HR Software Pricing Guide: How Much Does HR Software Cost in 2025?

HR systems represent a significant investment, but determining costs isn't straightforward. A growing business digitising core HR processes will have different requirements – and associated costs – compared to an enterprise organisation needing comprehensive workforce management solutions.

Unlike off-the-shelf systems with standard pricing, enterprise HR software is typically flexible and customisable, meaning costs vary based on your specific needs. The guide explores how factors such as user numbers, functionality requirements, and deployment preferences impact your investment, helping you evaluate total cost of ownership beyond initial licence fees.

When evaluating HR software costs, it's important to consider both the immediate financial investment and the long-term value. According to our research on smaller businesses in 2025, HR software costs can be anywhere between £298 per month (50 users) and £1,484 per month (250 users). Based on that, medium to large businesses with 500+ users can expect higher costs, depending on the features integrated into the ecosystem.

Do bear in mind that this is only an average, and HR and payroll systems can cost more or less depending on the size of your business, the software features you need and a variety of other factors. Due to this, reputable providers often won't have a generic price list, preferring to give tailored, individual quotes based on the needs of the organisation. This approach allows for a much more accurate and transparent pricing process where there are no surprises or hidden costs.

Type of software

The HR software cost varies significantly depending on the type of system you choose. Understanding the differences between HRIS, HRMS, and HCM platforms will help you select the right solution for your business needs and budget.

A Human Resource Information System (HRIS) serves as your central hub for employee records and basic HR administration. These systems focus on organising and managing essential people data such as personal details, employment history, salaries, and benefits information.

A Human Resource Management System (HRMS) builds upon HRIS functionality by adding operational features that help manage day-to-day HR processes. These systems are designed for businesses that need more comprehensive workforce management capabilities.

Human Capital Management (HCM) platforms represent the most comprehensive approach to workforce management, focusing on strategic people development rather than just administrative tasks. These systems help organisations optimise their entire workforce strategy.

Software features

Additional features can push up the HR software cost, while a simpler offering could be more cost-effective. At the same time, it's important to weigh up the value that different features could add. What does the return on investment (ROI) look like and will the features save you time and money in the long run?

Package inclusions

What's included in the package as standard and what is an add-on that costs extra? Make sure you understand the cost of different modules when going through the pricing process with a potential provider – you should come away with an itemised quote, not one single price.

Staff training and onboarding requirements

Consider what will be required to get your team and the wider workforce up to speed with necessary features. Can your provider help with training and do they have any documentation to support the process? Or will your own teams need to take care of training?

Cloud-based or on-premise software

The type of software you choose will influence the cost. On-premise may only require one single payment if you own and manage the software yourself. However, more businesses are now opting for cloud-based HR software that's fully managed by their provider, meaning they don't have to worry about upgrades, maintenance, server storage, security and more.

Pricing plan

Different pricing plans exist to support organisations and make software costs more manageable. Find out if monthly payments will cost more overall and identify the most cost-effective way to pay for your software.

Number of users

If you need to add more users with administrative rights, this will usually incur an additional cost. However, there are different pricing models available, so if you have a lot of users and costs could become prohibitive, speak to your provider and consider a different pricing model instead.

Software integrations

Integrated HR software, like PeopleXD Evo, can cost more than a standalone system, but it has many benefits including a holistic view of data and futureproofing for business growth. It can also automate processes across your organisation, so despite higher costs, you stand to save time and money when you invest in useful integrations. For example, PeopleXD Evo has end-to-end AI integration and Copilot to assist with routine HR tasks and support every user.

HR software costs extend beyond the monthly or annual subscription fee. There may be additional one-off implementation costs for a new HR system. The costs of implementation will depend on what you require, how well equipped you are to handle the set-up in house and the complexity of the processes involved.

Support

Customer support will be necessary to put any new system in place. This may be inclusive, or it could be an additional implementation cost depending on the provider.

Training

Initial training will be needed for the employees interacting with the system from the start.

Technical setup

This may require input from IT and technology departments to get systems up and running and manage the transition.

HR employee time

HR employees will be involved in setup, testing, project management and more – they will be integral to the software implementation project and their time needs to be considered. Do you need additional resources such as a consultant to make the project a success?

Integration

If your new HR software needs to be integrated with existing software, or you want a fully integrated HR software suite, this comes with an associated cost – but can deliver excellent ROI.

Data migration

Consider how this will be managed. What support will you need? Can your provider help or should your internal teams manage data for you?

An effective way to assess whether a cloud HR system ticks these boxes is through a HR software demo. Our blog on ‘HR Software Demos: 5 questions to ask’ details some of the specific nuances to establish for your demo with a vendor, taking these exercises from generic sales pitches to tailored presentations that tackle your specific organisational needs.

The best HR software for you will support your business in all areas, making processes simpler, saving time and delivering excellent ROI. We always encourage our clients to think about it from an ROI perspective, selecting software that will add value rather than choosing the cheapest option.

HR software will undoubtedly add value to your organisation, but many HR Directors face the challenge of articulating this value to the C-suite and securing the necessary budget approval. You can perform a simple ROI calculation based on the amounts you stand to save or gain by using HR software, which will likely be linked to process automation and efficiency improvements. Some of the areas to consider for your calculation include:

• Rostering and scheduling
• Payroll
• Recruitment
• Onboarding
• Employee engagement and retention
• Employee productivity

If you're looking to build a business case for new HR software, request an ROI Report from us. With this report, you'll be able to quantify cost savings, show efficiency gains, prove the impact of data, and strengthen your business case.

You can follow a simple step-by-step process to work out what you need from your HR software before contacting vendors. Find out how to choose HR software for your organisation. Before you reach out to vendors for demos and quotes, ensure you're fully prepared with our comprehensive evaluation framework. Access our vendor selection checklist to align your internal stakeholders, identify red flags, and ask the right questions during demos.