How do the costings usually work for HR systems?

Understanding the cost structure of HR systems is crucial for effective budgeting.​

Common Pricing Models:

• Subscription-Based (SaaS): A transparent monthly cost with short notice periods. Implementation support may be minimal, with an expectation of self-implementation aided by remote support and online guidance. This model is flexible and cost-effective for emerging organisations but requires internal resources for implementation.​
• SaaS with Professional Services: In addition to subscription fees, there are vendor professional services fees for implementation support. It's essential to review the proposed implementation plan to understand resource allocation and ensure adequate support during critical phases like testing and payroll runs.​

Additional Costs to Consider:

• Training: Costs associated with training the HR team on the new system.​
• Integrations: Expenses related to integrating the new HRIS with existing business systems, which may involve costs from both the HRIS vendor and current system vendors.​

Recommendation: Thoroughly assess all potential costs, including peripheral expenses, to ensure a comprehensive budget. Engage with vendors to clarify any ambiguous charges and consider consulting with experts to navigate complex pricing structures.​

Recommended Reading: Building your Business Case