Workday is a cloud-based one-stop solution for all your human resource management (HRM) needs. Some of Workday's notable features include recruitment, payroll, and talent management, among others. Due to the wide range of services it offers, Workday’s costs can be considered slightly higher than its competitors.
The pricing system and potential costs for a Workday, including implementation costs, can be easily broken down based on a few simple factors. So, let's find out how Workday pricing really works.
Workday offers a flexible and scalable quotation to each potential customer, tailored to their specific needs. The pricing system is based primarily on a per employee/per month (PEPM) system. This helps to keep costs down, making Workday more affordable for smaller and medium-sized businesses.
How much you end up paying for Workday’s services varies greatly, but estimates put the starting price for Workday’s core HR module at 99-100$. However, the average price paid by customers is estimated to be 40$-60$ PEPM. Despite that range, some companies might end up paying much higher based on what they're looking for.
Disclaimer: The pricing information is sourced from third-party websites and is subject to change without notice.
Before making an informed decision about the type of plan you require and what would be optimal for your specific needs, you need to understand the nature and demands of your own business. This means understanding how different factors might affect the price you end up paying for Workday’s services.
Company Size
Obviously, the size of a company and the number of its employees are the largest contributors to the price. Larger companies with more employees are charged less per employee compared to smaller companies but end up paying more in the long term. This is because larger companies with thousands of employees require larger storage for employee data, round-the-clock support, and specialized integration demands.
Modules Selected
Workday has specifically designed modules, in the form of services, that offer limited solutions according to the unique requirements of any given business.
- The human capital management (HCM) module is best for services like human resource management and payroll
- The Adaptive Planning module is optimal for services like financial planning, budgeting, and forecasting
- Then there is the Procurement module that serves to keep track of funds and helps with spending management by providing real-time data and detailed reports
These are just some of the many modules offered by Workday, and how much you ultimately pay depends on which of these modules you subscribe to, and for that, you must know what your business entails.
Administrative Complexity
Larger, well-established companies that make the transition to Workday may require special plans and integrations to ensure a smooth implementation. Workday offers specialized modules and implementation services tailored to the unique administrative needs of each customer, including compatibility with specialized payroll systems and customized training requirements.
This leads to initial setup costs that can range from 150-200% of the yearly subscription costs. That means a company paying 50000$ annually can expect to pay anywhere from 75000$ to 100000$ in implementation charges. Furthermore, expenses for partner orientation, training, and support may also apply to integrate Workday into the existing system seamlessly.
Though there have been complaints regarding Workday’s complicated user interface and comparatively high costs, Workday does manage to make up for it. The comprehensive nature of Workday’s services, along with its automated features such as Adaptive Learning and AI Integration, as well as its self-service features for both employers and employees, most certainly make Workday worth the time, effort, and money.
Workday’s features and all-in-one services do, in fact, offer value for money and customer satisfaction if you do the right research and know what you need from it.
Feel free to contact us for a detailed quotation of Workday's costs according to the unique needs of your organization.