Understanding HR software pricing: How much does it cost?

When it comes time for a business to evaluate and choose an HR software, the question of HR software pricing is bound to come up. Given the plethora of solutions available, each with their own pricing model and cost structure, choosing the best solution can feel like a daunting task. 

In this guide, we dive into the intricacies of HR software pricing models and explore the factors that influence costs and your final decision. We also provide some practical tips to help businesses in their search for a great solution.

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

What is HR software? 

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? 

Businesses today have a variety of options when it comes to HR software pricing models, and understanding these different models can help you make an informed decision about the best option for your team. 

The top HR software pricing models

We can broadly categorise HR software pricing into three primary types:

  1. Subscription-based: This model 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 or those anticipating growth.

  2. Perpetual licensing: In this model, businesses purchase a one-time licence to use the software indefinitely. Perpetual licensing may be cost-effective for businesses with stable requirements and minimal need for frequent updates.

  3. Pay-as-you-go: This model involves paying for software usage based on actual 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? 

As far as the price for our own HR software, we focus on two packages: 

  • Core

  • Core Pro 

Our Core package 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. 

Core Pro, on the other hand, 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. 

Additionally, teams can personalise their offering by gaining access to Personio Apps that complement our powerful Core offering to meet your exact needs, including Apps that cover areas like: 

  • Talent acquisition

  • Talent management 

  • Employee experience

  • And more being added all of the time… 

Pro tip: Personio also 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

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Key factors influencing HR Software Pricing

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 software

HR software pricing is only one piece of the equation. For your business to truly succeed, you need to make an informed decision that keeps in mind the following. 

The first is options. Whether you want to kick 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. 

Beyond understanding the full scope of any solution, here are some additional things to keep in mind 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 uplevel their people processes. Take a look through any of our recent customer success stories to see how we do it. 

Many businesses will prioritise their return on investment (ROI) when it comes to any sort of HR software pricing and decision making process. So, how can you prove the ROI of your next HR software choice? 

At Personio, 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 fact is that your ROI from HR software is going to come down to two things: 

  1. Your HR team using the software

  2. Your employees using the software

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 ROI from HR software 

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

  • 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.

Help your HRBP to unlock executive buy-in

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Download our HR Business Plan Template to help your HRBP pull together a plan that earns executive support.

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. 

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