Pricing
How HR software is priced, and how to avoid surprises
Pricing models, hidden costs, and negotiation tips for HR software buyers.
How HR software is priced
| Model | How it works | Watch for |
|---|---|---|
| Per employee per month | A fee for each active employee | Whether contractors and former employees count |
| Base fee plus per employee | A fixed monthly fee plus a per-person fee | Minimums that hurt very small teams |
| Module pricing | Each function priced separately | Core features sold as add-ons |
| Percent of payroll | Common with PEOs | Costs rising with salaries |
| Per job or per seat | Common in recruiting tools | Costs during hiring spikes |
Negotiation tips
- Get quotes from at least three vendors.
- Ask for a renewal price cap in writing.
- Ask for implementation fees to be credited or reduced.
- Time your purchase near the vendor's quarter end.
- Ask for a written list of what is included.
Get our first pricing report
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