Job markets all over the world have become increasingly competitive. They are littered with candidates looking to be hired, making it crucial for any company looking to hire top talent to act quickly and efficiently. For businesses looking to scale their hiring process, a dedicated recruitment solution is no longer a luxury; it's become a tool essential for survival. The right recruitment software can move the entire workflow out of fragmented tools into a single, centralized system for managers to handle.
But before making the choice, it's important to equip yourself with information related to recruiting software pricing structures to better understand the investment required. This pricing guide offers you everything you need to know about the cost of recruitment software.
The cost of recruitment software is by no means stagnant, and prices vary greatly, ranging from free basic tools to thousands of dollars per month for large enterprise-grade solutions. To put it simply, the price you end up paying comes down to the following three factors:
The total cost can be broken down into the following common models:
Per-User Per-Month (PUPM)
This is common for small-to-midsize businesses (SMBs). You pay a fee for each individual recruiter, hiring manager, or administrator who needs to use the system. This model is predictable and changes according to the size of your hiring team.
A good example is Manatal, offering a price of $19/user/month for its professional plan. The pricing might also change as the number of users or the nature of the plan selected.
Per-Employee Per-Month (PEPM)
This model bases the cost of the recruitment software on the total headcount of the entire company, and not just the HR team. This is often used by larger HR systems that include features in addition to recruitment.
A good example of this would be BambooHR with Core HR features starting at $10/employee/month.
Flat Monthly Or Annual Fee
This module applies to software that costs a fixed amount for the features included in your plan, regardless of how many users you have. This is popular among larger companies or agencies with high job volumes.
Depending on the features selected, the flat monthly pricing for ATS and recruitment systems can go from as low as $300/month to as high as $3,000/month.
Custom Or Enterprise Licensing
These plans are for larger companies with 500+ employees that require advanced features like custom integrations, dedicated support, white-labeling, and advanced security. Some vendors offer bespoke pricing models, with personalized pricing based on unique individual needs.
Customized plans often charge on an annual basis and often have pricing starting at around $10,000/year.
Recruitment software represents a thought-out and calculated investment in the company’s future, not just the operational cost of hiring new employees. While the annual expenditure goes from a few hundred dollars for a small business to six figures for an enterprise-level business, the Return on Investment (ROI) often comes from a lowered Cost-Per-Hire and the Time-to-Hire.
When choosing a platform, don't just look at the base price, there are always costs like implementation and data transferring fees, which you may not initially factor in. Instead, do your research, prioritize a tool with a pricing model that is compatible with your projected hiring volume and growth rate. By doing this, you can make sure that you’re only paying for the features that directly solve your pain points, whether that’s automated interview scheduling or managing high-volume applications.