Analysing the cost of HRIS systems
To calculate the cost of HRIS it is best to take a view of real-life projects and see some actual cost per employees.
The latest stats from Software Path, who studied 587 buyers in their 2022 report on purchasing HR software and cost of HRIS, suggest that the average cost of HRIS systems is around $12,625 (£9,306) for each user of an HRIS system ‒ or $210 per user per month (£154). Looking specifically at small companies of up to 49 employees, the average budget spend sits at around $6,000 per year (£4,422).
At People HR, we are transparent with our HR software pricing. We offer three different plans:
- Essentials
Essentials is our entry-level HR software solution, only £3 per employee per month that offers the core functionality SMB owners need at an affordable price. With HR essentials, SMBs can streamline their HR processes, manage employee data, and handle absence management with ease, all while keeping costs down.
- Professional
Professional is another low cost hr software option at just £5 per employee per month, and this offers everything you need to manage and engage people inhouse and remotely. It includes essential HR, employee self-service, absence management, the mobile HR app and e-signature for all documents. For many businesses, this is a great solution.
- Enterprise
At £7 per employee per month, the Enterprise package is used by growing businesses that are ready for recruitment and talent management in their HR software as the package contains everything in Professional, with added recruitment and applicant tracking, video recruiting, talent and performance management, and unlimited custom screens.
- Elite
Elite is our premium package, at £9 per employee per month, with the next level of customised automation to enhance strategic impact. Elite matches everything in Enterprise as well as custom automated workflows with Ripple®, Infograph designer, automated docs with E-Sign, custom benefit rules and custom automated alerts and tasks. In fact, People HR is the only provider that offers automation included in the cost at such a low price point ‒ perfect for SMEs.
To offer an HRIS software cost that’s appropriate for all businesses we have created these packages which feedback tells us are ideal for companies ranging from five employees to hundreds, with flexible pricing to suit your business needs.
HR software pricing for larger businesses
Whilst cost transparency will be important to you when looking at HR software pricing in order to help you manage budgets and build your business case, selecting a partner that can meet your needs now, and in the future should be a major consideration during your vendor comparison phase.
If you’re a larger or fast growing business with additional complexities, the immediate costs of new HR software should only be part of the picture.
Setting objectives for your new system, and understanding how you will measure return on investment will be important, and your HR software vendor should work with you from the start to ensure you can measure and achieve these goals.
For those larger and more complex organisations requiring significant flexibility, scalability and customisation from their HR software, a per user cost isn’t as easy to quantify without a more in-depth discussion about requirements. You don’t want to pay for what you won’t use – but equally, need to be reassured that your system is future-proofed and agile enough to scale with your organisation as it grows.
As part of the wider Access Group, we have alternative products and services that can support those organisations when the time is right. Our integrated HR software PeopleXD offers a modular or all-in-one HR system to help effectively manage core HR processes in one place. Importantly, you also get access to the tools needed to support strategic HR goals, like developing talent, succession planning, and driving engagement and recognition. With our enterprise , the cost is largely dependent on the modules taken and whether the standard or premium versions are required so that you’re only paying for what you need, when you need it.
You could also find our blog discussing what are the costs of HR systems in 2023? useful.
