HR Software

HRIS Software Pricing - Understand What You're Paying For

January 25, 2023
Brett Ungashick

Many companies are flying blind when buying new software systems and it can be difficult to accurately project costs until a purchase is made. In this article, we'll talk about all of the different charges you can expect with a new HRIS, how those HRIS software prices are calculated and what prices you can expect to pay

If you're a business owner or HR leader, you know how important it is to have the right tools in place to manage your human resources efficiently. One tool that can make a big difference is an HRIS (Human Resource Information System).

An HRIS is a software platform that helps businesses manage their HR functions, including employee records, benefits administration, payroll processing, employee onboarding, recruitment and more. It's a one-stop-shop for all things HR & Payroll, and it can save you a lot of time and hassle.

But as with any tool, you need to know how much an HR & Payroll System is going to cost before you can decide if it's worth it. So, how are HRIS systems typically priced?

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What do HRIS Companies Charge For?

Software Fees

Many HRIS platforms operate on a subscription model, where you pay a recurring fee to access the software. This fee can vary depending on the number of modules you need and the number of users you have. Most large software companies will charge on a monthly or quarterly basis.

The software fees are often billed using a Per Employee Per Month (PEPM) model. Let's say the HRIS software price is $20 PEPM and you have 100 employees. You would pay a monthly fee of $2000 to access the system.

Implementation Fees

Most HRIS vendors also charge a one-time fee to set up the system. This can be called a set-up fee, a deployment fee or an implementation fee. This HRIS implementation fee can include things like data migration, customizing the platform to fit your specific needs, and training your team on how to use it.

Large, enterprise systems like Workday, SAP and Oracle can charge hundreds of thousands, if not millions, of dollars for implementations. However, most mid-sized companies can expect the implementation fee to be between $3,000 and $10,000.

Blog: How Long Does it Take To Buy and Implement an HRIS

End of Year Fees

One fee to be aware of with an HRIS system is the end-of-year fee for tax filings. Many HRIS platforms offer tools to help you prepare and file your tax documents, such as W-2s and 1099s. These tools can be a huge time-saver, but they usually come with an additional fee.

This fee can vary depending on the HRIS platform you use and the number of tax documents you need to file. Make sure you understand what this fee includes and whether it's a one-time fee or an annual fee.

Professional Services Fees

Another potential cost of an HRIS system can be incurred if you hire the software company (or one of their certified partners) to do customizations on your behalf. If you need your HRIS to be customized to fit the specific needs and processes of your business, you can expect to pay a customization fee. This fee will vary depending on the level of customization required.

Blog: How to Negotiate an HRIS Agreement

Integration Fees

Another fee to consider with an HRIS system is the cost of integrating it with other software tools or benefit carriers. If you use multiple software tools in your business, you might want to integrate them with your HRIS platform to streamline your workflow.

Similarly, if you offer employee benefits through a benefit carrier, you might want to integrate your HRIS with their platform to manage enrollment and claims.

Both of these types of integrations can require additional work on the part of the HRIS vendor, and as a result, they might charge an integration fee. This fee can vary depending on the complexity of the integration and the level of customization required.

HRIS Matching App:  See The Top Matches For Your Company

How are HRIS Fees Calculated?

There are a few different factors that go into the pricing of an HRIS. Let's take a look at each one:

Company size

One factor that can affect the price of an HRIS is the size of your company. Generally, the larger your company is, the more you can expect to pay for an HRIS. This is because larger companies tend to have more complex HR needs, and an HRIS that can handle those needs will likely be more expensive.

Additionally, since a large determinant in the PEPM calculation is employee headcount, a larger company will pay more for an HCM System. On the other hand, sometimes HCM Software companies will give volume discounts to their larger customers.

Number of modules

Another factor that can affect the price of an HRIS is the number of modules you need. Most HRIS platforms offer a range of modules, such as payroll & tax, HR management, employee files, benefits management, time & attendance, employee onboarding, recruiting and performance management. The more modules you need, the more you can expect to pay.

Free Tool: HRIS Requirements Builder

Number of users

The number of users who will be using the HRIS can also impact the price. Some HRIS platforms charge a per-user fee, so the more users you have, the more you'll pay. Others have a flat fee regardless of the number of users, so this isn't always a factor.


If you need an HRIS that is customized to fit the specific needs of your business, you can expect to pay more. Customization usually involves working with the HRIS vendor to develop a platform that meets your unique requirements, and this added level of work will likely come with an added cost.

Ongoing support

Finally, the price of an HRIS can also be affected by the level of support you need. Some vendors offer ongoing support for an additional fee, while others include it in the initial price. Make sure you understand what level of support is included and what the additional costs might be if you need more.

Shopping for an HRIS? Work with an HRIS advisor to streamline your shortlisting, evaluations and selection - for free!

What are Common HRIS Software Prices?

Common HRIS Software Prices

As discussed, there is often many factors that go into the price you ultimately pay for an HCM system. However, a typical ballpark for most systems would be:

  • HRIS systems without payroll modules - $8 - 15 PEPM
  • HR & payroll systems - $15 - 25 PEPM

Those numbers would be even higher if talent management tools, such as recruiting, performance management and learning management were added to the scope.

Common Implementation Costs

The implementation costs will vary depending on the configurability of your software platform:

  • Enterprise HCM Systems - Implementation can cost 150% of your annual fees (i.e., if you pay $300K annually, a one-time $450K implementation is expected)
  • Mid-Market HCM Systems - Implementations can cost 20-50% of your annual fees
  • Small Business HCM Systems - Implementations can cost 5-10% of your annual fees


In conclusion, the price of an HRIS will depend on a variety of factors, including the size of your company, the number of modules you need, the number of users, the level of customization required, and the level of support you need. By understanding these factors, you can make an informed decision about whether an HRIS is the right choice for your business, and if so, which one is the best fit.

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Brett Ungashick
Brett is the founder of OutSail. He spent the early part of his career selling HR software before switching sides and going to work for the people buying the software.

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