Why You Need an RFP (Even for Small Companies)
"RFPs are for enterprises, right?" Wrong. Even if you're a 50-person company, a structured RFP process prevents expensive mistakes.
A good RFP forces you to define your requirements before falling in love with a vendor's sales pitch. It creates apples-to-apples comparisons across vendors. It surfaces hidden dealbreakers early (like that "integration" that requires $10K custom development).
This template provides 100+ questions organized by category, a vendor evaluation matrix, and a scoring system. Customize it for your needs—you don't need to ask every question, but you should ask the right ones.
đź“Ą Want the Spreadsheet Version?
This page contains the full RFP template. For a ready-to-use Excel/Google Sheets version with scoring formulas, evaluation matrix, and vendor comparison tabs:
(Template available as a reference on this page—adapt to your preferred format)
Typical RFP Timeline
Week 1
Define requirements, draft RFP, identify vendors
Week 2-3
Send RFP, vendor questions, responses due
Week 4-5
Review responses, demos, reference calls
Week 6
Final negotiations, decision, contract
Section 1: Company Background
About Your Organization
Help vendors understand your context and tailor their responses.
1.1 Company Overview
- Company name, industry, and brief description
- Number of employees (current and 3-year projection)
- Number of locations and states/countries where employees work
- Employee breakdown: full-time, part-time, contractors, seasonal
1.2 Current HR Tech Stack
- What HR software do you currently use (HRIS, payroll, ATS, etc.)?
- What integrations are critical to maintain?
- What tools are you replacing vs. keeping?
1.3 Project Goals
- Why are you switching/implementing new HR software?
- What problems are you trying to solve?
- What does success look like 6 months post-implementation?
Section 2: Core Platform & Technical
Platform Capabilities
2.1 Does your platform operate as true SaaS (cloud-native)?
Why it matters: On-premise or "hosted" solutions have hidden IT costs
2.2 What is your system uptime SLA? What was your actual uptime in the last 12 months?
Why it matters: "99.9% uptime" in contract vs. reality matters during payroll
2.3 How frequently do you release updates? Can updates be postponed or are they mandatory?
Why it matters: Forced updates during busy periods are disruptive
2.4 Is your mobile app native iOS/Android or web-based? What features are mobile-accessible?
Why it matters: Web wrappers feel clunky; missing features limit adoption
2.5 What browsers and devices do you support? Any known compatibility issues?
Why it matters: "Works best in Chrome" means "broken in Safari"
2.6 How is data encrypted at rest and in transit? What security certifications do you hold?
Why it matters: SOC 2, ISO 27001, GDPR compliance = baseline for HR data
2.7 Where is our data stored geographically? Can we choose data residency location?
Why it matters: GDPR/international regulations require EU data stay in EU
2.8 What is your disaster recovery plan? What is your RTO (recovery time objective)?
Why it matters: How long until system is back after a failure?
Section 3: Integrations & APIs
Integration Capabilities
3.1 What pre-built integrations do you offer? Which are included vs. additional cost?
List your critical integrations: Slack, payroll, ATS, benefits, SSO, etc.
3.2 Do you offer an open API? Is API access included in all pricing tiers?
Why it matters: Some vendors charge extra for API access
3.3 What data can be synced via API? Is it real-time or batch (nightly)?
Why it matters: Batch sync = data lag between systems
3.4 How do you handle integration errors? Are there monitoring/alerts?
Why it matters: Silent failures = data inconsistencies no one notices
3.5 Do you support SSO (SAML, OAuth)? Which identity providers?
Why it matters: SSO reduces password fatigue and improves security
3.6 Can we build custom integrations using your API? What documentation/support is available?
Why it matters: "API available" means nothing without good docs
Section 4: HRIS Features
Core HR Functionality
4.1 What employee data fields are standard? Can we add custom fields?
Why it matters: Track unique data (security clearance, certifications, etc.)
4.2 How do you handle org charts? Can they be exported or visualized interactively?
Why it matters: Static PDFs vs. live, clickable org charts
4.3 Describe your PTO/leave management: accrual rules, approval workflows, carryover, multi-policy support.
Why it matters: Complex PTO policies (unlimited, accrual, state-specific) need flexibility
4.4 How do you handle multi-state/multi-country compliance (wage laws, leave policies, tax rules)?
Why it matters: Remote teams = employees in 10+ states with different rules
4.5 What employee self-service features are included (update address, download pay stubs, view PTO balance)?
Why it matters: More self-service = less HR admin burden
4.6 What manager self-service features exist (approve PTO, view team, run reports)?
Why it matters: Empower managers to reduce HR bottlenecks
4.7 How do you handle document storage? E-signatures? Version control? Retention policies?
Why it matters: Compliance requires audit trails and automatic retention
4.8 What reporting capabilities exist? Can we build custom reports? Export to Excel/PDF?
Why it matters: Canned reports rarely answer your specific questions
Section 5: Payroll (if applicable)
Payroll Processing
5.1 Do you handle payroll in-house or partner with a third-party processor?
Why it matters: Partnerships add complexity and finger-pointing when issues arise
5.2 Which states/countries can you process payroll in? Any limitations?
Why it matters: "All 50 states" doesn't mean all municipalities (NYC, Seattle, etc.)
5.3 How do you handle multi-state tax withholding for remote workers?
Why it matters: Remote work = complex reciprocity and withholding rules
5.4 What payroll schedules do you support (weekly, bi-weekly, semi-monthly, monthly)?
Why it matters: Some systems force one schedule across all employees
5.5 How do you handle off-cycle payroll (bonuses, final paychecks, corrections)?
Why it matters: Easy off-cycle = critical for compliance and employee satisfaction
5.6 What tax filing services are included? State filings? Quarterly filings? Year-end (W-2, 1099)?
Why it matters: "Payroll processing" ≠"tax filing" sometimes
5.7 Do you offer tax penalty protection/guarantees?
Why it matters: Vendor errors should be vendor's liability, not yours
5.8 How do employees access pay stubs? Can they opt out of paper pay stubs?
Why it matters: Paper = expensive; employees lose them constantly
5.9 Do you support garnishments, child support, 401(k) deductions, HSA/FSA contributions?
Why it matters: Complex deductions are where errors happen
Section 6: Recruiting/ATS (if applicable)
Applicant Tracking
6.1 What job boards do you syndicate to automatically? Any at additional cost?
Why it matters: Indeed, LinkedIn, ZipRecruiter should be included
6.2 Can we customize our careers page (branding, video, employee testimonials)?
Why it matters: Branded career pages improve candidate quality
6.3 How do you handle candidate communication (email templates, automated responses, scheduling)?
Why it matters: Automation improves candidate experience and reduces admin work
6.4 What interview scheduling features exist? Calendar integrations (Google, Outlook)?
Why it matters: Manual scheduling = weeks of email ping-pong
6.5 How does your system handle interview scorecards and feedback collection?
Why it matters: Structured feedback reduces bias and improves hiring quality
6.6 What reporting exists on recruiting metrics (time-to-hire, source of hire, pipeline health)?
Why it matters: Data-driven recruiting requires good analytics
6.7 Do you offer background check integrations? Which providers?
Why it matters: Integrated background checks shave days off hiring timeline
Section 7: Implementation & Support
Onboarding & Support
7.1 Describe your implementation process. What is the typical timeline?
Why it matters: "4 weeks" vs. "4 months" changes your planning
7.2 What is included in your implementation fee? What costs extra?
List: data migration, training, integrations, custom configuration
7.3 Will we have a dedicated implementation manager? For how long?
Why it matters: Shared resources = slower implementation and less accountability
7.4 How do you handle data migration from our current system? Who does the work?
Why it matters: "We provide templates, you fill them" vs. "We migrate for you"
7.5 What training do you provide? Live sessions? Video library? Documentation? Certifications?
Why it matters: One-time training isn't enough; ongoing education needed
7.6 What customer support channels do you offer (phone, email, chat, portal)?
Why it matters: Email-only support = slow resolution times
7.7 What are your support hours? Do you offer after-hours or weekend support?
Why it matters: Payroll emergencies don't wait for business hours
7.8 What are your support SLAs by priority level? What was your average response time last year?
Why it matters: "24-hour response" in contract vs. 3-hour actual performance
7.9 Do you offer dedicated customer success managers? At what tier/price point?
Why it matters: Reactive support vs. proactive success management
7.10 How do you handle product updates and feature requests? Can we influence roadmap?
Why it matters: Will your needs ever be addressed or are you stuck with what exists?
Section 8: Pricing & Contract
Cost & Terms
8.1 Provide detailed pricing breakdown: base cost, per-employee fees, add-on modules, implementation.
Why it matters: Hidden costs appear after you sign; get everything in writing
8.2 What is included in your base tier vs. premium tiers? Feature comparison table required.
Why it matters: "Starts at $X" never includes features you actually need
8.3 How are employees counted for pricing (active only, terminated, contractors, part-time)?
Why it matters: Definitions matter when calculating monthly bills
8.4 Are there any usage limits (API calls, storage, reports, support tickets)?
Why it matters: Hitting limits mid-year triggers overage fees
8.5 What is your contract length requirement? Early termination penalties?
Why it matters: Month-to-month flexibility vs. multi-year lock-in
8.6 What are your annual price increase terms? Can we cap increases?
Why it matters: "CPI adjustment" can mean 8% increases in inflationary years
8.7 What discounts are available (multi-year, non-profit, referrals, case studies)?
Why it matters: First quote is never final price; negotiate everything
8.8 What happens to our data if we cancel? Export fees? Format provided?
Why it matters: Some vendors hold data hostage or charge thousands for exports
8.9 Who owns the data? Can we request deletion? What is your data retention policy?
Why it matters: GDPR "right to be forgotten" and data ownership clarity
Section 9: References & Proof Points
Customer Validation
9.1 Provide 3-5 customer references in our industry and company size range.
Include: company name, contact person, email, phone, implementation date
9.2 What is your customer retention rate? Average customer tenure?
Why it matters: High churn = unhappy customers
9.3 What is your Net Promoter Score (NPS) or customer satisfaction score?
Why it matters: Objective measure of customer happiness
9.4 Provide case studies or success stories from similar companies.
Why it matters: Proof they've solved problems like yours before
9.5 What awards, recognitions, or analyst rankings have you received (Gartner, Forrester, G2)?
Why it matters: Third-party validation of product quality
Vendor Evaluation Matrix
Use this framework to score and compare vendor responses objectively.
Scoring System
0
Not Offered
1
Poor/Minimal
2
Acceptable
3
Good
4
Excellent
| Criteria Category | Weight | Max Score | What to Evaluate |
|---|---|---|---|
| Core Functionality | 25% | 100 points | Does it do what you need? Employee management, workflows, reporting. |
| User Experience | 20% | 80 points | Is it intuitive? Mobile experience? Employee self-service ease? |
| Integrations | 15% | 60 points | Pre-built integrations with your existing tools? API quality? |
| Implementation & Support | 15% | 60 points | Implementation timeline? Training quality? Support SLAs? |
| Pricing & Value | 15% | 60 points | Total cost of ownership? Transparent pricing? Contract flexibility? |
| Vendor Stability | 10% | 40 points | Company health? Retention rate? Product roadmap? Customer references? |
| TOTAL | 100% | 400 points | Weighted score determines winner |
đź’ˇ Pro Tip: Customize weights based on your priorities. If integrations are critical, increase that weight to 25% and reduce others. Make sure weights add to 100%.
Detailed Evaluation Criteria
1. Core Functionality (25% / 100 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Employee database & profiles | 15% | _____ |
| PTO/leave management | 15% | _____ |
| Approval workflows | 10% | _____ |
| Document management | 10% | _____ |
| Reporting & analytics | 15% | _____ |
| Org chart visualization | 10% | _____ |
| Multi-state/country compliance | 15% | _____ |
| Custom fields & workflows | 10% | _____ |
2. User Experience (20% / 80 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Intuitive navigation & UI | 25% | _____ |
| Mobile app quality (iOS/Android) | 25% | _____ |
| Employee self-service ease | 20% | _____ |
| Manager self-service ease | 15% | _____ |
| Admin interface usability | 15% | _____ |
3. Integration & API (15% / 60 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Pre-built integrations (quantity & quality) | 30% | _____ |
| API availability & documentation | 25% | _____ |
| SSO support (SAML, OAuth) | 20% | _____ |
| Data sync reliability & frequency | 15% | _____ |
| Webhook/real-time event support | 10% | _____ |
4. Implementation & Support (15% / 60 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Implementation process & timeline | 25% | _____ |
| Data migration support | 20% | _____ |
| Training quality & resources | 20% | _____ |
| Support channels & availability | 20% | _____ |
| Support SLAs & response times | 15% | _____ |
5. Pricing & Value (15% / 60 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Total cost of ownership (3-year) | 35% | _____ |
| Pricing transparency (no hidden fees) | 25% | _____ |
| Value for money (features vs. cost) | 20% | _____ |
| Contract flexibility | 10% | _____ |
| Scalability (cost as you grow) | 10% | _____ |
6. Vendor Stability (10% / 40 points)
| Feature | Weight | Score (0-4) |
|---|---|---|
| Company financial health | 25% | _____ |
| Customer retention rate | 25% | _____ |
| Product roadmap & innovation | 20% | _____ |
| Customer reference quality | 20% | _____ |
| Security certifications & compliance | 10% | _____ |
Tips for RFP Success
âś… DO:
- Give vendors 2-3 weeks to respond (quality responses take time)
- Allow vendors to ask clarifying questions (set deadline for Q&A)
- Request live demos after reviewing written responses
- Call customer references and ask hard questions
- Involve end-users (managers, employees) in demos and evaluation
- Score vendors independently before group discussion (prevents groupthink)
- Negotiate after selection (vendors give best pricing to winners)
❌ DON'T:
- Send RFPs to 10+ vendors (you'll be overwhelmed with responses)
- Evaluate on price alone (cheapest = most expensive in hidden costs)
- Skip reference calls (vendors only list happy customers, but ask the right questions)
- Let sales reps rush you ("this deal expires Friday!" is a manipulation tactic)
- Sign contracts without legal review (especially data ownership and liability clauses)
- Forget to test mobile apps during demos (75% of users will use mobile)
đź”— Related Resources
-
→ Implementation Checklist
What happens after you select a vendor
-
→ Pricing Guide
Understand what vendors will quote you
-
→ HR Software Glossary
Decode vendor jargon in RFP responses
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→ Best HRIS Software
See our top-rated platforms to include in your RFP