson: silence is safer. Over time, the same manager who shut down suggestions complains that "nobody on my team takes initiative." That's not a talent problem, it's a feedback-loop problem, and it's the exact gap I address in leadership training programs across Indian offices.
What Is the 500 Yen Rule at Mirai Kogyo?
Mirai Kogyo is a Japanese manufacturer of electrical switch boxes and wiring pipes, with roughly 800 employees. Its rule is simple: submit any idea, useful or not, and you get 500 yen, about ₹300, no questions asked. If the idea gets implemented, the reward multiplies several times over. The founder's reasoning was direct: the person doing the work understands that work better than anyone above them. The result was over 10,000 ideas in a single year, with one employee alone submitting 200.
| Step | What To Do | Why It Matters |
|---|---|---|
| 1. Guarantee a reward | Every submitted idea gets a small, fixed reward: cash, credit, or public recognition | Removes the fear of "wasting" an idea on something that gets ignored |
| 2. Acknowledge fast | Respond to every idea within 48 hours, even just to say "received" | Silence is the #1 reason employees stop submitting |
| 3. Reward implementation separately | Give a bigger reward only when an idea is actually used | Keeps the incentive honest without discouraging small suggestions |
| 4. Track participation, not just quality | Measure how many employees submit ideas each month | Participation is a leading indicator; quality improves once volume does |
| 5. Make it visible | Share a monthly count of ideas received and implemented with the team | Visibility reinforces that the system is real, not a one-time announcement |
Why Does Paying for "Useless" Ideas Work Better Than a Suggestion Box?
A suggestion box filters ideas before anyone sees them; most people won't bother writing something down if they suspect it'll be ignored. The 500 Yen Rule flips that: payment happens before judgment. Nobody has to guess whether their idea is "good enough" to be worth the effort of submitting it. That single change removes the fear of looking foolish, which is usually the real reason people stay quiet in meetings, not a lack of ideas, but a fear of being wrong in front of colleagues.
What Can Indian Managers Learn From Mirai Kogyo?
Indian workplaces rarely lack ideas, they lack a system that makes sharing one feel safe and worthwhile. Mirai Kogyo's switch-box market share climbed to nearly 80% on the back of a habit, not a strategy document. For Indian managers, the lesson isn't to copy 500 yen literally; it's to separate the act of contributing from the quality of the contribution, and reward the first before judging the second. That distinction alone changes how often people speak up in your next team meeting.
How to Build an Employee Idea Reward System in Your Team
Start with three rules: every idea gets acknowledged within 48 hours, every idea gets a small, guaranteed reward for submitting (cash, credit, or recognition), and implemented ideas get a visibly bigger reward. Track submissions per employee monthly, not just the ones you act on. Most Indian teams I train through corporate training programs see participation double within one quarter once employees trust that submitting won't be held against them, and that it's actually rewarded.
What Mistakes Kill Idea-Sharing Culture in Indian Offices?
The fastest way to kill an idea-sharing culture is to reward only the ideas that get implemented, because most won't, and employees notice fast. Other common mistakes: making managers the only judge of "good" ideas, letting submissions disappear into email with no reply, and publicly criticizing an idea in front of the team. Each of these teaches employees the same lesson Mirai Kogyo's founder tried to undo: it's safer to stay quiet. Compare that to the culture shift described in this speak-up culture case study.
How to Start Rewarding Ideas This Month
You don't need a Japanese factory's budget to start. Pick one team, set a fixed small reward for any idea submitted this month, and commit publicly to acknowledging every single one within two days. Watch the volume, not just the quality, of what comes in, that shift in behaviour is usually the first sign a culture is actually changing.
Book Avinash Chate for Your Next Event
TEDx speaker. 11+ yrs training Army, BRO, RBI, BARC, JSW. Available for keynotes, leadership training, team building & manager development at your office or event venue.
✅ Thanks! Avinash team will reach out within 24 hours.'}).catch(function(e){f.outerHTML='Something went wrong. WhatsApp +91 8793630001
'});return false;">Select ServiceKeynote / Motivational SpeakingLeadership Development TrainingTeam Building WorkshopManager DevelopmentEmployee TrainingOutbound TrainingBook Avinash Now →Or WhatsApp directly: +91 87936 30001
Related Articles by Avinash Chate
- Data Driven Leadership म्हणजे काय आणि Managers साठी का महत्त्वाचे | Team Motivation
- Helicopter vs Traffic Jam What Corporate Employees Must Learn from Sudhir Mehta
- High Performing Teams Follow This Secret Rule of Giving
Work with Avinash Chate
- Signature Corporate Training Programs →
- Best Motivational Speaker in Maharashtra →
- Best Motivational Speaker in Mumbai →
Avinash Chate TEDx Speaker · Founder, The Future Corporate · 11+ yrs experience Avinash has trained Indian Army, BRO, RBI, BARC, JSW Steel and 1000+ corporate leaders across India. His work focuses on leadership development, communication skills, and behavioural training rooted in Indian values and modern business needs. |
Frequently Asked Questions
What is the 500 Yen Rule?
The 500 Yen Rule is a practice at Mirai Kogyo, a Japanese manufacturer, where every employee is paid 500 yen (about ₹300) for submitting any idea, regardless of whether it's useful or eventually implemented. Ideas that do get implemented earn a significantly larger reward.
Why do employees stop sharing ideas at work?
Employees usually stop sharing ideas because early suggestions were ignored, dismissed, or criticized in front of others. Once someone learns that speaking up carries a social cost and silence doesn't, they stop offering new ideas, even when they have good ones.
How can Indian companies build an employee idea reward system?
Start by guaranteeing a small, fixed reward for every idea submitted, responding within 48 hours, and rewarding implemented ideas separately and more generously. Track how many employees participate each month, not just how many ideas get approved.
Does rewarding "useless" ideas actually work?
Yes, because it removes judgment from the moment of submission. When employees know they won't be penalized or ignored for a "bad" idea, they submit more ideas overall, which increases the odds that genuinely useful ones surface. Mirai Kogyo's 10,000+ ideas a year from 800 employees is a direct result of this.
Avinash Chate services
Corporate Trainer in Maharashtra · Top Corporate Trainers in Maharashtra · Leadership Trainer in Maharashtra · Top Leadership Trainers in Maharashtra · Team Building Trainer in Maharashtra · Top Team Building Trainers in Maharashtra · Motivational Speaker in Maharashtra · Top Motivational Speakers in Maharashtra · All service locations
← Back to all articles · Book Avinash Chate
By Avinash Chate — Maharashtra’s #1 Corporate Trainer & Motivational Speaker. .