Selecting the right benefits consultant can save your company thousands annually while improving employee satisfaction—but only if you solicit the right information upfront. A well-structured Request for Proposal (RFP) ensures you're comparing apples to apples and attracting consultants truly aligned with your needs. Here's what belongs in yours.
Why an RFP Matters for Benefits Consulting
Benefits consulting isn't commoditized. Two firms quoting on "benefits strategy" might deliver vastly different scopes: one handles plan design and compliance audits, another focuses solely on enrollment support. An RFP forces vendors to clarify exactly what they'll deliver, preventing scope creep and misalignment later.
Sending an RFP also signals professionalism. Serious consultants respect formal procurement processes and typically provide more detailed, thoughtful proposals than informal email quotes.
Core Information to Request
Company Background & Credentials
Ask consultants to provide:
- Years in business and experience size (total employees advised, industry specialization)
- Relevant certifications (CEBS, CCP, ASA for actuarial roles)
- Current client count and retention rate (anything below 85% raises flags)
- References from companies similar to yours in size and industry
Avoid vague responses. "20 years of experience" means little; "served 12 Fortune 500 manufacturers for an average of 8 years" tells you what you need to know.
Scope of Services
Specify what you actually need. Benefits consulting covers a wide range:
- Plan design and benchmarking
- Compliance audits and documentation review
- RFP management for carriers and third-party administrators (TPAs)
- Employee communication and enrollment support
- Wellness program strategy
- Leave administration consulting
- Mergers and acquisition benefits integration
- Ongoing strategy and annual renewal support
List each separately and ask vendors to confirm which they'll handle, who owns each task, and what the deliverable looks like.
Staffing & Account Management
Request an organizational chart showing who does what. Will a senior consultant lead your account, or will a junior associate handle day-to-day work with senior review? Ask for:
- Name and qualifications of your primary contact
- Backup support during absences
- How many accounts this person manages (fewer than 15 is ideal for dedicated attention)
- Whether account staffing can change mid-engagement
Consultants rotating out mid-project create real friction and knowledge loss.
Pricing & Timeline
Pricing Structure
Most benefits consultants use one of these models:
- Project-based fees ($3,000–$15,000+ for plan design; $2,000–$5,000 for enrollment support)
- Hourly retainers ($150–$400/hour depending on consultant level and region)
- Flat annual retainers ($5,000–$30,000+ for ongoing strategy)
- Commission-based (rare and often a conflict of interest)
Ask for a detailed cost breakdown tied to specific deliverables. "Design and implement benefits strategy" is too vague. "Conduct competitive plan analysis, present 3 renewal options with cost impact modeling, and manage carrier RFP process" is specific enough to price accurately.
Also clarify what's not included. Are travel costs billed separately? What about extra meetings beyond the proposal estimate?
Timeline Expectations
Request a proposed timeline with milestones. A typical benefits consulting engagement runs:
- Plan design: 8–12 weeks
- Carrier RFP: 6–10 weeks
- Annual renewal: 4–6 weeks
- Ongoing retainer: ongoing, with quarterly business reviews
Ask how quickly they can start and whether they have capacity for your timeline.
Process & Communication
Outline your decision-making process in the RFP itself. Specify:
- Your budget range (this filters unrealistic proposals)
- Decision timeline (e.g., "We'll make a decision by March 31")
- How many finalists you'll interview
- Whether presentations are required and what format
This clarity speeds up the process and prevents vendors from overselling during late-stage negotiations.
Red Flags to Watch
- Vague service descriptions or refusal to itemize costs
- Consultants who talk more about their process than your specific outcomes
- High turnover or unwillingness to name your account team
- No clear compliance expertise if you're mid-size or larger
- Consultants who push commission-based relationships
Frequently Asked Questions
Q: Should I ask about conflicts of interest with carriers and TPAs? Yes—always. Consultants who receive commissions from carriers may steer you toward products benefiting them, not your company. Ask directly: "Do you receive revenue from any of the carriers you recommend?"
Q: How many proposals should I request? Between three and five is ideal. Fewer limits your comparison; more becomes unwieldy to evaluate and your team burns out.
Q: Can I use the same consultant long-term, or should I rebid periodically? Partnerships work well, but rebidding every 3–5 years keeps your consultant sharp and ensures you're getting market rates.
Use Mercoly to compare and evaluate trusted Employee Benefits & Insurance Consulting providers side by side, saving time on research and vetting.