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HR Software - Compare Prices for your HRIS Systems and Solutions

A business’s human resources (HR) department is responsible for tracking employees’ professional history, skills, capabilities, accomplishments, and salaries, among other functions. The software associated with an HR department is most commonly known as a human resource management system (HRMS), or Human Resource Information System (HRIS). Utilizing these programs can help companies streamline HR department operations in a variety of ways.

Benefits of HR Software

There are many different applications that an HRMS can add to your existing HR functions. They can be extensions of what your HR department is already doing, or they can create new features your organization hasn’t been able to implement as yet. These can include automated time and attendance reporting, payroll management, performance reviews, and comprehensive demographics.

Brush up on your HR software terms in our Buyer’s Guide before making your purchase.

HR software can greatly reduce time and costs spent on the tracking of employee benefits. It can connect to external systems to locate appropriate insurance benefits or 401(k) plans, while reducing time spent on enrollment forms, changes, and simple requests. A comprehensive HR software system might perform some or all of the following functions:

  • Automate your employee recruitment and assessment efforts.
  • Manage labor productivity, incentive programs, and conflict-resolution issues.
  • Centralize employee records and secure confidential information.
  • Manage and organize salary structures, pay rates, and business-wide payroll.
  • Track employee hours, and calculate PTO and sick time accruals.
  • Ensure compliance with labor laws and tax regulations.

Costs Associated with HR Software

When looking to purchase an HRMS for your company, it’s important to research what you actually need. HR systems can be found within a range of prices, from $500 for generic small business software to $100,000 for customized enterprise-level applications.

But be prepared for a selection process that could range from two to six months or more. Your business will be living with your decision for a good number of years, so you’ll want to be sure that you make the right decision from the start.

  • Some providers might charge between $2 and $10 per user depending on factors like number of employees and performance measurement goals.
  • Others might charge a flat fee that can range anywhere from $35 to $1,200 or more per month, depending on the size of your organization.

Once you narrow down your list of potential vendors, compare their pricing structures and evaluate the total cost of ownership, including the required software and hardware, implementation, training, maintenance, and hosting, if applicable.

Choosing an HR Software System

You have many choices when it comes to choosing a provider of HR software. Narrow down your choices by asking the following questions:

  • Does the system have a user-friendly interface? 
  • Does the system offer a number of preformatted reports? 
  • Will it be updated regularly to reflect changes in health insurance, employer, and tax laws?
  • Is there ongoing customer and technical support available from the vendor? 

Additional questions for your potential vendors can relate to the availability of free trials/demos, special packages, upgrades, security, and ability to integrate the system with your other business software programs.

Over time, your HR software system will pay for itself by reducing errors and significantly cutting down the number of hours your employees spend collating and interpreting employee data. However, this software is a major investment for your business, so you’ll want to comparison shop, talk to those who’ve already purchased these systems in order to get their input, and perform your due diligence before rushing into a final decision.

If you’re interested in HR software, you may also want to consider payroll software and HR outsourcing