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Written by:
Amy Cowpe
It’s tough when you want to give your team members the best of the best - but you’re not sure if you’ll be able to afford it.
As the Chief of Staff at CharlieHR, I have to strike a tricky balance between keeping my team members happy and making sure they have the tools and resources to do their jobs - plus making sure that we have the financial means to do so.
This is a hard challenge for a startup like ours.
As a small business, you naturally want to get state-of-the-art technology that gives you an edge over your competitors. More often than not, however, you have to do the best you can with what you have.
That’s the dilemma you face when you look at HR software pricing. HR software helps you manage and automate many of the HR tasks that keep your business running like onboarding, employee management and time off. The right HR software keeps your business efficient, helps you stay compliant with UK employment laws and improves the experience of your employees.
I made this guide to compare the pricing of some of the most popular HR software out there — including ours — and break down the different pricing models and factors that influence the cost. That way, you can make an informed decision about the best HR software pricing for you and your small business.
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Different HR software pricing models
Understanding what features you need in HR software and what exactly you’re paying for is important for making a good decision.
As a small business, you may not be able to afford all the tools and resources you want. That’s why it’s vital that you get the most punch for your pounds.
There are two common pricing models for HR Software: perpetual license and subscription (SaaS).
1. Perpetual licence
Understanding what features you need in HR software and what exactly you’re paying for is important for making a good decision.
As a small business, you may not be able to afford all the tools and resources you want. That’s why it’s vital that you get the most punch for your pounds.
There are two common pricing models for HR Software: perpetual license and subscription (SaaS).
2. Subscription (SaaS)
SaaS is the more typical model for HR software. In this model, a business makes regular payments to keep using the software on a monthly or annual basis.
The cost of HR software with SaaS pricing usually scales with the business as it grows and gets users or employees — which makes it a flexible option for small businesses in the early stages of growth.
While a one-time perpetual license is attractive for its one-and-done payment, SaaS models typically give you more flexibility, support, and continual updates, which is important in HR management.
Factors influencing HR software cost
When you understand what goes into the cost of HR software, you can make an informed decision about what you need and how much you’re willing to pay for it. Some of the most common factors are:
Number of employees
Many HR software platforms charge on a per-user basis. That means the cost increases the more team members the company has.
Other HR software providers use pricing brackets to group companies within a certain range of team members (e.g. 0-25, 25-50, 50-100). That means if you have a company with just 10 employees, you can end up paying the same amount as a company with 25 (this is what happens with Personio’s pricing, for example).
Make sure that your HR software’s pricing structure aligns with your company size and growth plans.
Pricing tiers based on features
Another common pricing model in HR software is based on the number of features. The more bells and whistles you want, the more you pay. Basic tiers include basic HR functions, and higher tiers have more advanced capabilities like performance management or analytics.
Before paying money for HR software, assess what HR features you need, and how much you’re willing to pay for them. The more features you want, the higher the cost. Personio, BambooHR, and Breathe HR all follow this model.
CharlieHR has one, simple, affordable, flat-rate price that includes all the features bundled in.
Add-ons
Some HR software providers charge extra for additional, more advanced features or services.
These can include things like performance management, premium 24/7 support, or additional integrations - all of which improve the software’s functionality. However, they can also significantly raise the price you pay for the software.
CharlieHR has no such add-ons: everything you need is included in one plan.
Hidden fees
Be mindful of hidden fees. HR software providers often bundle additional fees for setup, live training or other services, some of which you may not actually need. Always ask for an itemized breakdown of costs before deciding to purchase HR software.
That's not a problem with CharlieHR. The setup for our platform is free and works straight away. Our team is available to talk to you anytime you need, for free, to help you get sorted.
HR software price comparison
To help you make the best decision for your small business HR software, I put together this HR software price comparison chart of CharlieHR’s pricing and features compared to other popular HR software. I included the pricing for each platform (true as of August 2023), plus the features you get with their most basic plan.
- Free for 7 days, then for as little as £20 per month depending on company size.
- All-inclusive: Employee database, onboarding, time off management, performance reviews, perks, engagement surveys, reports, integrations with ATS and payroll tools
- Varies based on pricing bracket and different plans (Core can start at around £5.60)
- Not included in Core package: Recruiting and Performance reviews
- Starts at £13/month for up to 10 employees
- Not included in Core package: Recruitment, rota, timesheets and attendance tracker
- Custom pricing
- Not included in Essentials package: Onboarding, ATS, surveys, reports, open API
- £4 for Core HR package
- Not included in Core package: Performance management, shift scheduling, expenses, ATS
The importance of affordable HR software for small businesses
When you're a scrappy small business with dreams that are bigger than your bankbook, you have to make every pound sterling count.
A small business might have one go-to point person for HR matters if they have one at all. When you’re that person, you have to operate under a tight budget and make sure every investment you make is worth its while.
HR software can be a lifesaver when it comes to managing employees and streamlining your HR tasks, but it can be a consistent cost issue for funding-strapped small businesses. With that said, finding affordable HR software doesn't have to mean making compromises on quality or functionality.
That's why we made CharlieHR an HR software with small businesses in mind. CharlieHR offers a simple, affordable pricing model starting at £20 per month depending on company size., no hidden fees, free setup and support, and a free, live intro demo.
That makes CharlieHR a cost-effective solution for small businesses looking for an HR solution that grows with them.
Get started with CharlieHR for free today, and get a HR software solution that has it all, for a price you can afford.
Automate your HR, all of it
Charlie helps you banish manual and repetitive HR tasks, so you can focus on what really matters.
Free for 7 days
No credit card needed
Cancel any time
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