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RFP Process: Is it time for a change?

This podcast was recorded at Connect & Simplify™ HQ in Wisconsin. We help hundreds of businesses (nationwide) with their human capital management service needs. For many businesses in the 50-250 employee range, Connect & Simplify™ is a profitable or more effective alternative to full-time employees dedicating all or some of their time to managing the chaotic and complex process of RFPs.

Into the world of RFPs

RFPs. Does anyone know what an RFP is? In the business world, it's a process. I think it's time to overhaul the process.

Roger here, human capital management consultant, marketing coordinator and podcast host for this episode of Inside Connect & Simplify™, sponsored by The Benefit Companies. When a company is looking to procure a service asset or commodity, they often produce a document requesting vendors to submit proposals for consideration, called RFPs, or requests for proposals. These documents outline what the company is looking for, the preliminary requirements that must be met and the timeline for completion. Companies use RFPs to gather information about who in the marketplace is interested, potentially capable of filling that request and somewhat eliminating the steps of doing the legwork themselves.

Request for proposals: Time for a change

Absolutely, the RFP process has its place in corporate America, it's been around for over 100 years, but things have changed a bit in the last 10 to 20 years. In my opinion, the process is not cut up to the availability of information on the internet. I've noticed that companies will issue an RFP, that they're looking for a solution for payroll, an applicant tracking system, human capital management or HRIS system. In my head, that process is actually going to cost time and energy that can be used elsewhere.

With the ability to search anything on the internet, the starting point for these types of searches has moved, where 20 years ago, a company would have no idea where to start to gather information. Now you can find a company, get a demo and purchase a product or service from your desktop. You can, but don't do it that way. In today's environment, the prospective client can get more education and information than ever to start a search, and they are doing it. Our prospects are asking more technical and in-depth questions than ever before. It changed how we approach the sales process.

New approach to RFPs with payroll service example

So when we start a conversation with a prospect about a product, let's use payroll, for example. They come into that chat with a discussion about their current vendor, the software they use and ask questions about our platform and its capabilities. So is the RFP dead? Not hardly, but I'm going to suggest another approach. It might get the prospect more information in a shorter amount of time, giving them the solution they need and get it in place within the timetable they expect instead of creating an RFP. I've seen RFPs that can be over 100 pages in length. So instead of creating that RFP, sending it out, gathering up and reading through all the responses, then taking the recommended vendors to the committee, and then inviting the vendors in one by one to pitch or demo their solution, and then potentially making the decision. Instead of all that, consider starting here instead.

Payroll consultant offers you a clearer understanding compared to RFPs

Start with a payroll consultant that has competitive intelligence on the major vendors in the marketplace. Let that consultant describe the things each vendor does well and where they need improvement. Hear about the software the vendors use and its capabilities and limitations. Learn about how each vendor invests in research and development to keep improving their technology. Find out how each vendor handles upgrades and releases new versions of their software. Get details on how they implement and convert new clients and then service that client going forward. Get an understanding of how funding is handled and how they will move your money. Find out which vendor has qualified, tenured payroll subject matter experts handling your case.

I'm scratching the surface of the detail you should be going into, but here's the win. Do you want to do that with vendor after vendor? Or do you want to start with a consultant that has that level of competitive knowledge and can help you sort through the vendors and narrow your search? The reason we train up our consultants to know this level of detail on the competition is to save you time in your search process and point out areas of potential concern you might not have thought of.

Cloud-based platform creates custom solutions where RFPs can’t

And of course, I'm saying our product, our design and implementation teams, service teams, payroll processors and technology are the best because I'm biased. Here's why I can afford to be biased. I have read our competitive intelligence reports. Our technology partner Kronos, the industry leader, our cloud-based, real-time platform is state of the art. Any new releases or upgrades happen in the cloud, releasing the client from having to do any updates on the local level. Our vetting or discovery process is detailed to make sure we are a fit for each prospect.

After discovery, we go into the design and then implementation meetings to create the custom solution for the client. We run side-by-side payrolls before flipping the switch to ensure the results are correct. After going live, our service teams and processes are in constant contact to make sure all the details are complete.

Why you should trust our HCM system

I know from the intelligence reports that no other vendor has the process we use. I know from conversations with prospects where their current vendor is falling short on service, tech, or both. I know from our design and implementation meetings the depth of expertise we bring to our clients. The knowledge we have at the table of how what we do impacts the clients not just in payroll, but across other areas like benefits and retirement, which by the way, we also offer. So to my knowledge, we are the only company in the US that offers a cloud-based HCM platform that can integrate payroll, time labor management, human resources, retirement and employee benefits in-house with no outside vendor connection needed.

And doesn't that make sense? With payroll as the hub of information, we can integrate with time labor management, HR benefit and retirement plans. In one platform, we have just eliminated multiple sign ons, sharing files with multiple vendors, manual and duplicate processes and a ton of errors.

RFPs outdated in human capital management

So RFPs, they have their place. I would argue that in the human capital management arena, they might be outdated, or at least they're not the most efficient way to a solution. We suggest starting with a conversation with our subject matter experts in payroll, HR, HCM, retirement, TLM or benefits. They have the competitive intelligence in product detail to help you narrow your search before you spend a ton of time and energy gathering info on your own.

Of course, they will be biased to our solution. I can think of worse things than to be biased toward our technology partner, who's the best in the industry. As a reminder, I know I said this before, but we have subject matter experts in payroll, TLM, HR, benefits and retirement plan, ACA compliance, business insurance and work comp. Why do you care? Well, if you do come on board with us as a client, all of these subject matter experts are now available for you. Again, not aware of another vendor that offers that.

So, RFPs, time for a change. Or at least chat with us first before going down the RFP rabbit hole. Call us at 262-207-1999 to learn more. Thanks for listening. Be well.

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