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Key Takeaways

Pricing varies based on features, usage, and service level: So consider what your team needs most; more features usually mean a higher cost.

Upfront cost doesn’t reflect total cost: Due to add-ons and extra user fees, so budget for the full picture.

Focus on ROI and scalability: Choose a system that grows with your team, not just the cheapest option.

Navigating the intricacies of applicant tracking system pricing means contending with complex tiers, feature gating, and hidden fees. It's no wonder you’re confused!

This guide is for you—buyers, finance leads, and department heads—who need clarity. I'll break down typical cost ranges, pricing models, and hidden fees. Plus, I'll share tips on evaluating ROI.

Let's make sure your team makes smart, informed decisions without surprises.

What Factors Influence Applicant Tracking Systems Pricing?

When choosing an applicant tracking system, you might find pricing confusing due to varied features, service levels, and hidden costs, like extra fees for more users or integrations. 

Here's what influences the price:

FactorHow It Affects Pricing
Number of EmployeesMore employees usually mean higher costs; expect an increase of about $5-$10 per employee per month.
Contractor SupportSupporting contractors can add to the price, often by $2-$5 per contractor monthly.
Tax Filing FeesSome systems charge extra for tax filing services, which can add $50-$100 monthly.
Integration OptionsConnecting with other software can raise costs by $20-$50 per integration monthly, depending on complexity.
Support LevelHigher support levels, like dedicated account managers, can add $100-$200 monthly.
Customization NeedsCustom workflows or fields may require additional fees, often ranging from $200-$500 depending on the extent of customization.

Applicant Tracking Systems Price Comparison

Understanding Pricing Models

When choosing an applicant tracking system, it's essential to understand that pricing models differ from the cost itself.

Models like per user or custom quotes offer flexibility but come with their own considerations. Here's a breakdown of common pricing models to help you decide:

Pricing ModelHow It WorksWhat to Watch For
Per user or seatCharges based on the number of users accessing the systemCosts can add up quickly as your team grows
Per usageFees depend on system usage, like the number of applications processedHigh usage can lead to unexpected expenses
Tiered subscriptionOffers different feature sets at various price pointsYou might pay for features your team doesn't need
Custom quotePricing tailored to your specific needs and company sizeNegotiation is key; ensure all needs are covered
Pay-as-you-go or annualPay monthly or annually, often with a discount for annual paymentsMonthly plans might seem cheaper but can cost more over time without discounts

Typical Pricing by Company Size

Pricing for applicant tracking systems scales with company size, impacting your budget and system needs. Here's what you can expect based on your company's size:

Company SizeTypical Price RangeWhat’s Usually IncludedCommon Use Cases & Vendors
Small business$50–$200/monthBasic applicant tracking, limited integrations, and essential reportsHiring a few roles monthly; BambooHR, Workable, BreezyHR
Mid-size business$200–$600/monthAdvanced reporting, more integrations, and some customization optionsScaling teams, moderate hiring volume; Greenhouse, Lever, JazzHR
Large business$600–$1,500/monthComprehensive features, robust integrations, and customizationHigh-volume recruitment, multiple locations; iCIMS, Jobvite, Bullhorn
Enterprise$1,500+/monthFull suite with all features, extensive support, and enterprise-level integrationsGlobal hiring, complex processes; SAP SuccessFactors, Oracle Taleo, Workday
Pro Tip

Pro Tip

There’s always room for negotiation on HR software pricing. Ask for a volume discount! I always recommend trying to get a better deal based on your needs.—Jesse Ajebon, Founder & CEO at People Street

Additional & Hidden Costs to Watch For

When deciding on an applicant tracking system, it's vital to understand the hidden costs that can catch you off guard. Onboarding fees and premium support are common add-ons that can inflate your budget unexpectedly. Here's a breakdown of what to look out for:

CostDescription
Onboarding/setup feesThese are initial costs to get the system up and running, often ranging from $500 to $2,000. Some vendors, like Greenhouse, charge setup fees, which is important to factor into your initial budget.
Training or certificationsCosts for training your team or obtaining certifications can add up, especially if required for full functionality. Vendors like iCIMS offer paid training sessions, which can be essential for effective use.
Premium supportExtra fees for advanced support services, which might include 24/7 access or a dedicated account manager. For example, Lever offers tiered support options that can increase overall costs significantly.
Integrations beyond standard setIf you need to connect with more than the basic integrations, expect additional fees. Vendors like Jobvite often charge for each additional integration beyond the standard offering.
Usage overagesCosts incurred when usage exceeds the limits of your plan, such as processing more applicants than covered. This is common with vendors like BambooHR, where exceeding user limits can lead to extra charges.
Contract minimumsSome vendors require a minimum contract length, which can lock you into a longer commitment than desired, often affecting flexibility and budget. Bullhorn, for instance, may have minimum contract terms that impact pricing negotiations.
Compliance or legal updatesFees associated with keeping the system up to date with legal and compliance changes. Vendors like Workday may charge for updates related to new compliance regulations, which can be vital for maintaining lawful operations.

Types of Applicant Tracking Systems Pricing: Subscription Plans & Upgrade Triggers

Applicant tracking systems often use subscription models with tiered plans that cater to different business sizes and needs:

  • Plan Inclusions: Most vendors, like Greenhouse and Lever, offer tiered plans such as Starter, Pro, and Enterprise. These tiers typically include varying levels of features, user access, and support services.
  • Upgrade Triggers: User limits and integration caps are common triggers for moving to a higher tier. For example, if your team grows or you need more integrations, you may need to upgrade to a more expensive plan.
  • Annual vs. Monthly Discounts: Many vendors provide discounts for annual billing. While monthly payments offer flexibility, choosing an annual plan can save you money if you’re committed long-term.
  • Transparency in Pricing: Vendors like Workable and BambooHR often display pricing details on their websites, but some require you to contact them for a custom quote, especially for higher tiers or enterprise features.

To avoid overspending, carefully assess your team’s current and future needs against the features and limits of each plan. Opt for the plan that fits your growth trajectory without unnecessary add-ons.

Maximizing ROI from Your Applicant Tracking Systems Investment

Ensuring your applicant tracking system delivers a strong ROI should guide your buying decision, as tracking ROI can significantly impact cost-effectiveness post-implementation:

Time Saved

Automation and streamlined workflows in an applicant tracking system can drastically cut down on manual tasks, freeing up your team’s time.

 Consider what manual processes this system will replace and estimate how much time your team could regain. Ask vendors to demonstrate these time-saving features in a typical use case to gauge their impact. 

This insight helps you visualize the efficiency gains and how they translate into tangible ROI.

Pro Tip

Pro Tip

For tools to create measurable ROI, they need to be part of a larger strategy. Make sure you’re not just collecting data but using it to make actionable decisions.”—Gil Gerstl, VP, Data Products, Governance, and Ops, Chief Data Office at ADP

Error Reduction

Reducing errors through fewer manual handoffs or calculations can prevent costly mistakes. Identify where errors currently occur and assess how the system will mitigate them.

Request vendors to show how data validation or control mechanisms work across the platform. Understanding these aspects can highlight potential savings and increased accuracy, contributing positively to ROI.

Compliance Avoidance

Features supporting legal, financial, or industry standards can minimize the risk of fines or audits. Investigate what compliance features are built in and whether the platform supports specific industry requirements. 

Ask for examples where compliance gaps were successfully avoided, giving you confidence in the system's capability to protect your organization from compliance-related costs.

Pro Tip

Pro Tip

“Compliance is a huge factor. The system should help you stay on top of changing regulations, especially if you’re hiring people across different states or countries.”—Crystal Pinney-Ramos, HR Technology Strategist

Cross-Team Adoption or Consolidation

A tool that replaces many or is easily adopted by multiple teams can cut costs and enhance alignment. Determine if the system could replace multiple tools and which teams would realistically use it. 

Author's Tip

Author's Tip

Request vendors to share rollout stories across functions to understand the system’s adaptability. This approach can streamline operations and reduce software redundancies, enhancing overall ROI.

Questions to Ask Vendors During Pricing Demos

Demos give your team the best chance to clarify pricing details, understand what's included, and prevent surprises. Being prepared with questions is essential, especially if you're considering writing an applicant tracking systems RFP. Here's a list of questions to guide your discussion:

  • How is your pricing structure organized, and are there any hidden costs?
  • What features are included in each pricing tier, and are there any feature limitations?
  • What are the usage caps, and how are overages charged?
  • Are there any support or onboarding fees we should be aware of?
  • Can you explain the billing frequency and renewal terms?
  • What integrations are covered, and are there limits on the number of integrations?
  • Are there any costs associated with scaling up or down in user numbers?
  • How do you handle pricing for additional training or certifications?

Tips for Negotiating Applicant Tracking Systems Pricing

Pricing is often flexible, and being well-prepared can lead to better deals. Strong negotiation tactics can help you secure favorable pricing and contract terms without compromising on the features you need. Consider these tips to maximize your negotiation efforts:

  • Benchmarking Competitors: Research what competitors are paying for similar systems. Use this information to negotiate a fair price with your vendor.
  • Discount Opportunities: Ask about discounts for startups, nonprofits, or long-term commitments. Vendors often have special pricing for these groups.
  • Pilot Programs or Phased Rollout Pricing: Propose a pilot program to test the system before committing fully. This can sometimes lead to reduced initial costs.
  • Renewal and Lock-In Clauses: Negotiate favorable renewal terms and avoid long lock-in periods. This keeps your options open for future negotiations or changes.
  • Leveraging Group Buying or Procurement Support: Use group buying power or work with your procurement team for better pricing. This can often lead to more significant savings.

What’s Next:

If you're in the process of researching applicant tracking systems, connect with a SoftwareSelect advisor for free recommendations.

You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.

Finn Bartram

Finn is an editor at People Managing People. He's passionate about growing organizations where people are empowered to continuously improve and genuinely enjoy coming to work. If not at his desk, you can find him playing sports or enjoying the great outdoors.