How Much Does HR Software Cost? How to Select the Best HRMS Software for My Company?

How much does HR software cost? How to select the best HRMS software for my company?

How Much Does an HRMS Cost?

The cost of an HRMS depends on multiple factors like the size of the organisation, geographical spread, feature requirements, expected outcome and expansion plans, to name a few.

Whenever you are ready to buy an HRMS, understanding of the varieties of software, pricing models, additional costs and estimation of the TCO/ROI will help you make a well-informed decision. Let’s explore the details by answering some of the most common questions.

What Are the Prevalent Pricing Models?

Subscription model In this model, the solution is hosted on the vendor’s cloud server and made available to you on a SaaS-based delivery model. When you opt for this subscription, you would have to pay monthly or annually. The billing is done on a per employee/user (admin) per month basis. The average cost per employee/user is likely to reduce when your employee/user count increases.

The most alluring benefit of the subscription model is the flexibility that it provides. Whenever your organisation scales, the capacity can be upgraded

seamlessly. Also, there’s greater transparency since you know how much more you would have to spend every time. Since it is a cloud-based solution, even the termination of service is quite easy and quick.

Licensing model If you choose the licensing model (also called perpetual licensing), you would have to pay only for the software but host the same on your company’s servers.

In other words, it is an on-premise deployment. Larger enterprises choose this option because of their preference to keep their data in-house for better control.

In this model, you have to pay a fixed amount upfront to buy the software. The total amount is usually based on the number of users and software customisation (if any) for your organisation. You would also have to incur additional recurring costs based on the type of support/maintenance plan and services offered by the technology provider.

Are There Any Additional Costs?

Depending on the type of HRMS software, some vendors display their pricing transparently in the public domain. On the other hand, some of them might prefer to offer a customised quote after a detailed briefing by your team.

After deciding the essential features, you can dig deeper into the fine print to know if there are any costs you have not considered.

How Can TCO/ROI Be Estimated?

In order to arrive at the TCO, you must add the cost of software, manpower, deployment, data migration, training, support and anything else you deem necessary. As cited earlier, the engagement is likely to have additional/hidden costs, and you wouldn’t want to be caught unawares. This exercise is vital in your budgeting phase.

ROI estimation can be tricky since you are yet to deploy the HRMS and use it for the predefined period. Come up with an approximate figure for the reduction in operational cost and number of issues. Also include the enhancement in employee engagement levels. This makes it easier to sell your proposal to the management and review the outcomes later.

How Much Does greytHR Cost?

If you are in the market for an HRMS software, chances are you would have already spoken to various technology providers. At greytHR, we don’t like to make comparisons. Instead, we prefer to tell you what we can offer and leave the decision to you. We’ll do our best to ensure that the process is as easy and transparent as possible. You can view our different pricing plans on our website.

7 Factors to Consider while Choosing the Right SaaS HRMS

HR Inputs Payroll department can receive salary inputs from HR through these portals safely and securely within the payroll system as compared to emails or printouts, which are prone to be missed or misplaced.

Time & Attendance Time & Attendance data will be input by employees through the ESS portal of the payroll software rather than signing on a manual attendance register. That data will be used by the respective Managers for reviewing the team’s availability on a regular basis. At the end of the month, the Payroll department will use this data from the same system for salary payment purpose.

Leave Management Employees can review their leave balances online and apply them appropriately though the payroll software. Workflow within the system will route the application to their respective Manager for action. Leaves will automatically get adjusted based on usage and approvals. At the end of a year, Payroll will be able to upload new leave quotas of all employees as per their eligibility for the next year. Leave encashment data can be obtained for final settlements too.

Claim Submission Online Employees will be able to submit their reimbursement claims online using preformatted forms. The forms can be routed to Finance & Accounts dept or to Payroll, as the case may be. Approvals from the Managers can be obtained online through the same system.

Tax Declaration & POI Submission ESS portal can manage two significant tasks — that is submission of tax plans by employees at the beginning of the year and submission of proof of investments at the end of the year. Plans can be altered online by employees up to the extent allowed by the Payroll department. Validation of proof of investments can be automated to a significant extent in the system to minimize manual work of payroll personnel Online Payslips and TDS Report Payslips of any period can be viewed by employees using individual login in the portal in a safe and secure manner. Additionally, the annual TDS report (Form16) can also be viewed, stored, saved, printed or forwarded to anyone at any point in time.

Query Management Lastly, employees can log in to the portal to look for any HR/Payroll related FAQs or also in some cases, chat with payroll personnel in order to clarify any doubts on HR/Payroll matters.

Visit greytHR website.