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How much does HR software cost?

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No one likes used car salesmen.

They’re sleazy, annoying, and dishonest.

car used salesperson selling old car as brand new  typical topic

But according to research from Edmunds.com, the number one complaint from car buyers is not the pushy nature of car salesmen, or that they use too much hair gel, but instead that the car shopper couldn’t get a real price for the car they were interested in.

In fact, 54% of car buyers couldn’t get a straight answer about price when they asked for it.

This frustration may be the real root of the dislike for used car salesmen because, let’s face it, knowing the price of something is hugely important.

The same is true of HR software.

Not knowing what it may cost you is frustrating.  Not to mention it makes it difficult to budget for your business or department.

Below is a rough guide to how much HR software costs.  It won’t give you exact prices for each and every software vendor, because human resource software pricing varies so much, but it will give you a foundation for determining a range of what you can expect to pay within the major pricing models.  Understanding this before you pick a software product will let you determine if a vendor is way above or below what’s typical.

Pay-per-employee-per-month

This is far-and-away the most popular pricing model out there (by almost four to one).  With so many SaaS HR products on the market it’s an easy one to adopt.  In this model you’re expected to pay a monthly fee for each employee in your organization, whether they use the software or not.  Occasionally there are one time implementation fees on top of this, and the per employee cost tends to go down as the number of total employees rises.

Price Range: From $1-$10 per employee per month.

HR software with this pricing model:

Pay-per-user-per-month

The next most typical pricing model in HR software, with this scheme you pay a monthly fee only for administrative users of the software, not all employees.  Be careful here, though, as sometimes a vendor will say “users” when they really mean “all employees,” particularly when they offer an employee self-service portal that turns employees into “users” of the software.  As above, there can be one-time implementation fees with this model.

Price Range: From $5-$20 per user per month.

HR software with this pricing model:

One-time payment

More common for enterprise or larger offerings, this model has you paying a larger lump sum upfront, often based on the features you need (usually following a tiered structure) and sometimes also based on company size.  This model can come with an annual support fee (often optional) or a la carte add-ons for purchase.

Price Range: Around $500-$10,000, with enterprise implementations getting into the $10,000-$100,000 range.

HR software with this pricing model:

Bonus pricing model:

There are several HR software offerings out there using a free, open source, or freemium model, though many are limited by the size of your organization, or the tech-savviness of your employees.

Others?

Have you encountered any other HR software pricing models out there?  Add them in the comments!

Looking for Human Resource software? Check out Capterra's list of the best Human Resource software solutions.

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About the Author

JP Medved

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J.P. currently works as a Content Editor at Capterra, a privately held technology and online media company focused on bringing together buyers and sellers of business software. He is a graduate of Georgetown University where he founded The Georgetown Federalist. Follow him on Twitter at @rizzleJPizzle.

Comments

Hey guys, you missed out People, http://www.peoplehr.com/price.html

Zenefits :)- No cost and as secure as a Bank!

And, what about the software RRHH PEOPLE HCM ?

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