No doubt about it, a quality HRIS system solution will save unnecessary time and hassle for your HR department.
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It will also result in efficiencies that create savings in your bottom line. But the cost benefits associated with HRIS technology will be lost if you don't take the time to learn about industry pricing.
Keep in mind that when you're evaluating HRIS pricing, you have to consider more than just the dollar value of the solution itself. Sure, you can save money buying inexpensive, off-the-shelf HRIS software. But if the software fails to deliver the benefits and performance your company needs, then what have you really accomplished?
Features, compatibility, even dealers themselves – they are all factors that need to be considered when you compare pricing. With that in mind, here are a few other considerations when it comes to pricing.
HRIS system pricing varies, depending on whether you are looking at a client server or ASP solution. Client server solutions are priced according to the number of user licenses you require. In a 50-person business, you'll pay a total cost of $2,000-$5,000 for HSIP software. If you require more complex features and additional users, expect to pay a higher price. A 300-user work environment comes with a total HRIS price tag of $80,000+.
ASP solutions are priced on a per employee/month basis. Again, depending on the complexity of the system and the features you require, you will pay $4-$10 per user/month. Although monthly payments are more attractive to many small business owners, they have a higher long-term cost.
- Both ASP and client server solutions require initial setup. If you need a high degree of customization, you may have to pay a consultant for assistance. Initial set up and customization costs run between $2,000-$4,000.
- Software support agreements can be purchased on either a per-minute or per-incident basis, though many vendors offer a certain amount of phone support as part of their package.
- Staff training is another upcharge and is available in a number of formats including on-site, off-site, web-based and video options.