Your roadmap to finding the right benefits administration partner for your organization’s needs.
RFPs can feel like more of a foe than a friend. Because let’s be honest, benefits administration Request for Proposals (RFPs) demand significant time, attention to detail, and collaboration across multiple departments.
But done right, an RFP streamlines the complex task of identifying the best HR tech for your organization. And with 42% of HR leaders planning to evaluate their existing solution and vendor this year, it’s important to approach the process thoughtfully.
- Clarify needs and must-haves
Before drafting your RFP, you need to define exactly what you need—and what’s driving your decision to make a move. Are you looking for cost savings, streamlined technology integrations, or better employee engagement? Get your key stakeholders together and outline your organization’s “must-have” features versus “nice-to-have” extras—ranking their priority to help guide the rest of your RFP.
According to our research, some of the top HR objectives for the next year that can be addressed in a benefits administration RFP include:
– Driving down total spend
– Engaging your workforce
– Creating a holistic benefits experience for employees
– Streamlining HR and benefits process
Align your goals with the feedback of key stakeholders to ensure everyone’s priorities are addressed upfront.
Pro Tip: Every organization comes with its own nuances. Consider the qualifications that are necessary for a benefits RFP for yours. For instance, if you’re in the public sector, there may be additional details or resources needed for proper execution of an RFP.
- What else is out there?
No benefits administration platform is built the same, and if you’ve been on the same platform for several years, you may not be 100% up to speed on what else is out there. Which is why it’s so important to do your research. You don’t know what you don’t know.
Ask your peers at other organizations about their experiences, attend webinars, or simply do some online research. After you’ve gotten a sense of some options, consider working with an independent broker or advisor to help you narrow down the field.
At this point, you may not be ready to have a formal evaluation call but still want more into than just the solution’s website. Instead, schedule a call with a Sales representative from a few partners you’d like to know more about. This shouldn’t be a sales call per say, but rather an informative session to help you get a better grasp of where their technology and people could potentially meet your needs.
Action: If you don’t already have someone talking with you, don’t be shy about reaching out for an appointment.
Pro Tip: Maybe your organization isn’t quite ready for the push yet but thinks there’s value in more specifics. Consider an RFI (Request for Information). This allows your team to narrow down the field before taking on the RFP.
- Game time: developing and issuing the RFP
By now, you should have received your RFI back (if you’ve issued one). You’ve done your research, met with stakeholders, and are ready to develop your RFP. Don’t ask superfluous questions; keep your RFP focused on the specific information you truly need. Only ask for information you have the willingness, expertise, and resources to evaluate.
Need more help with the right questions for your RFP? Check out Businessolver’s Art of the Benefits RFP guide with over 200 questions designed to help you get to the answers you need.
The clearer your document, the fewer clarifications you’ll need during vendor Q&As.
- Dig in
With the responses in hand, it’s time to see how the prospects stack up. There should be more than one person evaluating the proposals in their entirety to ensure you get the best analysis. Others can review just the sections that apply to their subject area. For example, IT should review all systems, security and data responses.
RFP responses can quickly become overwhelming without a structured review process. Create a spreadsheet that corresponds to each question, and have each reviewer score each response with a separate section for comments.
Consider criteria like:
– Compliance with your “must-have” requirements.
– Competitive pricing and value.
– Evidence of excellent customer support.
Once you’ve narrowed it down to about 2 to 3 solutions, it’s time to schedule a “finalist meeting.” This is where getting those ‘hard to answer’ questions matter most. A finalist visit enables you to meet key players in the organization that will be supporting you and ask follow-up questions to your RFP—this is your chance to get a holistic look at the organization.
These will be the people who will be supporting YOUR people for years to come. Do their employees feel valued? Do they take pride in their work?
Be sure to plan an on-site visit if the vendor’s service center is in scope. Meet team members who will talk to your participants. Listen in on calls. Get a sense of the culture of the organization. Do people seem engaged and excited, or overworked and hurried? Are you being consulted with or sold? Do you feel comfortable there — is it a good fit?
Pro Tip: If there are technical details you want to discuss, but you don’t feel everyone needs to participate, set up a separate meeting. For example, schedule one-hour calls with your IT lead and each finalist’s security SME.
- Who’s the lucky winner?
You’ve reached the finish line. You’ve analyzed the market, identified your needs, done your due diligence, and finally found a partner that will help meet the benefits administration needs of your organization now, and in the future.
Once you’ve identified your ideal partner, move into negotiations. Pay close attention to pricing, service-level agreements (SLAs), and termination clauses. It’s critical to ensure your contract locks in value without making your organization vulnerable to unreasonable terms or hidden costs.
Final Pro Tip: Don’t forget to engage legal counsel to double-check the contract before signing to protect your organization’s interests.
Exceptional RFPs Yield Exceptional Results
A well-executed RFP process is more than just paperwork—it’s a bridge connecting your organization to innovative solutions. This process doesn’t only impact your CFO, HR leaders, or even just administrators. Because the partner you choose will have a lasting effect on your employees, and in turn your entire organization.
Don’t be deterred by the responsibility. With a clear plan, you’ll not only streamline the complex landscape of benefits administration but also empower your company to deliver a seamless experience for employees. And after all, great benefits foster happier, more productive teams.
