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Understanding Contract Lengths & Renewal Terms

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RFP Process for HR

  • Format: Self-paced
  • Course Duration: 1 hr 19 mins
  • SHRM Professional Development Credits: 1.25
  • HRCI General Recertification Credits: 1.25
  • Certificate of Completion (after passing quiz)

It’s Friday morning, the end of the work week. Imagine yourself sitting at your computer analyzing employee data. The software keeps crashing and it just doesn’t have the capability you need any longer. You have a big problem. What’s the solution? An RFP (Request for Proposal).

HR departments conduct RFPs regularly across a broad spectrum of HR functions such as benefits, compensation and recruitment with vendors who supply goods and services to support everyday business needs. This course will guide you through the often overwhelming yet rewarding process of implementing an RFP. It’ll show you how to conduct one from start to finish.

As an HR practitioner, you will eventually be involved or possibly manage an RFP process. The overall learning objective is to not only help you understand the process but also enable you to successfully lead it!

HR Jetpack is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1.25 PDCs for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit

This activity, has been approved for 1.25 HR (General) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at
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Title: Understanding Contract Lengths & Renewal Terms
Module: Identify the Purpose for Conducting the Specific RFP
Duration: 2:21

Unlike goods purchased, which are yours to keep, most services are on a specific term of service, usually specified by a single or multi-year contract. It is important for HR practitioners to understand these terms and partner with appropriate internal or external management to have complete clarity as to the terms they are bound by, usually you’d partner with purchasing management and/or legal.

Sometimes renewal terms can be broken with proper notice and occasionally without. Many organizations have pre-determined the maximum length of any service contract with renewal options.

In two of my prior organizations where I was the head of HR, we had a mandatory 3 year maximum and required RFPs on all renewals.

Sometimes, there are issues with services not provided to the expectation of the contract. This may lead to an early termination of services. However, you never want to leave your business in the lurch. So, you must be careful to plan a transition in these isolated situations including how you may be able to do an RFP off cycle. Or get a short-term provider without an RFP until one can be arranged.

For any contract that involves the sharing of employee data such as payroll, software and benefits contracts, it is important to specify who owns the information and access rights if a contract is terminated.

I had a situation once with a potential HRIS provider who did not have clear language about employee information, and I needed my legal department to sort it all out and get the language right. You need to know what you can do and what is better suited for a business partner.


Instructor: Mark Fogel

Mark S. Fogel, SHRM-SCP, SPHR, GPHR, is an educator working as a Senior Adjunct Professor of distinction at Adelphi University’s Business School. Mark leads HR classes for MBA and Undergrad students in Staffing, Selection, Compensation and Global disciplines. He has also presented over two dozen times at SHRM national, regional, and local conferences on a...

Mark's Full Bio

SHRM Recertification

HR Jetpack® is an official SHRM Education Partner recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP.

HRCI Recertification

HR Jetpack® is recognized by HRCI as an approved provider to offer credit hours towards aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification.

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