How much does HR software cost?

How much does HR software cost?

18 May 2023

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Before you make the decision to invest in HR software, you’ve more than likely asked yourself “how much does HR software cost?” and it’s a good question to ask. When it comes to HR software, there’s a lot to think about and we understand that can cause a headache. That’s why we’ve put together this mini guide to HR software pricing.

Do your research

The marketplace for HR systems and HR software contains a vast array of products from a wide variety of suppliers. It is therefore really important before investing in the implementation of HR software that you do some research. Not all HR systems are the same as some are aimed at large companies and corporations and consequently come with a hefty price tag.

Other HR software however, is aimed at the SME market and still offer different features and functionality but are likely to be less complex and focus on streamlining and automating essential HR administration tasks. Those systems will have a lower pricing model given their target audience.

Understanding what the best system for your business is should therefore be the first step before you even consider price. It’s important not to get sucked in by features that look fancy but ultimately you’ll never need as that’s how prices can quickly ramp up. Establish what core functions you want your HR system to deliver and effectively use that as your shopping list.

How does HR software pricing work?

HR software pricing can vary wildly depending on the complexity of the system your business chooses. Some HR software providers will offer a core system which has a relatively low cost but will then try and entice businesses to use additional bolt-on modules with each one adding to the overall cost. If you’ve done your research as advised, you’ll know if any of these bolt-ons are actually going to be needed, or if they would simply be money down the drain.

You’ll also find that some suppliers charge an annual fee that is ascribed to “maintenance costs”, “server costs” or “development costs”. This approach is taken by providers across the wide spectrum of the marketplace and as a business owner who is keen to get value for money, it is vital that you are aware of such costs and don’t get caught out by them once you’re already signed up and committed. You should talk to providers about what you actually receive for these annual costs and then you can make an informed decision about if you believe them to be value for money or not.

Another typical HR software pricing model is to base at least part, if not all, of the system costs on the employee headcount of your business. Some HR system providers will look at employee headcount on a person by person basis, i.e. if you have eight staff, then you pay for eight staff. Other providers will set their HR system costs in headcount brackets, for example there will be a set cost if you have 1-5 staff, another if you have 6-15 staff and so on, and usually the overall cost per head will reduce incrementally the higher up the headcount brackets you go.

When you start to factor all of these extras in and look at different costing models, the price you originally thought you were going to pay has quickly disappeared and been replaced by something that might make your eyes water, so be prepared to read the small print.

HRX pricing

At HRX we don’t believe in over complicating things. First of all, our system is aimed at SMEs as we wanted to create a product that could make a real difference and which was accessible and affordable for all businesses no matter what their size or turnover. The functionality of the system means that it will save your business time and money by streamlining and automating time consuming day to day HR administration tasks.

HRX covers all the HR essentials and takes away those people headaches around booking and tracking holidays, managing and monitoring employee absence and staff documents. Our client testimonials show how happy our HRX users are and what a difference HRX makes to their businesses. We’re also committed to listening to customer feedback and adding new features that businesses actually want so that HRX becomes even better.

Our pricing is also easy to understand with no hidden extras and no annual fees. The system is intuitive and will add starters and remove leavers so that your monthly bill reflects the number of staff that you actually have using the system. We think that gives our customers peace of mind and genuine value for money.

Test out our software today

Be sure to sign up to our FREE 30 day trial today and see for yourself just how easy our software is to use and much time and money you’ll save from it. You can even contact our friendly team to arrange a 30 minute demo, or to ask any questions you may have.

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