- HR Digitisation
How much does HR software cost?
You have probably noticed that the total cost of HR software is not always directly apparent. To get a clear picture, we did some research: we determined the actual costs of HR software and analysed what is included and what is not.
For reasons of comparability, this article will only look at the costs of SaaS HR software (= software hosted in the cloud and accessible online) and not at the costs of on-premise software (= software installed and hosted on-site).
Features included in the price of the HR software
First of all, you need to know what demands you have on an HR software solution and define your needs precisely. Here is a list of the most important functions:
- Digital personnel file
- Employee Self Service (ESS)
- Time tracking
- Management of holidays and other absences
- Management of time schedules
- Document management
- Preparatory payroll accounting
- Applicant management
- On- and offboarding
- People analytics
- Employee appraisals
- Customer support
- Unlimited storage space
The cost range for HR software is enormous: the costs can vary from a few pounds to several hundred pounds per month per employee. It is therefore important to analyse the needs of your company in detail, even if the Return on Investment is guaranteed. This will help you decide on the best possible HRIS solution! You should also consider the development of your future needs and requirements for the HR software, so that you can use it for as long as possible.
To choose your HR software optimally, it is best to test the software beforehand. This will ensure that the HR solution you choose is the right one for you. Do not waste money on functions that you will not use or only use to a very limited extent. You should choose a solution that is clear and simple - this will save you time and make it easier to find your way around.
By requesting a free demo, you can have the software shown and explained to you. This way you can easily check if the HR solution includes all the features you need and how to use them exactly. During the online demo, ask whether the solution is compatible with other software you already use in your company.
As a reminder, there are no update or maintenance fees with SaaS software, as these costs are borne by the manufacturer. This is one of the great advantages of HR software: the only existing fees are the usage and subscription fees for the HR system. Nevertheless, one should pay very close attention to the small print in the contract because the fees are not always presented very clearly.
Find the software that best suits your needs
HR software can be charged according to the following options:
- By functions
- By number of users
- By packages with specific functions and services
Do not use HR solutions with many "small" options that you can put together individually: Gradually, additional costs arise that only become visible at the end of the month and lead to a nasty surprise.
What you should pay attention to when signing a contract
Here is a list of points you should look at before signing a contract.
Subscription and duration of the commitment
The subscription can be billed monthly or annually. Even though the annual subscription is cheaper, the monthly subscription offers more flexibility. To be sure that you have made the right choice, you should therefore first take out a monthly subscription and test it for at least one or two weeks. After you have convinced yourself of the solution in everyday life, you can usually switch to the annual subscription without any problems.
Annual subscriptions are often tied to a minimum 12-month commitment. Once the subscription is complete, there is no choice but to use the software. In the worst case, you may have to buy another software subscription if the one you originally chose is not suitable. Then you pay twice!
You don't think much about cancellation when you take out a subscription. However, the contract should normally state how long the cancellation period is.
Pro rata invoicing
Let's assume you add more users during the year because you want to give more employees access to the software. Please note the following: Will the fees for these users be charged pro rata or will you be asked to pay for the whole year/month?
Invoicing for deactivated users
Normally, deactivated users do not use the software anymore. So logically you should not have to pay for them. But sometimes this is the case! Remember to check with the HR software provider if the subscription renewal (monthly or yearly) is based on the number of active users at time X and not on the number of users entered when the subscription was taken out.
Minimum number of users required for a subscription
Some HR software providers require a minimum number of users for the subscription. Small companies may be disadvantaged and in this case need to look for other solutions that do not require a minimum number.
Subscriptions are sometimes sold with limited storage space. If the storage capacity is too small, you may incur additional costs as you will have to buy additional storage space.
Conditions for rate increases
You will find the conditions for tariff increases in the small print of your contract. Preference should be given to contracts with an annual limit on tariff increases and a right of termination for customers if they do not agree.
Keep your data when you terminate your contract
It may seem trivial, but if you change HR software, such a feature will come in handy for exporting and transferring your data. This will again save you time and money.
Don't forget to check whether you can use the customer support. In case of problems, a fast responding and free customer support proves to be very helpful.
Avoid chatbots and their prefabricated answers and opt instead for real customer support with dedicated employees who answer your questions live and quickly.
You have now learned which important aspects you should pay attention to so that you don't get surprised at the end of the month. The price of HR software is often not readily apparent at the beginning. Therefore, always prefer HR solutions with a pricing that is as transparent as possible.
At kiwiHR, we take transparency and customer satisfaction very seriously. There are no hidden costs with us: Implementation costs and competent customer support are included in the price. You do not need a minimum number of users. This means that every company, regardless of its size, has the opportunity to use our HR software.
You can choose between two packages: kiwiHR Starter and kiwiHR Plus. Both a monthly and an annual subscription are possible. For example, for kiwiHR Starter you pay € 3.50 per employee per month in an annual subscription, for kiwiHR Plus it is € 6 per employee per month.
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