How Much Does HR Software Cost: Guide on Pricing 2024

What is HR Software?

HR software, also known as Human Resources software, refers to a category of software designed to streamline and automate HR processes and tasks within an organization. This software manages employee data, recruitment and onboarding, performance management, payroll software and benefits administration, time and attendance tracking, compliance and regulatory reporting, and other HR-related activities. HR software typically includes a range of features and functionalities, such as data analytics, reporting, and mobile accessibility, to help HR professionals make more informed decisions and improve overall efficiency and productivity within their organization.

This blog will explore the Importance, Types, Benefits, and, most importantly, How Much Does HR Software Cost.

How Much Does HR Software Cost?

Below is the classification of how much the HR Software costs:

1. Per Employee Cost

The cost of HR software can vary depending on the size of your company. Here’s a breakdown of the average cost of HR software based on company size:

• Small businesses (1-50 employees)

Small businesses can expect to pay between $50 and $150 monthly for a basic cloud-based HR software package.

• Medium-sized businesses (50-500 employees)

Medium-sized businesses can expect to pay between $200 and $700 per month for a cloud-based HR software package.

• Large businesses (500+ employees)

Large businesses can expect to pay between $1,000 and $5,000 per month for a comprehensive cloud-based HR software package.

2. Subscription-Based Modules

The subscription-based pricing models are generally used by cloud-based HR vendors, where organizations must pay a recurring annual or monthly subscription fee. Such a fee is charged based on the employee size or the total number of users accessing the HR software system administrator. The basic subscription-based plans start from as low as INR 250/- to INR 5000/- per user per month, and the advanced plans can range between INR 8000/- to INR 82000/- per user per month.

3. One-Time Payment

It is a non-recurring payment option for clients who wish to purchase HR software solutions. It cannot be divided into weekly, monthly, or yearly basis. You must pay the entire software fee in one go before implementing it in your organization. The one-time payment fees for HR Software range between INR 40,000/- to INR 80,000/-.

4. Customization Software-Based Pricing

Most firms choose customized software-based pricing models. Here, the organizations get the HR Software customized per their unique business needs. They pay only for the customized parts of the software they use and don’t pay for the remaining parts. It is the best cost-saving option to meet personalized HR needs. The customization cost of the HR software can go as low as INR 800/- to as high as INR 80,000/- based on the complexity of the additional features you want in the software.

5. Implementation Cost

The software must be implemented in the company after purchasing it. Most of the HR software vendors ask for the additional implementation cost. It is the one-time fee incurred in implementing the new software solution in your company. Such costs include employee training, data migration, and server configuration fees. The HR Software implementation cost can range between INR 80,000 to INR 8,00,000/- on average.

6. Maintenance Cost

Regular maintenance is required once the HR software has been implemented in your organization. Although some high-cost subscription plans cover this cost, others do not. Therefore, based on your subscription plan, you might need to pay the maintenance charges of the software to avoid any technical errors or functional hindrances and keep it working smoothly from time to time. The maintenance cost of HR software is typically 15% to 25% of the total price per year.

7. Premium Support Service

Premium Support Services for HR software are paid support services. They are specially created for enterprises looking for platform stability, enhanced operational efficiencies, fast response times, and those that run priority workloads. The average cost of Premium Support Services for HR Software is INR 1,00,000/-.

8. Perpetual License Cost

Perpetual licensing is the one-time cost the company pays to the HR Software vendor. The license is forever, and companies must obey the standard compliance rules. It includes all the costs, such as annual maintenance charges, software upgrade charges, etc. Companies looking for on-premise software use it to handle their sensitive employee data without storing it on the cloud. The perpetual licensing models of the HR software have a one-time fee ranging between INR 40,000/- to INR 10,00,000/-.

9. Upgrades and Updates Costs

Every software you purchase requires regular updates. The cost incurred in upgrading or updating the software is known as Upgrades and Updates Costs. It keeps the momentum of the software in the right state, ensuring there are no technical errors or other faults while accessing the software. The average cost of upgrading the HR Software ranges between INR 8000/- to INR 4,00,000/-.

HR Software Price List In India (Updated March 2024)

 

Why Do You Need To Invest In The Best HR Software?

Here are the benefits of HR Software:

1. Fully Automation HR Software

The best thing about investing in HR software is its 100% automated platform. It means everything is online and can be accessed through a server from one centralized location. The automated HR software platform allows users to accumulate, upload, store, organize, process, transform, and analyze employee & HR data on a cloud, eliminating the need for human intervention manually.

This way, all the updates or modifications will be accessed by authorized individuals in real time. Moreover, the HR team can sigh relief as they don’t have to manually handle enormous amounts of employee information. It makes the entire HR operation streamlined, smooth, and faster.

2. HR Software Helps You in Time-Saving

Huge time is wasted while handling everyday HR operations manually. Every HR-related detail, such as employee personal record, payroll, attendance, signatures, tax processing, etc., must be entered on registers, spreadsheets, or Word documents. It results in wasting time for management and leads to employee dissatisfaction and disengagement from work.

With the help of an HR Software system, we can enter, store, record, retrieve, and modify all such data in one go without wasting time. The employee and HR team can save time as the entire HR operation handling becomes faster and more intelligent. The time saved by the HR team can be further focused on their strategic business areas, and employees can focus on enhancing their company performance.

3. Accurate Data and Reporting

HR tasks management manually provides inaccurate data with no valid reports. It is because of human intervention that causes several errors. The HR admin can’t tackle and handle all the employee data manually, especially when the company is a mid-sized and large enterprise.

The automated HR software solves this issue by generating the correct data & reports. It uses the latest artificial intelligence algorithms to ensure that everything is on track with no mistakes. The latest tools, such as machine learning, deep learning, NLP, and analytics, help in keeping the employee & other HR data accurate. Moreover, you can fetch as many reports as you want by putting the relevant filters in the HR software.

4. Long-Term Cost Savings

In the manual HR operations, we waste vast amounts of money on providing salaries to the HR team and admins. Imagine that with the increase in the current number of employees, more HR admins need to be hired to handle employee queries. Providing a salary to all of them isn’t wise as you can invest that money in purchasing HR software from StartupHR Software. We offer pocket-friendly HR software solutions irrespective of the size of your company, whether it’s an SME or a large enterprise.

This one-time investment gives you higher returns in the long run. It assembles, handles, and strategizes all the HR records for risk-free HR management. Moreover, the manual handling of HR data is prone to human errors that require additional rectification costs. Implementing the human resource management system in your organization can significantly lower this cost.

5. The Software Enables a Self-Service Portal

Earlier days were hectic for the HR managers and other administrators as they were 24*7 knocked by the employees for their never-ending queries. Thanks to the cloud-based HR management Software tool, which effortlessly integrates into the employee self-service portal.

Such a portal gives authentication through login credentials to the employees for directly accessing their HR data. It can be easily accessed without HR interference, whether it is a leave request, timesheet status, personal information correction, or other updates.

6. Customization option is available

You might not want or wish to add certain features to the HR software system. Thus, such automated HR Software is customizable per their unique business requirement. Employees find it easier to adapt to the inbuilt HR software’s features & software when they are customizable.

Please choose the best software offered by StartupHR Software, which has a user-centric design with easy customization options. These options include customizable form fields, visual workflow builder, built-in custom reports, drag-and-drop tools, etc. This way, there will be fast implementation time, empowered HR professionals, and top-notch user experience.

7. Helps in Security and Data Protection

Data is cumbersome and difficult to secure when stored manually through registers, excel sheets, or documents. HR data stored in HR Software is 100% safe and protected. The cloud-based HR software uses two-factor authentication & strict access controls to ensure that confidential employee data is accessible only to authorized members. It follows all the security standards that save your data from third-party attacks.

Types of HR software

There are three types of HR Software, as mentioned below:

1. HRMS

The Human Resource Management System (HRMS) has the features of HRIS and HCM, with some additional facilities that emphasize the administrative elements of employee management. HRMS is specifically designed to enhance the system efficiency by performing innovative analyses & creating beneficial reports. It also simplifies the time and labor management along with an automated payroll system to calculate the taxes.

2. HRIS

A Human Resources Information System (HRIS) automates all the core HR processes such as time tracking, employee benefits administration, payroll management, etc. An HRIS assists companies in becoming 10x more efficient with the help of the latest technology. It performs various functions as mentioned below:

• Recruitment
• Onboarding
• Compliance
• Payroll
• Learning Management
• Analytics & Reporting
• Employee Self-Service
• Time and Attendance
• Performance Management

3. HCM

Human Capital Management (HCM) is the extended version of the Human Resources Information System (HRIS). It has features similar to HRIS but offers solutions to more complex HR problems. It analyzes the entire career path of the employees and comes up with solutions to ensure high retention rates & job satisfaction. Moreover, the HCM system offers customizable solutions to meet specific organization’s needs.

How to Choose the Right HR Software

Here is how you can choose the right HR software for your organization:

1. Identify your Business Needs

People often fail to choose the right HR Software for their organization without understanding their business needs. Therefore, perform a detailed study of your business-specific needs & requirements. Make a document stating all your business needs & show it to the HR Software vendor before finalizing the one. It ensures all your needs are met through the software. Some of the needs you need to identify are:

• Identify the list of HR processes that must be managed via HR Software.
• Identify the functions and features you wish to see in your HR software.
• What HR goals do you aspire to accomplish with the help of HR software?
• What should be the layout of the HR software platform that is easy to understand & operate by your employees?

2. Determine your Budget

Every business has a particular budget plan in which they wish to avail themselves of the maximum features & facilities. Discuss this budget plan with the HR software vendor and let them decide the best possible service that can be prepared for you. This budget will allow you to filter the relevant & irrelevant software, saving time & effort.

However, we urge you to think outside the box and from a long-term perspective. There are specific new-age AI features embedded in the HR Software that slightly disturbs your budget but give you higher returns in the long run. Negotiation and available offers will be helpful at the end of the software finalization, so make the best out of the premium HR Software.

3. Research and Compare HR Software Providers

Once you have determined your unique HR requirements & budget, it’s time to research the best HR Software vendors. Look for options like functions, cost, scalability, ease of access, features, reviews, company age; total customers served to date, etc. It helps you to compare the authenticity of all the available HR vendors and finalize the best one for your company.

4. Request a Demo and Ask for References

Once you conclude which couple of HR Software vendors you wish to go ahead with, ask them to demonstrate the demo session of the entire software. Finalize the vendor with the best demo demonstration that meets your business needs. Ask as many questions as possible, such as whether the customization or scalability factor is possible, and ensure the HR Software has its all. Moreover, ask for the references of the clients that they served so far. Verify the effectiveness of HR software by attaching with those clients and taking detailed reviews from them.