HR Software Pricing 2025: How Much It Costs

How much does HR software cost? This question appears in the mind of every business owner and the most confusing thing is finding an affordable HR tool. There are many options and each has its own price. Some seem cheap but hide extra fees and some cost more but include features you may not need.

That’s why we have explained everything about HR software pricing in this blog, so you know what to expect. This guide will help you choose software that fits your business and your budget.

Quick HR Software Pricing Overview (2025)

If you want to quickly compare some of the major providers, use this table to get a quick overview before diving deeper into detailed sections.

HR software pricing models

One of the first things you notice when you start looking for Human Resource software is the price. Different vendors charge in different ways. Understanding the different pricing models will make it easier to pick the software that fits your company.

There are six main types of pricing models. Let’s have a look at each of them with some examples:

Pay-per-user

Pay-per-user pricing is one of the most common models. In this model, the cost depends on the number of people using the software. For example, if you have 50 employees and the software costs £5 per user, you pay £250 per month.

This model is simple and predictable. You always know how much you will spend as your team grows. It works well for small and medium-sized businesses.

Some popular HR software with pay-per-user pricing include BambooHR , Personio, and Zelt. They all charge based on active users, making it easy to scale as your team grows.

Pay-per-employee

This pricing model is slightly different from pay-per-user. In this, the software charges based on the total number of employees in your company, not just those actively using it. It is helpful for companies that want HR features to cover all employees, such as payroll and performance management.

HR systems like Sage HR and Cezanne HR are examples of this pricing model.

Flat fee

Some vendors offer a flat fee model. This means you pay a fixed amount every month or year, no matter how many users or employees you have.
A flat fee is easy to understand. You always know your total cost. It works best for larger teams or companies that want a predictable budget.

Examples include CharlieHR and PeopleHR , which offer fixed monthly fees for their standard packages

Tiered pricing

Tiered pricing is like buying packages. Vendors offer different levels. Higher tiers include more features and cost more. You can start with a basic plan and upgrade as your needs grow.

For example, a basic plan may include employee records and leave management. A higher tier may add payroll and performance management. The top tier may include recruitment, onboarding, and analytics.

Software using tiered pricing include HiBob and CharlieHR.

Freemium

Freemium is a popular choice for startups or very small companies. You can use the software for free, but some features are limited.
It is a good way to test software without paying. Later, you can upgrade to a paid plan if you need more features. The risk is that free features may not cover all your HR needs.

Breathe HR and Zoho People are some examples.

Custom pricing

Custom pricing is for companies with unique needs. Vendors create a plan based on your size, processes, and features.

This model is common for large enterprises. It gives flexibility and access to advanced features. The price can vary a lot but the software is tailored to your business.

Examples of software with custom pricing include Workday and SAP SuccessFactors.

Understanding HR software costs by business size

Small companies often pay less than large companies because they need simple features and have few users. Large businesses pay more because they have to handle a large number of employees and need extra modules like performance management.

According to research, a small company with 50 users may spend around £298 per month. If they have 250 employees, the cost may rise to about £1,484 per month, depending on the per-user fee.

However, a company with 500+ employees needs more advanced software because they need multiple modules and more support. That’s why their costs may be higher. But understanding your company size will help you estimate costs accurately and plan your budget effectively.

Factors that influence HR software pricing

The price of HR management software is not just about the number of employees. There are many other factors that affect the cost. If you understand these factors, they will help you avoid paying for extra things you don’t need and help you make the right choice.

Type of software

There are different types of HR software and all have different costs. Some software is all-in-one, covering payroll, leave management, recruitment and performance. While some software focuses on one area, such as payroll only. All-in-one solutions usually have higher costs but they save time and reduce the need for multiple tools. The good news here is that Zelt is also an all-in-one platform but its flexible pricing also makes it an affordable option.

Software features

The features included also affect the price. The basic HR system may only handle employee records and leave. Advanced software may include analytics, onboarding, learning management, and performance reviews. The more features you need, the higher the price.

Package inclusions

Some vendors bundle features into packages. For example, one package may include payroll and leave management, while another adds recruitment and training modules. Choosing a package that matches your needs can save money and prevent paying for unnecessary features.

Staff training and onboarding requirements

Training your team to use new software takes time and money. Some vendors include training in the price. Others may charge extra. Make sure to consider training costs when budgeting for HR system.

Cloud-based or on-premise software

Cloud-based software is hosted online and usually requires a subscription. It is easier to scale and maintain. On-premise software is installed on your company servers. It can have a higher upfront cost but lower ongoing fees. Your choice will affect the overall price.

Pricing plan

Pricing plans vary by vendor. Some offer monthly subscriptions. Others offer yearly plans or flat fees. Choosing the right plan depends on your budget and how long you plan to use the software.

Number of users

Most software charges based on users. The more users you have, the higher the cost. Small businesses with fewer users pay less. Large companies with hundreds of employees will pay more, but they get features and support for a bigger team.

Software integrations

Integrations connect your human resource software to other tools like payroll, accounting, or communication apps. Integrations improve efficiency but can add to the cost. Consider which integrations are essential and which you can skip.

HR software price and implementation costs to consider

The software price itself is not the only cost. Implementation costs can be significant, especially for larger companies. These costs include setup, training, technical work, and sometimes hiring external consultants. Planning for implementation costs helps prevent surprises and ensures a smooth rollout.

Support

Customer support can be included or extra. Some vendors offer 24/7 support. Others only provide email support during business hours. Reliable support is important for solving issues quickly.

Training

Training is often required for HR staff and managers. Some vendors provide online tutorials. Others offer in-person sessions. Factor in training costs when calculating total investment.

Technical setup

Setting up HR tool requires technical work. This can include configuring the system, setting permissions, and importing data. Some vendors include setup in their price. Others charge extra for technical services.

HR employee time

HR staff will spend time learning and managing the software. Even the best software requires human attention. Consider the hours your HR team will spend and how that adds to the cost.

Integration

Integrating HR software with other systems may need technical help. Some integrations are simple. Others are complex and require custom work. Integration costs should be part of your budget.

Data migration

Moving employee data from old systems to the new software can take time and resources. Some vendors include migration services. Others charge extra. Make sure to account for this to avoid delays and errors.

HR software price comparison and considerations

After understanding pricing models, company size, features, and implementation costs, it’s time to compare options. Not all HR software costs the same. Some vendors offer lower monthly fees but fewer features. Others include everything you need but have a higher price.

Creating a comparison table is helpful. Include:

• Pricing model
• Number of users included
• Features offered
• Implementation support

This helps you see which software gives the most value for your money. Always consider both price and features. The cheapest option may not always save money if it lacks important functions.

Why Zelt Is Worth Considering

When we discuss an affordable option, Zelt stands out as the #1 choice, especially for growing companies. Zelt is a UK-based HR software that helps businesses manage HR, payroll, performance and time off in one place. Zelt’s pricing depends on company size and selected products as it is a modular platform. Pricing starts at $5/user/month.

Here are some key features of Zelt:

• Payroll automation
• Leave management
• Performance tracking
• Recruitment tools.

Zelt also offers integrations and support to make setup easy and keep HR processes smooth. So, choosing affordable software like Zelt can save time, reduce errors and give you a clear view of HR costs while providing real value for your business.

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See how Zelt brings payroll, HR, and people management together in one connected platform.

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But if you are still in research mode, have a look at our comparison article on the best HR software in the UK. It will give you a clear picture by comparing top tools available today.