A benefits broker request for proposal (RFP) can unlock crucial information about the employee benefits marketplace, your own total rewards offering, and the level of support your HR team could receive. But the RFP process can be time-consuming, confusing, and difficult — unless you’re well prepared. Here are four steps to get ready for a smooth RFP process.
Let’s be honest: The benefits broker RFP process stinks.
It’s time-consuming. It’s confusing. And it’s hard to tell when brokers are being genuine or simply trying to make the sale.
But it’s also worth it — because if there’s one business decision where you shouldn’t compromise, it’s on your employee benefits. And a great benefits offering starts with a great employee benefits broker.
So we’re making the RFP process easier. Nava Benefits recently teamed up with SHRM to share expert insights and guidance to make your RFP easy as ABC. Read on for key takeaways.
We know what you’re thinking. “I already have a broker — why would I go through the hassle?”
We’ll answer your question with another question: When was the last time you scoped out the benefits broker space? If it wasn’t in the last 2-3 years, you might be missing out on something big.
Here are just a few reasons why you might want to RFP:
“There's no one-size-fits-all solution when it comes to selecting benefits for your company,” Nava’s Senior Manager of People Operations, Ilana Mauskopf emphasized. “And it's one of the most important decision that an HR team owns. It's so important to have the right partner with you to help you navigate through this process. And therefore the RFP process is super critical.”
Benefits have taken on a new level of importance. But we don’t have to tell you that — you’ve probably heard it yourself from your employees. 43% of employees who left their jobs in 2021 cited benefits as a reason for their departure.
Plus, the benefits landscape is changing by the day. Every year, hundreds of new vendors are bringing innovative solutions to the table. It’s moving too fast for one HR leader to keep up with it.
At the same time, healthcare costs are skyrocketing for small to midsize businesses. In 2021, the average cost increase form SMBs was 9.6% — the highest in a decade.
“If you were ever to focus on a year where it is the time to really reevaluate and level up your benefits offering, this is the year,” Nava Benefits CEO Brandon Weber pointed out. “It's more material to retaining talent and keeping your workforce and your teams happy and productive.”
The stakes are higher than ever. And you’ll want a great partner in your corner as you move forward. Enter the RFP.
Here’s Ilana’s tried-and-true four-step process to go from zero to RFP.
What’s the ideal end game here? Are you getting a pulse check on the market? Are you hoping to find a new broker entirely? Or are you just seeing what’s out there?
The sooner you figure out your goals for the RFP, the easier it will be to develop a plan.
Start by talking to your leadership team to determine what matters most to them when selecting benefits. Try asking open-ended questions to get to the heart of their priorities.
Then define ownership. If you won’t be running the show here, who has the bandwidth to take the lead? You’ll want to take the guesswork out of the process with clearly defined ownership for each stage.
Before you can send the invitations to your party, you’ve got to make a guest list.
How many RFP responses will you need to be confident in your decisions? Based on feedback from our network, the sweet spot seems to be 3-5 brokers.
Be sure to do your research on who to include — and we recommend casting a wide net. Try asking around in your HR communities, dropping a message into some HR slack groups, and checking out who associations like SHRM recommend.
Eight weeks is all it takes. Here’s your week-by-week breakdown:
Yep, that’s it. It’ll go by faster than you think. And who knows — eight weeks from now, you could be rockin’ and rollin’ with a great new partner and a leveled-up benefits offering.
We get it — writing your RFP template is the hard part.
“We interact with hundreds of HR leaders and we kind of see the process over and over again,” Brandon said. “Copy and paste from the internet, Googling around for RFP questions, creating like a Frankenstein RFP document.”
Well, Franken-RFP no longer. Because we’ve been in the lab working on our own little experiment. and it’s ALIVE!
Here’s your own plug-and-play RFP template. We’ve gathered all the best questions to put brokers to the test and identify your ideal partner. Download your RFP here:
And it doesn’t stop there. Our RFP Roadmap includes all you need to know to make this process smooth and easy: your own plug-and-play RFP template, a sample timeline, a scoresheet, and expert insights from our Nava Benefits Advisory Board.
