How Do You Determine the Right HR Software Budget for a Company with 500+ Employees?

What do you think should be the budget for HR software for a company that has over 500 headcount?

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I have reviewed your query about the budget for HR software for a company with over 500 employees. The budget for HR software can vary based on various factors such as the specific needs of the company, the features required in the software, and the scalability of the software to accommodate a large workforce. It is essential to conduct a thorough analysis of the company's HR requirements and evaluate different HR software options to determine a suitable budget that aligns with the company's goals and resources.

The HR software/HR system comes with module-based pricing as well. If you choose all the modules (Recruitment, Payroll, PMS, and so on) and select second or third-level players in the market, any budget between 25 Lakhs to 40 Lakhs would suffice. Do a search on the Gartner website to identify the best HR system providers. A few top providers like Workday and Peoplesoft have some minimum headcount requirements of 1000 and above. There are many other players to name, such as Cornerstone, Ramco, and Adrenaline.

HR System Costing

The costing is based on the number of users (license cost per user) and implementation cost. Also, at times you may opt for customization in the product to meet your organization's needs; this will consume some budget. Hence, you have to consider these factors and propose a budget for the HR system.

Please bear in mind, once you have the system, it should be used by all 500 employees for PMS and any other requirements. Only then will the technology reach all employees. Also, have a clear structure of your company and HR processes before you start the project. If you don't have HR processes, please write the policy and processes first before you kick-start the project.