HR Software Cost

Last Updated on September 13, 2022
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

Technology has caused massive changes in HR departments, and innovation in the field continues to transform the way HR managers deal with payroll and personnel administration. In addition to the fact that specialized human resources software simplifies work in an HR department, they are periodically reinvented and allow simple and quick access to a variety of data and information, which significantly improves the work of human resources specialists.

How Much Does HR Software Cost?

The cost of HR software is variable as every business is different and has particular needs. In general, HR software prices will run on a per-employee rate. This will range from free to anywhere between $15 and $30 per employee or even more.

For example, the Take Bamboo HR company offers an employee tracking HR software that tracks all the information about your employees that you may need like salary history, performance reviews, time off, and many more.

There are two types of plans offered by Bamboo: per month and per employee. Expect to pay at least $100 per month, for everything except their payroll software. In case you want to include this part of the software as well, you will have to pay another $25 per month or $5 per employee per month.

A company comparable to Bamboo is Gusto. Expect to pay around $40 per month or $7 per employee depending on the size of your company, for their main HR software package.

The GoCo company offers the same services, but free of charge. So, it would be a good option if you want to save money. Among the benefits offered by GoCo tax data collection, hiring, retirement and benefit plan automation, and payroll are all included.

What is HR software?

HR Software ExplainedSuch a system encompasses the myriad modules that organizations use to manage daily HR processes such as recruitment, onboarding, training, payroll, benefits, time and attendance, performance management, and succession planning.

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Software applications of this type comprise various core suites, each designed to perform a specific process, including human resource management system (HRMS), information system (HRIS), and human capital management system (HCM), each of which presenting the following modules that can be purchased separately:

  • basic HR (benefits, employee records, payroll software solution/payroll software application, etc.);
  • talent management (reward, learning, performance, recruitment, succession);
  • workforce management (scheduling, time, and attendance);
  • service delivery.

From a benefits perspective, dedicated human resources (HR) software allows organizations to digitize core processes that do not necessarily require human intervention. Functions such as employee time and attendance monitoring, payroll, recruiting, regulatory compliance, and benefits administration can be digitized very easily, resulting in reduced time and material costs.

Types of HR software

The HR technology solutions market abounds with software that can simplify personnel management and payroll, but there are a number of key software that any modern company has. The most common HR software currently found in organizations are the following:

  • payroll;
  • employee administration;
  • clock-in – clock-out;
  • recruitment;
  • assessment;

Besides these, day by day, new technological solutions and even cloud platforms dedicated to human resources appear to improve HR services, transform them according to the latest trends in the labor market, and make the activity of those in the respective departments more efficient.

HR software brands

There are various HR software brands on the market you can choose from. Some of these include the following:

  • BirdDog HR is designed for the engineering, supply, and construction industries. It is suited for businesses of all sizes and optimizes the hiring process.
  • Kronos operates on both Mac and Windows systems and is adapted to all business sizes. This solution is cloud-based and allows you to create your own particular employee data management system.
  • APS (Automatic Payroll System Inc.) offers tax and payroll services, plus a cloud-based solution for human capital management.
  • ClearCompany is one of the best HR software for small to medium-sized businesses from all industries. It is good for new talent and onboarding management.
  • Ascentis is one of the most expensive HR software but is adaptable to most of your business requirements.
  • Sage Payroll is less expensive and offers solutions for the centralization of salaries from different departments of your business.

What factors to consider when choosing HR software for my business?

You certainly want the HR platform you choose to offer you solutions for every operation carried out in the department. The easiest way to decide on the right software for your company is to make your decision based on a few essential factors:

  1. The size of the company and its growth potential – you don’t need a solution that exceeds the complexity of the company’s needs.
  2. Internal processes that should be optimized as a priority – think about which aspects require automation as soon as possible and which are operationally critical.
  3. The specifics of the company – local or international – depending on the freedom of action you have in the selection of suppliers, but also on the internal procedures that are decided at group level in the case of multinationals, it may be necessary to use a unified HR platform.
  4. Challenges in the coming period – in the context of the Covid-19 pandemic, it is good to have a system that you can rely on even when you work from home and in which employees and managers can log in from home. Online recruitment and onboarding, along with the administrative part of HR (documents, certificates, applications, employment contracts) as well as all the activities available through self-service are also aspects worth considering at the moment.
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