The budget for using HRIS software
Choosing a Human Resources Information System (HRIS) will enable your company to optimize its HR processes. The question of cost is often at the heart of these concerns. We’re going to explore the financial aspects of acquiring and using an HRIS, looking at the options available and the factors that influence price.
Cost of an HRIS in SaaS mode
HRIS in SaaS (Software as a Service) mode is the preferred option for many companies. This model offers great flexibility and more predictable costs. The price of a subscription to the software service varies between 2€ and 5€ (ex VAT) per employee per month. This pricing allows companies to benefit from immediate access to functionalities without a substantial initial investment.
Subscription to an HRIS in SaaS mode includes regular updates, technical support and data hosting. This model is particularly advantageous for small and medium-sized businesses who want access to high-performance HR management tools without having to manage the IT infrastructure.
The scalability of SaaS makes it easy to adjust the number of users to suit business needs.
Cost of an HRIS in license mode
On-premise, or license-based, HRIS represents an alternative to the SaaS model. In this case, the company buys a license to use the software and installs it on its own servers.
The initial cost is much higher, as it includes the purchase of the license, installation costs and possibly the acquisition of additional hardware. In the long term, however, this option may prove more economical for very large organizations.
The advantages of license-based HRIS include greater control over data and the ability to customize the software in greater depth. However, recurring costs associated with maintenance, updates and user training need to be taken into account.
Companies opting for this solution need to have an IT team capable of managing the infrastructure and ensuring the software runs smoothly on a day-to-day basis.
Factors influencing cost
Several factors influence the price of an HRIS, whether in SaaS or license mode. The number of users is often the primary criterion, but other factors also come into play.
The functionalities chosen, such as leave and absence management, working time tracking or expense reports, will significantly impact the price. The more modules an HRIS integrates, the more it costs. At least, that’s what most software publishers do. With My Intranet HRIS, the approach is completely different, since you can benefit from access to all the modules available at no extra cost.
The complexity of the company’s HR processes and the level of customization required are also determining factors. An HRIS requiring extensive adaptation to the company’s specific needs will naturally be more expensive. The extent of support and training provided by the software publisher also influences the final price.
The duration of the HRIS project also has an impact on the budget. How long will your teams be mobilized? This is a major issue not to be overlooked. With My Intranet HRIS, it often takes no more than a month to set up an HR software package in an SME.
What is the break-down of the budget for implementing an HRIS ?
The HRIS budget is more than just the cost of the software. It includes several components that need to be calculated right from the start of the project. The software license or subscription represents the most visible part, but there are other elements as well. Set-up costs, which include installation, configuration and data migration, represent a significant part of the initial budget.
User training is another item of expenditure to ensure successful HRIS adoption. In addition, you need to budget for the integration of the HRIS with the company’s existing systems.
Finally, maintenance and technical support costs must be anticipated, whether included in a SaaS package or managed separately for an on-premise solution. Careful planning of these aspects will avoid unpleasant surprises and optimize the return on investment of your HRIS project.
Sample budget for an HRIS project
To illustrate the breakdown of an HRIS budget, let’s take the example of a company with 500 employees opting for a SaaS solution. The subscription cost represents around 50% of the total budget, with an average rate of 2 € (excl. VAT) per employee per month.
Set-up costs, including installation and configuration, represent between €1,000 and €2,000 plus VAT. Data migration costs depend on technical constraints and the volume of data to be recovered. The budget ranges from 500 € to 5,000 €.
Next, you need to think about training costs. Publishers charge between 1,000 € and 2,000 € for a day’s training, depending on the number of HR administrators to be trained.
Finally, there are the ancillary costs :
- integration of third-party software (payroll, ERP)
- customization to meet specific needs
These ancillary costs are invoiced on a flat-rate basis or according to the time spent.
This sample budget underlines the importance of considering all financial aspects beyond the simple cost of the license or subscription when planning an HRIS project.
| Element | Cost | Details |
|---|---|---|
| SaaS Subscription | 12.000 € (exVAT) / year | 2 € exVAT per employee and per month (500 employees x 2 € x 12 months) |
| Set-up costs | 1.000 € – 2.000 € exVAT | Installation and configuration |
| Data migration | 500 € – 5.000 € exVAT | Depends on technical constraints and volume |
| Training | 1.000 € – 2.000 € exVAT | Per day of training, depending on the number of HR admins |
| Ancillary costs | Variable | Integration of third-party software (payroll, ERP), customizations |
What’s the return on investment for an HRIS?
Although the initial cost may seem high, a well-implemented HRIS will generate significant savings over the long term. Saving time on administrative tasks is often the most immediate benefit. HR processes automated via an HRIS enable teams to concentrate on higher value-added activities. This is one of the advantages of HR software.
In SaaS mode, the return on investment is much faster than in the case of a license purchase, since there is no amortization of the very high initial cost.
HR software helps to reduce errors and improve regulatory compliance, thus avoiding potential costs. By providing accurate data and in-depth analysis, an HRIS aids strategic HR decision-making.
Although ROI is difficult to quantify precisely, many companies report significant improvements in operational efficiency and employee satisfaction after adopting a high-performance HRIS.
