Our Value-for-Money Methodology
We analyzed 47 HR platforms to identify which offer the best features per dollar. Our affordability scoring includes:
- Base Pricing (25%): Advertised monthly/per-employee cost
- True Cost Analysis (30%): Implementation fees, training, integrations, support tiers
- Feature Completeness (25%): What's included at base price vs. add-ons?
- Scalability (10%): Does pricing stay reasonable as you grow?
- Pricing Transparency (10%): Clear pricing vs. "contact sales" opacity
Important: "Cheapest" doesn't mean "best value." We rank platforms that balance low cost with actually useful features.
Price Comparison: True Monthly Cost
Calculated for 25-employee company with core HR, payroll, and benefits
| Rank | Platform | Advertised Price | True Monthly Cost | Hidden Costs | Free Tier? |
|---|---|---|---|---|---|
| 1 | Charlie HR | $5/employee | $125/month | None (payroll separate) | 14-day trial |
| 2 | Zenefits | $8/employee | $350/month | Payroll add-on $6/person | 14-day trial |
| 3 | Gusto Core | $40 + $6/employee | $190/month | 401(k) adds $8/person | 30-day trial |
| 4 | Factorial | €6/employee (~$6.50) | $163/month | Payroll via partners | 14-day trial |
| 5 | BambooHR | $8/employee | $200/month | 5 employee minimum | 7-day trial |
Detailed Rankings
Charlie HR
$5 per employee, no base fee, no minimums
Self-service setup, no fees
Cancel anytime, no lock-in
Why Charlie HR Ranks #1 for Affordability
Charlie HR is ruthlessly focused on affordability. At $5/employee/month with zero hidden fees, it's the cheapest legitimate HR platform we tested. The catch? It's intentionally basic — core HR only, no payroll. But for micro businesses, that simplicity is a feature, not a bug.
What's Included at Base Price:
- ✅ Employee database & org charts
- ✅ Time off tracking & approvals
- ✅ Document storage & e-signatures
- ✅ Employee self-service portal
- ✅ Mobile app (iOS & Android)
- ✅ HR policy templates
- ✅ Unlimited users
- ❌ Payroll (integrates with Gusto, Xero, QuickBooks)
- ❌ Performance reviews (basic features only)
- ❌ Benefits administration
💡 True Cost Analysis (25 employees, 1 year)
- Charlie HR: $125/month × 12 = $1,500/year
- Payroll (Gusto): $190/month × 12 = $2,280/year
- Total First Year: $3,780 ($12.60/employee/month all-in)
- Setup Time: 15 minutes (no consultant needed)
Best For: Bootstrapped startups, agencies, consultancies (1-25 employees) that need core HR without bells and whistles.
Real User Feedback:
"We're a 12-person agency. Charlie HR does everything we need for $60/month. I can't believe we almost paid $200+ for BambooHR." — Jordan K., Agency Owner
Zenefits
$8/employee Essentials plan
Add $6/employee for payroll
Guided setup included
Why Zenefits Ranks #2 for Affordability
Zenefits delivers shocking value. For $8/employee/month, you get features that competitors charge $15-20 for: full HRIS, benefits admin, time tracking, compliance tools. The UI isn't as polished as Gusto or BambooHR, but the feature-to-price ratio is unbeatable.
What's Included at Base Price ($8/employee):
- ✅ Complete HRIS (employee records, org charts, reporting)
- ✅ Benefits administration (health, dental, vision, 401k)
- ✅ Time & attendance tracking
- ✅ Compliance tools (new hire reporting, ACA, COBRA)
- ✅ Document management & e-signatures
- ✅ Employee self-service & mobile app
- ✅ PTO tracking & approvals
- ✅ Free HR advisory hotline
- ➕ Payroll ($6/employee add-on)
- ➕ Performance management ($5/employee add-on)
💡 True Cost Analysis (25 employees, 1 year)
- Base Plan: $200/month × 12 = $2,400/year
- Payroll Add-on: $150/month × 12 = $1,800/year
- Total First Year: $4,200 ($14/employee/month all-in)
- Comparable BambooHR Cost: $6,000/year (43% more expensive)
Best For: Budget-conscious SMBs (10-200 employees) that need comprehensive features without premium pricing.
Real User Feedback:
"Zenefits isn't the prettiest, but it does everything we need for half the cost of competitors. That's a trade-off I'll take every time." — Melissa R., HR Manager
Gusto Core
$40 base + $6 per employee
$80 base + $12 per employee (adds PTO, reports)
Guided setup, data migration help
Why Gusto Ranks #3 for Affordability
Gusto Core is the sweet spot: affordable enough for startups, powerful enough to scale. At $190/month for 25 employees (all-in with payroll), it's competitively priced while delivering superior UX and support compared to cheaper alternatives.
What's Included at Base Price ($40 + $6/employee):
- ✅ Full-service payroll (federal, state, local taxes)
- ✅ Employee self-onboarding (I-9, W-4, direct deposit)
- ✅ Health benefits integration
- ✅ Workers' comp administration
- ✅ New hire reporting (automatic)
- ✅ Employee directory & org chart
- ✅ Mobile app (excellent)
- ✅ Unlimited payroll runs
- ➕ Time tracking (included in Complete plan)
- ➕ PTO tracking (included in Complete plan)
💡 True Cost Analysis (25 employees, 1 year)
- Core Plan: $190/month × 12 = $2,280/year
- Complete Plan: $340/month × 12 = $4,080/year
- 401(k) Plan: Add $200/month ($8/employee)
- vs. ADP: Save ~$3,000/year for same features
Best For: Startups and small businesses (1-100 employees) that need payroll + HR without sacrificing user experience.
Real User Feedback:
"We almost went with Zenefits to save money, but Gusto's support and ease of use are worth the extra $50/month. Zero regrets." — Aaron P., Startup COO
Factorial
€6/employee (~$6.50 USD)
€9/employee (adds performance, reports)
Onboarding specialist included
Why Factorial Ranks #4 for Affordability
Factorial is the European Gusto — modern, affordable, feature-rich. At €6/employee/month, it's half the price of Personio or BambooHR in Europe. Recently launched in the US, bringing the same value proposition to American SMBs.
What's Included at Base Price (€6/employee):
- ✅ Complete HRIS (employee database, org charts)
- ✅ Time off management & approvals
- ✅ Time tracking & attendance
- ✅ Document management & e-signatures
- ✅ Employee self-service portal
- ✅ Shift scheduling
- ✅ Reports & analytics
- ✅ Multi-language support (10+ languages)
- ➕ Performance reviews (Pro plan)
- ➕ Recruiting/ATS (Pro plan)
💡 True Cost Analysis (25 employees, 1 year)
- Essential Plan: $163/month × 12 = $1,956/year
- Pro Plan: $225/month × 12 = $2,700/year
- Payroll: Via integrations (Gusto, ADP, etc.)
- vs. BambooHR: Save ~$900/year (Essential) or ~$600/year (Pro)
Best For: European SMBs, US companies with European employees, or anyone wanting modern HR software at budget pricing.
Real User Feedback:
"Factorial is everything we loved about Gusto's interface, but for the price of Zenefits. Perfect for our bootstrapped startup." — Clara M., People Ops Lead
BambooHR
$8/employee (5 employee minimum)
$15/employee (adds ATS, performance)
Dedicated onboarding specialist
Why BambooHR Ranks #5 for Affordability
BambooHR isn't the cheapest, but it's the best value in the $8-15/employee range. You get enterprise-quality features, best-in-class UX, and excellent support at SMB pricing. The ROI comes from reduced HR admin time and employee self-service adoption.
What's Included at Base Price ($8/employee):
- ✅ Complete HRIS with robust reporting
- ✅ Employee self-service portal (excellent)
- ✅ Time off tracking & approvals
- ✅ Document management & e-signatures
- ✅ Onboarding workflows
- ✅ Org charts & employee directory
- ✅ Mobile app (best-in-class)
- ✅ Dedicated onboarding support
- ➕ Applicant tracking system (Advantage plan)
- ➕ Performance management (Advantage plan)
💡 True Cost Analysis (25 employees, 1 year)
- Essentials Plan: $200/month × 12 = $2,400/year
- Advantage Plan: $375/month × 12 = $4,500/year
- Payroll: Via integrations (adds ~$190/month for Gusto)
- All-in (Advantage + Payroll): $6,780/year ($22.60/employee/month)
Best For: Growing SMBs (25-500 employees) willing to pay slightly more for superior UX, support, and feature depth.
Real User Feedback:
"We switched from Zenefits to BambooHR and our HR admin time dropped 40%. The time savings alone justify the extra cost." — Rebecca L., HR Director
Free Tier Comparison
Several platforms offer free plans or extended trials. Here's what you actually get:
Truly Free Forever (Limited Features)
- Homebase: Free for 1 location, unlimited employees. Time clock, scheduling, team messaging. Payroll costs extra.
- Zoho People: Free for up to 5 employees. Basic HR, time off, attendance. Very limited.
- OrangeHRM (Open Source): Self-hosted option, technically free but requires technical setup and maintenance.
Extended Free Trials (No Credit Card)
- Gusto: 30-day trial, full access, no credit card required
- Zenefits: 14-day trial, full platform access
- BambooHR: 7-day trial, request demo for longer access
- Charlie HR: 14-day trial, easy signup
Our Take: "Free" HR software is usually too limited for growing businesses. Better strategy: Use free trials to test 2-3 platforms, then commit to a paid plan. The time savings vs. spreadsheets pays for itself quickly.
Hidden Cost Analysis: What Vendors Don't Advertise
The advertised "per employee/month" price rarely tells the full story. Watch for these hidden costs:
⚠️ Common Hidden Fees
- Implementation/Setup Fees: $500-$5,000 for enterprise platforms. Charlie HR, Gusto, Zenefits = $0.
- Data Migration: $1,000-$3,000 to import historical data from old system
- Training Fees: Some vendors charge for onboarding sessions
- Per-Module Pricing: Base price only includes core HR. Add payroll, benefits, performance, etc. = $$
- Integration Costs: API access, Zapier connections, SSO sometimes cost extra
- Support Tiers: Email support is free, phone support costs extra (especially ADP, Paychex)
- Minimum Employee Counts: BambooHR requires 5 employees minimum, even if you have 2
- Annual Contracts: "Monthly pricing" but 12-month commitment = early termination fees
✅ Transparent Pricing Champions
- Charlie HR: What you see is what you pay. $5/employee, period.
- Gusto: Clear pricing tiers, no setup fees, cancel anytime
- Factorial: Transparent European pricing, no hidden fees
- Zenefits: Module pricing is clear, though can add up quickly
🚩 Pricing Red Flags
- "Contact Sales" for Pricing: Usually means expensive and negotiable (enterprise territory)
- No Pricing on Website: Major red flag. Avoid.
- "Starting at...": The real price is often 2-3x the "starting" rate
- Per-Feature Add-Ons: Base price is low, but you need 8 add-ons to be functional
Budget-Based Recommendations
🏃 Bootstrap Budget (<$150/month)
Recommended: Charlie HR + Gusto Payroll
Total: $125 (Charlie) + $40 base + $6/employee (Gusto) = ~$165/month for 5 employees
💼 Small Business Budget ($150-$300/month)
Recommended: Gusto Complete or Zenefits Essentials
Get payroll + core HR in one platform, excellent UX and support
🚀 Growth Stage Budget ($300-$600/month)
Recommended: BambooHR or Bob
Invest in platform you won't outgrow, superior features and support
🏢 Established Business Budget ($600+/month)
Recommended: BambooHR Advantage, Namely, or Rippling
Full talent suite with ATS, performance, learning, advanced analytics
Frequently Asked Questions
Is free HR software worth it?
For 1-5 employees, maybe. Beyond that, no. Free plans are too limited and you'll spend more time working around limitations than you'll save. Budget at least $150-200/month for legitimate HR software.
What's the cheapest "real" HR software?
Charlie HR at $5/employee/month (no payroll) or Gusto Core at $40 + $6/employee (with payroll). Both are legitimate platforms, not toys.
Does cheaper software mean worse support?
Not always. Gusto and Zenefits both offer excellent support at budget prices. However, ultra-cheap platforms (under $5/employee) usually have email-only support with slow response times.
Should I choose the cheapest option?
Choose the best value, not the cheapest price. Calculate total cost of ownership including: time saved, error reduction, employee satisfaction, scalability. Sometimes paying 30% more saves you 50% in admin time.
How do I calculate ROI on HR software?
Formula: (Time saved per week × hourly rate × 52 weeks) - (annual software cost). If your HR person saves 5 hours/week at $30/hour, that's $7,800/year value. Software costs $3,000/year = $4,800 ROI.
Do prices increase over time?
Yes, expect 3-5% annual increases. Platforms that lock in pricing for multi-year contracts: BambooHR (rare), Namely (sometimes). Most are month-to-month with annual price adjustments.