Ask the Right Questions: How to Evaluate a Potential Partner
April 19, 2021
Working with a partner in business is essential for creating a thriving company. By harnessing each partner’s strengths and experience, companies and its leaders can pave the path to success. These partnerships, built on the foundation of common goals, lead to collaboration and innovation. As Helen Keller says, “Alone we can do so little; together we can do so much.”
However, choosing the right partner is not easy, and it involves a certain amount of risk. Performing a thorough review and evaluation is necessary to have the information you need to ensure a successful partnership.
Before looking for a partner, companies must be clear on the services and support they need. Having this clarity will pave the way for productive conversations and evaluations.
When looking for a partner in benefits administration, companies will want to find a partner who relieves the administrative burden for staff, accurately manages employee data, offers intuitive technology, establishes benefits expertise, and offers exceptional support. Liz Sheffield explains, “Outsourcing allows you to continue offering benefits as an essential part of your compensation package, while removing the labor-intensive elements of benefits administration so that you and your HR team can apply your talents to company-specific HR needs.”
To get you started on the right path, here are 10 questions to ask when evaluating a new vendor.
Top 10 Questions to Ask When Evaluating a New Vendor
- How long has the vendor been in business?
A company with a proven track record spanning a long period of time is a good indication that the business and leadership are solid and can withstand economic fluctuations. - How has the vendor helped companies like yours?
Every industry has unique challenges. Knowing that a vendor understands those challenges will give you confidence that they will be able to serve you. - What do the vendor’s references and customer reviews say about them?
Discovering the vendor’s reputation in the marketplace will give you a better feel of who they are. - Why do customers leave?
Learning the reasons that customers seek other solutions will help you determine if the vendor will be able to meet your own business requirements. - What job functions will the vendor be able to do for you?
When it comes to outsourcing business tasks, ensure the vendor’s system will be able to free up your time and resources in order for you to focus on other priorities. - What are the vendor’s limitations?
If a vendor is transparent about their solutions and limitations, it shows that you can build a strong partnership together. - What are the typical steps and timeframe of implementation?
When you understand the process of implementation, you will have realistic expectations of utilizing a new system. - How quickly will you see results?
Defining measurable outcomes will give you a clear picture of the results you can anticipate. - How does the vendor respond to issues?
Your time is valuable. Vendors who prioritize customer service will be quick to resolve issues and respond to your needs. - How frequently does the vendor improve their software?
Because of the rapid pace that regulatory changes occur, the vendor’s software will require regular updates. You’ll want to know if the vendor goes the extra mile to update and improve their software.