How to write an RFP for HRIS to select the right vendor
This guide offers insights into writing a compelling RFP for an HRIS, equipping you with the knowledge to evaluate various HRIS options and make a well-informed decision.
If you’re a hiring professional or company owner considering an investment in HR software, determining the best fit is crucial. With a plethora of options in the Human Resource Management Systems market, finding the right match for your company’s specific needs can be challenging.
Sending out a request for proposal (RFP) is an effective strategy to gather comprehensive information about different HRIS solutions and understand how they align with your HR objectives.
Short on time to manage multiple RFPs? A concise overview of top Human Resource Management Systems can guide you in making a sound choice.
Contents
What exactly is an RFP?
An RFP is a formal document produced by a company seeking new software or services. It outlines pertinent questions to vendors regarding essential criteria like features and pricing.
Distribute the HRIS RFP to several vendors and evaluate their responses. This approach not only aids in identifying the most suitable software for your organization but also provides valuable insights to present to your decision-makers, essentially helping you build a compelling business case.
Steps to write an RFP for HRIS
Here’s a 5-step process you can follow when preparing an RFP, including the possible sections of an RFP for HRIS.
1. Know what you want
To choose the right system, pinpoint why you need it. For instance, if you’re seeking an HRIS due to inefficiencies in employee data management, prioritize a system with centralized information and analytics features. If your goal is improved document management, inquire about e-signature capabilities when drafting an HRIS RFP.
Identify your priorities by consulting with regular system users and those overseeing your company’s HR strategy. Ask about the challenges faced by hiring managers and their expectations from new technology. Understand the executive vision for HR processes, such as efficiency enhancements or quicker time-off approvals.
Compile a list of frequently mentioned goals and rank them. For instance, reducing new hire onboarding time might be crucial. Differentiate between essential and optional goals.
2. Develop specific requirements
If your teams highlighted the need for improved employee management and data tracking, an HRIS can offer features like enhanced employee data management and analytics.
Conversely, if executives aim to introduce a comprehensive performance appraisal system, your HRIS should facilitate streamlined performance reviews and feedback management.
Certain universal requirements for HRIS vendors include:
- Security: Ensure compliance with data protection laws applicable to your region.
- User experience: The system should be intuitive and valuable to users.
- Scalability: Opt for a system adaptable to increasing demands.
- Support services: Choose a vendor offering reliable customer support and quick respond times.
- Existing customers: Check if companies similar to yours use the system.
- Recognition: Check for reviews and rewards included on aggregator sites.
You may also prioritize vendors with a global perspective, business sustainability, or a robust product roadmap.
3. Draft the RFP for HRIS
Instead of overwhelming vendors with numerous yes/no questions, focus on open-ended queries. This approach allows vendors to elaborate on their system’s functionalities. For specific features like ISO certification or integration capabilities, yes/no questions are acceptable.
Customize the sections based on your specific needs and include questions addressing your unique requirements.
4. Write effective questions
Inquiries should generally focus on understanding “how” a system operates. Avoid overly detailed feature-specific questions, as functionalities can vary among systems. Here are sample questions:
- How does your system facilitate employee communication?
- How do you comply with GDPR regulations?
- Do you offer system integrations?
- How does your system manage document signing?
- Can I build customized reports?
Ensure your RFP seeks essential information without being overly intricate. If a vendor meets basic criteria, request a demo or trial to evaluate specific functionalities or desirable features.
5. Write an introduction
Offer pertinent information to RFP respondents. While some companies provide extensive details like growth plans or market research, a concise introduction suffices. Include:
RFP purpose: “XYZ Inc. seeks an HRIS to enhance employee management and streamline onboarding.”
RFP timeline: “Submit responses by [date].”
Company details: “We’ve onboarded 50 new hires this year and are experiencing rapid growth.”
Requirements summary: “Our objectives include efficiency improvement, effective onboarding, and automated time-off management.”
Response instructions: “Provide comprehensive yet concise answers. Include resource links if available.”
Evaluation criteria: “We prioritize systems meeting at least 70% of our requirements and offering favorable ROI.”
Contact for clarifications: “Reach out to [Name] at [+010000000] or [[email protected]] for queries.”
Keep the introduction short. It’s important not to confuse respondents with unnecessary details.
6. Add space for a Unique Value Proposition
Include a query where vendors can present their Unique Value Proposition, highlighting their distinctive offerings and advantages.
7. Send the RFP and make your decision
Having researched available options, distribute the HRIS RFP to potential vendors.
After receiving responses, compare vendor answers (potentially using a scoring system). Shortlist promising vendors for the next step: scheduling demos with each to observe system functionalities firsthand. The RFP provides valuable insights, but witnessing system features in action is crucial for an informed decision.
Frequently asked questions
- What is an RFP for HRIS?
- An RFP for HRIS is a formal document that outlines your company’s needs and asks vendors about their software capabilities, particularly around security, user experience, and scalability. It's a crucial step in selecting a system that aligns with your HR goals and offers the best value and functionality.
- Why should companies use RFPs for HRIS?
- Using an RFP for HRIS allows companies to comprehensively assess various HR systems, ensuring the chosen solution aligns with specific organizational requirements and HR strategies. It helps in making informed decisions and building a strong business case for stakeholders.
- How do you identify priorities when drafting an RFP for HRIS?
- Identify HRIS priorities by consulting with stakeholders and understanding the challenges and needs from both hiring managers and executives. List frequent needs, rank them, and decide which are essential for your HRIS to address, like improving onboarding times or managing employee data.
- What should be included in an RFP for HRIS?
- Include sections that address your unique needs, with a mix of open-ended and specific questions about functionalities like GDPR compliance, system integrations, and document management. This will allow vendors to detail their capabilities and help you assess their suitability.
- What are some tips for evaluating HRIS vendors through RFPs?
- Evaluate HRIS vendors by focusing on their responses to your RFP, checking for compliance with your main criteria, and their ability to provide value-added features. Request demos to see the system in action, which will aid in comparing offerings and selecting the best fit.
