Nail Your HRIS RFP Using Our Comprehensive Guide and Free Template

Selecting HR software can leave you feeling overwhelmed and impatient, like shaking a Magic 8 Ball just to get “ask again later.” Luckily, you can take the future of your company’s HR into your hands by nailing your HRIS request for proposal (RFP).

The hyper-competitive HR space expects to hit $76.5 billion by 2031, choosing the right HRIS is pivotal for riding the waves of change, streamlining tasks, simplifying payroll and managing compliance. Ready to go from “outlook not good” to “go for it”? Fast track creating a new HRIS RFP with our guide and free template below!

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Article Roadmap:

• What’s an RFP?
• Create and Manage Your HRIS in 5 Simple Steps
• Free Template
• Beware These Six Pitfalls
• Next Steps

What’s an RFP?

A request for proposal (RFP) is a document for soliciting proposals from potential vendors or suppliers. Utilizing an RFP enables you to break down project requirements and establish detailed search criteria. It also allows you to request vendor bids with specific deadlines, ultimately expediting and enhancing the productivity of the process.

At its core, the RFP ensures all parties align on expectations and deliverables.

Importance:

• Set Clear Requirements: RFPs outline project requirements and objectives, empowering you to provide clear intentions to get exactly what you’re looking for (and filter out what you’re not.)
• Stay Objective: RFPs include specific evaluation criteria for HR professionals to use for assessing and comparing proposals from different vendors objectively, ensuring a final decision based on merit over opinions.
• Clarity For Vendors: The RFP process is straightforward and transparent, providing a clear and documented trail of how you reach your final choice.
• Enable Risk Mitigation: By thoroughly defining project requirements and expectations in the RFP, you can identify potential risks and challenges upfront, enabling proactive risk mitigation strategies during your selection and contract negotiation process.

Now, to fully understand how RFPs work, allow us to introduce you to its close relatives — the RFI and RFQ. (If you’re already well-versed on the RFx clan, feel free to skip ahead to the RFP template section).

Picture a vendor selection funnel with three stages: RFI at the top, RFP in the middle, and RFQ at the bottom. These stages gather crucial information to streamline vendor shortlisting.

Request for Information (RFI)

RFI gives you a picture of vendor-specific nuances and industry best practices. How? The request for information serves as the primary source for capturing details and insights, making it the perfect launching point for finding new HRIS.

If you’re not familiar with the industry and more on the beginner side of things, starting with an RFI is a great way to formally gather information.

Include the following in your RFI for best results:

• Let vendors get a sense of who you are and what you’re looking for with an overview of your company, project details and the purpose of the RFI.
• What are the current challenges you’re facing and the features or capabilities you need from a new HRIS?
• Minimum requirements and expectations for vendors.
• Add a timeline, highlighting key deadlines or milestones and a response deadline for potential vendors.
• Outline how respondents should structure their proposals and provide guidelines for submissions, like formatting preferences.

Above all else, remember to be specific. RFIs help engage in meaningful conversations and pinpoint suitable vendors.

Key question: Picture yourself in the vendor’s shoes, reviewing your RFI. Does it leave any potential questions unanswered? If so, revise it so every section includes all the necessary details and reduce the back and forth caused by gaps in expectations.

Request for Proposal

The RFP (request for proposal) streamlines your options by distilling essential information. The RFI process is like a strategic filter, identifying and excluding contacts who don’t align with your product or are still preparing for a purchase decision.

HubSpot lists the following components as a general outline. Make sure you adjust it as per your personalized needs.

• Background about your company
• Goals and requirements you need from a new HRIS
• Expected timeline and selection date
• How and where to submit proposals
• A checklist of must-have features
• Criteria you’ll use to vet vendors
• Nuances about your company that may hinder implementation
• Your budget

Key questions: Have we articulated our specific HR goals and challenges? Have we established clear and measurable criteria for evaluating vendor proposals? Is our timeline clear?

Request for Quote (RFQ)

When you’re scoping out the best HR solutions, there’s a precision tool in your arsenal — the RFQ (request for quote). This process is like a laser beam, only targeting vendors meeting your criteria.

What sets RFQ apart is the level of detail. You’re not just asking for a price; you’re delving into the nitty-gritty of implementation, user support and deployment methods. Tailoring your approach fast-tracks, finding the most specific and valuable insights.

Key questions: Is our budget clear? Did we outline our cost expectations?

Get our HR Software Requirements Template

How To Create And Manage HRIS RFP

Now, the moment you’ve been waiting for — let’s delve into launching your RFP process!

1. Determine Your Software Requirements

Like creating a blueprint before building a house, you need to determine your software requirements to get the most out of HR technology before laying the foundation for your RFP.

Key question: What information do vendors need?

Defining your requirements isn’t easy. Simplify this step by getting input from multiple stakeholders. Get feedback from the C-Suite to your HR team, ensuring all staff members have the chance to share their perspectives.

Don’t let history repeat itself. Ask users what they need from a new HRIS and delve into any current issues you’re facing with the previous method. For example, your current system may have a tedious interface. In that case, you’d list usability as a requirement.

Drawing a line between wants and needs is crucial, especially when you have different departments with different focuses, like wrangling wild horses:

• The executives want a solution in a specific price range
• The HR manager wants a centralized system and streamlined reporting
• Employees want self-service access for control over their information

Take your time and thoroughly address every detail during this step. Choosing the most suitable HRIS means taking into account every detail.

2. Compile the Requirements into Your RFP

It’s time to list your criteria! Whether you opt for a template or create a new document, maintaining a professional appearance is imperative.

Your RFP is your first impression of vendors, so the level of organization and grammar matters. RFPs with grammar issues (major or minor) indicate a lack of attentiveness that leaves them at risk for dismissal.

It’s like playing Pictionary: Your task is drawing an object and wanting the vendors to identify it correctly.

If you’re trying to convey a grand piano, a few haphazard lines and curves won’t provide enough information (unlike in Pictionary, wild guesses aren’t welcome here). To ensure clarity, include details like the keys, strings, pedals and every other piano component.

Quick tip: You can’t expect vendors to send a detailed response without first giving them a lot of details to respond to.

Maybe your current solution doesn’t support payroll, or you’re looking for HRIS to escape the mountains of paperwork that live in your filing cabinets. Whatever your unique situation, be specific and tell the vendor.

Talk about your organization’s goals. Is running payroll enough, or do you need multi-currency support for your London office? With your objectives in mind, vendors can let you know features that will get you there.

Additional key information includes:

• Your industry and organization size
• How your operations function
• Technical information (for example: if you need a SaaS solution that supports 5,000 users).

It might seem like a lot of work, but it’s worth it to narrow down vendors that meet your requirements and preferences. Want to cut the typical RFP time in half? Check out the SelectHub platform for guidance through the entire process — from gathering requirements to managing RFPs.

Get our HR Software Requirements Template

3. Submit the RFP to Your Vendor Shortlist

In this step, you’re ready to distribute your RFP! Targeting the right vendors can be a lengthy process, but it’s essential. Luckily, you’ve put in prior research and, if applicable, an RFI to identify a select group of potential partners. (If you missed this phase, hit the pause button and prioritize it before proceeding).

Quick tip: For effective RFP distribution, follow the “less is more” principle.

Ideally, your shortlist should consist of three to five carefully chosen vendors, allowing your review team to devote sufficient attention to each candidate instead of shuffling through dozens of no’s to get to a few yes’s.

Shortlisting vendors can feel like walking through a corn maze with various wrong turns. Luckily, there’s an easier way of getting through it (that doesn’t require scarecrows).

Turn to our free comparison report to streamline your search — showing how top products stack up against each other without cutting corners on prices and features.

Also, enhance efficiency throughout the RFP process by leveraging dedicated software for managing RFPs like contract lifecycle management.

With hiring, training and compliance, you’ve already got a lot to juggle in the HR arena. Save time on customizing your settings, gathering stakeholder validation and reviewing proposals with our HR requirements template.

4. Review the RFP Responses

While waiting isn’t anyone’s favorite way to pass the time, it’s worth being flexible and giving your vendors a few weeks to assemble a detailed proposal with plentiful information (and in the long run, the more info, the easier it’ll be to decipher if they’re a good fit or not).

Keep in mind that some vendors may not respond at all, especially in small or mid-sized markets. If a company you’re interested in can’t send a proposal due to a lack of time or resources, consider exploring alternatives to initiate a dialogue, like a one-on-one consultation.

Once the responses start flowing in, it’s review time. It might be tempting to go with the first response you get, but it’s crucial not to rush this step. Give each document full attention as you (or your evaluation team) examine how the vendor’s software meets your criteria. By comparing them, you’ll get an overview of your options and identify which stand out or fall short.

Here are some questions to ask when evaluating an HRIS RFP:

• Beyond the standard replies, do the vendors offer additional info or mention extra functionality?
• Is there anything on our list of requirements they missed? Are any responses lacking information?
• Do any responses seem generic over specific?
• Do they have experience with our industry and business size?
• What’s their timeline? Does that align with our deadlines?
• What training and support options are available during the implementation phase and beyond?
• Did they include references?
• What steps do they take to ensure compliance with relevant laws and regulations?
• What measures are in place to handle sensitive HR data?
• What are the contract’s terms and conditions?
• What level of support do they provide? What are their general response times? What type of communication do they use for issues (phone, email, ticket system)?
• How frequent are software updates?
• What is the pricing model? Is there a breakdown of costs?

As you go forward with analyzing responses and comparing them to your criteria, consider potential red flags like copied and pasted responses from a generic template with some details switched. You’re looking for personalized answers to your unique situation, not generalizations.

Consider each proposal from every angle — it’ll give you a complete idea of how a specific solution will integrate into your operations and serve your HR needs.

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5. Follow Up With Vendors

The results are in — now it’s time to follow up on which vendors made the cut and, equally importantly, which vendors didn’t.

Beyond being a courtesy, reaching out to vendors that aren’t landing on your shortlist during the request for proposal process is important to maintain positive relationships. It’s not an easy email to send, but it leaves the door open for potential future collaborations (we’ll add an email template for you below).

For those still in the running, it’s time to go deep. Seeing “yes” responses to your requirements is nice, but that doesn’t convey enough to let you pick a solution with confidence. For that, you need to get a feel for the software.

Just like you wouldn’t buy a car without taking it for a test drive, you need to test each solution you’re considering.

• Schedule demos where the vendor walks you through the software to see it in action.
• Get a presentation for proof of concept, where you’ll see how the software performs specific tasks like processing payroll.
• Gather positive and negative references, giving you a complete view of what customers think of a vendor. Make sure the references are similar in size to your company and have comparable needs so you get the most accurate assessment.

Finally, schedule a live demo day. The vendor can set up temporary accounts and provide tech support so your team can use the software like they would in the office. It’s a trial run for your team.

Have team members work through scenarios, like choosing benefits or setting up direct deposit for their pay stubs. Include a feedback system for seamlessly gathering everyone’s thoughts.

The point of conducting thorough follow-up is to identify gaps you can’t get from reading a document. It gives you a firsthand idea if a system is user-friendly or if all those capabilities mentioned in the vendor’s proposal are a hassle to configure. And more importantly, it lets your teams raise any concerns or confirm that the software does exactly what they need it to without causing headaches.

After you’ve chosen and finalized the contract, turn your attention to the rollout. Your selection process should have shown if the vendor offers implementation support and what that looks like. You should also know what training, if any, they provide.

Adjusting to a new system takes time, so understanding how vendors equip your team for success and ensuring you get the most out of your new HRIS is in your best interest.

Automate RFI/RFP Creation with the Decision Platform

Free HRIS RFP Template

To fast-track your HRIS RFP, we’ve prepared a free template for you to use as a reference. This template covers the basic elements of an effective HRIS request for proposal:

Title Page

(Add your organization’s logo)

Request for Proposal (RFP) for Human Resource Information System (HRIS) Solution

• Include the project name (if applicable).
• Provide your business name and contact information.

Table of Contents (introduction, requirements, etc.)

• Clearly outline the sections of the RFP for easy navigation.

Introduction

• Your organization’s background (industry, company history, years of experience)
• Purpose of the RFP
• Scope of work
• Your contact information (email, phone, fax number, point of contact if relevant)

Overview of HRIS Requirements

• Specific features you need
• Integration requirements
• Functional requirements (automation needs, desired reports/analytics)
• Training requirements

Hardware and Software Specifications

• Security and data privacy needs
• Scalability requirements

Vendor Qualifications

• Preferred vendor background and experience level
• References
• Pricing structure (upfront costs/subscription plans)

Pricing Information

• Maintenance/installation cost
• General timeline of set up
• Cancelation policy

Proposal Submission Deadline

• Provide formatting guidelines
• Specify the number of copies and submission requirements
• Vendor contact information (point of contact if applicable)
• Evaluation Criteria

Criteria for Vendor Selection

• Scoring methodology
• Terms and conditions
• Expected timeline for response

Legal and Contractual Requirements

• Termination policy
• Data security and ownership

Note: Consider consulting legal services for further guidance on what to include in this section.

Important Dates for the Vendor

• Deadline for Vendor Questions
• Proposal Submission Deadline
• Vendor Presentations/Demonstrations

Important Dates From the Vendor

• Milestones and deliverables
• Evaluation timeline
• Submission guidelines

Remember, this template is a starting point. Feel free to modify it to your specific needs, preferences and requirements.

Take the time to ensure your RFP accurately represents your organization’s mission and expectations. Once you receive vendor proposals, evaluate them carefully and engage in a thoughtful selection process.

Quick Tip: Having a standardized RFP template within your organization maintains consistency, professionalism and efficiency.

Email Template for Notifying Vendors in RFP Process

If you’re in the midst of an RFP process and need an effective way to communicate with vendors who haven’t made the final cut, this free template is a good starting point for you. Tailor this template to align with your brand voice and specific preferences.

Subject line: [Your Company Name] RFP Outcome – Appreciation for Your Proposal

Dear [Vendor’s Name],

I hope this email finds you well. I am reaching out to express our sincere appreciation for your participation in our recent Request for Proposal (RFP) process.

We carefully reviewed each proposal, and after much consideration, we have selected a vendor whose proposal aligns closely with our current needs and objectives. While we are not selecting your proposal this time, I want to emphasize the value we saw in your proposal and the effort you put into addressing our requirements. We duly note your company’s strengths and offerings during our evaluation process.

We believe in building lasting relationships, and your participation in this RFP process is genuinely appreciated. We hope that this decision does not discourage you from considering future opportunities with [Your Company Name].

We will retain your information for future reference and will keep you in mind as we move forward. Thank you once again for your time, effort, and interest in partnering with [Your Company Name].

If you have any questions or would like feedback on your proposal, please feel free to reach out. Wishing you continued success!

Best regards,

[Your Full Name]
[Your Title]
[Your Company Name]
[Your Contact Information]

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Beware These Six Pitfalls

Implementing new HR software is a fluid process. You can’t nail everything down in a single document. With that in mind, here are some HRIS RFP risks to keep on your radar:

• Relying too heavily on the RFP process. You can’t count on the RFP to take care of everything. The follow-up stage is crucial for ensuring a solution works in real life.
• Overlooking details. It’s hard to get a complete picture of a specific software solution by looking at RFP responses. Sure, vendors may say their system has benefits administration, but software nowadays comes with loads of configuration options. So the question you always need to ask is, “How?”
• Having unrealistic timelines. Selecting new software doesn’t happen overnight. It demands lengthy research and leeway for vendor response times.
• Being too generic. Just like a masterpiece is the result of tiny brush strokes, every detail counts, especially regarding software selection. For the best results, be as specific as possible with every step and ensure vendors are also drilling into the details.
• Not analyzing vendor viability. Ensure your selected vendor is financially stable. It’s crucial for the long-term success of your HRIS. Imagine the disappointment if your chosen vendor faces financial challenges and goes under in five years. Talk to investors, particularly if you’re looking at a startup without a long track record of success.
• Confusing business-critical and desired features. What features does your business need to run smoothly and execute strategic plans? Those are the ones to focus on. Anything else is like sprinkles on ice cream — nice to have, but not imperative.

Get our HR Software Requirements Template

Next Steps

Now you know the tips and tricks to streamline your HRIS RFP process! Choosing the right HRIS is a significant initial investment, making selecting the best HR vendor from the start pivotal to the process.

Our mission is to simplify and fast-track your selection process (while saving time and money along the way). If you’re just starting out, grab our free HR comparison report for a detailed look at the current market and the features of the top HR vendors, accelerating your research.

Or, if you’re further along, check out our HR pricing guide for a customized report with pricing details, cost structure information and product limitations.

When it comes to creating and sending your HRIS RFP, what challenges are you facing? What RFP step are you currently at — have you already shortlisted vendors? Let us know in the comments below!