Table of Contents
- Typical pricing: most SMB-friendly HR/HRIS tools run $5–$20 per employee per month (PEPM); advanced suites and global HR can be $25–$60+ PEPM; premium enterprise HCM can push higher.
- Vendors price differently: some show entry prices (e.g., Rippling “from $8”), others are quote-based (e.g., BambooHR, ADP).
- Don’t forget one-time costs: implementations commonly range $3,000–$75,000, plus the internal time of your team (often tens of thousands in opportunity cost).
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Scope & modules (payroll, time, ATS, performance, LMS, analytics)
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Employee count & contract term (volume discounts, annual vs. monthly)
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Geography & compliance (multi-country payroll and EOR are pricier)
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Implementation depth (data migration, integrations, change management)
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Support tier (standard vs. premium support, HR helpdesk)
- Typical: $5–$17 PEPM for core HR (employee records, time off, workflows, basic docs). Global HRIS or analytics add-ons nudge that higher.
- Example (budget): PeopleHR cites ~£5.50 PEPM for a core plan (UK pricing, but directionally useful).
- Typical: $8–$30+ PEPM depending on payroll complexity, tax filings, and state coverage; some add base fees. Guides show SMB ranges as low as $2 and up to $100 per user/month depending on suite breadth.
- Examples:
- Rippling: “Plans start as low as $8/month” (module-based; quote for full stack).
- Gusto: public pricing pages list multiple tiers; global contractor/employee services can add significant per-employee fees (watch the fine print for Gusto Global).
- Zoho People: transparent tiered pricing with HR modules; free for small teams and paid per user thereafter.
- Workday: often $34–$42 PEPM at scale or six-figure annuals for <500 employees when you include HCM + payroll; other sources frame HCM modules starting roughly $100–$200 per employee/year. (Ranges differ by scope and negotiation.)
- SAP SuccessFactors: also quote-based; public pages drive you to “request a quote.”
- UK SMB research pegs HR software at roughly £298/month (≈50 users) to £1,484/month (≈250 users) for smaller businesses, reinforcing that per-user bundles scale with headcount.
- Publish or partially publish: Rippling (“from $8”), Zoho People (tier tables), Gusto (plan pages, plus notes on global pricing).
- Quote-based: BambooHR states PEPM after 25 EEs and a flat rate below; recent third-party trackers list BambooHR starting around $10 PEPM for Core (directional, confirm with sales). ADP RUN is also primarily quote-based; third-party buyer sites frequently cite base fee + PEPM patterns.
- Implementation & setup
- Vendor / partner services covering configuration, data migration, training, and go-live support can range $3,000–$75,000, scaling with modules, headcount, and complexity.
- Internal time
- Your project team (HR, payroll, IT, finance) may spend 20–30 hrs/week for 6–12 months on enterprise rollouts—translating to $50k–$150k in internal opportunity cost for a modest team.
- Add-ons / usage-based fees
- Payroll tax filings, benefits administration, I-9 / background checks, document e-signing, HR helpdesk, advanced analytics, or IT/compliance modules often price separately (e.g., Rippling’s add-ons).
- Integration & data pipeline work
- Connecting HR to accounting, ERP, Slack/Teams, identity, time clocks, ATS, or expense tools can require paid connectors or partner time (varies by vendor; expect either a fixed package or hourly SOW).
- Support tiers & training
- Premium SLAs, sandbox environments, and admin certifications are common in enterprise plans—useful, but billable.
- Global employment & EOR
- If you’re hiring internationally, global payroll/EOR adds significant per-employee fees beyond core HRIS. (For example, Gusto flags much higher fees for global employees.)
- Startup / Small Business (≤50 employees):
- Core HRIS with leave + docs: $5–$12 PEPM
- Add payroll + time: $8–$25 PEPM total
- One-time setup: minimal to low 4-figures if DIY; can be $3k–$10k with services.
- Growing SMB / Mid-Market (50–500 employees):
- HRIS + payroll + ATS/performance: $15–$40+ PEPM
- Integrations & training kick in; implementations $10k–$40k common.
- Enterprise (500+ employees) moving to HCM:
- Suite license equivalent: often $25–$60+ PEPM (module- and geography-dependent).
- Workday-style deployments can hit six figures annually for smaller enterprises and scale from there. Implementation is a serious SOW (and internal effort).
- PEPM (Per-Employee-Per-Month): Most common and easiest to forecast; watch for minimums and billed employees vs. active users. Industry ranges span $5–$500 PEPM depending on scope.
- Per user / per seat: More common in talent/ATS/LMS modules; ensure you understand admin vs. employee access counts.
- Base fee + PEPM: Seen with payroll providers (e.g., ADP RUN cited by buyer sites as ~$79 base + $4 PEPM). Base fees can make small teams pay relatively more.
- Flat monthly tiers: Simpler SMB tools sometimes offer flat tiers to a headcount threshold, then PEPM thereafter (e.g., BambooHR notes flat pricing ≤25 EEs; PEPM beyond).
- Annual contracts with volume discounts: Standard in mid-market/enterprise; push for ramp pricing if you’re scaling headcount during the term.
- Rippling: Modular platform (HR + IT + Finance). “From $8” entry; add-ons (payroll, IT, compliance, global) priced extra. Great for centralizing workforce + device/app provisioning.
- Gusto: Popular SMB payroll + HR. Transparent plan pages; global hiring carries substantially higher per-employee fees—check the latest footnotes before budgeting.
- Zoho People: Clear public tiers, free for very small teams, integrates across the Zoho suite; strong value for core HR.
- BambooHR: Quote-led; PEPM for >25 EEs and flat rate ≤25. Third-party monitors commonly report starting around $10 PEPM (confirm with sales).
- Workday / SAP SuccessFactors: Enterprise HCM with broad modules; pricing via sales only. Treat any public numbers as directional for negotiation prep.
- List must-have modules for Year 1 (HRIS + payroll + time? ATS now or later?).
- Get PEPM + any base fees + minimums in writing for each module.
- Add one-time implementation + training (vendor and internal) to your Year-1 model; use $3k–$75k as a sanity range depending on scope.
- Layer integration costs (accounting, SSO, identity, time clocks, benefits carriers).
- Factor growth & global plans (new countries cause step-ups; global/EOR accelerates cost). Gusto’s global footnotes are a good reminder to read the fine print.
- Bundle smartly: Consolidate HR + payroll + time with one vendor when possible to reduce duplicate PEPMs.
- Negotiate tiers & ramps: Ask for implementation credits, pilot discounts, price-hold on future modules, and ramp pricing if you’ll hire in-year.
- Audit add-ons annually: Remove unused seats and modules.
- Invest in admin training: Better configuration reduces ticketed support and rework.
» Why HR software prices vary so much
HR stacks can be a simple HRIS (people database, leave, docs), an HRIS + payroll + time tracking, or a full HCM suite covering talent, learning, comp, and global workforce. Prices change based on:
Industry surveys and pricing roundups consistently show the spread—from $5 PEPM at the low end to $100+ PEPM for more complete suites, with outliers higher.
» 2025 price ranges you can actually use
Core HR / HRIS (people ops basics)
HR platforms bundling payroll & time
Enterprise HCM (Workday / SAP SuccessFactors, etc.)
These are largely quote-only and context-dependent. Independent buyer guides suggest:Outside-US perspective (quick benchmark)
» Real vendor pricing: what’s public vs. what’s not
Some vendors publish list prices (good for ballparks), while others gate pricing behind sales—commonly to tailor bundles and apply volume discounts.
» One-time & recurring “hidden” costs to budget
Even with SaaS, TCO is more than subscription.
» How much should you expect to pay? (quick scenarios)
These are planning ballparks, not quotes. Always validate with vendors.
» Pricing models you’ll encounter (and how to compare them)
» Vendor snapshots (useful for anchoring your shortlist)
» How to build a clean HR budget (5 steps)
» Buyer tips to lower TCO
» FAQs
1. How much does HR software cost per employee?
For core HRIS at SMB scale, plan around $5–$17 PEPM. Broader HR suites
and global features often push you into $25–$60+ PEPM. Enterprise HCM
can exceed that depending on modules and regions.
2. What’s a realistic implementation budget?
Expect $3,000–$75,000 for vendor/partner work depending on scope, plus
internal team time that can equate to $50k–$150k in opportunity cost on
bigger projects.
3. Why do some vendors hide pricing?
Because bundles vary by headcount, modules, and integrations; quote-based
pricing lets vendors apply volume discounts or tailor plans (BambooHR,
ADP, Workday, SuccessFactors).
4. Is $8/month HR software realistic?
Yes—for entry modules (e.g., Rippling’s platform starter). Your all-in
cost rises as you add payroll, IT, and compliance modules.
Global payroll/EOR adds material per-employee fees and sometimes setup charges. Review global plan notes carefully (e.g., Gusto Global’s fee policies).