What are the Costs Involved with HR Management Software?

The average cost of an HR management software, according to Software Path, is around $12,625, or $210 per month over a 5-year period. You also have to know this amount is the average per user. So, you need to take into account the number of users to calculate the most affordable option for your team.

Make note that exchange rates and licensing fees will differ based on country and market.

Features that affect HR management software cost

1. Size of Company

The size of your company is an important factor when weighing the cost of an HR management system.

Mid-sized companies typically require complex packages that will increase the overall cost so set your budget accordingly. Talentia provides dedicated solutions for mid-cap companies, meaning you will find a suitable option that meets your company’s expectations.

2. Specialized Features

If you need a lot of specialized features in a software, be prepared to pay extra. However, nowadays most software companies offer a broad range of services that even mid-size businesses can find affordable solutions.

Be sure to select only the features you need to consolidate the heavy lifting tasks. Here are some popular options that HR managers choose:

• One single data management tool.
• Application tracking.
• Employee training and development.
• Payroll.
• Accessibility through the Cloud. 

3. Number of Employees

Another influential cost factor is the number of employees. Generally speaking, the more employees a company has, the more features it will need. Some software companies even offer a price per person instead of a fixed total cost.

Choose the best option for your team even if you need to spend a bit more. Knowing that all your employees’ time, vacation time, workloads and data will be logged correctly and efficiently provides peace of mind.

4. Level of Automation

The more items you want to automate, the higher the cost of purchasing and implementing an HR management system. Keep in mind that you will be automating critical activities like payroll, and time and attendance.

When you automate repetitive and manageable tasks, your employees’ productivity will increase. In fact, 88% of HR professionals who were polled in a 2019 KPMG report said investing in digitalization was worth it.

5. Customized Options

Most companies in today’s modern business world prefer a customized product. It helps them stand out and get noticed by customers.

Before you get caught up in all the add-ons, check what is included, especially when it comes to integrations and account management. Focus on tools that make it possible to access real-time, up-to-date information to help establish your company’s strategic direction.