Published: 18 April 2024
When it comes to investing in HR technology, there are major costs associated with replacing manual and on-premises systems with modern cloud technology. CHROs can use this research to break down the average cost of major HR technology categories when planning and budgeting.
Opex costs for HR technology range from $7 to $200 per user per year (PUPY) depending on the volume of users and the category of technology considered. For example, a CHRO of a 10,000 employee organization should budget $1.75 Million annually for the purchase and ongoing use of a human capital management (HCM) suite.
Capex from the implementation of software is based on the effort to install, configure, and integrate technology, as well as associated training costs. Again, using the example of a CHRO with a 10,000 employee organization deploying a HCM suite should budget a minimum of $1.5
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Analysts:
Sam Grinter, Ranadip Chandra, Ron Hanscome, Jeff Freyermuth, Hiten Sheth, Dawn Hubbard
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