HR software pricing: 2024 industry overview
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Published 7:22 a.m. UTC April 15, 2024
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Human resources (HR) software helps businesses manage employees and their data, assisting with tasks such as hiring, onboarding, time tracking, performance reviews and more. Most can also integrate with other software, including project management platforms.
While there are free HR software solutions on the market, you can expect to pay anywhere from $4 to more than $1,000 per month for a subscription-based platform. Generally, the more you pay, the more features and functionality you get.
In this guide, we compare the HR software pricing of some of the most popular HR management systems, so you can decide which one is best for your business.
Featured payroll software offers
OnPay
Monthly fee
$40 per month plus $6 per employee
Direct deposit
Yes
Rippling
Monthly fee
$35 per month + $8 per user
Direct deposit
Yes
Gusto
Monthly fee
Starting at $40 plus $6 per month per employee
Direct deposit
Yes
SurePayroll
Monthly fee
$29.99 per month plus $5 per employee
Direct deposit
Yes
HR software pricing factors
Several factors influence the cost of HR software, including the number of employees and features. Prioritizing what’s important can help reduce costs, but some factors will be out of your control.
Here’s what to consider when deciding which HR management system is right for your business.
- Company size. The more users that need access to the software, the more you’ll pay. Similarly, HR providers usually charge more based on the number of employees that need to be tracked. However, some providers do offer a discount to large companies with high-volume payroll needs.
- Features and functionality. Costs increase for more features and advanced features like AI-generated projections. On the other hand, some providers offer free versions of their software that have minimal features.
- Customization. You’ll pay extra for a custom solution that takes the provider time to develop. Then, you’ll need to budget extra funds for the provider to review the customization and ensure it will be compatible with any updates to the software.
- Integration and implementation. Anything more than installing the HR software will cost extra, including moving data from an old system to the new one (data migration) and making the new software work with existing software (integration), such as project management software. Onsite training of your staff on how to use the software generally costs more, too.
- Customer support. Generally, free versions offer little or no customer support, while higher-priced software solutions provide access to live chat or phone support. Other help, like training, usually comes at an additional charge.
- Pricing model. You can pay for HR software on a subscription basis or purchase it outright. The subscription model can be more expensive as your company grows, but with purchased software, you will need to fork over for updates.
- Payment type. Providers give discounts to businesses willing to pay annually for their software subscription instead of on a monthly basis. Additionally, you’ll generally pay less if you sign a multi-year contract.
How are HR software pricing plans structured?
There are two main HR software pricing plans: subscription and perpetual license. The best option for your business will depend on your budget, the size of your company, security concerns and how much support you need.
Subscription
The most common HR software pricing plan is subscription. Under this pricing structure, businesses pay a monthly or annual fee — based on the number of users, features, and level of support — to access the software on the cloud.
Most subscription plans also offer tiered packages, starting with a low-cost, basic version of the platform. At each additional level, the number of features and services increases along with the price.
Some software providers have a free version, too. While potentially good for very small companies, these “freemium” options have limited HR tools and are designed to provide just enough functionality to entice you to upgrade to a paid version. Even if you can get by on the free version’s features, you will likely need to upgrade to get more seats and accommodate more employees as your company grows.
Because subscription plans are cloud-based, they are a good option for businesses that don’t want to host or manage their own data. Another advantage of cloud-based subscription plans is that they automatically update when a new version is available.
Perpetual license
With perpetual licensing, businesses pay for the software upfront and host it on their own servers. The HR software pricing plan may come in the form of a one-time fee or an annual subscription that includes maintenance and support fees. Depending on the provider, you may have the option to purchase add-ons or customize the software to meet your needs for an additional charge.
Perpetual licensing is usually best for large companies concerned about data security. Since the information is hosted on their internal servers, large companies can control the measures taken to keep data safe.
However, because the software provider doesn’t know the company’s servers or IT setup, it can only give minimal tech support. The company also will need to install updates and perform the maintenance a provider normally would for a subscription platform.
How much does HR software cost?
You can find no-cost “freemium” HR software with basic features, but these often limit the number of platform users and the number of employees you can service. For a comprehensive solution, expect to pay anywhere from a few dollars per month to more than $1,000 per month.
The wide range in HR software pricing depends on the features and functionality, size of your company, customization and other factors noted above. Most HR software platforms also give a discount if you pay annually instead of per month.
Top HR software pricing examples
| Starting price per month | Live chat | Payroll | Time tracking | Applicant tracking | E-signature | |
|---|---|---|---|---|---|---|
Monday.com
| $0
| No
| No
| Yes, with Pro and Enterprise
| Yes
| With plugin
|
ClickUp
| $0
| Yes
| No
| Yes, with paid plans
| With plugin
| With plugin
|
GoCo
| $5
| Yes
| Yes
| Yes
| With plugin
| Yes
|
Rippling
| $8
| No
| Yes
| Yes
| Yes
| Yes
|
15Five
| $4
| Yes
| With plugin
| No
| No
| No
|
TriNet (formerly Zenefits)
| $10
| No
| With Zen plan
| Yes
| Extra charge
| Yes
|
Namely
| $9
| No
| Yes
| Yes, with higher tiers
| Yes, with higher tiers
| Yes, with higher tiers
|
SAP SuccessFactors
| Unlisted
| Yes
| Yes
| Yes
| Yes
| With plugin
|
Eddy
| $6
| No
| Extra charge
| Yes
| Extra charge
| Yes
|
Papaya Global
| $599
| No
| Yes
| Yes
| Yes
| Yes
|
Is HR software worth it?
HR software can be expensive, but it’s worth the cost for most businesses for these main reasons.
- Automation. HR software can automate tasks like payroll, reducing the need for manual entry. Additionally, because more tasks are automated, you may not need to hire as many staff.
- Compliance. Cloud-based platforms update to reflect changes in payroll tax rates, overtime rules and other employment laws. This can reduce the risk of your staff making costly mistakes based on prior rules.
- Integration. Some HR software can sync with your workforce platform, allowing you to share information across departments. For example, your workforce platform can share timekeeping information, which may be necessary for payroll or performance reviews.
- Improved hiring and onboarding. With applicant tracking features, HR can monitor an applicant’s progress through the hiring process. After they are hired, HR can use software checklists and e-signature tools to streamline onboarding.
- Analytics. Most HR platforms can capture data and display it in easy-to-understand reports. Some also provide visual graphs and charts.
Featured payroll software offers
OnPay
Monthly fee
$40 per month plus $6 per employee
Direct deposit
Yes
Rippling
Monthly fee
$35 per month + $8 per user
Direct deposit
Yes
Gusto
Monthly fee
Starting at $40 plus $6 per month per employee
Direct deposit
Yes
SurePayroll
Monthly fee
$29.99 per month plus $5 per employee
Direct deposit
Yes
Frequently asked questions (FAQs)
The best HR software depends on your company’s needs and budget. Based on our assessment of 25 HR platforms across nearly 40 categories, Monday.com comes out on top because it is easy to use and integrates with more than 200 third-party applications.
However, that doesn’t necessarily mean it’s the best software for your company. To determine the best HR platform for your company, you should at the least consider price, features, support and the ability to customize.
Of the HR software providers that list their pricing, 15Five offers a solution for $4 per month, though other options are not far behind. GoCo costs $5 per month while Eddy is $6 per month and ClickUp charges $7 per month for its first paid tier, though it also offers a free plan option.
Some companies offer a “freemium” version of their HR software with basic features. Often, these free versions limit the number of employees that can be on the payroll or the number of people who can use the software, so as your company grows, you may need to upgrade to a paid plan.
Additionally, you may have to pay for some features or upgrade for some features. For example, the free version of Monday.com doesn’t offer time and attendance tracking.
The cost of outsourcing your payroll needs to a third party can range from free to $125 (plus $10 per employee) per month for QuickBooks Payroll’s elite plan. On average, the cost is $30 to $80 per month if you choose a paid option. However, many free and low-cost providers have limits.
For example, Payroll4Free is free for only your first 10 employees. After that, you will pay for additional increments of employees.
There are three main types of all-in-one HR software solutions: human resources information systems (HRIS), human resources management systems (HRMS) and human capital management (HCM) software. Within these, there are several sub-categories, including:
- Recruitment software.
- Onboarding software.
- Time and attendance software.
- Payroll services.
- Performance management software.
- Employee scheduling software.
- Workforce planning tools.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
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