Human resource (HR) software is designed to help businesses automate and combine various HR functions into one single system, such as payroll, recruitment, employee records, performance management, benefits, and compliance. This increases the efficiency of HR teams and improves employee information security. HR software can also streamline the communication between employees and HR departments, reducing the need for tedious, low-impact administrative tasks and ensuring compliance with labor laws & company policies. 

Here are three of the biggest benefits businesses can gain from using HR software:

• Efficiency & Time Savings -- HR software automates many repetitive admin tasks (like processing payroll or tracking hours worked), freeing up time for business-driving activities. Automation also removes the need for manual data entry, resulting in fewer mistakes and smoother workflows, so nothing slips through the cracks. 
• Improved Compliance & Record Keeping -- Keeping up with labor laws and regulations can be tricky. HR software makes that easier by safely storing employee data, providing a reliable audit trail, tracking important deadlines, and helping your business stay on top of legal obligations. ‍
• Data-Driven Decision Making -- HR software provides you with real-time data about your workforce, and actively helps you interpret it. Reports and dashboards help you spot trends and patterns on everything from employee turnover and attendance, to performance reviews or recruitment metrics. With these insights you will be better equipped to make decisions that align with your business goals.

Common features of HR software include: 

• Payroll Management – Processes employee salaries while ensuring tax compliance.
• Recruitment & ATS – Streamlines hiring by automating job postings and candidate tracking.
• Employee Records – Maintains a secure and centralized database for workforce information.
• Performance Management – Monitors employee growth with structured evaluations and feedback.
• Time & Attendance – Tracks work hours with automated scheduling and absence management.
• Benefits Administration – Manages employee health plans, insurance, and retirement programs.
• Self-Service Portal – Gives employees direct access to personal data and HR requests.
• Learning & Development – Facilitates employee training through courses and skill tracking.
• Compliance Management – Ensures company policies align with labor laws and regulations.
• HR Analytics & Reporting – Analyzes workforce data to support strategic decision-making.
• Onboarding & Offboarding – Organizes processes for welcoming new hires and exiting staff.
• Integration Capabilities – Connects with payroll, ERP, and other business software.

One of the most common pricing models for HR software is a “per employee per month” price. Companies are charged based on the number of users accessing the software monthly. This typically ranges from $5 to $15 per employee per month for standard HR tools (like time-off tracking, employee records, and basic reporting.) 

Another common model is tiered pricing, where vendors offer different pricing levels based on feature sets (e.g. Basic, Pro, Enterprise). Companies can choose a tier based on their needs and budget. These tiers might range from $6 to $25 per employee per month, depending on the level of functionality.

For larger businesses or those with more complex needs, many HR software vendors offer custom pricing plans. Companies with 500+ employees, or those seeking an all-in-one platform may pay anywhere from $10,000 to $100,000+ annually. Custom pricing usually requires a consultation with the provider to assess your needs and build a quote that fits.