Cost of HR software in 2025 in the Netherlands.

HR software cost comparison 2025

Yes! The die is cast and you have the green light to get started with HR software. You know that HR software will help you and you have convinced the MT. That was step 1. On to step 2: choosing the right HR software. You have a wish list and you know what your budget is. How difficult can it be to choose a supplier? 

In practice, choosing HR software can be a daunting task. There is often more to it than you can see in advance. There are different types of HR software , from general systems to specialist systems. If you compare systems that seem comparable at first glance, you will discover that the functionalities work essentially differently in practice. And you will discover that comparing rates is confusing because you often compare different cost structures . 

We understand how difficult it can be to make a responsible and correct decision. You do n't want to compare apples and oranges . So what next? We are happy to help you find your way.

Compare software systems in the Netherlands

A first step you take in choosing HR software is to determine the type of system. Are you going for a total solution or are you going for specialist software?

1. Total solution

The word says it all: in this software you can record almost all your administrative and legal HR matters . Sometimes these systems also offer modules for more substantive HR themes. Think of recruitment or assessment interviews. A total solution can sound good; big steps, quickly at home. But realize that these solutions fall short on specialist themes compared to specialist systems. For themes such as talent development, growth paths, feedback and goals you will get more out of a specialist system.

2. Specialist HR system

A specialist HR system supports you with more substantive themes . These systems are not only intended for digital registration, but they actually help you to create more depth on the HR themes in question. As an example, we mention a well-thought-out 360-degree feedback module that supports you with talent development and career paths. Also think of a goals module, with which you create insight into the contribution of employees or departments to organizational goals. Or think of a skills module with which you and your employees gain insight into the work in which they can flourish. These systems are increasingly being enriched with AI functionalities .

Moreover, systems can often be linked to each other . In practice, combinations are therefore regularly made of a general total solution and specialist systems. Through the link, certain data are automatically transferred from one system to the other. This saves double administrative actions.

Are you still at the very beginning of your search and do you want to compare HR software systems? Read more about the comparison between a total solution and specialist HR software .

 

Which type of HR software suits you?

In addition to the choice for a total solution, a specialist HR system, or a combination of both through a link, you will come across other types of software.

1. Open source versus Closed source HR software

In your exploration you will also come across the terms 'open source' and 'closed source' . The difference lies in the rights that the software gives you to work with the source code yourself. With 'open source' software you get the availability of the source code . Compare it to the recipe of a unique dish. You can adjust it to your liking, but in return you usually make those adjustments public. Working with 'open source' software requires expertise. This type of software should therefore only be considered if you have that expertise on board yourself, or if you have the budget to hire it.

With 'closed source' software you do not get access to the source code of the software. To use the analogy with the recipe again: you can go to the restaurant and you can eat there, but you do not get a recipe. The advantage is that you benefit from the improvements that are made. You do not have to worry about hiccups. The responsibility for that lies with the supplier . The disadvantage is that you will rarely see your wishes reflected in the software for the full 100%. It is generic software that has to work for all customers of the software. On the other hand, you also benefit from developments that you may not have even thought about yourself.

2. SaaS or 'On Premise'

Where most software used to be 'On premise', 'SaaS' has taken off in recent years. 'On premise' means that the software is installed on servers managed by the organization itself . The responsibility for everything related to this therefore also lies with the organization. Think not only of IT infrastructure, but also of privacy and security matters. If you work with 'On Premise' software, you also need the expertise and facilities to support it. That costs money and is therefore an important consideration when it comes to budget. Nowadays we mainly see 'On Premise' software at organizations that work with very sensitive and confidential data. They want to have full control when it comes to security and privacy.

'SaaS' is an abbreviation for 'Software as a Service' . The supplier develops the software and is responsible for the entire IT infrastructure and the servers on which the software is installed. The supplier therefore does not deliver the software as a product, but as a service. You use it as a customer. The advantage of a 'SaaS' solution is that you have significantly fewer worries and costs because development and maintenance are the responsibility of the supplier. An additional advantage is that your costs are therefore more predictable and manageable.

Comparing costs: what should you pay attention to?

You've probably noticed that different types of software also have different consequences for your budget. It makes quite a difference whether you develop and maintain software in-house, or whether you purchase a monthly license from an external supplier.
If you become responsible as an organization for the software , you will also have to map out your internal costs . Think of the following costs:

• Software developers: you need in-house expertise for development, hosting, maintenance. This means extra personnel costs with everything that comes with it.

• IT infrastructure: you are responsible for the entire infrastructure that comes with the software. The costs that this entails concern not only the technical side, but also the personnel side.

• If you opt for external hiring, then also include the costs and risks in your calculation in the event of a lack of continuity and for transfer when hiring flexible workers.

• Chance of downtime? You have to provide the solution yourself. What risks does possible downtime bring to your organization?

• Security and Privacy: an important reason to choose for in-house software is the theme Security and Privacy. This theme will weigh heavily and also has consequences for your costs. It goes back to both your personnel costs (legal affairs, IT and development, accountability and communication) and the technical IT and development side.

If you choose an external supplier through a 'closed source', SaaS solution, you know what you get and what you will pay. This is the most predictable and manageable choice when it comes to your budget. The costs, as discussed above, are mainly with the supplier. As an organization itself, you will have to check the supplier in advance, for example for (ISO) certifications , and you will have to conclude contracts that are watertight. Also pay attention to the processing agreements and the SLAs (Service Level Agreements).

Pricing models in the Netherlands

If you are going to purchase software from a supplier, we will encounter a number of pricing models. We will mention the most common ones:

1.License

Most suppliers work with a license model. This means that you use the supplier's software for a certain period, for a certain, periodically recurring amount . Contracts are usually concluded for at least one or two years and payments are usually made monthly, quarterly or annually. The longer the contract period (the more years you agree on in advance), the lower the price. And if you do not pay monthly, but for a longer period at once (annual invoicing, for example), you are often a little cheaper.

2. 'Perpetual' license

This form of licensing is most similar to 'buying' the software . You pay an amount, which gives you the continued right to use the software. This is almost always an On Premise construction. Keep a close eye on what is agreed upon regarding updates and maintenance. In most cases, this is the responsibility of the license holder (the 'buyer') and not the supplier. Your ROI will probably be highest in the long run with a perpetual license, but it requires a very substantial initial investment and ongoing personnel costs for IT, development, security and compliance.

3. Buy-out model

In some cases it is possible to agree on a buy-out model. This is a regular license, which deviates from the regular rate. The annual usage is estimated in advance. The purchaser pays an annual license in advance and receives a lower rate for it. Sometimes the actual usage is verified and possibly settled after the end of the year. Agreements are made about this in advance. We encounter this model less often and it is only relevant to a few suppliers.

Factors that influence the license fee

There are several factors that influence the height of the license. We list the most important ones:

• Package selection: often a number of packages are offered. From a basic or entry-level package to a PRO or enterprise package. The difference lies in the number of modules or functionalities that you get within the package. The more extensive the possibilities, the higher the package price. Take a good look at the packages and anticipate the future. For example, AI functionalities are becoming increasingly important and common. Switching to a package that offers these AI functionalities may become a wish in the (short) term. Also check how the supplier deals with newly developed functionalities within your current package. This prevents imposed, future budget overruns.

• Number of users: the number of users is an important factor for the license rate. The higher the number of users, the lower the price per user. This means that your total license rate will be higher with more users, but the relative amount per user will be lower. Usually, this structure uses tiers. When determining your rate, note that the tiers are usually 'stacked'. This means that the lower rate per user only applies within a subsequent tier, and therefore does not also apply to all users who fall into lower tiers.

• Number of roles: not everyone will have the same rights to work with the software. A regular employee will need fewer, or different, rights than a manager. And an HR manager will also have different, or additional rights. Think for example of access to the data and analytics. An admin (that is the administrator) generally has the most extensive rights, but there can also be specific restrictions on this. It is possible that specific roles are linked to the previously mentioned packages. And therefore to the license price.

• Modules or functionalities: in most cases, additional modules or functionalities are linked to a package. This is not always the case. In highly modular software, sometimes different combinations of modules can be made that affect the license price.

Additional costs

To summarize, when determining your choice of supplier, you have now, roughly speaking, taken the following into account in your cost considerations:

• A total HR solution, specialist HR software or a combination of both
• HR software in-house or an external supplier
• Your required and desired functionalities
• The number of users and roles
• The duration of the contract

You can now more easily compare suppliers with similar software. But to make a final choice, you will also have to include the additional costs in your cost consideration. We will mention the most important ones.

Implementation costs

Your choice for internal HR software development or a collaboration with an external supplier is of course very decisive for what an implementation trajectory looks like. In the first case, you have, if all goes well, already included this in your cost considerations. If you were not yet there, then this is the time to pay attention to it.

If you choose to collaborate with an external party, do not expect that the software can be used by you immediately at the push of a button. Do not be alarmed. It does not have to be complicated. But the software must be set up according to your needs and wishes and your data will have to be entered . The setup is generally not very complex. Often an organization can do this itself. But that is not always the case. Check this carefully before you make a final choice for a supplier. 

In many cases, online instructions are provided that allow you to move forward with the design yourself. There is usually also the option of personal guidance . This will help you further and is generally recommended. It is then usually possible for the supplier to carry out the design for you . In some cases, this is even the only option. This often depends on the complexity of the software and the degree of customization. Remember that nothing comes for free. The more you do yourself, the cheaper it will be. But also remember that cheap can sometimes be expensive. This is no different here.

It is however advisable to familiarize yourself with the system . If you manage 'the back end', you are less dependent on the supplier and you can implement changes yourself more quickly.

Entering your data , such as employee data, can be done manually , but depending on the data and the software , importing from Excel is often possible. Importing via a link to other systems is also usually possible. More on this later.

So when comparing rates, take into account factors such as

• your own time investment
• personal guidance by the supplier
• dependence on the supplier for future actions

Training

We already indicated that it is advisable to be able to manage the back end of the system yourself. In fact, all HR software lends itself to this to a greater or lesser extent. You would do well to coordinate with the supplier of your choice whether you need to follow training courses. Think of training courses for the management side of the software (the 'back end'), but also training courses for using the software on the work floor . Is the software intuitive, are there online instructions, or do users need to follow training beforehand? 

Training often involves costs, so check this with the supplier in advance.

The vast majority of suppliers focus on training courses on working with the software. A few parties, such as Treams, go further than that. They not only focus on working with the software, but also on its effect within the organization. Software is not a goal in itself, it is a means to an end . We take tooling for feedback as an example. With a tool you can facilitate working with feedback. But suppose that no safe climate is experienced within the organization, or that people have no idea how to deal with feedback. Then a feedback tool is not immediately the ultimate solution. More is needed to get people moving. Treams also offers workshops and training courses for this. They focus not only on implementation, but also on adoption of the software. So when making your choice, do not only focus on the software, but also anticipate how you are going to achieve the desired effect with the software.

Support

In most cases, the supplier has a support department. Support is invaluable when it comes to the user experience with the software. Support can be provided in the form of a chatbot, FAQs, an online community, or a support employee . Forms of personal support are sometimes included in the license price, but sometimes there are costs involved. And often there is a distinction between support options for users and support options for administrators. In the latter case, for example, a kind of 'strip card' is used with which you purchase support hours. In those cases, the support usually concerns the more technical questions. If there are hiccups in the software, the responsibility naturally lies with the supplier itself.

In this context, the Treams customer community is also interesting to mention. In the online customer community, all kinds of tips, best practices, templates and experiences are shared. In addition to regular support and Ask me Anything sessions, customers can also submit their specific, substantive HR issues. In this way, organizations can also learn from each other, which saves a lot of wheels from having to be reinvented.

Links with other systems

Earlier we already discussed the possibility of a link with another HR software system within the organization. Such a link ensures that data from one system is automatically transferred to the other system. Many HR systems have already made mutual, generic links . So always check whether such a link already exists and how it works exactly. But even if a link does not yet exist, it can often be made. Both suppliers of the HR systems must be willing to cooperate. 

If you want to work with links, check whether there are one-off implementation costs and whether there are recurring costs for the maintenance of the link.

Costs: at all costs?

Costs will be an important consideration in your choice of HR software. No one will underestimate the impact of costs. But the impact of a wrong software choice is at least as great. The implicit costs that come with it are more difficult to capture in a business case, but no less serious. As said: software is ultimately not a goal in itself, but a means to achieve your goal. 

Our advice is to choose software that suits you now and in the future and that actually supports you. Choose a supplier or partner that also just 'feels good' and go for a sustainable relationship.

This webpage was written by Iris Zonneveldt . The founder of Treams. This article was last updated on February 1, 2025. The following sources were consulted in the creation of this webpage: Technology Advice , People HR , Tech.co , SPD load .

Do you have any questions about this content? Please contact us at 040 744 08 88 or send an email to info@treams.nl .