What’s the difference between per-employee and flat-fee HR software pricing?

Per-employee pricing charges a set amount for each active employee per month, so the cost scales smoothly with headcount. Flat-fee pricing charges a fixed amount for a band of employees or the whole company, which can be cheaper at a specific size but often jumps sharply when you cross a threshold.

Per-employee models are usually more predictable for growing companies because cost rises proportionally rather than in steps. The risk to watch with any model is tier penalties — a flat fee that holds up to 50 employees and then leaps for 51, or a per-employee rate that climbs at certain bands. Model your expected headcount over the next two years against the pricing table before committing.