How Much Does HR Software Cost?

Giving you a HRIS software cost benefit analysis, with the average prices of HR software and lifetime cost of the different system options.

hris cost

The short answer, the cost of human resources (HR) software will vary depending on your company’s exact needs and expected outcomes.

There are some free platforms out there that work for some companies. For most companies across a majority of industries, however, workable solutions will cost at least a little money. HR software systems can range from around $10 per user to tens of thousands of dollars for large scale enterprise implementations.

Key HR Software Cost Considerations

To take some of the guesswork out of finding your ideal HR software solution at a cost that fits your business budget, we’ve identified a few considerations that can impact your final decision.

HR Software Cost and Your Specific Needs

Before even considering how much you CAN pay for your HR solution, it’s imperative that you and your team understand the unique qualities, features, and capabilities your software solution needs to have. If mobile based access is just as important as desktop access, you may need to find a solution that puts a lens on mobile user experience first.

If your company’s industry requires specific reporting and feature benefits such as those often found within healthcare, construction, or nonprofit organizations, you may be required to find a cost efficient solution that prioritizes those unique benefits first.

The key here is not “settling” on a catch-all solution that may be the most cost effective. Instead, the goal is to uncover the right solution that fits your business’ unique needs.

Size of Your Company

Whether your business is large or small, there is an HRIS software solution that can fit your unique cost requirements and budgets. Some enterprise solutions offer benefits catering to large user bases with many unique and dynamic needs. Others may have just enough of today’s top requested features to get the job done for your small LLC or sole-proprietorship.

When it comes to the cost of your desired software solution, the user experience for the people who will be tasked with interacting and working within the platform should always be considered. Trying to save money at a large-scale enterprise using an HR solution that is meant for smaller startups and nonprofits can be incredibly tricky and hard to rollout.

Save your team and employees that hassle by choosing a scalable solution that fits your desired budget.

HR Software Payment Models

Another key element to consider when weighing the cost of your next HR software solution is in how you want to pay for it. While that may seem like an unimportant detail, finding a solution that aligns to your monthly, quarterly, or yearly budgetary planning helps ensure you don’t run into billing issues later on. This is especially important for small business owners.

While some human resource software solutions may charge monthly by active users, others may utilize one-time setup fees covering the majority of your direct needs. For larger companies and enterprises, this may make the most sense. However, if your department is relatively small, weighing those usage fees with the convenience of owning and controlling all of your data is a worthy conversation to have before you establish your final HR software budget.

Would you rather pay monthly dividing the cost out evenly across an entire year? Or would you rather pay annually or semi-annually? While the final cost may not be as significant as others for your business, answering these questions early on can help weed out the software solutions that don’t meet those specific criteria.

Contract Renewals, Software Updates

Finally, what do you expect to pay across the span of your HR solution’s life? Does the software you’ve identified have annual fee increases? Are new features that may come out in the future going to cost extra?

Sometimes, planning ahead for your business’ direct needs when it comes to software costs will enable you to identify potential issues. Whether you plan on growing 3x over the next 5 years or foresee a larger portion of your workforce using mobile time-entry features for example, placing those key understandings and solution needs in the spotlight now may help sway you from one solution to another even when cost is at a forefront.

The Cost of HR Software Depends on Your Needs

At the end of the day, the amount of budget you allocate for your HR software solution will most always align to that product’s total value to your company. Weighing the pros and cons of any solution out there should be your number one step to ensure the solution meets ALL of your specific needs.

Check out the HR Software software listings page to begin identifying the best HR software solution to meet your cost and functionality needs.

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