What exactly is an RFP?

And what is it not?

There are a lot of different acronyms that get thrown around to describe the vendor vetting process. Oftentimes they get used interchangeably, even though they don’t all mean the same thing or represent the same part of the vendor review process.

To clear up any confusion, here’s a quick overview of the different acronyms you might encounter somewhere along the way:

PRO TIP

You can launch an RFI “Request for Information” prior to launching an RFP. This will allow you to have high-level and one-on-one visibility on what you are looking for. Avoid simply asking for RFQs “Requests for Quotes” as pricing can vary based on your specific needs. “Ballpark pricing” may change completely after a vendor understands your absolute needs.

1 RFI (Request for Information)

This is what you send before shortlisting vendors. Think of it as a document inviting them to fill in any informational gaps that you might not be able to find on your own— either on their website or via other marketing materials. The goal here is to gather enough preliminary information to determine whether 1) a vendor is a good fit for your business and 2) should be invited to pitch.

2 RFP (Request for Proposal)

This is what you send to a shortlist of vendors you’d like to consider. It should provide a detailed outline of your organization’s HR software needs, including the mandatory features and functionalities you need to take your talent management efforts to the next level. It should also clearly state the criteria by which vendors will be evaluated. The goal here is to ensure that all vendors receive the same information so that the proposals submitted can be reviewed objectively.

3 RFQ (Request for Quote)

This is what you send to your final shortlist after completing the RFP process. The goal here is to get detailed information on pricing, tech specifications, payment terms, implementation timelines, service-level agreements, and other more administrative matters to help allocate budgets and resources accordingly.

Before putting together any of these documents, be sure to take a step back and think through your business’s strategic objectives. This must be the ‘north star’ guiding your vendor review process. After all, as you review different vendor proposals, it can be all too easy to compare them based on features and functionality alone. But you should really ask yourself, “Will this vendor be the partner I need to take my HR goals and strategy to the next level?” Features are just one part of the equation. Alignment with business strategies is absolutely critical here, too.

So now that we’ve covered the basics, let’s take a closer look at the essential building blocks of an effective HR software RFP.

Failing to go through this process correctly can waste a lot of time and energy—and even worse, make it harder for you to draw clear and objective comparisons between competing solutions and vendors.

Have you written an RFP before?

Never! I need help
Yes, but only 1
I have a few under my belt