HR Software Pricing: How Much Is HR Software?

Task and Reminders Dashboard in HR Software

The problem with HR software pricing is that it often centres around costs and less on value. Given the sheer amount of solutions and options available, that kind of conversation can quickly lead to hasty decisions that don't future-proof your business.

In this guide, we wanted to change all of that. We wanted to dive into HR software pricing models and explore the factors that should influence your final decision. We also provide some practical, unbiased tips to help you in your search for the right solution.

How do you choose the best HR software for your needs? Download our guide for a helping hand.

What is HR software? 

personio hr software pricing
From onboarding to absences, and everything in between, Personio’s HR management system is trusted by 10,000+ companies to unlock the power of their people.

HR software is a digitised solution to help manage your people and help them do their best work. It does this by centralising important employee data, streamlining administrative tasks and granting time for more impactful projects. 

A great HR software will touch every stage of the employee lifecycle. This might include activities like: 

  • Sourcing and hiring top talent 

  • Streamlining the entire onboarding process

  • Running automated performance reviews and trainings 

  • Tracking, attendance and absences, company-wide 

  • Preparing payroll and running HR reports 

  • And much more…

How much does HR software cost? 

The fact is that an HR software can cost just about anything, and you can typically find any solution to fit your budget. Therefore, the question is far less about costs, but how those costs are structured. We can broadly categories across three types:


Perpetual licensing


This involves paying a recurring monthly or annual fee for access to the software and its updates. Subscription-based models offer flexibility and scalability, making them ideal for businesses with fluctuating needs.

Businesses purchase a one-time licence to use the software indefinitely. Perpetual licensing may be cost-effective for businesses with stable requirements and minimal-to-no need for updates.

This involves paying for software usage based on consumption, such as the number of users or the volume of transactions. Pay-as-you-go models are suitable for businesses with unpredictable usage patterns or those seeking to avoid upfront costs.

How much does Personio cost? 

personio ROI on pricing
Personio offers rapid ROI as an all-in-one solution that can help automate all of your HR work, not just some aspects of it.

The cost of an HR software like Personio focuses on flexible pricing that helps meet your needs wherever they stand. That relies on customisable plans and personalised support so that you enjoy impact faster and realise higher levels of ROI.

As far as Personio pricing is concerned, we offer two key packages:


Core Pro

A package that helps teams gain a single source of truth for all of their people data. It has everything from Digital Employee File Management to Absence Management and access to the Personio Marketplace of 200+ integrations.

An elevated package that allows teams to accelerate efficiency across an entire organisation. It includes access to all of the smart features of Core, without limits in terms of e-signatures and document management. 

Personio's pricing model is complemented by access to a selection of Apps that complement our powerful Core offering to meet your exact needs. This includes features that span various parts of the employee lifecycle, including:

  • Recruiting

  • Performance & Development

  • Surveys

  • Compensation

  • Whistleblowing

  • And more being added all of the time… 

Pro tip: Personio offers special pricing for nonprofits to help give them time to turn their organisation’s vision into a reality. Find out more by clicking here

10,000+ organisations trust Personio for this reason

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Which pricing model is best for your organisation?

There are a handful of key factors your organisation should keep in mind when it comes to choosing an HR software (and how much it will cost):

Features and functionality

Does an HR software have the right features your team needs today and for the future? Will their suite of functionalities grow with your needs and the needs of the HR industry? 

Number of users

The fact is that some HR software options don’t scale as well as others. Can your HR software scale with your headcount, and what effect might that have on price? 

Implementation and support 

Will your business need to prioritise implementation services, training and ongoing support? You should trust your HR software to help you in each regard. 

Cloud-based vs. on-premise

Cloud-based HR software typically has lower upfront costs but may involve recurring subscription fees. On-premise solutions require upfront hardware and software purchases but may offer more flexibility and control – the important thing is to make an informed choice. 

Best practices for choosing a new HR system

personio pricing and implementation
Changing HR system shouldn’t take long – Personio is ready to use within four to five weeks.

The price of your software is only one part of the equation. For your organisation to truly succeed, you need to think about the value you're getting back for your software.

If the fact remains that you can find any solution to match your budget, the best guidance is to ensure the solution you do choose helps future-proof your business.

Key insight: The biggest risk is the cost of switching solutions that are no longer fit for purpose of serving your teams. Moving that data and those processes is cumbersome, disruptive and bad for business.

That in mind, here are some things to keep in consider while making your decision…  

  1. Pricing models: Assess the suitability of subscription-based, perpetual licensing or pay-as-you-go models based on your budget and usage patterns.

  2. Integration capabilities: Ensure the software integrates seamlessly with existing third-party applications to streamline operations.

  3. Scalability and future-proofing: Choose a solution that can accommodate future growth without requiring expensive upgrades or migrations.

  4. Customer success stories: Select a solution that has a proven track record of providing high-quality support and long-term success. 

Pro tip: Over 10,000 organisations across Europe, including many in the United Kingdom and Ireland, trust Personio to up-level their people processes. Take a look through any of our recent customer success stories to see how we do it. 

Next: Consider kicking off a free trial to do some exploring for yourself, or book a demonstration to see the product in action. A truly great HR software will allow you to do either, or both, as needed. 

Which questions come up during HR software pricing?

If you're in conversation with an HR software provider, you may need to be prepared to answer some questions about your business and your needs. To have the best conversation possible, we'd consider knowing the following:

  • Which features are most important to you and your organisation?

  • How important is data security and compliance to your organisation?

  • In what ways do you plan to grow your organisation in the future?

  • What is your headcount today and how do you expect it to grow or change?

  • Does the quality of implementation and support matter to your team?

  • Can your next HR software integrate well with other solutions?

These are just some of the most important questions we hear from our customers on a daily basis. To have you feeling as prepared as possible, we'd recommend knowing what matters to your organisation beyond knowing your budget.

How do you get ROI from HR software?

Many wonder whether an HR software of HRIS is cost effective. That comes down to a question of return on investment, and whether it's truly worth investing in an HR solution in the first place. We're here to tell you that it depends on the solution you choose.

At Personio, for example, nearly 60% of our customers see their return on investment realised within the first year of using our software (based on reports from G2). A lot of that is based on adoption, with 86% of HR managers using Personio daily. 

The ROI on an HRIS relies on two things:

HR Usage

Employee Adoption

An HR software needs to be vetted by your HR team to suit their day-to-day work and future plans. This will inevitably help your business realise ROI through practical use and strategic initiatives that benefit your bottom line.

A return is impossible without employees logging in to your HR software to complete their tasks. This is where employee self-service (ESS) plays a key role to save time and increase productivity rates for ROI.

Building on that, your HR team will want to be able to generate reports, run automated processes (like performance reviews) and build out initiatives that can help them make a real impact for your business. 

Your employees, on the other hand, will want an easy-to-use software that helps them track time, request absences, change their data (like when they move or get married) and collect feedback from their peers. 

Bottom line: ROI is a relative topic for any business. To understand what makes the most sense for you, you need a solution that has multiple options but relies on maximum adoption. That starts with getting the basics down pat.

How to maximise your investment in HR software

To optimise the value of an investment in the price of an HR software, businesses should consider some of the following: 

  • Choose a cloud-based solution: Cloud-based HR software eliminates the need for hardware and IT infrastructure investments, reducing upfront costs and simplifying maintenance.

  • Select user-friendly interfaces: Easy-to-use interfaces enhance employee adoption and productivity, maximising the software's impact.

  • Utilise automation and reporting tools: Automation streamlines workflows, while reporting tools provide valuable insights for decision-making.

  • Prioritise customer support: Adequate customer support, in your timezone, ensures prompt resolution of issues and minimises downtime.

  • Consider long-term ROI: Evaluate software investments based on their long-term ROI, factoring in future growth plans.

HR software pricing: One piece of the puzzle 

personio hr software pricing
Personio's all-in-one HR software offers a host of features to optimise every element of your organisation's people work.

The price of your HR software needs to match the impact it can have on your people, your HR team and your business. That requires having an eye toward features, functionality, usability and return on investment. 

At Personio, we focus on all of those things – and more. Our track record of helping 10,000+ organisations streamline their HR work is proof that we are focused on truly unlocking the power of your people. 

Speak with an expert today to see how we can help your team. We can talk you through the features we offer, the packages we can put together, while answering any of your top questions. 

14 days of Personio. HR solved.

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