Laying the Groundwork: Preparing for a Successful Payroll RFP
It is always a challenge for HR when comes to sourcing for a payroll system. How can you start with a “request for proposal” (RFP) project? It’s always a question mark for many when you need to source for the information, gather them and decide based on the shared system functions, specifications and commercial information.
This article is to share with you the general end-to-end process of a request for proposal (RFP) in sourcing a payroll system vendor based on my experience. There is no concrete right or wrong, but it must be per your organization’s sourcing policies.
Predominantly, an RFP project or programme, can be divided into three processes as follows
- Pre-Process
- During the Process
- Post Process
Pre-Process:
The respective project manager (PM) of the RFP project will lead the following tasks before RFP document is issued to the potential vendors:
- Sourcing of potential vendors
- Conduct request for question (RFQ)
- Preparation of business case
- Preparation of overall RFP project plan
To source through procurement vendor list, recommendations or browse through websites. At least 10 will be a good number to start with
- Once the vendor list is established, RFQ can be conducted via phone or email to gather high level information of the vendor e.g. corporate profile; support and services; system functionality and capability; project implementation methodology and tentative timeline; account management approach; commercial.
- It is also important to know whether the vendor is interested or ready to participate in the next RFP process. From experience, had encountered a vendor decline to join the RFP process.
List down challenges of current state in four main areas as follows. The current state could be either an inhouse payroll processing or payroll outsourcing or in a hybrid model.
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