We’ve been talking a lot about implementing a human resource management system recently; how to evaluate systems, choose a vendor, increase user adoption, etc., and one of the final points of discussion is the benefit of using a request for proposal (RFP) as a part of your final system selection process.
This can be a time consuming document to pull together, but it can also be incredibly helpful as you compare and contrast system functionality as well as vendor capabilities. An RFP can be as short or as long as you’d like, but the more detailed you get the more confident you will be in your final selection. Here are the most common elements of a basic HR software RFP and a template to help you create one faster.
General software features are outlined in this section of the RFP to provide an overview of the functional fit for the human resource management system by industry as well as an overview of the underlying technology, database, integration strategy, and ideal company size. Other general information is provided to help the buyer evaluate the general features included in the business application.
A RFP includes technology questions which are broken out by category for deployment options, integration, data capture technology, application updates and major releases, and security and compliance concerns.
Automation & Workflow
A RFP includes a section dedicated to automation and workflow definition within the HR business application. This section outlines key features related to the definition of workflow and the automated creation of alerts, notifications, or approval processes in the software.
A RFP includes a section for the vendor to outline their implementation methodology and project plans which are critical to larger implementations of HR business applications.
Pricing & ROI
This is a section where vendors can provide software quotes including user and module license costs, maintenance and support costs, and professional service costs. This section is used to calculate a potential return on investment using the investment summary compared to expected efficiency gains and cost reductions defined in the RFP Introduction.
References & Resources
Potential vendors can provide customer references or links to case studies in the RFP. They can also provide links to resources such as videos, brochures, white papers, and other information to help companies evaluate their business applications.
To simplify the selection process, we’ve put together a basic request for proposal template to help companies evaluate various human resource management system vendors and business applications. The RFP template is available in Microsoft Excel format and pre-populated with responses from recommended vendors based on their experience and success. Click below to access it along with our HR Software Buyer’s Guide.