Talent Management

How much does HR software cost?

Published by in Talent Management

Let’s face it, knowing the price of something is hugely important.

Be it your home, your car, or your HR software.

Not knowing what HR software in particular may cost 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 help you determine 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

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 onetime implementation fees on top of this, and the per employee cost tends to go down as the number of total employees rises.

Price Range: Typically 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: Typically from $5-$20 per user per month.

HR software with this pricing model:

One-time payment

More common for enterprise or larger businesses, this model has you pay 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: Usually around $500-$10,000, with enterprise implementations getting into the $10,000-$100,000 range.

HR software with this pricing model:

But what about free software?

What if the price just isn’t right, no matter what the plan or the features offered? Luckily, there are lots of options for HR software on a tight budget. Your options for great but cheap HR software are:

  • Free: Meaning that the software is totally without cost, usually because of ad space or a nonprofit company focus
  • Open Source: Which indicates a software with open source code that you can download (and sometimes modify) for free, if you have a little tech know-how
  • Freemium: A term used to describe programs where the base software is free, but additional features and add-ons will cost you extra

If this is the model for you (or you’re interested in what your options are), check out our list of top 10 free and open source HR software. But beware, because even software that claims to be “free” can hide additional costs.

So how much does HR software cost?

At the end of the day, the cost of your software depends on what your company is like and what type of software plan works best for you. But hopefully now you feel a little more informed and able to make a great call on which plan fits your company the best.

Looking for more info on HR software pricing? Check out our awesome, easy, and totally free HR software pricing guide.

Got something to say? Any questions? Comment below or tweet me @CapterraHalden.

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

About the Author

Halden Ingwersen

Halden Ingwersen

Halden Ingwersen is a former Capterra analyst.


Comment by Divya Sankar on

We offer a simple, monthly licence fee based on the number of employees! and Free support ! check us out! https://www.myhrtoolkit.com/pricing/

Comment by Avani Sachdev on

Talent Pathway is an ATS System designed exclusively for Staffing Companies, Staffing firms, Employment Agencies, Staffing Vendors .

Comment by Francisco Lopez de Durana on

And, what about the software RRHH PEOPLE HCM ?

Comment by Shanae cooley on

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


Comment by Sat Sindhar on

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

Comment on this article:

Comment Guidelines:
All comments are moderated before publication and must meet our guidelines. Comments must be substantive, professional, and avoid self promotion. Moderators use discretion when approving comments.

For example, comments may not:
• Contain personal information like phone numbers or email addresses
• Be self-promotional or link to other websites
• Contain hateful or disparaging language
• Use fake names or spam content
Your privacy is important to us. Check out our Privacy Policy.