Methodology / hris cost methodology

How this ledger is built

hriscost.com is built as a ledger, not a marketing site. Every PEPM on every page flows from a single SSOT data file (src/data/vendors.ts) that lists low-mid-high PEPM bands, monthly base fees, implementation bands, source URLs, and capture dates per vendor. The 3-year TCO calculator is pure JavaScript with no opaque server step.

The ledger formula, cell by cell

For each vendor v and each year y, the ledger computes:

Year 1 effective PEPM = base PEPM (mid band by default) + sum of selected module add-ons
Year 1 annual subscription = effective PEPM x headcount x 12 + (monthly base fee x 12)
Year 1 implementation = midpoint of the vendor's implementation low / high band
Year 1 total = annual subscription + implementation
Year 2 effective PEPM = year 1 effective PEPM x (1 + uplift)
Year 3 effective PEPM = year 1 effective PEPM x (1 + uplift)^2
3-year TCO = year 1 total + year 2 subscription + year 3 subscription
3-year PEPM equivalent = 3-year TCO / (headcount x 36)

How quote-only vendors are estimated

For the 13 quote-only vendors, the PEPM figure is our own buying-committee estimate rather than a sourced list rate. It is built from two inputs: (1) the vendor pricing page itself, captured to confirm no list rate is published, and (2) the vendor's stated pricing model - tier structure, per-payroll-run versus per-seat charging, and module composition - mapped to the observed market range for that vendor archetype and seat band. We publish a low-mid-high band, never a single point estimate, and flag every quote-only figure with the crimson provenance badge so it reads as an estimate, not a quoted rate.

We do not invent rates for vendors whose pricing model gives us no reasonable basis to estimate. Where a band is unusually wide (Workday $25-$45 PEPM is a ~80% spread), the band is published as-is rather than narrowed for visual neatness.

How the 12% renewal uplift was derived

The 12% default uplift in the ledger is our own central modelling assumption, not a sourced benchmark. It is a round default we chose to represent a typical uncapped multi-year renewal clause; it is not indexed to any external measure (CPI, ECI, or healthcare cost trend). The uplift slider lets you re-run the ledger at 0-25% to model different negotiated outcomes.

Re-verification cadence

Published-list vendors are re-verified monthly. Quote-only vendors are re-verified quarterly or on flagged change. The /sources page shows the most recent capture date per vendor. The /changelog page logs all observed pricing changes.

What the ledger excludes

Benefits broker fees (vary 4-8% of premium, depend on broker contract).
Master health plan cost for PEO buyers (pass-through, not vendor revenue).
Internal People-Ops staff time for implementation and ongoing administration.
Integration middleware (Merge.dev, Finch, Workato), modelled separately on /line-items/integration-fees.
Off-cycle payroll runs and per-state tax-filing fees, which depend on payroll cadence.

Editorial standards

hriscost.com is published by Digital Signet and is editorially independent. No vendor pays for placement, no rates are influenced by affiliate relationships. Where an affiliate link is used, it is disclosed inline on the page where it appears. Corrections welcomed at oliver@digitalsignet.com; we re-verify within 14 days of any flagged figure.