Why an RFP?
A Request for Proposal (RFP) is a structured document that invites vendors to submit a proposal based on your specific requirements. It ensures:
- Comparability: All vendors answer the same questions
- Transparency: Your selection criteria are clear in advance
- Efficiency: Vendors that don't fit deselect themselves
- Documentation: Your decision-making process is traceable and audit-proof
RFP vs. RFI: What's the Difference?
| RFI (Request for Information) | RFP (Request for Proposal) | |
|---|---|---|
| Goal | Market exploration, longlist | Concrete offer, shortlist |
| Phase | Orientation | Selection |
| Depth | Broad, global | Specific, detailed |
| Time Investment | 2–4 hours writing | 8–16 hours writing |
| Expected Response | Product sheet + capabilities | Quote + plan of approach |
Tip: If you have fewer than 5 potential vendors, you can skip the RFI and send a concise RFP directly.
Structure of an Effective RFP
1. Introduction & Context (1 page)
Give vendors enough context to submit a relevant proposal:
- About your organization: Industry, size, locations, growth plans
- Reason: Why are you looking for a new solution?
- Scope: Which HR processes need to be supported?
- Timeline: When do you want to go live?
- Budget indication: Optional, but it saves time if you share a range
2. Functional Requirements (2–3 pages)
Use the MoSCoW framework and ask vendors to indicate per requirement:
| Requirement | Priority | Standard | Configurable | Custom | Not possible |
|---|---|---|---|---|---|
| Digital personnel file | Must | ||||
| Manager self-service | Must | ||||
| Absence registration (WVP) | Must | ||||
| Custom workflows | Should | ||||
| Predictive analytics | Could |
3. Technical Requirements (1–2 pages)
- Hosting and data residency (EU required?)
- Integration requirements (which systems need to be linked?)
- Security standards (ISO 27001, SOC 2, SSO)
- Performance requirements (concurrent users, load times)
- API availability and documentation
4. Implementation & Support (1 page)
- Expected implementation lead time
- Available resources (internal/external)
- Data migration requirements
- Training approach
- Support model and SLA expectations
5. Commercial (1 page)
Ask vendors for a clear price quote:
- License costs (per employee, per module, flat fee)
- One-time implementation costs
- Training costs
- Annual support and maintenance costs
- Costs for additional modules or future upgrades
- Contract terms (minimum duration, notice period)
6. Evaluation Criteria (½ page)
Be transparent about how you evaluate:
| Criterion | Weighting |
|---|---|
| Functional fit | 30% |
| Technical suitability | 20% |
| Implementation approach | 15% |
| Price-quality | 20% |
| Vendor stability & references | 15% |
7. Process & Planning (½ page)
- Deadline for questions
- Deadline for submission
- Scheduling demos/presentations
- Expected decision date
- Contact person for questions
Template: Cover Letter
Dear [vendor],
>
We hereby invite you to submit a proposal for the delivery of [HR technology scope] for [company name].
>
Our organization has [X] employees across [Y] locations in [countries]. We are looking for a solution that digitizes our HR processes and improves our employee experience.
>
Attached you will find our RFP with detailed requirements and evaluation criteria. We request that you submit your proposal by [date] via [email address].
>
Questions can be directed to [contact person] via [email] until [date].
>
We look forward to receiving your proposal.
Tips for a Successful RFP
Do's
- Be specific: "Support for 3 collective labor agreements simultaneously" is better than "flexible compensation configuration"
- Prioritize: Use MoSCoW so vendors know what is essential
- Ask open-ended questions: "Describe how you handle…" provides more insight than yes/no questions
- Share context: The more a vendor knows about your situation, the more relevant the proposal
- Limit the number of pages: 8–12 pages is ideal; more is daunting
Don'ts
- Don't copy generic RFP templates: Adapt each section to your own situation
- Don't send to more than 5 vendors: You won't be able to compare the responses meaningfully
- Don't set unrealistic deadlines: Give vendors at least 2–3 weeks
- Don't forget IT: Technical requirements are just as important as functional ones
- Don't make it a test: An RFP is an invitation to collaborate, not an exam
After the RFP: What's Next?
- Confirm receipt: Send a confirmation to all participating vendors
- Evaluate: Use your predefined criteria and weighting
- Shortlist: Select 2–3 vendors for demos
- Feedback: Give rejected vendors a brief motivation — this is professional and keeps the relationship open
- Schedule demos: Use our Demo Preparation Guide for the next step