Comparing HR software prices is harder than it should be, and not by accident. A per-employee rate here, a headcount band there, a setup fee mentioned on the call, an add-on that turns out to be the thing you actually wanted. Two quotes can look a pound apart and be nowhere near it.
This is a guide to how the pricing actually works, so you can put two vendors side by side and get a fair answer. If you want our own numbers rather than the general shape, they are on the pricing page, and there is a fuller piece on what HR software costs and how to roll it out.
The three pricing models you will meet
Per employee, per month
The most common model: a monthly rate for each person on the payroll, sometimes with a base fee on top.
It feels fair when you are small, and it scales relentlessly. Every hire raises the bill, so the same software costs a 50-person business several times what it costs a 15-person one. It also makes budgeting awkward, because your HR cost moves every time your headcount does - including in the month you are already absorbing the cost of hiring someone.
Flat rate within a headcount band
A single monthly price for a size band: up to 10 people, up to 25, up to 50, and so on.
This is easier to forecast and it does not punish growth - you can hire within a band without the bill moving. The catch is the step between bands, which can be a jump rather than a nudge, and the band you need may be the one where the feature you want first appears.
Low base price, paid add-ons
The headline price covers the core, and the rest is sold separately: payroll, training, document management, AI features.
This is where comparisons come apart, because the advertised figure is not the figure you will pay. Before you compare a base price to anyone else's all-in number, get a list of what is actually in it.
The charges that are not on the pricing page
- Setup or implementation fees. A one-off charge to get you started. For a business under about fifty people, ask hard what it buys.
- Going over your band. If pricing is banded, find out what happens the month you exceed it, and whether it is backdated.
- Integrations. Connecting payroll, accounting or time tracking is sometimes charged per connection.
- Document storage limits. Easy to miss until the year you upload a few hundred certificates.
- Support tiers. Email-only on the lower plans, with anything faster reserved for the higher ones.
- Contract length. An annual commitment usually carries an early-exit penalty. A rolling month costs a little more and is worth it while you are still deciding.
You will notice none of these are secret. They are simply not on the page you compared, which is why the list above is worth reading down before a demo rather than after one.
What we charge, and what we charge extra for
Since this is our blog, here is ours in full rather than an invitation to request a quote. HR Henry is banded by headcount, and the numbers are published:
| Team size | Monthly | Billed annually |
|---|---|---|
| 1–10 employees | £15 | £12/mo |
| 11–20 | £32 | £26/mo |
| 21–50 | £79 | £63/mo |
| 51–100 | £145 | £116/mo |
| 101–150 | £325 | £260/mo |
| 151–200 | £550 | £440/mo |
No per-employee charge and no setup fee. Hiring within a band does not change the bill.
And the part most vendor pages leave out: we do have paid extras. The subscription covers employee records, holiday, absence, documents and attendance. Staff training is bought separately - credits for the standard catalogue, or a per-person price for the premium courses - and heavy use of the AI assistant beyond what is included is chargeable too. Those are genuinely optional and plenty of customers never touch them, but "all-inclusive" would be the wrong word and we would rather you heard it here than found out in month three.
Judging value rather than sticker price
The cheapest system that nobody opens is the most expensive one you will buy. Four things are worth weighing against the monthly figure:
What is genuinely included. Compare like with like, base price plus mandatory add-ons against base price plus mandatory add-ons.
Whether anyone will use it. If it needs training, or the person running HR has to fight it, you pay for that in hours nobody invoices you for.
What it does while you are not looking. Expiry tracking is the honest example: a system that tells you a certificate lapses next month is doing work you would otherwise do badly or not at all.
How it behaves as you grow. Model the bill at the headcount you expect in two years, not the one you have today. That single sum separates the pricing models faster than any feature list.
Six questions worth getting in writing
- What exactly is in the base price?
- Are there setup, onboarding or migration fees?
- What happens to my bill when I hire past my current band?
- Which features are add-ons, and what do they cost?
- What level of support does my plan include?
- Can I leave monthly, and can I export my data when I do?
That last one matters more than it looks. Whatever you buy, your people records should be able to leave with you - and a supplier who is comfortable answering it is telling you something useful about the rest.
Frequently asked questions
How is HR software usually priced in the UK?
Three ways. Per employee per month, which scales with every hire. A flat rate for a headcount band, which is predictable but steps up sharply between bands. Or a low base price with the useful parts sold as add-ons. Knowing which one you are looking at is what makes two quotes comparable.
Is per-employee or tiered pricing better?
It depends on whether you are hiring. Per employee is fairer at very small sizes and gets expensive as you grow, because every hire raises the bill. Tiered is flat within a band, so growth inside a band costs nothing - but crossing into the next band can be a noticeable jump.
What hidden costs should I ask about?
Setup or implementation fees, charges for exceeding a headcount band, per-integration fees, document storage limits, whether support is included at your tier, and whether you are on a rolling or annual contract. None of these usually appear on a pricing page.
What does HR Henry cost?
It is banded by headcount and published rather than quoted: £15 a month for up to 10 employees, rising to £550 for up to 200, with roughly 20% off if you pay annually. There is no setup fee and no per-employee charge.
Does HR Henry have add-ons?
Yes, and it would be dishonest to imply otherwise. The subscription covers records, holiday, absence, documents and attendance. Training credits and premium courses are bought separately, as is AI assistant usage beyond what is included. Those are genuinely optional, but they are extra.
Should I take an annual contract for the discount?
Only once you know the software fits. The discount is real, but so is being locked into something you have stopped using. Run a month first, set up real employees rather than demo data, then commit if it holds up.