A Guide to Recruiting Software Pricing Models

Recruiting software helps hiring managers automate and streamline the entire recruitment process, from applicant tracking and assessments to onboarding. However, various software options are available, each with different pricing models and functionality. Navigating these options can be confusing.

With this in mind, we’ve created a guide to simplify recruiting software pricing. We provide clarity on the costs associated with top-rated recruiting solutions, including pricing structures, subscription fees, implementation costs, and additional expenses. By offering a detailed pricing comparison, we aim to help you make an informed software purchase that fits your budget and hiring needs.

What are the different types of recruiting software pricing models?

Recruiting software solutions have different pricing plans or ranges determined by several factors, such as software features, number of users, required infrastructure, business size and type, training availability, deployment options, custom branding options, available integrations, and storage capacity. Here are some common recruiting software pricing models:

Subscription license

You pay a monthly or annual fee to use the software for a set period of time. Pricing is typically based on the number of users per month. The subscription model is commonly used for cloud-based deployments where the system is hosted by the software provider on their servers and can be accessed by your users on compatible devices, such as laptops, smartphones, and tablets, via the internet.

Some common types of subscription pricing options include: 

• Per user: Pricing is based on the number of users accessing the software. It can be either a flat fee per user or a tiered structure where the cost per user decreases as the number of users increases.

• Tiered: Different pricing tiers based on the software features included, with higher tiers offering more advanced functionalities.

• Per recruit: Charges are incurred based on the number of applicants hired through the software.

• Per job posting: Pricing is determined by the number of job postings or their active duration.

• Flat rate: A single, fixed fee for a specified period, regardless of the number of users or job postings.

• Pay as you go: Charges are based on the actual consumption of software resources, such as the number of candidates processed or the volume of data stored.

Perpetual license

Under this pricing model, you pay a one-time upfront fee for the permanent license to own and use the recruiting solution. The fee can vary based on the number of users. The perpetual pricing model is commonly used for on-premise deployments where the software is hosted and maintained in-house on your own servers.

Free and open-source license

These pricing options are commonly used by small-business owners or recruiting teams with limited budgets and resources.

• Freemium: A basic version of the software is offered for free, with premium features, add-ons, or additional services available for a fee.

• Open source: The software source code is freely available, allowing users to modify and distribute it. While the software is often free to use, you may incur implementation and maintenance costs.

Common subscription pricing tiers for recruiting software

Under the subscription model, per-user pricing is the most commonly seen. You pay a fixed fee for every user seat, and prices increase as the number of user seats increases. Per-user pricing plans are typically of three types, according to analysis by our research team.

• Entry-level plans (1-4 users): Cost up to $205 per month and offer access to standard software features. These plans are suitable for small businesses with basic recruiting needs, such as job posting, candidate management, basic screening, and reporting.

• Mid-tier plans (5-9 users): Cost up to $567 per month and offer advanced features, such as customizable dashboards, advanced reporting tools, and candidate engagement tools. These plans are suitable for businesses that have outgrown entry-level recruiting tools but don’t require the full range of functionality offered by enterprise-level systems.

• High-end plans (10+ users): Cost up to $887 per month and offer a range of advanced recruiting capabilities, including unlimited features from entry-level and mid-tier plans, automated screening, premium support options, and reporting tools. These plans suit larger enterprises with complex hiring needs, high-volume recruitment processes, and comprehensive analytics and customized support requirements.

For reference, below is a snapshot of the prices of the most reviewed recruiting solutions with subscription pricing plans. These products are taken from the most recent Software Advice FrontRunners report for recruiting software.*

Note: To find out the subscription price of each tier (entry-level, mid-tier, and high-end), we calculated the median value based on their respective pricing mentioned in the product pricing table above. In this case, the median represents the middle value of the monthly fee for each pricing tier when all the top-rated software solutions are considered. While average pricing may be easily skewed by outliers, the median value gives users an understanding of the midpoint of ranges they're likely to encounter.

What are the upfront and recurring costs associated with recruiting software?

Upfront costs are the initial expenses incurred when purchasing or subscribing to software, such as licensing, installation, setup, and training. The graphic below illustrates the primary upfront costs associated with recruiting software.

Recurring costs are the ongoing expenses associated with using software, such as subscription fees and maintenance costs. These costs may be charged monthly or annually and can also include expenses for upgrades or additional user licenses. The graphic below shows the primary recurring costs associated with recruiting software.

What are the additional costs associated with recruiting software?

These additional costs are common across different software providers and pricing models, so it’s important to include them in your budget.

• Data migration: These costs involve transferring business-critical data, such as candidate records, resumes, and historical recruitment metrics, from previous systems or spreadsheets to the new recruiting software. Data migration costs include expert consultation, data mapping and validation, hardware or software installation to facilitate migration, and data integrity assurance. Costs can vary depending on the volume and complexity of the data. 

• Training: Staff members need to be adequately trained to maximize the benefits of the new recruiting software. Training includes learning to use the software features, understanding new workflows, and adapting to process changes. It may involve formal sessions led by the software provider, on-site workshops, or e-learning modules. Training costs can also include fees for hiring trainers, developing training materials, and additional time for employees to get up to speed.

• Hardware and IT: These costs include upgrading or purchasing equipment to host the new software, updating employee computers or mobile devices to meet technical requirements, and possibly hiring IT staff to manage and maintain the new system. There might also be costs associated with ensuring compatibility with existing systems.

• Maintenance and upgrades: Once the recruiting software is in place, ongoing maintenance and periodic upgrades are necessary to ensure it functions optimally and incorporates the latest features and security patches. These expenses typically include subscription fees for updates, technical support costs, and potential fees for major version upgrades. Regular maintenance ensures the software remains compatible with other systems and adapts to changing business needs.

How to find the right pricing plan for recruiting software

• Identify the recruiting features you need. Plans with advanced recruiting features and functionalities generally have a higher price tag than more basic options. For instance, a basic recruiting plan will be less expensive than premium plans that offer advanced automated candidate sourcing, passive candidate tracking, and integrated communication tools. By identifying essential features, you can identify a pricing plan that aligns with your budget constraints and simultaneously fulfills your recruitment needs.

• Determine the number of users. Number of user seats is one of the most common differences between basic, premium, and advanced pricing plans for recruiting software—the more users, the higher the costs. A basic plan might be sufficient for up to four users, but a premium or advanced plan would be more appropriate if you have a higher headcount. Opting for a scalable solution that can adjust to changes in user numbers is also wise. Additionally, some providers offer per-user licensing, so it’s important to factor in the number of users when budgeting for recruiting software.

• Consider pricing commitment (subscription or long term). Long-term agreements require you to commit for a fixed period, usually two or three years. These pricing models often offer a lower annual cost compared to subscription-based pricing. Long-term agreements may also include additional services such as maintenance and support, which could be beneficial if your organization has limited IT resources. On the other hand, if flexibility and scalability are important to you, a subscription plan might be the better choice. However, a long-term deal could be more suitable if you prefer a lower annual cost and additional services.

Common questions to ask when choosing recruiting software

Below are a few questions you should ask software providers when evaluating the pricing plans of the recruiting solutions you’ve shortlisted.

• Is there a free trial or demo version of the software? 

A free trial or demo lets you explore the software features and functionality firsthand without committing to a purchase. This hands-on experience helps assess whether the software aligns with your recruitment needs, fits your current workflows, and integrates with your existing systems. Taking advantage of a trial or demo can reduce the risk of making a wrong software investment and can ensure you choose a solution that supports your primary objectives.

• Are there any additional costs? 

Many software solutions levy extra charges for various services, such as customizing the platform to your specific recruitment needs, training sessions to get your team up to speed, advanced technical support, and regular maintenance and upgrades. By clarifying these potential extra costs upfront, you can understand the actual cost of owning the software. This proactive approach also allows you to budget more accurately and avoid unexpected expenses that could impact your overall financial planning.

• What is the typical implementation timeline? 

Knowing how long each phase of the implementation process will take allows for better project scheduling and minimizes disruptions to daily operations. A clear timeline ensures everyone involved knows what to expect and by when, reducing the likelihood of frustration or misunderstandings. Lastly, it assists in aligning software deployment with other strategic initiatives. For example, if your organization is planning a major hiring drive, knowing the implementation timeline ensures the new recruitment software will be operational in time to support the initiative.