Want A Sample Compensation Management RFP? Click Here!
Are you tired of using spreadsheets for your merit and bonus cycles? Is it time to start looking for an online solution to help with compensation management? There are many different compensation management platforms and systems to choose from. Compensation modules can be add-ons from HRIS or talent management vendors, or standalone products. Depending on the size of your organization and the complexity of your needs, it may make sense to go out to RFP or at least have the vendors fill out a basic questionnaire on their capabilities. Getting all the questions down on paper can help you compare specific vendors equally. At the end of the day, compensation management solutions look very similar; most salary planning tools look and act mostly like Microsoft Excel. Given the fact that most of the platforms have a similar look and feel, it can be difficult to determine the differences between the software platforms. Typically ongoing service and the ease of updating the software year over year are the major differences between vendors.
High level questions to consider before going to RFP
- When does the system need to be live
- How will the organization roll the system out
- Which pay programs do you want to automate in the tool (merit, bonus, STIP/LTIP, equity, stock, etc)
- What is your budget (implementation and annual ongoing fees)
High level questions to consider before going to RFP
- Does your system integrate with your other systems (payroll, HRIS, talent management, etc)
- How does your system handle a merit and/or bonus matrix
- What is your typical implementation time frame
- How do you handle pay programs other than merit and bonus (merit and bonus are usually the easiest to handle)
Most importantly, ask for references from the vendor. Typically you will learn more from a reference call than you will from reading through hundreds of questions on an RFP.