Must-have HRIS RFP template for small businesses in 2025

For small businesses, HR is often run by a single generalist—or split between a founder, office manager, or finance lead. As headcount grows, manual spreadsheets and lightweight payroll tools no longer cut it. PTO requests slip through the cracks, compliance tasks pile up, and employees don’t have one place to manage their information.

The right HRIS for small businesses should save time, keep you compliant, and provide a simple employee experience—without requiring a full HR department. It should be easy to implement, affordable to maintain, and powerful enough to manage payroll, benefits, and compliance as you grow.

This guide outlines the most important areas to evaluate when selecting HRIS software for small businesses, what best-in-class looks like, and the RFP questions to include in your process. Plus, we’ll include a free downloadable PDF so you can start evaluating vendors ASAP.

1. Employee system of record

Small businesses need one system of truth so that an address change, promotion, or new tax form doesn’t mean updating three separate systems. A modern HRIS keeps all employee data in sync with payroll and benefits, and gives employees self-service tools so they aren’t asking HR or finance for every change. 

Rippling’s employee graph ensures that every update flows instantly everywhere it needs to—without HR rework. When someone moves or gets promoted, those changes ripple across the entire HRIS automatically 

RFP questions to ask

• Can we easily import our current employee list from spreadsheets or a basic payroll tool?

• Does the system automatically update payroll and benefits when employee info changes?

• Can we create custom fields for certifications, licenses, or job codes specific to our business?

• Do role-based permissions make it easy to give managers access without exposing sensitive data?

• Do employees have a self-service portal or app to update info without contacting HR?

2. Onboarding and offboarding automation

At small businesses, HR doesn’t have time to manually set up every new hire. The HRIS should handle everything: collecting forms, setting up payroll and benefits, and provisioning access automatically. Offboarding should be just as smooth, generating final paychecks and turning off system access so nothing is missed.

Rippling automates both ends of the employee lifecycle, saving hours of manual admin per hire.

RFP questions to ask

• Can new hires complete all forms online before their first day (offer letters, tax forms, I-9)?

• Are payroll and benefits accounts automatically set up when a new hire is onboarded?

• Can onboarding checklists be pre-configured by role or department for repeatable use?

• Does the system generate final paychecks automatically for departing employees?

• Can access to company apps or email accounts be revoked automatically during offboarding?

3. Policies, approvals, and workflows

Most small businesses rely on ad hoc approvals over email or Slack. That doesn’t scale past 30–50 employees. 

A modern HRIS should let you set up workflows that route automatically—like PTO requests, policy sign-offs, or expense approvals—without needing IT. 

Rippling’s workflow engine lets small businesses configure approvals in minutes, and they update automatically as managers or teams change.

RFP questions to ask

• Can PTO requests be submitted and approved in the system instead of via email?

• Can we set up multi-step approvals for expenses or training without coding?

• Do workflows adjust automatically if a manager leaves or reporting lines change?

• Can reminders be sent to employees or managers when deadlines are missed?

• Are approvals logged so we can show proof for audits or disputes?

4. Compliance and document management

Small businesses often don’t have compliance expertise in-house. 

HRIS software should handle the basics automatically: I-9 and E-Verify, ACA and COBRA notices, and state-specific trainings. It should also make it easy to distribute and track documents like handbooks, NDAs, and safety policies. 

Rippling automates compliance checks, assigns the right documents by role or location, and tracks completions with e-signature.

RFP questions to ask

• Does the system support I-9, E-Verify, ACA, and COBRA compliance out of the box?

• Can we assign documents (like handbooks or safety policies) by role, department, or state?

• Do employees sign documents electronically, and are expirations tracked?

• Will the system alert us if we’re missing a required compliance document?

• What compliance certifications (SOC 2, ISO, GDPR) do you hold?

5. Reporting and insights

Small business leaders need answers without waiting on consultants: headcount, payroll costs, turnover, and compliance status. 

A good HRIS should provide simple dashboards and reports that can be pulled by a non-technical HR generalist or office manager. 

Rippling provides real-time reports for headcount, costs, and compliance, and exports easily into spreadsheets for board meetings or investor updates.

RFP questions to ask

• What reports are included (headcount, payroll costs, turnover, compliance)?

• Can a non-technical admin build and share reports without IT support?

• Can reports be segmented by department, location, or manager?

• Do you support simple exports into Excel, Google Sheets, or BI tools?

• How is sensitive data restricted in shared or exported reports?

How Rippling helps small businesses

Rippling HRIS is built to make life easier for small HR teams—or for the single HR generalist wearing every hat. With Rippling, all employee data lives in one place, flowing automatically into payroll, benefits, and IT systems. That means no more updating spreadsheets, chasing signatures, or manually fixing payroll deductions when employees change benefits.

Onboarding and offboarding are handled automatically: new hires complete forms digitally before day one, payroll and benefits are set up instantly, and final paychecks plus access removal happen automatically when someone leaves.

Rippling also keeps small businesses compliant by automating I-9, E-Verify, ACA, and COBRA workflows, assigning documents by role or location, and surfacing risks before they become fines. Employees get a modern self-service app to view pay stubs, update personal info, and request time off—reducing the constant stream of questions to HR.

And because Rippling unifies HR, payroll, time, and benefits, small businesses can save thousands by consolidating vendors, while cutting the hours spent on admin work by more than 40%. The system scales with you, so when you grow from 25 to 200 employees, you won’t need to rip and replace your HRIS.

With Rippling HRIS, small businesses can:

• Centralize HR, payroll, benefits, and time data in one system

• Automate onboarding and offboarding workflows, including final paychecks and access removal

• Configure PTO and expense approvals that adapt automatically as teams change

• Stay compliant with automated I-9, ACA, COBRA, and state-specific policies

• Empower employees with mobile self-service tools

• Generate real-time reports for board, investor, or lender updates

Rippling RFP for HRIS for small businesses example

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