How Do I Vet an HR Vendor?

How Do I Vet an HR Vendor?

Selecting the right HR vendor can be a daunting task, so we asked CEOs, founders, and HR experts to share their best practices. From conducting thorough reference checks to researching past performance, discover the top seven ways these professionals recommend for vetting an HR vendor.

  • Conduct Thorough Reference Checks
  • Evaluate Compliance and Security
  • Seek External Help and Expertise
  • Assess Vendor’s Field Proficiency
  • Opt for a Trial Run
  • Examine Technology Stack
  • Research Past Performance

Conduct Thorough Reference Checks

One approach to vetting an HR vendor is to conduct thorough reference checks. By contacting the vendor’s current or previous clients, you can gather valuable insights about their experiences, satisfaction levels, and the vendor’s performance. 

Ask about the vendor’s responsiveness, ability to meet expectations, and the quality of their HR services or solutions. Inquire about their communication style, reliability, and overall professionalism. Reference checks provide firsthand feedback and help you assess the vendor’s credibility, reputation, and suitability for your specific HR needs.

Josh Amishav, Founder and CEO, Breachsense

Evaluate Compliance and Security

To ensure you select a reputable HR vendor, evaluate their compliance and security measures. Look for vendors that adhere to strict data security standards such as SOC 2, GDPR, or ISO 27001. 

Ask the vendor about their internal security protocols, including access controls, data encryption, and employee training programs. A vendor that employs rigorous compliance and security measures shows their commitment to protecting the sensitive HR data of your organization. 

Finally, request to review the vendor’s compliance and security documents, including their policies and audit reports. Only partner with a vendor that can show their ability to safeguard HR data effectively.

Jefferson McCall, Co-founder and HR Head, TechBullish

Seek External Help and Expertise

For some HR purchases, the ticket size is enormous enough to warrant some outside help and expertise to make a selection and vet the potential vendor. This is the process we used for finding a PEO. 

We knew we wanted a PEO, and we knew there were many options. Our PEO consultant created simplified proposals to help us deal with the tradeoffs, of which there are many. That expertise has a cost, but it is overwhelmed by the benefit of making the right and trusted decision.

Trevor Ewen, COO, QBench

Assess Vendor’s Field Proficiency

When vetting an HR vendor, a key aspect is evaluating their expertise in the field. Assessing their level of proficiency enables you to gauge their competency and make an informed decision. It would be best if you delved into their experience, qualifications, and accomplishments, analyzing their past endeavors and the clients they have served. 

Examining their standing within the industry is also important. It lets you gain valuable insights into their expertise and find out their capability to provide impactful HR solutions. 

By thoroughly evaluating their experience and qualifications, you can confidently select an HR vendor that aligns with your organizational requirements and exhibits a high level of expertise in their field.

Lev Berlin, CEO, ReciPal

Opt for a Trial Run

Vet an HR vendor by taking them for a “test drive”. Back in February 2021, I needed new HR software for my digital marketing business and I wasn’t sure which vendor to trust. 

I realized many vendors will provide a trial period or even a pilot project to showcase their capabilities. This way, I could assess their service quality, support responsiveness, and overall fit for my company firsthand. 

It allowed me to pick the right vendor confidently and helped me to understand the nuances of their offerings. Taking a trial run gives you a clearer idea of what you’re investing in and whether it aligns with your business needs.

Joe Troyer, CEO and Growth Advisor, Digital Triggers

Examine Technology Stack

When vetting an HR vendor, it’s crucial to pay close attention to their technology stack. Look for a vendor that offers a modern and flexible architecture that can easily integrate with your existing HR systems. 

A cloud-based platform that uses automation and AI to streamline HR processes can bring a host of benefits, including increased efficiency and accuracy. 

Make sure the vendor’s tech stack aligns with your specific needs and requirements, and select a provider with a track record of successful implementations and ongoing support to ensure a smooth and successful partnership.

Tarun Saha, Co-founder and CEO, StallionZo

Research Past Performance

When vetting an HR vendor, it’s crucial to go beyond their marketing claims and promises. A proven track record and past performance history can tell you a lot about the vendor’s ability to deliver on its promises. 

Ask for references from clients in your industry and talk to them about their experience with the vendor. Look for evidence of successful implementations, client retention rates, and the vendor’s commitment to addressing any issues or concerns. 

Research the vendor’s reputation in your industry by checking online reviews, trade publications, and industry associations. By doing your due diligence and thoroughly vetting the HR vendor, you can make confident and informed decisions about whom to partner with for your organization’s needs.

Basana Saha, Founder, KidsCareIdeas