For businesses in the UK, investing in HR software can streamline operations, enhance compliance with employment laws, and improve overall workforce management. However, one of the first questions that arises when considering HR software is its cost. This article explores the various factors that influence HR software pricing and provides an overview of how much businesses might expect to pay.
Factors affecting HR software pricing
HR software pricing can vary widely depending on several key factors:
- Features and functionality: The more comprehensive the software, covering aspects like recruitment, onboarding, performance management, and payroll, the higher the cost is likely to be. Basic packages might only include essential HR functions, while more advanced solutions offer extensive integrations and analytics capabilities.
- Customisation and scalability: Customised solutions tailored to specific business needs are more expensive than standard packages. Additionally, pricing can increase as a business grows and requires more licenses or a broader range of features.
- Deployment method: HR software can be deployed on-premise or hosted in the cloud. On-premise solutions often require a larger upfront investment for software licenses and hardware, while cloud-based services typically operate on a subscription model, charging a monthly or annual fee.
- Number of users or employees: Many HR software vendors base their pricing on the number of users or employees within the organisation. Costs can escalate with the size of the business, making scalability an important consideration.
- Vendor and support services: The reputation and reliability of the software vendor, as well as the level of support and training they provide, can also affect pricing. Premium support services might come at an additional cost.
Average costs of HR software in the UK
Given the factors mentioned above, the cost of HR software in the UK can range significantly. However, here are some general pricing guidelines:
| Category | Indicative Price Range (per employee per month) | Features Included |
|---|---|---|
| Basic | £2 – £5 | – Employee self-service portal – Basic payroll processing – Time and attendance tracking – Simple reporting tools – Email support |
| Mid-level | £5 – £15 | – All features in the Basic package – Recruitment and onboarding tools – Performance management systems – Basic benefits management – Integrations with other business tools – Phone and email support |
| Advanced | £15 – £30+ | – All features in the Mid-level package – Advanced analytics and reporting capabilities – Customisable dashboards and workflows – Comprehensive benefits management – Learning and development modules – 24/7 support |
- Small to medium-sized enterprises (SMEs): For basic cloud-based HR software solutions, SMEs might expect to pay anywhere from £2 to £10 per employee per month. Prices can increase with the addition of more sophisticated features and functionalities.
- Larger enterprises: Larger organisations requiring comprehensive, customised HR software solutions might see costs starting from £15 to £30+ per user per month. The exact price would depend on the scope of the solution, the number of employees, and additional services required.
- One-time and recurring costs: It’s essential to consider both one-time costs (such as implementation and training) and recurring costs (monthly or annual subscriptions) when budgeting for HR software. On-premise solutions might also involve ongoing maintenance fees.
HR software price list
Below is a curated list of the top 10 HR software options, along with a brief description and indicative pricing for each. Please note that the pricing is subject to change and can vary based on the number of employees, the specific features required, and any additional services or customisations.
- Takes 2 minutes
- Receive quotes to compare
- Easy and no commitment
| Software | Target Business Size | Core Features | Indicative Pricing |
|---|---|---|---|
| BambooHR | Small to Medium | Employee data, Time-off tracking, Performance reviews | From £4.50/employee/month |
| Sage HR | Small to Medium | Leave management, Performance appraisal, Timesheet management | From £3.50/employee/month |
| Workday | Large | Financial management, HR planning, Analytics | Bespoke, starting from thousands |
| Zoho People | All sizes | Time tracking, Performance management, Employee onboarding | Starts at £1/employee/month |
| ADP Workforce Manager | Medium to Large | Payroll, Benefits, Talent management, HR analytics | Bespoke, around £8/employee/month |
| OnFolk | Small | Payroll, Benefits administration, Compliance management | From £8/employee/month |
| Cezanne HR | Medium | Core HR, Absence management, Performance management | From £2/employee/month |
| UltiPro (UKG Pro) | All sizes | HR, Payroll, Talent management, Analytics | Bespoke, starting from thousands |
| People HR | Small to Medium | Applicant tracking, Employee management, Reporting | Starts at £4/employee/month |
| Oracle HCM Cloud | Large | Talent management, Workforce management, Payroll | Bespoke, starting from thousands |
1. BambooHR
- A popular choice for small to medium-sized businesses, BambooHR offers a user-friendly interface with comprehensive HR capabilities, including employee data management, time-off tracking, and performance reviews.
- Pricing: Starts from £4.50 per employee per month.
- Further information: Visit the website.
2. Sage HR
- Sage HR is a flexible HR management solution, known for its leave management, performance appraisal, and timesheet management features. It’s designed for small to mid-sized businesses.
- Pricing: From £3.50 per employee per month.
- Further information: Visit the website.
3. Workday
- Suitable for larger enterprises, Workday provides a broad range of HR functions, including financial management, HR planning, and analytics. It offers extensive scalability and customisation options.
- Pricing: Pricing is bespoke, usually starting from several thousand pounds per year.
- Further information: Visit the website.
4. Zoho People
- An affordable option for businesses of all sizes, Zoho People focuses on automation and simplification of HR processes, offering features like time tracking, performance management, and employee onboarding.
- Pricing: Starts at £1 per employee per month, with free plans available for very small businesses.
- Further information: Visit the website.
5. ADP Workforce Manager
- ADP Workforce Manager is designed for mid-sized businesses, offering comprehensive services that include payroll, benefits, talent management, and HR analytics.
- Pricing: Custom pricing, with estimates starting around £8 per employee per month.
- Further information: Visit the website.
6. OnFolk
- Primarily known for its payroll services, OnFolk also offers a full suite of HR tools designed for small businesses, including benefits administration and compliance management.
- Pricing: Starts from £8 per employee per month.
- Further information: Read our OnFolk review or visit the website.
7. Cezanne HR
- Cezanne HR caters to mid-sized and growing businesses, offering modules for core HR functions, absence management, performance management, and onboarding.
- Pricing: From £2 per employee per month, with a minimum monthly fee.
- Further information: Visit the website.
8. UltiPro (UKG Pro)
- Suitable for companies of all sizes, UltiPro provides comprehensive HR, payroll, and talent management solutions. It offers extensive reporting and analytics capabilities.
- Pricing: Bespoke pricing, with costs generally starting from several thousand pounds per year.
- Further information: Visit the website.
9. People HR
- People HR offers an easy-to-use solution with features like applicant tracking, employee management, reporting, and performance reviews. It’s well-suited for small to medium-sized businesses.
- Pricing: Starts at around £4 per employee per month.
- Further information: Visit the website.
10. Oracle HCM Cloud
- Oracle HCM Cloud is designed for large enterprises, offering a complete suite of HR tools, including talent management, workforce management, and payroll. It features advanced analytics and a comprehensive cloud platform.
- Pricing: Custom pricing, typically starting from several thousand pounds per year.
- Further information: Visit the website.
When considering these HR software options, it’s important to request a demo and obtain a detailed quote based on your specific business needs and employee count. The right choice will depend on a variety of factors, including the size of your business, the specific HR functionalities you need, and your budget.
Key considerations when choosing HR software
- Assess your needs: Before deciding on an HR software package, it’s crucial to assess your organisation’s specific needs. Consider which HR processes you want to automate or streamline and what your key HR challenges are.
- Scalability: Choose software that can grow with your business. Consider how easy it is to add new users or functionalities as your business expands.
- Integration capabilities: Ensure that the HR software can integrate smoothly with your existing systems, such as accounting software or workforce management tools, to avoid siloed data and processes.
- Compliance: Particularly relevant in the UK, ensure the software supports compliance with local employment laws and data protection regulations, including GDPR.
- User experience: Consider the ease of use for both HR staff and employees. A user-friendly interface can increase adoption rates and ensure you get the most out of your investment.
- Vendor support and reliability: Look for a vendor with a good track record of reliability and customer support. Check reviews and ask for references to understand other customers’ experiences.
FAQ – Cost of HR software
Prices start from around £1 per month but can rise into the thousands for large organisations that want a sophisticated solution.
The cost is influenced by the number of employees, features required, deployment method (cloud vs. on-premise), customisation needs, and the level of support and training.
Yes, some providers offer free versions of their software, but these are usually limited in features and capacity, suitable for very small businesses or startups.
- Give your requirements
- Receive quotes to compare
- Choose a provider or walk away - your choice!
Yes, potential hidden costs include setup fees, additional charges for support, training, and customisation, as well as integration with other systems.
For basic plans, small businesses can expect to pay from £2 to £10 per employee per month.
Yes, especially for larger businesses or those committing to long-term contracts, there might be room for negotiation.
Yes, many HR software providers offer free trials or demos to help businesses evaluate the software before committing.
To calculate ROI, consider the cost savings from automating processes, reducing errors, and the value of improved strategic decision-making capabilities against the cost of the software.
To minimise costs, carefully assess your needs to avoid paying for unnecessary features, consider scalable solutions that grow with your business, and leverage any available free trials to ensure the software meets your needs before purchasing.