How Much Does HR Software Cost: Decoding the Price Tag

The global HR market is expected to reach approximately USD 56.15 billion by 2030.

~ Report of Research and Markets

With this rapid growth, many HR software options are appearing with different price ranges. The range can be a few bucks to thousands. It mainly depends on your company’s size, feature requirements, software deployment type, etc.

In this guide, I’ve discussed the price ranges of 8 different HR software types. Also, I’ve covered the HR pricing models and cost-affecting factors to help your organization choose the right one!

Understanding HR Software Cost Structures

First, you need to understand the cost structures to figure out HR software price variations. Here’s a quick breakdown of some common cost structures of HR software in the market:

✅ Subscription-Based Pricing

The subscription-based strategy is a popular HR software pricing model. You need to pay a recurring fee at regular intervals, often monthly or annually. 

This approach offers flexibility and scalability for large-size companies. Also, small companies can adjust their usage and costs based on their needs.

✅ Per-User Pricing

The per-user pricing model charges organizations based on the number of users or employees accessing the HR software. 

This model is particularly beneficial for companies of varying sizes. Plus, it helps to align costs with the workforce scale.

✅ Module-Based Pricing

HR software often comes with a suite of modules for different HR functions. Module-based pricing is mainly developed for this aspect.

You can choose and pay only for the specific modules of your company. It can be payroll, performance management, or recruitment. This HR software pricing model is helpful to avoid unnecessary expenses on features that may not be relevant.

✅ Custom Pricing

For businesses with unique requirements or larger enterprises, you can choose custom pricing models. Many HR software offers custom pricing with personalized features, integrations, and services.

✅  Additional Cost

Beyond the core pricing models, there might be some additional changes to the HR software price range. These can include:

• Training costs
• Installation costs
• Support and maintenance costs, etc.

How Much Does HR Software Cost: Comprehensive Guide

HR software costs around $12,625 per user each year, or about $210 per user per month ~ Report of Software Path

In this section, I’ve explained how much HR software costs with various types. As a result, you will be able to choose the suitable one based on your organization’s needs and budget constraints.

For a quick overview, I’ve made a summary table outlining the price ranges for each type of HR software: 

HR Software	Pricing Range (per user/month – yearly)
Talent Acquisition Software	$10 –  $5500
Applicant Tracking System	$3 – $500
Onboarding Software	$7- $4,000
Performance Management Software	$4 – $5,000
Payroll Software	$6 – $650
Learning Management System	$69 – $2500
Employee Engagement Software	$3 – $8000
HRIS Software	$3 – $10000

❗ Important Note: Each type of HR software may offer multiple features. I’ve classified them by highlighting their key properties. The price range of the following categories may not be for one attribute, sometimes it’s for the entire software. 

Besides, custom plans or enterprise plans are Quote-based for most of the HR software. ❗

1️⃣ Talent Acquisition HR Software

Talent Acquisition Software is designed to automate the recruitment process. This software is used for sourcing candidates, interviewing, and hiring activities.

Key Features:

• Job posting and distribution
• Candidate assessment tools
• Interview scheduling and management
• Analytics for recruitment insights

💰 Talent Acquisition HR Software Cost

Talent acquisition HR software price range typically starts from $10 per user/month to $5500 per yearly payment.

💡 HR software examples with this pricing model:

• GaggleAMP
• Lever
• Workday Recruiting
• JazzHR
• Breezy HR

 2️⃣ Applicant Tracking System (ATS)

An Applicant Tracking System (ATS) HR software focuses on managing and tracking job applications throughout the recruitment process.

Key Features:

• Resume parsing and storage
• Workflow tracking
• Communication and feedback features

💰 Applicant Tracking System HR Software Cost

For an ATS-included HR software system, you may need to spend around $3– $165/month per employee to more than $500 for yearly plans.

However, few HR software e.g.  MightyRecruiter offers FREE ATS system with other premium features.

💡HR software examples with this pricing model:

• BambooHR
• ClickUp
• Jobvite
• Recruit CRM 
• MightyRecruiter

3️⃣ Onboarding HR Software

For smooth integration, transition, and efficient orientation process of new hires, onboarding HR software is the solution.

Key Features:

• Digital document submission and verification
• Task automation for onboarding processes
• Employee training and orientation modules

💰 Onboarding HR Software Pricing

Onboarding HR software pricing is between $7-$9 per month/employee. For monthly plans, onboarding HR software pricing is around $49-$200/month. 

If you require to onboard 5k+ employees per month, your expenditure will be $3,500-$4000 (approx.).

💡HR software examples with this pricing model:

• BambooHR (also includes onboarding features)
• Namely
• Paycor
• WorkBright
• Zenefits

4️⃣ Performance Management HR Software

When a company needs to focus on enhancing employee performance, it must invest in performance management HR software.

Key Features:

• Goal setting and tracking
• Performance reviews
• 360-degree feedback
• Employee development and training plans
• Performance analytics and reporting

💰 Performance Management HR Software Price Range

The cost of the performance management HR software is around $4 per month or $5,000 per year.

💡HR software examples with this pricing model:

• 15Five
• Lattice
• BambooHR (also includes performance management features)
• Engagedly
• PerformYard

5️⃣ Payroll HR Software

Payroll HR Software automates and manages salary calculations, tax deductions, and employee payments for efficient payroll processing in organizations.

Key Features:

• Payroll processing and tax calculations
• Employee self-service for pay information
• Compliance tracking
• Time and attendance integration
• Reporting and analytics

💰 Payroll HR Software Cost

Payroll HR software pricing range typically starts from $6 to $650 per monthly user. For enterprise-scale companies, can choose custom pricing models as well. 

💡HR software examples with this pricing model:

• Gusto
• Onpay
• Papaya Global
• Oyster
• Zenefits (also includes payroll features)

 👉 Learn more: 7 Best HR Software for Payroll

 6️⃣ Learning Management System (LMS)

A Learning Management System (LMS) is used for employee training and development. It can be via online courses, workshops, skill-building programs, and more.

Key Features:

• Course creation and management
• Employee progress tracking
• Certification and compliance tracking
• Integration with content libraries
• Reporting and analytics

💰 LMS HR Software Price Range

The LMS HR Software is priced competitively from $69 per month to $2,500 per year.

💡HR software examples with this pricing model:

• Moodle
• Cornerstone OnDemand
• TalentLMS
• Docebo
• Adobe Captivate Prime

 7️⃣ Employee Engagement HR Software

To ensure a positive work culture, employee satisfaction, productivity, and overall job satisfaction, Employee Engagement HR software is crucial.

Key Features:

• Employee surveys and feedback tools
• Recognition and reward systems
• Communication and collaboration features
• Performance Analytics
• Employee well-being initiatives

💰 Employee Engagement HR Software Cost

The cost of employee engagement HR software starts from $3 per employee per month. It can be varied to an annual fee of $8,000 based on diverse organizational sizes and requirements.

💡HR software examples with this pricing model:

• TINYpulse
• Bonusly
• WorkTango
• Glint 
• 15Five (also includes employee engagement features)

8️⃣ HRIS (Human Resource Information System) Software

HRIS software serves as the backbone of HR operations. You can use HRIS to manage your entire workplace and employee functions.

It includes integrating various functions such as payroll processing, benefits administration, compliance management, and so on!

Key Features:

• Employee database management
• Payroll processing and tax management
• Benefits administration and enrollment
• Time and attendance tracking
• Reporting and analytics for workforce insights

💰 HRIS Software Price Range

HRIS software prices typically range from $3 to $8 per employee per month. The starting base price ranges from $35 to $99/month and over $10000/year.

In addition, some HRIS software providers, like BambooHR, offer a flat rate for businesses with fewer than 25 employees.

💡HR software examples with this pricing model:

• BambooHR
• Workday
• Rippling
• Deel
• Monday.Com HR

Do you know how much companies invest in HR software? 🤔
Check this guide on ➡ How Much Do Companies Spend on HR Software: Expense vs ROI

Cost Breakdown: Factors Affecting HR Software Costs

Recent research shows that the return on investment (ROI) for HR software in a 1,000-person company typically ranges from 30% to 150% over three years. So, investing in HR software is worth it!

However, you should understand the influencing factors for HR software pricing. It’ll help you to choose the right HR software for your organization.

Let’s explore the HR software cost-affecting factors:

 1. Company Size and Scale

The size and scale of an organization have a direct impact on HR software costs. For example, a small business with 10-20 workers might pay $300 to $600 each month for basic HR software.

On the other hand, a company with 1,000 workers needs to expend around $10,000 each month for a complete HR system to handle its large workforce and more complex needs.

2. Customization Requirements

The need for customization in HR software can also affect its cost. For example, a software company might need HR software that integrates smoothly with its project management tools.

This scenario can be different for a textile company. It may require features tailored for shift scheduling and inventory tracking. These specific features need extra development efforts by the provider and impact the cost of HR software.

3. Deployment Options

Deployment options in HR software, such as cloud-based or on-premises solutions, also influence costs. A small startup can choose cloud-based HR software to avoid significant upfront costs and benefit from scalability.

In contrast, a large corporation with complex security requirements can prefer an on-premises solution. It will effectively help them to maintain full control over data and compliance.

4. Additional Features and Integrations

The inclusion of additional features and integrations in HR software can significantly affect its price range.

For instance, HR software offering advanced analytics, AI-driven insights, or integrations with third-party platforms definitely comes at a higher price point compared to basic HR solutions

5. Vendor Reputation and Support

HR software price range also depends on the vendor’s reputation and the level of support they offer.

In general, established vendors with a strong track record charge higher prices due to their reputation for reliability and quality service. Their quality services can include ongoing support, regular updates, integration, and other additional operations.

📢 For more tips, check out this blog – How To Manage Human Resources Effectively: 5 Best HR Tools and Tips

Final Words

The cost of HR software varies from $3 per user/month to $10,000+ for yearly purchases. 

As I’ve broken down HR software costs across various categories, hopefully, the question “How much does HR software cost?” is clear now. 

Just keep in mind the pricing structures, and influenced factors when choosing the right one for your organization. 

If you have any questions or suggestions, don’t hesitate to comment below.

Stay tuned!