A guide to RFP for employee benefits

There was a time when issuing an RFP for employee benefits meant drowning in paperwork and technical jargon. Those days are behind us — but companies still approaching the process this way are missing out on transformative benefits packages their employees actually want.

The RFP process isn't just administrative busywork. It's your opportunity to reshape what your company offers and how it cares for its people. This approach acknowledges that your remote software developer might prioritize mental health support and flexible schedules, while your warehouse team might value comprehensive healthcare and retirement planning. Table stakes benefits packages simply don't work today.

This guide strips away the complexity of the RFP process and focuses on what matters. You'll get honest, practical advice about identifying your team's actual needs, crafting questions that get meaningful responses, and evaluating proposals without getting lost in the weeds. RFPs are all about maximizing the impact on your employees’ lives, and here’s how you can do that.

Key takeaways

• An RFP for employee benefits helps companies gather competitive proposals, assess providers, and design packages that fit diverse workforce needs.
• Key RFP components include company goals, scope of services, clear submission guidelines, and transparent evaluation criteria.
• Running an RFP gives access to more tailored, flexible, and cost-effective benefits solutions, plus insights into providers’ innovation and service quality.
• Preparation steps like internal needs assessments, stakeholder input, and budget planning ensure a smoother, more strategic RFP process.
• When evaluating responses, prioritize long-term value, service quality, and employee experience over just cost and vet provider fit carefully.
• Forma helps HR teams rethink benefits with flexible solutions like Lifestyle Spending Accounts and wellness stipends — <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">schedule a demo today</span>.

What is an RFP for employee benefits?

An RFP, or Request for Proposal, for employee benefits is a formal document that organizations use to invite benefits providers to bid for their business. It clearly outlines what the company needs — healthcare plans, lifestyle benefits, wellness programs, retirement options, or Lifestyle Spending Accounts — and asks vendors to explain how they would meet these requirements.

This process helps employers compare multiple providers side-by-side, ensuring they choose one that delivers the best mix of quality service, cost efficiency, flexibility, and regulatory compliance. A good RFP includes key details about the company's workforce, budget constraints, current benefits, and what the company wants to achieve.

Companies typically use RFPs when they need to find a new provider, add more benefits, or bring all benefits under one management system. Using an RFP creates a fair, competitive selection process that matches vendor capabilities with both employee needs and company goals. It's an essential step in creating an effective benefits strategy.

Key components of an employee benefits RFP

When creating an RFP, there are a few crucial components that ensure providers have all the information they need to submit a comprehensive proposal.

1. Company background and objectives

Start by providing an overview of your organization, including your industry, size, and any unique characteristics that may impact your benefits needs. This helps providers understand the context in which they would be working with you.

Next, clearly state your objectives for the RFP. What are you hoping to achieve by partnering with a new benefits provider? Are you looking to reduce costs, enhance employee satisfaction, or streamline administration? Defining your goals upfront sets the stage for the rest of the RFP.

2. Scope of services required

In this section, outline exactly what benefits and services your company needs. This could include health insurance plans, dental and vision coverage, wellness programs, retirement options, and any other offerings your employees value.

Be specific about what you're looking for. For instance, when requesting health insurance, clearly state what type of plan you want (like PPO or HMO), what coverage levels you need, and if you have preferred networks or providers. The more details you provide, the better providers can customize their proposals to fit your specific needs.

If your employees are seeking additional ways to save on healthcare costs, consider these top HSA accounts, which can help improve financial well-being while complementing your existing benefits.

3. Proposal submission guidelines

To ensure a smooth RFP process, provide clear guidelines for how providers should submit their proposals. This includes specifying the format (e.g., PDF, online form), page limits, and any required attachments, such as references or case studies.

To prevent delays in the whole process, set a deadline for when proposals are due and provide instructions for how to submit them. Include contact information for a designated point person who can answer any questions providers may have during the RFP process.

4. Evaluation criteria

Transparency is key in the RFP process. Let providers know how their proposals will be evaluated and what factors are most important to your decision-making process. This may include criteria like:

• Cost and value for money
• Quality and breadth of benefits offered
• Experience working with similar companies
• Technology and reporting capabilities
• Customer service and support

By sharing your evaluation criteria, you give providers a roadmap for what to focus on in their proposals. This leads to higher-quality responses that are more closely aligned with your needs and priorities.

Benefits of conducting an RFP for employee benefits

Conducting an RFP for employee benefits offers several advantages that can help you find the best solution for your organization. Here’s why this is an important step before you pick out a benefits provider.

Access to a wide range of solutions

RFPs give you the opportunity to explore a variety of benefits providers and compare their offerings side by side. This exposure to multiple options ensures you don't miss out on innovative solutions that could be a perfect fit for your company.

When you cast a wide net, you increase your chances of finding a provider that aligns with your unique needs and priorities. You may discover new benefits or services that you hadn't previously considered, but that could make a significant impact on employee satisfaction and well-being.

Customization and flexibility

An RFP allows you to communicate your specific requirements to potential providers, giving them the opportunity to propose a tailored solution. By clearly articulating your needs, you encourage providers to think creatively about how they can best serve your organization.

This customization can lead to a benefits package that truly reflects your company culture and values. Whether you're looking for a particular type of health plan, innovative wellness programs, or seamless integration with your existing HR systems, an RFP helps you find a provider that can adapt to your needs.

Competitive pricing

The RFP process creates healthy competition among providers, often leading to better pricing for your company. When vendors know they're competing against others for your business, they typically offer their most competitive rates and special discounts.

Remember that price shouldn't be your only consideration. An RFP lets you evaluate providers on multiple factors beyond cost, including quality and overall value. By looking at the complete picture, you can find a solution that gives you the best return on your investment, not just the lowest price tag.

Improved benefits quality

Conducting an RFP can help you identify providers that offer comprehensive and innovative benefits. You can evaluate proposals based on the breadth and depth of services offered, as well as the provider's track record of delivering high-quality solutions.

Look for providers that demonstrate a commitment to employee well-being through programs like mental health support, financial wellness education, and personalized health coaching. By prioritizing quality in your RFP, you can find a partner that will help you create a benefits package that truly supports and engages your workforce.

How to prepare for an employee benefits RFP

Before starting the RFP process, spend some time setting yourself up for success. Good preparation helps you identify the right benefits solutions for your organization and ensures the entire RFP process runs smoothly. Here are some preliminary steps to take to smoothen out the entire process.

Assess your current benefits program

Begin by taking a fresh look at what you're already offering. What benefits do your employees love? Where are they feeling frustrated or underserved? Gather real feedback through surveys, team discussions, or casual conversations to understand what actually matters to your people.

Watch for warning signs like benefits nobody uses, important coverage gaps, or offerings that made sense for your workforce five years ago but don't align with who you employ today. This honest assessment creates a clear roadmap for what you need to address in your RFP.

Define your benefits strategy and goals

Your benefits program should support your overall HR and business objectives. Consider how your benefits can help you attract and retain top talent, promote employee well-being, and drive engagement and productivity.

You should also set specific goals for your benefits RFP, such as reducing healthcare costs, enhancing mental health support, or introducing more flexible options. These goals will guide your evaluation of potential providers and ensure that your benefits align with your strategic priorities.

Gather stakeholder input

The RFP process should involve key stakeholders from across your organization. An RFP document should come from a collaboration with HR, finance, and other departments to understand their needs and constraints. Engage employees in the process through surveys or focus groups to gather their perspectives on current benefits and desired changes.

Involving stakeholders early on builds buy-in and ensures that your RFP reflects the diverse needs of your organization. It also helps you anticipate potential challenges and develop a more comprehensive approach to your benefits strategy.

Determine your budget and timeline

Before sending out your RFP, make your financial boundaries clear. How much can you realistically spend on employee benefits, and how does this investment support your broader HR strategy and business objectives? Remember to factor in both the obvious costs of the plans themselves and the hidden costs of managing and communicating about them.

Create a practical timeline for your entire RFP process. Mark important dates like when proposals are due, when you'll review them, and when you need the new benefits in place. Give vendors enough time to create thoughtful proposals, and give your team enough breathing room to properly compare options.

Being upfront about your budget and timeline in your RFP helps providers create proposals that actually fit your situation instead of generic responses. It also sets clear expectations for everyone involved and keeps the process moving toward a successful launch of your new benefits program.

Looking to implement an RFP? Download our free flexible benefits RFP toolkit here.

How to evaluate employee benefits RFP responses?

Once all the proposals land on your desk, it's time for the critical work of assessment. Carefully review each response to determine which provider truly aligns with what your company needs and what your employees value. Here are some things to remember when reviewing the responses.

Selecting the right employee benefits provider

After receiving all the proposals, you'll face the crucial decision of selecting your benefits partner. This choice extends well beyond comparing price tags and plan features; it's about finding a provider who truly understands your company's values and can become a trusted ally in supporting your employees' well-being for years to come.

Reflect your benefits philosophy

Your benefits program speaks volumes about what your company truly values. Find a provider whose philosophy resonates with yours and who can bring your benefits vision to life.

Does your organization champion work-life harmony? Look for a provider offering flexible options and robust mental health support. Have a diverse team? Partner with someone who understands different demographics and demonstrates a real commitment to health equity.

Create an experience employees actually love

The most impressive benefits package means nothing if your team finds it frustrating to use. Seek providers who deliver an experience so smooth that employees actually take advantage of what you're offering.

Evaluate real-world factors like how simple enrollment is, whether their mobile app actually works, and if employees can get personalized help when they need it. The right partner has proven they can communicate benefits clearly enough that people actually use them.

Make your HR team's life easier

Your benefits provider should lighten your HR team's load, not add to it. Look for partners who streamline administrative headaches and integrate seamlessly with your existing HR systems.

Prioritize features like automated eligibility management, real-time data sharing, and self-service tools that empower employees to find answers themselves. The right technology can free your HR team from manual tasks and let them focus on what really matters.

Build a partnership built to last

Choosing a benefits provider isn't a transaction — it's the beginning of a crucial relationship. Select a partner invested in your organization's long-term success, not just the initial sale.

Look at their client retention rates, how quickly they respond to needs, and whether they proactively manage accounts. The right partner provides ongoing support to help you continuously optimize your benefits program.

Also, consider their commitment to innovation. The benefits landscape constantly evolves, and you need a forward-thinking ally who keeps you ahead with fresh solutions and emerging technologies.

Are RFPs for employee benefits worth it?

Yes, RFPs for employee benefits are absolutely worth the time and effort. They create a structured, transparent process that helps companies make informed, strategic decisions when selecting a benefits partner. 

With the right RFP, employers can clearly define their needs, compare vendors on equal footing, and uncover the provider that offers the best combination of cost control, service quality, flexibility, and innovation. In the hiring industry, choosing the right benefits partner can directly impact employee satisfaction, retention, and your overall employer brand. A well-run RFP isn’t just about picking a vendor; it’s about building a long-term partnership that supports your workforce and business goals.

Forma is a third-party administrator designed for modern, forward-thinking companies. We specialize in flexible, employee-first benefits that scale globally and adapt to your team's unique needs. 

With our platform, you can offer Lifestyle Spending Accounts, wellness stipends, professional development funds, and more — all managed in one streamlined system. We handle the compliance, claims, and communication, so your HR team doesn’t have to.

Companies like Honda, lululemon, and Tripadvisor trust Forma to simplify their benefits strategy, boost engagement, and deliver real ROI. If you’re running an RFP, or just starting to rethink your benefits approach, we can help.