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Selecting An Employee Rewards System Is Much Like Buying A Car

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Selecting An Employee Rewards System Is Much Like Buying A Car

One of the most effective ways for organizations to create an engaged and motivated workforce is to have a well-developed and properly implemented employee rewards and recognition system in place. With many employee rewards systems available in the market, selecting a suitable system can be much like buying a new car. Here’s how:

What are the Criteria for Selecting an Employee Rewards System?

How to Choose the Best Employee Recognition System for your Organization?

People intending to buy a car have well-defined criteria for selecting the make, model, type, and even color.

These are mostly based on their specific needs and expectations of the car.

The same holds for an organization planning to invest in an employee rewards system.

Each organization has a specific set of needs and expectations from an employee rewards program.

Hence, they have different criteria for selecting an employee rewards system, just as a car buyer would have a certain set of criteria for deciding on which car to buy.

Why is Selecting an Employee Rewards System like Buying a Car?

Determine What Systems Are Required

Organizations looking to invest in employee recognition systems for the first time are often overwhelmed by the range of options available.

Interestingly, this may be similar to people looking to buy a car.

However, with proper homework, it is possible to find the right employee rewards system, like finding the perfect car.

This step-by-step guide for selecting an employee rewards system can help organizations to do just that:

Selecting an Employee Rewards System is like Buying a Car

1. Assessment of Needs


It is quite common for people buying a car to understand their needs and motivation for buying the car.

Whether the car is meant primarily for family rides, office commutes, or long road trips?

Which aspects are more critical – power, fuel efficiency, comfort, safety, styling, or design?

In each case, a perfect car would be the one that would fulfill the specific needs of the buyer.

Also, buyers might consider the likely changes in their needs in the future.

2. Deciding on the Budget

Seek Funding For The Program

When buying a car, buyers should consider how much they can afford to spend on the car.

This includes the down payment and the regular monthly installments that one needs to pay.

Hence, the buyer would look at his or her current income and the expected growth in coming years.

3. Comparing and Shortlisting


Most car buyers would do a thorough research of the market to understand the available makes and models of cars.

They would compare their required features to shortlist cars that they would like to consider buying.

4. Considering Ownership and Maintenance Costs

Recognize Innovation Efforts and Remove Fear of Failure

Car buyers need to look at all costs including the initial investment as well as regular maintenance and servicing. costs.

5. Discussions and Detailed Analysis

Determine What Systems Are Required

As the next step, prospective buyers would visit the car dealers and get first-hand information about the shortlisted cars.

This includes a detailed understanding of features, specifications, options, pricing, and payment plans, required to make an informed decision. 

6. Taking a Test Drive


Taking the short-listed cars for a test drive is a facility offered to prospective buyers by most dealers.

It enables buyers to gain first-hand experience of various features of the vehicle and to make the final decision.

7.  Availability of Support/ Customer Service

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Most automobile manufacturers today understand the significance of providing efficient after-sale support services to their customers.

Buyers should seek detailed information about these services such as support, maintenance, roadside assistance, insurance, and loan facilities.

8. The Final Decision


The final decision of the car buyer would depend on comparative features, test drive experience, and total costs.

The total ownership cost of the car would also take into account the fuel efficiency and maintenance costs.

A buyer would consult their family members and friends before finalizing the purchase.

9. Closing the Deal

10 Best Non-Monetary Awards for Employee Recognition

Typically once the buyer has decided on a particular car, he or she would negotiate for the best possible price.

These offers could be in the form of accessories and services. This would be the final step for the buyer in closing the deal.


Selecting an employee rewards system is a high-involvement decision just like buying a car. Hence, organizations need to proceed step-by-step with the decision-making by considering all possible factors to ensure that they select a system that best fits their requirements and budgets.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of experience in the corporate world and entrepreneurship. In the past, Sagar has worked with companies such as Genpact, Infosys, and ICICI Bank, in leadership roles. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.