How much does HR software cost?

How much does HR software cost?
  1. ​How much does HR software cost?
  2. What is the right HR software for my business?
  3. Payment Models of HR Software
  4. What does the HR software budget include?
  5. ​What about free HR software?
  6. Summary

How much does HR software cost?

The cost of HR software depends on many factors. From the industry in which you work to the specific features, you want to get.

In addition to paid platforms, there are free platforms.

But they have their own nuances and not all platform approaches. We will also discuss them in more detail in this article.

If we talk about paid options, the HR systems can vary from $ 10 per user to $ tens of thousands if it is for example individual HR software for the corporation.

Therefore, in our article, you will learn more about the specifics of HR software pricing and what is needed to make the right choice of HR platform.

What is the right HR software for my business?

Regardless of software prices, it is important to have some basic goals and ideas about how HR software can help you accomplish these tasks. Here are some specific points to consider:

  • Size of your business

Whether your business is large or small, there is an HRIS software solution that can meet your unique requirements and cost budgets.

How many employees do you have? Since most HR software vendors charge a fee for one employee, it is important to know the number of people you plan to manage through HRIS.

It is only important to know that the attempt to centralize wages for 30 employees is much easier than the attempt to centralize the wage fund for 10 thousand people. Therefore, the functionality of the HR software will also vary. Some of these platforms are designed for small businesses and others for large businesses.

HR - software. You need to talk about these details with the managers of the companies which you choose HR - software.

  • Industry

Different programs are designed for different industries. Although some of them are adapted to all industries, it is still worth investing in software that specializes in your market sector.

For example, education companies have very different hour requirements for employees, holidays, interactive processes, etc.

Therefore, schools and educational institutions generally use narrow-profile HR software that meets these unique requirements.

Therefore, look for a platform that meets the requirements of HR management in your business industry.

  • Budget

As we already understand, software prices are very different. How much do you want to spend? You should understand how much money you are ready to invest in this product in advance.

In addition, many companies are often allowed to use their product for a month completely free. We are no exception. If you want to test HRIS for your company try our. Register and access a free demo - a month-long version of Brainy HR

Use the trial period of several platforms to compare them and choose the one that is ideal for your business.

  • Functionality

HR Software is a very broad term that covers a wide range of tasks. You need to know exactly what help you need.

Determine what exactly HR - software is in your business need to decide. And in accordance with these requirements, you can also choose the software from among others.

Because the cost of the software will also depend on what efficiency is needed.

Payment Models of HR Software

Another key element to consider when considering the cost of your selection of a specific HR software solution is how you want to pay for it. Although this may seem unhelpful, finding a solution that fits your monthly, quarterly, or annual budget planning helps ensure that you pay for your HR platform on time. This is especially important for small business owners.

How is it convenient to pay for HR-platform services?

Do you want to pay monthly or perhaps once a year?

Answer this question when you choose the appropriate HR platform. It will also help you remove software solutions that do not meet your specific requirements.

More common methods of payment for services of HR software.

  • 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 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: Typically from $1-$10 per employee per month.

  • 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.

  • One-time payment

This method is more common for corporations or large enterprises. In this model, you pay for the service once a year, according to the functions you used.

Price Range: Usually around $500-$10,000 per year

What does the HR software budget include?

The HRIS budget should include the cost of software, but should also take into account the additional cost of ownership of the HRIS system.

Other things to be included in the HRIS budget are:

  • Deployment—related costs
  • Labor costs for internal staff
  • Consulting services (if necessary)
  • Data cleansing and migration costs
  • System updates and maintenance
  • Personnel training costs.

1. Deployment costs. This includes software licensing costs, additional hardware or server space, and any additional software required to support your system.

2. Labor costs for internal staff. The time when your staff will choose a system, prepare for implementation, or with training or cleaning data, and the time they spend during implementation, must also be taken into account.

3. Consulting fees. If you need to hire a consultant during the selection or execution of works, it is necessary to take into account your official budget and include it in the total cost of ownership for HRIS.

4. Data cleansing and migration costs. This is especially important for large enterprises that consolidate their disparate systems. Someone needs to map the existing data from older systems to the new HRIS and make sure that the data is correct; it is a process that requires time but is important for the success and accuracy of your system.

5. System Update and Maintenance. Either from your own IT department that supports the system or pays for system upgrade if it is not included in the software price.

6. Personnel training costs. This includes the initial cost of user training provided either by the seller or by consultants, both through training materials and during staff training.

What about free HR software?

There are also variants of free HR - software. Of course, this will not be an individual variant specifically for your business and the list of functions but some needs can be closed by free HR - software.

Free services will be useful if you decided to try such a service for the first time and you are interested in how it works.

There are also three types of HR - software in this category:

  • Free

This means that the software is absolutely free. As a rule, this is done for the sake of advertising, and later when the service finds a large number of clients will be paid. But while it is free, you can take advantage of this feature.

  • Open Source

This 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.


The market of services has created all conditions for business. Now businesses of any size and industry can use at least the simplest HR system.

Now there is a huge variety and choice of HR - software and only you can make your choice according to your requirements and expectations.

To start with, you can use the free trial period of the platform which you like. If you like our platform and you want to try we also offer to register and use Brainy HR free of charge within 1 month.

You can start using other free HR platforms too. This will allow you to learn more about the types and functions of HR - software and make your final choice.

Technologies are your friends. Start working with automated assistants to be competitive and effective.

Today it is just a choice. But tomorrow - it will become a necessity

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