Let’s be honest, RFPs don’t always feel as straightforward as we would like. Between ever-changing technology capabilities and service quality, there’s a certain art to creating a benefits administration RFP that truly encompasses the needs of your organization and employees. But don’t be discouraged by the RFP process. With the right amount of preparation and thought, your organization can create an RFP that will help ensure your goals and needs are properly communicated during an evaluation.
At the basic level, an RFP or a Request for Proposal, is a formal document used by organizations to solicit proposals from vendors who provide benefits administration services. The RFP outlines the company’s requirements and expectations for managing employee benefits such as health insurance, retirement plans, and wellness programs.
A well-crafted RFP outlines your organization’s specific requirements and expectations, typically covering:
However, every organization is different. For instance, the needs of a small manufacturer will differ from the needs of a large hospital network. Meaning, a benefits RFP will look very different for the former versus the latter.
Because at the core of every RFP, one thing remains essential: understanding your broader goals and objectives. By getting to the root of your goals and not just your needs, you can create a well-crafted RFP that helps streamline the vendor selection process and ensures the best fit for the organization.
For example, say you organization is struggling with educating employees on the benefits available to them and wants to include the following question in an RFP: “Does your platform offer the capability to promote benefits education videos to employees?”
While this is a fair question to ask regarding the configurability of the platform, does it really get to the root of the issue, or more importantly, the root of your organization’s broader goal?
Your employees need help understanding their benefits, and more importantly what benefits are the right choice for their unique financial, physical, and emotional needs. So, it might be safe to say your strategy is to increase employee retention by conveying the complete value of your investment in them.
Instead, pose the following question: How do you leverage total rewards within your solution to drive a year-round engagement vehicle that guides employees to a full understanding of their overall compensation, benefits and perks within the organization?
Rather than simply confirming if a partner can include benefits education videos, this question allows you to learn more about the deeper capabilities of their technology, such as decision support tools or AI-assisted support. This approach helps you find a partner who not only meets your basic needs but also pushes your team forward in accomplishing competitive goals.
According to Businessolver’s recent AE Strategies Survey, 42% of HR recipients said they are looking to evaluate their existing solution and vendor in the next few years. But does a benefits RFP make sense for your organization? Some common reasons to consider an RFP include:
If your organization is facing any of the issues above, an RFP may be worth the consideration.
While it’s important to include questions that address your broader strategies and objectives, avoid the following mistakes:
Looking for more questions to strengthen your next RFP? Check out our full list in The Art of the Benefits RFP Guide here.
