When organizations look to fill short-term or project-based roles quickly and compliantly, many turn to Employer of Record (EOR) vendors offering contingent workforce solutions. These services streamline onboarding, payroll, benefits, and compliance for temporary workers across the U.S.
But not every contingent EOR RFP gets answered. In fact, many vendors choose to walk away before even responding. Why?
The truth is, vendors assess RFPs carefully for viability and partnership potential. If yours is missing critical elements or imposes unfavorable conditions, it might go straight to the “no thanks” pile.
Here are the most common reasons contingent EOR vendors decline your RFP—and what you can do to keep them engaged.
1. You Don’t Clearly Articulate Volume and Spend Up Front
EOR vendors need to understand the scale of your contingent workforce needs—how many workers, where they’re located, for how long, and what kind of spend is projected. If your RFP is vague or noncommittal, vendors may not see enough opportunity to justify a response.
What to do instead: Even if you’re unsure of exact numbers, provide estimated headcount ranges and budget expectations by geography or business unit. Vendors want to know what they’re competing for.
2. You Don’t Guarantee Exclusivity
In the contingent space, many buyers shop their RFP to several vendors at once—with no promise of exclusivity or awarded headcount. That makes it difficult for EOR providers to forecast demand or prioritize your business.
What to do instead: Offer limited exclusivity (e.g., by region or role type), or commit to routing a percentage of contingent hires through the awarded vendor. Even partial guarantees increase vendor engagement.
3. You Impose Unnecessary and Restrictive Contract Terms
Lengthy, one-size-fits-all MSA terms—often borrowed from procurement or IT supplier contracts—can be overly burdensome in the context of contingent EOR. Clauses that don’t reflect the realities of employment risk, labor law, or co-employment can scare off vendors.
What to do instead: Work with your legal team to draft an agreement specific to contingent workforce services. Collaborate with vendors on mutual protections that balance compliance, risk, and practicality.
4. You Impose Extended Invoicing Terms
Contingent EOR vendors carry upfront costs: payroll, employer taxes, benefits, and insurance. When you require extended payment terms (e.g., net 60 or longer), you push significant cash flow burdens onto the vendor, which is especially challenging with high-volume or high-turnover roles.
What to do instead: Aim for net 15 or net 30 invoicing terms. If extended terms are non-negotiable, be ready to discuss escrow accounts, factoring programs, or financing arrangements.
5. You Impose Third-Party MSP Involvement
Managed Service Providers (MSPs) often add layers of complexity—introducing markups, platform fees, slow onboarding cycles, and limited access to hiring managers. Vendors may hesitate if an MSP is required, especially if past experiences suggest limited communication or excessive admin work.
What to do instead: Be clear about the MSP’s scope, fees, and expectations. If the MSP acts as a gatekeeper, ensure their process supports—not blocks—vendor success.
6. You Are Not Clear on Job Types
EOR providers need to understand the nature of the jobs they’ll support: Are these light industrial roles? Remote customer support? Healthcare contractors? Without clarity, vendors can’t assess risk, insurance needs, or pricing models accurately.
What to do instead: Include sample job descriptions, work environments (e.g., on-site vs. remote), required credentials, and typical pay rates. This builds confidence and helps vendors scope their response.
7. You Impose Incompatible Pricing Models
Some buyers demand flat-rate pricing or reverse auction bidding, regardless of job type, location, or risk profile. These approaches often ignore real labor costs and compliance overhead. For EOR vendors, that’s a signal that margin and service quality may be compromised.
What to do instead: Allow vendors to propose standard pricing models with justification. Consider cost-plus, tiered rates, or geographic differentials to reflect actual costs. Focus on total value—not just the lowest number.
Final Thoughts
RFPs for contingent EOR services are meant to help buyers evaluate the best partner—but they’re also how vendors assess you. If your RFP reads as one-sided, vague, or inflexible, vendors may opt out early—leaving you with fewer, less-qualified bidders.
To attract the best-fit EOR vendors, be transparent about your goals, provide realistic timelines and expectations, and structure your RFP around mutual value. Doing so won’t just get you more responses—it’ll help you build stronger, more reliable partnerships for your contingent workforce.
