Demystifying HR Software Pricing: A Comprehensive Guide for Businesses to Make Informed Decisions


HR Software Pricing: A Comprehensive Guide for Businesses


In today’s digital world, Human Resource (HR) software has become an essential tool for businesses of all sizes. It streamlines HR processes, improves efficiency, and allows companies to focus on their core operations. However, when it comes to choosing the right HR software for your business, understanding the pricing structure is crucial. In this article, we will provide a comprehensive guide to navigate the complexities of HR software pricing in order to make an informed decision.

1. Factors that Influence HR Software Pricing

Before delving into the specifics of HR software pricing, it is essential to understand the various factors that influence it. Here are some key considerations:

a) Number of Employees: Most HR software providers base their pricing plans on the number of employees within a company. As the number of employees increases, the price typically increases as well.

b) Features and Functionality: Different HR software solutions offer varying features and functionalities, such as applicant tracking systems, performance management tools, payroll processing, and more. The more comprehensive the features, the higher the price.

c) Deployment Options: HR software can be deployed on-premise or hosted in the cloud. On-premise solutions often require substantial upfront costs, while cloud-based solutions usually have a monthly subscription fee.

d) Customization and Integration: Some businesses may require customization or integration with existing systems. These additional services can impact the overall price.

2. Common Pricing Models

HR software providers utilize a range of pricing models to cater to different business needs. Here are the most common ones:

a) Per Employee, Per Month: This is the most prevalent pricing model, where businesses pay a monthly fee based on the number of employees using the software. Prices can range from £2-£15 per employee per month, depending on the features provided.

b) Flat Rate: Some software providers offer a fixed price for a specific package, regardless of the number of employees. This model is suitable for small businesses with a stable workforce.

c) Tiered Pricing: In this model, software packages are divided into tiers, each offering different features and accommodating a specific number of employees. Businesses pay a higher price as they move up to higher tiers.

d) Module-Based Pricing: Some HR software providers charge separately for each module, allowing businesses to choose only the features they need. This model offers flexibility but can potentially increase costs if multiple modules are required.

3. Additional Costs to Consider

When evaluating HR software pricing, it is essential to consider additional costs that may arise:

a) Implementation and Training: Many software providers charge an implementation fee to set up the software and provide training to users.

b) Customization and Integration: If your business requires customization or integration with other systems, additional costs may be incurred.

c) Support and Maintenance: Software providers often offer different levels of support and maintenance plans, which may have associated costs.

4. Choosing the Right HR Software Pricing Plan

To choose the right pricing plan for your business, consider the following steps:

a) Assess Your Business Needs: Understand your HR requirements, current processes, and identify the key features you need from HR software.

b) Evaluate Multiple Providers: Compare pricing plans offered by different providers and assess their suitability based on your business size, budget, and features required.

c) Consider Long-Term Scalability: Choose a pricing plan that aligns with your long-term growth plans, accounting for potential increases in the number of employees and changing needs.

d) Request Demos and Trial Periods: Take advantage of demos and trial periods to test the software’s compatibility and functionality before committing to a pricing plan.


Understanding HR software pricing is vital to make an informed decision when choosing a suitable solution for your business. Consider factors such as the number of employees, features needed, deployment options, and customization requirements. Evaluate various pricing models such as per employee, per month; flat rate; tiered pricing, and module-based pricing. Additionally, consider additional costs like implementation, training, customization, and ongoing support when finalizing your selection. By following this comprehensive guide, you can confidently choose an HR software pricing plan that meets your business needs effectively.

More Posts from Crocodile

Try our Gator-Grade HR System today!

Need Help?


Would you like a free demo of Crocodile?

We’d love to give you a free and personalised demo of Crocodile. Please feel free to fill in the contact form and we’ll be in touch.