HR Software UK 2026: Compare Costs, Features & Best Providers Quick answer
HR software helps UK businesses manage employee records, holidays, absence, onboarding, documents, time, performance and HR reporting in one system.
The best platform depends on what you actually need to replace.
Your main HR problem What to compare first
Holiday + employee records
Core HR software
Absence + documents + basic HR admin
SME HR platform
Rotas + time tracking
HR + time & attendance
Recruitment + onboarding
HRIS with ATS
Performance + reviews
HR system with performance module
Payroll + HR
Integrated HR/payroll platform
Multi-site / complex organisation
HRMS / HCM platform
Current public pricing examples include:
BreatheHR: from £24/month per business for 1–10 employeesSage HR: from £5 per employee/monthFactorial: from around £5.40 per user/month on current published UK pricingBrightHR: current core HR pricing from £83.35/month excluding tax at the provider’s published example configurationEmployment Hero Core Payroll: £3 per employee/month where added, subject to minimumsPersonio: custom pricing
Our view: do not compare HR software using one generic £2–£8 per employee range.
Some providers charge:
per employee
per business
per module
custom enterprise pricing
Compare HR & Payroll Software Quotes
Free quotes • No obligation • Compare UK HR and payroll providers
Payroll Cost Calculator UK Estimate your monthly payroll cost based on employee numbers, pay frequency, pension duties, CIS, payslips, reports and support level.
Pay frequency
Monthly Weekly Fortnightly Four-weekly Mixed payroll frequencies Weekly payroll usually costs more because it runs more often.
Payroll service type
Payroll software only Managed payroll service Fully outsourced payroll Payroll bureau / accountant Software is usually cheaper; outsourced payroll gives more support.
Business type
Office / admin business Retail / shop Hospitality / restaurant / café Construction / trades Care / healthcare Agency / variable staff Professional services Multi-site business Variable hours, shifts and CIS can increase payroll complexity.
Need workplace pension / auto-enrolment support?
No Basic pension submissions Full auto-enrolment support Includes pension assessment, contributions or pension file uploads.
Need CIS payroll?
No Yes, include CIS Useful for construction businesses paying subcontractors.
Variable pay complexity
Low: fixed salaries Medium: overtime / bonuses High: shifts, tips, commissions or allowances Hospitality, retail and sales teams often need more checks.
Payslip delivery
Digital payslips Employee portal Printed payslips Printed payslips can add admin and postage costs.
Need HR support?
No Basic HR advice Payroll + HR support Useful if you need contracts, absence, holiday or employment advice.
Reporting level
Basic payroll reports Management reports Advanced reports / costing / departments Departmental reporting can be useful for larger teams.
Need year-end support?
Yes No Includes end-of-year payroll checks and employee documents where relevant.
Setup / migration needed?
No setup needed Standard setup / migration Complex migration / multiple payrolls Changing provider mid-year may require extra setup.
Your estimated payroll costs
Estimated monthly cost
£0
Cost per employee/month
£0
Potential monthly saving
£0
Enter your payroll requirements to estimate your costs.
Recommendation will appear here.
This calculator is an estimate only. Actual payroll costs vary by provider, employee count, pay frequency, payroll complexity, pension duties, CIS, HR support, setup, integrations, reporting and service level.
How do we work?
Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: October 2026
Key Takeaways
HR software pricing varies significantly by pricing model.
BreatheHR currently starts at £24/month per business for 1–10 employees.
Sage HR currently starts at £5 per employee/month for Core HR + Leave Management.
Sage optional modules currently add £2.50 per employee/month for Performance, Timesheets or Shift Scheduling.
Factorial currently publishes pricing from around £5.40 per user/month.
Personio uses custom pricing based on company size and selected modules.
Payroll is not automatically included with core HR software.
Time, recruitment, performance and HR advice may be separate paid modules.
The cheapest platform can become expensive if you need several add-ons.
Compare total annual software cost, setup, migration and payroll integration before signing.
What Is HR Software? HR software is a digital platform used to manage employee information and people processes and it can replace:
spreadsheets
paper holiday forms
manual absence logs
shared HR folders
email-based onboarding
Depending on the provider, HR software can manage:
employee records
holiday
sickness
documents
onboarding
employee self-service
performance
recruitment
time tracking
rotas
payroll data
reporting
Our View: Start With the HR Problem, Not the Provider Many businesses start by asking “Should we buy BreatheHR, Sage HR or Personio?”
A better first question is “Which manual HR processes are costing us the most time?”
For example:
holiday approvals
staff records
onboarding
timesheets
performance reviews
payroll changes
Then choose a platform that fixes those problems without adding unnecessary modules.
HRIS vs HRMS vs HCM
Term Usually means Typical fit
HR software
General people-management software
Any business
HRIS
Employee data + core HR processes
SMEs/mid-market
HRMS
Broader HR management + workflows
Growing organisations
HCM
Strategic workforce/talent platform
Larger organisations
These terms overlap heavily in real-world provider marketing.
Focus on actual functionality rather than the label.
Best HR Software Providers UK 2026
Provider Best for Pricing style
BreatheHR Small UK businesses
Flat monthly price by employee band
Sage HR SMEs wanting modular HR
Per employee/month
Factorial SMEs wanting broader HR automation
Per user/month
BrightHR SMEs wanting HR tools + support options
Package pricing
Personio Growing mid-market businesses
Custom quote
HiBob People-focused mid-sized businesses
Custom quote
Employment Hero HR + payroll + workforce tools
Modular / per employee
Ciphr Mid-sized UK organisations
Custom quote
Moorepay HR + payroll support
Quote-based
Access PeopleHR
SMEs / mid-market
Module / package based
BreatheHR Breathe is aimed specifically at UK SMEs and current monthly pricing starts at:
Employees Current monthly price
1-10
£24/month
11-20
£44/month
21-50
£99/month
51-100
£175/month
Core functionality includes:
holiday and absence management
employee records
documents
performance
reporting
employee self-service
BreatheHR Add-Ons
Current published add-on prices include:
Rota, Time & Attendance: from £11/monthLearn: from £15/monthRecruitment: from £16/monthExpenses: from £14/monthHealth & Safety: from £12/month
Our View on BreatheHR
Breathe is one of the clearest SME HR options because the base pricing is tied to business size rather than multiplying every feature by employee count and is especially relevant where the main problems are:
holiday
absence
documents
basic people admin
Sage HR Sage HR currently starts at £5 per employee/month for:
Core HR
Leave Management
employee self-service
central employee database
Current Sage HR Add-Ons
Module Current published price
Performance
£2.50/employee/month
Timesheets
£2.50/employee/month
Shift Scheduling
£2.50/employee/month
Expenses
£1.25/employee/month
Recruitment
£184.45/month
Our View on Sage HR
Sage HR demonstrates why headline per-employee pricing can be misleading.
A business needing:
Core HR
performance
timesheets
shift scheduling
could pay materially more than the headline £5 per employee.
See our Sage Payroll & HR guide .
Factorial Factorial currently publishes UK pricing starting from around £5.40 per user/month on its HRIS positioning.
It is aimed at SMEs and scale-ups needing areas such as:
employee records
time
documents
workflows
payroll preparation
Our View on Factorial
Factorial is worth comparing when you want broader process automation rather than just:
and expect HR requirements to become more complex as the business grows.
BrightHR BrightHR combines HR software with optional support and compliance tools and their current core HR proposition includes areas such as:
holiday planning
rotas
absence
performance
overtime
time tracking
expenses
reporting
Its pricing structure is different from simple per-employee software and should be quoted using your actual headcount and required support.
Our View on BrightHR
BrightHR becomes more interesting when the business wants software plus practical HR-support services.
Compare the:
software element
HR advice
health & safety
separately so you understand what you are paying for.
Personio Personio uses custom pricing based on:
company size
plan
modules
Current plans include:
with optional areas such as:
recruiting
performance
surveys
compensation
Our View on Personio
Personio is more relevant to a growing business that wants a broader people platform than a very small employer simply replacing a holiday spreadsheet.
Employment Hero Employment Hero combines HR, payroll and wider workforce tools and current UK add-on examples include:
Core Payroll: £3 per employee/month, subject to minimumsManaged Payroll: £12 per employee/month, subject to minimumsTime & Attendance: £2 per employee/month, subject to minimumsHR & Employment Law Advisory: £6 per employee/month, subject to minimums
Our View on Employment Hero
This is a good example of a platform where HR + payroll + attendance + advice can be bought from one ecosystem.
That can reduce integration work, but the combined monthly total needs careful modelling.
See our Employment Hero review .
How Much Does HR Software Cost? HR software is sold using several different models.
Pricing model Example
Flat monthly/employee band
BreatheHR
Per employee/month
Sage HR
Per user/month
Factorial
Package pricing
BrightHR
Custom quote
Personio, HiBob, Ciphr
Our View
This is why one universal “£2-£8 per employee” number is too crude for a comparison page.
Personio’s own current UK pricing research places general HR software around £3-£9 per employee/month or £5-£99+ per month for flat-fee packages.
But individual providers can sit above or below those ranges depending on modules.
HR Software Cost Example: 10 Employees Consider two models.
BreatheHR
1-10 employees £24/month
Sage HR Core
10 employees × £5 £50/month
Neither is automatically “better value”.
Sage and Breathe have different:
features
modules
ecosystems
The comparison simply shows why pricing model matters.
HR Software Cost Example: Adding Modules Imagine a 20-person company using Sage HR with:
Core HR: £5/person
Timesheets: £2.50/person
Shift Scheduling: £2.50/person
Total £10 per person/month.
For 20 employees £200/month.
This is why you should calculate the actual module stack rather than compare headline starting prices.
What HR Software Features Matter Most? 1. Employee Records
The system should provide a central record for:
contact details
job information
documents
employment history
2. Holiday & Leave
Employees should ideally be able to:
see balances
request leave
while managers can:
approve requests
see team calendars
avoid scheduling conflicts
3. Absence Management
Useful functionality includes:
sickness logging
absence reasons
return-to-work records
absence reporting
4. Employee Self-Service
Self-service can reduce basic HR administration by allowing staff to:
update information
request leave
access documents
5. Onboarding
Look for:
task lists
document collection
policy acknowledgement
workflow automation
6. Time & Attendance
Especially important for:
retail
hospitality
care
construction
multi-site businesses
See our Time & Attendance Systems guide .
7. Payroll Integration
Payroll integration can reduce the need to manually re-enter:
starters
leavers
salary changes
absence
approved hours
8. Recruitment/ATS
A recruitment module may help with:
job adverts
applications
candidate pipelines
interview stages
moving successful candidates into HR records
9. Performance Management
Useful functionality can include:
objectives
reviews
feedback
one-to-ones
10. Reporting
Useful HR reports include:
headcount
absence
turnover
holiday
department
tenure
HR Software vs Payroll Software
HR software Payroll software
Main purpose
Employee management
Pay processing
Employee records
Core feature
Payroll-specific
Holiday
Usually
Sometimes
Performance
Often
Usually no
PAYE calculations
Usually no
Yes
RTI
Usually no
Yes
Payslips
Sometimes / via integration
Yes
Should You Buy HR & Payroll Together? Combined platforms can make sense when you want one employee record feeding:
This can reduce:
duplicate entry
inconsistent employee records
manual payroll preparation
Compare Carefully
Ask:
Is payroll native or integrated?
Who actually processes payroll?
Is the payroll module extra?
Does approved time flow automatically?
Do starters/leavers sync?
See our Payroll Services guide .
Estimate Payroll Costs if You Need HR + Payroll If you are specifically comparing:
HR + payroll platforms
managed payroll
outsourced payroll
time and attendance linked to payroll
use the payroll calculator below.
Compare HR & Payroll Providers
HR Software by Business Size 1-10 Employees
Prioritise:
employee records
holiday
documents
simple self-service
Compare:
BreatheHR
Sage HR
BrightHR
10-50 Employees
Add:
onboarding
absence reporting
workflows
payroll integration
Compare:
BreatheHR
Sage HR
Factorial
Employment Hero
50-250 Employees
Prioritise:
permissions
workflows
analytics
recruitment
performance
multi-site support
Compare:
Personio
HiBob
Ciphr
Factorial
250+ Employees
Compare broader HRMS/HCM platforms where:
workforce analytics
organisational structures
talent
integrations
become more important.
Our View: Complexity Matters More Than Headcount A 30-person restaurant group with:
shift workers
rotas
timesheets
weekly payroll
high staff turnover
could easily need a more sophisticated system than a 100-person professional-services firm with:
fixed salaries
Monday–Friday working
low staff turnover
Use headcount as a pricing input, not the only buying criterion.
HR Software for Hospitality & Retail Shift-based businesses should pay extra attention to:
rotas
clock-in/out
overtime
absence
payroll integration
Avoid systems where managers still need to export hours into spreadsheets before payroll.
HR Software for Professional Services Professional-services businesses may prioritise:
employee records
onboarding
performance
documents
HR reporting
and need fewer shift-management features.
HR Software for Multi-Site Businesses Check:
location permissions
manager access
central reporting
site-specific absence
time data
Data Protection & HR Software HR systems contain sensitive employee information so ask providers about:
role-based access
multi-factor authentication
data hosting
backup
audit trails
data retention
export/deletion processes
What Should Be Included in an HR Software Quote? Ask for:
base subscription
employee price
minimum spend
core HR
holiday
absence
onboarding
time & attendance
payroll
performance
recruitment
reporting
HR advice
migration
implementation
training
support
contract term
Calculate Total HR Software Cost Use base monthly fee + per-employee fees + modules + support
then add:
implementation
migration
training
for first-year cost.
Example
A 20-person business might pay:
Core HR: £100/month
Timesheets: £50/month
Performance: £50/month
Total £200/month
Annual software cost £2,400 before implementation or payroll.
Illustrative calculation based on £5 + £2.50 + £2.50 per employee pricing, not a personalised quote.
How to Reduce HR Software Costs
buy core HR first
only add modules with a clear use case
avoid duplicate time/recruitment software
compare flat-fee and per-employee providers
check annual-discount terms
negotiate implementation
review unused modules before renewal
Common HR Software Buying Mistakes
choosing based only on price per employee
buying every available module
not checking payroll integration depth
ignoring minimum monthly charges
not budgeting for migration
ignoring manager/user limits
not testing employee self-service
ignoring contract terms
buying enterprise HR software for a ten-person business
What to Ask During an HR Software Demo
Add a new employee.
Request and approve holiday.
Record sickness absence.
Upload and assign a policy.
Complete an onboarding workflow.
Change an employee’s salary.
Show what flows into payroll.
Run a headcount report.
Show permissions for a line manager.
Export employee data.
Questions to Ask Before Choosing HR Software
What is included in core HR?
What costs extra?
Is pricing per employee or per business?
Is there a minimum charge?
Does payroll integrate?
Is payroll native or third-party?
Are time and attendance included?
Does recruitment cost extra?
What does migration cost?
Is training included?
What support hours apply?
Can we export all data?
What security controls are available?
What is the minimum contract?
What happens at renewal?
Our Verdict: What Is the Best HR Software? There is no single best HR platform for every UK business.
Our starting recommendations are:
Very small business: BreatheHR, Sage HR or BrightHRGrowing SME: Factorial, Employment Hero, Sage HR or BreatheHRMid-sized organisation: Personio, HiBob, Ciphr or FactorialHR + payroll: Employment Hero, Sage or payroll-integrated alternativesShift-based business: prioritise time, rotas and payroll integrationEnterprise: compare broader HRMS/HCM platforms
The five areas we would prioritise are:
the HR processes you want to automate
the true module cost
payroll and time integrations
employee / manager usability
total first-year cost
The best HR software is the system that removes the most manual HR work without forcing you to pay for functionality your business does not need.
Compare HR & Payroll Software Providers
Frequently Asked Questions
How much does HR software cost in the UK?
Pricing varies by model. Some SME providers charge flat monthly fees, others charge per employee and larger platforms use custom pricing. Current examples include BreatheHR from £24/month and Sage HR from £5 per employee/month.
How much does BreatheHR cost?
BreatheHR currently starts at £24/month for businesses with 1–10 employees, with higher fixed-price plans as headcount increases.
How much does Sage HR cost?
Sage HR currently starts at £5 per employee/month for Core HR and Leave Management. Additional modules such as Performance, Timesheets and Shift Scheduling currently cost £2.50 per employee/month each.
What is the best HR software for a small business?
BreatheHR, Sage HR and BrightHR are strong options to compare for smaller UK businesses, depending on the features and support required.
What is the best HR software for a growing SME?
Factorial, Employment Hero, Personio, Sage HR and BreatheHR are all relevant depending on payroll, time, recruitment and workflow requirements.
Does HR software include payroll?
Sometimes. Some providers offer native payroll, some sell a payroll module and others integrate with external payroll providers.
Do I need HR software for ten employees?
Not necessarily, but it can become useful if holidays, documents, onboarding and employee records are consuming significant management time.
What is an HRIS?
An HRIS is a Human Resource Information System, usually focused on employee information and core HR administration.
What is the difference between HRIS and HCM?
HRIS usually focuses on core employee data, while HCM commonly refers to broader strategic workforce, talent and people-management functionality. Provider terminology varies.
Is HR software worth it?
It can be where it replaces repetitive administration, improves employee self-service or connects HR information with payroll and time systems.
What should I compare before buying HR software?
Compare core features, modules, payroll integration, time and attendance, pricing model, minimum spend, migration, support, security and contract terms.
Related HR & Payroll Guides Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
