A global payroll RFP is a request for proposal that defines what you’re looking for in a global payroll solution, giving payroll vendors what they need to submit a proposal that fits your needs.
What is included in a global payroll RFP?
By involving the right people and payroll vendors for your multinational business, you will be able to overhaul your payroll for the better. This process starts with drafting a global payroll RFP and finding a vendor that aligns best with your business’ needs and goals.
While this list isn’t exhaustive, a global payroll RFP should at least contain these key items to give payroll vendors as much information as possible about what you are looking for.
- Project overview
- Project goal
- Project scope
- Company background
- Timeline
- Vendor requirements
- Budget information
- Needs analysis
- Questions for potential vendors
With this high-level outline in mind, let’s get into the details of what the process of drafting a global payroll RFP entails.
Set clear global payroll goals
Don’t rush right into creating your global payroll RFP. Before you can create an effective RFP, you need to clearly define what you’re looking to accomplish.
For global payroll, you should look at metrics that indicate effectiveness, compliance, technology integration, data security, scalability and growth. Identifying your payroll pain points can also help you identify areas you’d like to improve.
Here are a few examples to get you started:
- Achieve a payroll error rate of less than 2%.
- Automate timekeeping records across the company, reducing manual labor costs by up to 20%.
- Integrate payroll and human resources data into a single enterprise application for real-time data reporting, better retention and more successful initiatives.
- Reduce non-compliance expenditures by 25%.
Outline your gaps and identify your needs
Once you have clear goals, your next step is to determine what capabilities you need from a vendor to achieve them. A common mistake that companies make is starting their payroll vendor search by looking at what’s available instead of what they need. This approach fails for two reasons:
- You come to the table prepared to compromise.
- It’s easy to get distracted by new and shiny features.
Instead, begin by gathering data and objectively assessing what is working with your current global payroll model and what’s not. Be realistic about your resources and capacity, then measure each activity against your goals to find opportunities for improvement. These opportunities become the services that the right payroll vendor can provide. You’ll need to detail them in your global payroll RFP.
Start drafting your global payroll RFP
Now, it’s time for the rubber to meet the road.
You’ve got goals for your global payroll operations, and you’ve figured out what you need from a vendor to achieve them. The next step is to use all this information to draft your global payroll RFP and begin the RFP process. Here are the main components that make up a global payroll RFP and what information you need to include in each one.
Project overview
The first component of an effective global payroll RFP is a clear and concise overview. It’s essentially the elevator pitch for the entire proposal and lets vendors quickly qualify or disqualify themselves.
The purpose of this section is to align with the right providers, taking the next steps only with those who might be a good fit. Try to be specific about what countries you need coverage in and whether you’re looking for centralized or decentralized payroll support. Tips for writing the project overview:
- Keep it short, stick to about 50 to 75 words or three to five sentences
- Spell out your main goal (i.e., exactly what you are looking to accomplish)
- Make sure this statement can stand alone and does not require context from other sections of the RFP
Project details
The next section of your global payroll RFP will expand on the information from the overview.
List out your specific goals, aiming for three to five specific and actionable goals. Clearly spell out the scope of the services you are looking for in a few paragraphs, using bulleted lists and subheadings to keep it readable.
Then, provide some context with some brief and relevant details about your company. This should include the size of your company, recent growth and plans for future growth, industry, services and specializations.
The logistics
In this section of your global payroll RFP, provide an overview of your anticipated timeline. Is this something that you need to get up and running as soon as possible or are you working with a one or two-year plan? There are vendors that can scale to fit either situation, but it is important to communicate your needs upfront.
Provide detailed budget information regarding how much you’re looking to spend and lay out any specific vendor requirements that are non-negotiable for you. If you have invested a lot of money into your current IT infrastructure, you may require a vendor that can provide integrations to match what you’re already using. Or it may be that you’d prefer a vendor that provides local assistance for your employees in each country that you operate in.
Vendor questions
Detailing your needs takes up about half of the global payroll RFP document.
The other half consists of a series of questions designed to pull the right information out of the vendor so that you can assess if they will be a good fit. Just like a job interview, these are open-ended questions that provide clues about values, priorities and behavior that are often hidden behind clever marketing language. Asking the right questions goes a long way in finding the right payroll vendor.
Compile a formal list of 8-12 vendor questions in your global payroll RFP that get at the heart of what it means to be your perfect partner. Here are some key topics to ask about along with some example questions you can use to get started:
- Business model
- How do you monitor compliance in different regions and countries?
- Who is your typical client?
- What is your pricing model, and what consitutues additional fees?
- Service model
- What are your functional areas of expertise?
- If my employees have questions about their benefits, who can they contact?
- How will your company handle payroll obligations during a major disruption?
- Willingness to customize solutions to your needs
- What reports do you provide with your services, and how long will it take to implement custom reporting?
- How long would it take to set up a new geographical area?
- Can you provide payments and payslips in local currencies and languages?
- Values
- How long is your average client relationship?
- How do you approach project management and client communication?
- How does your organization give back to or serve the community?
- Technology and integrations
- What integrations does your technology support?
- What steps do you take to ensure data security?
- How is your technology updated to match legal, regulatory or tax code changes?
Package and send
Once you’ve included all of the above information, it’s time to send your global payroll RFP to at least three shortlisted vendors on your list. Remember to package your global payroll RFP in a formatted, branded document for distribution. Then, all there’s left to do is wait for responses and send follow ups if needed.
Partner with global payroll experts
Drafting a global payroll RFP can feel overwhelming with so many factors to consider and research, but remember that this is your chance to make sure you’re getting the right payroll service for your business’ needs. Invest the time and effort to create an effective global payroll RFP now, and you’ll be more likely to end up with a highly successful payroll strategy and operation later.
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