If your company is in the process of purchasing and implementing HR software, it’s important to know how to navigate your pricing options.
There are many key pricing methodologies when it comes to recruiting software, but the three most common are per recruiter/manager pricing, per employee pricing and per hire pricing. According to BrightMove, each methodology has its own implications.
Although many vendors no longer offer a per recruiter/per manager pricing option, it’s usually the ideal option for companies that don’t intend to implement an employee portal. The price of this methodology is lower than other pricing models, as you only need to license recruiters.
However, that means your employees won’t have access to login to the software, but if you want to allow employees to use the system at a later date, you can always negotiate the per employee price.
Per employee pricing is currently the most common model for HR departments and is the best pricing option if you plan to allow employees and managers to use the software. You usually aren’t required to specify the number of recruiters using the system, which is ideal for companies that recruit on a seasonal basis.
Although per hire pricing is not as common in the HR business, the benefit of this pricing model is that it allows you to only pay when you make a hire. Although this option is becoming more popular, it’s not ideal for companies expecting to make a lot of hires in the near future.
Once you choose the pricing model that best suits your company, it’s time to consider the costs and strategy of implementing HR software. As the technology continues to evolve, many companies are choosing to implement an SaaS version of their software. Implementing this type of software is typically cost-free for small to mid-size businesses and requires little to no initial setup.
Some companies choose a consultative implementation of their software, which is a more standard set-up that includes assistance from the software vendor. This is more ideal for companies that have been using HR software, but want to analyze their data and identify best practice configurations for a specific type of recruitment.
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