HR Information Systems Buyer's Guide -HRIS pricing
Per BuyerZone - check out for free quotes: Understandably, prices for HRIS systems can vary tremendously: a basic HR information package for a 20-person business is not in the same ballpark as a customized enterprise-level HRIS for a 2,000-employee corporation. Even two fairly similar businesses can wind up with very different prices for HRIS software — and both be getting a fair deal.
The scope of your HRIS implementation will have a big impact on the price. A basic transactional system can provide significant benefits to your business — but won't cost nearly as much as a system that includes talent management and other strategic functionality.
Don't buy on price alone
Choosing the right HRIS software should involve careful consideration of your needs, evaluation of features and capabilities, and comparisons of dealers. Specifically, it's about more than just price.
If you're comparing three solutions with fairly similar price tags and a fourth that's half the price of the others, you can bet there’s something lacking from the discount package. Placing undue emphasis on price can lead to a purchase that ultimately fails to deliver the benefits you should expect.
Moreover, skimping on price early on can cost you more in the future. Even if you only have 50 employees now, if you plan on expanding to 100 in the next couple of years, it makes sense to buy a system that can accommodate that growth.
Basic HRIS pricing
The main cost for client-server HRIS software comes from the per-user licenses you'll have to buy for the software. A 50-person company can expect to pay between $2,000 and $5,000 to purchase software licenses.
Note that some vendors target firms with 100 employees or more, so smaller buyers may encounter minimum prices that make client-server systems a much more expensive proposition. Larger companies may see even higher per-user costs as the systems grow in complexity and scale: $80,000 for a 300-user system, for example.
Very small companies may be able to buy packaged software for $500 to $1,000, but those types of systems offer very little in the way of customization and may not be able to grow with your business. If you do choose to start with a small HRIS, make sure you'll be able to export your data so you can upgrade to a more comprehensive system in the future.
ASP-based HRISes are usually priced per employee per month. Depending on the modules you choose, you can expect monthly fees of $4 to $10 per user. While that may seem stunningly inexpensive compared to the client-server license fees, remember that you'll be paying that cost every month as long as you use the software. For example, 100 users at $6 per month adds up to almost $15,000 by the end of the second year — and you could use an HRIS for 10 or 20 years.
Whichever type of hosting you choose, you'll have to pay installation or consulting costs for customization and setup. These fees can range from $2,000 to $40,000 and up, depending on the amount of work required and the size of the installation.
Make sure that consulting and installation fees and responsibilities are spelled out in the project estimates, as well as the contracts. Hidden charges for upgrades, annual maintenance, customization, or training can drastically skew your price comparisons, as can different prices for administrator licenses, user licenses, and server licenses. Make sure the vendors present a complete cost picture up front.
Support and training costs
Make sure the pricing information you get from each vendor details what training and customer support is included — and how much additional help costs. Some vendors provide unlimited telephone and online support; others charge by the minute or per incident after a set amount of free support.
Training is usually priced separately. You may be able to choose from on-site, off-site, web-based, or video training, all at different price points. It's usually worth having at least some training to get your staffers up and running. Once you see how the system is working, you can then decide if you need more advanced training.
