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How Much Does Cost to Build Custom Recruitment Software?

By 

Maulik Kotak

HR Recruitment Software Cost

Today almost all companies have in common the HR department. Human resources are required for any business from small companies and enterprises to big corporations. The process of acquiring and managing a workforce has changed significantly over the last few years.

HR departments even get divided into smaller divisions responsible for recruitment, onboarding & employee retention process.

If we can discuss recruiters who find the best talent, retention managers who create a great working environment in a company, training and development managers to ensure that employees advance their skills, and HR who deal with everything mentioned. HR also works with onboarding and offboarding and manages benefits, payroll, and other stuff like managing all employee records, etc.

Recruitment process
Credit: Shutterstock

This process creates a need for software that can smoothly run the internal processes of HR departments. In this article, we will focus more on how much you might expect to pay to develop your own Human Resources(HR) web application. But first, let’s define what types of HR software are already available on the market and consider what type of features you’re looking for.

While we’ve defined three types of HR tools, nevertheless all three offer a common set of functionalities at their core. In basic terms, HRIS is a ‘parent’ type that includes features of both HRMS systems. When selecting human resources management software for your company, the ‘type’ of the system and what features would you like to add to your CRM system.

How do Human Resource Information Systems (HRIS) work?

Human Resource Information Systems offer the most functionality. HRIS software is sometimes called ‘talent management’ software because it manages the full employee cycle, the steps of which we’re going to line.

1. Recruitment

Recruitment is a composite process that involves getting job requirements for a potential employee, placing a vacancy on job boards, interviewing candidates, and finally onboarding, the hiring process.

Let’s look at some examples of how Human resource applications can help HR managers with the recruitment process. HR managers can fill in information for job posts and push these job posts to popular employment websites. The workable application makes hiring easier by letting recruiting software track hiring status, schedule interviews, evaluate candidates with performance scores, and make reports for further details.

2. Onboarding

The onboarding process consists of a set of procedures aimed at handling common issues that might occur as employees adapt to their new company. This process is much more creative than it was a few decades ago. HR department's efforts to make the onboarding process fun and welcoming by organizing informal events like lunches and welcome kits.

employee onboarding

Onboarding tasks include configuring corporate communication tools and sending an intro email, adding an employee to corporate mailing lists and group chats, setting up welcome meetings with the rest of the employees, and introducing new employees to corporate rules and values. HR tools like Hibob realize onboarding features by creating tasks and assigning them to responsible employees. Employees are able to confirm or reject these tasks within the system, so they mark as completed, and receive notifications about pending and upcoming tasks.

3. Performance Tracking

Employee performance tracking is a planned goal of every company that hopes to improve overall company performance and explore the skills of their individual employees. HR departments track employee performance in order to motivate staff, system of appraisal, and detect loopholes that hinder the company’s growth. Also, companies monitor employee performance via personal development plans, achievement lists, and personal interviews aimed at estimating employee development.

For example, companies may implement personal dashboards with visual overviews of progress, notifications about report submission, and checkboxes that help monitor an employee’s progress. There are few apps such as Namely that allow employees to set their own goals and mark them as completed once they achieve them. These applications also provide access to employee career goal dashboards for HR managers to track employees’ progress.

4. Benefits Management

Benefits are indirect reimbursement and vary across companies. Few employee benefits are dictated by law, including paid holidays, sick leave, and maternity leave, So companies most often provide additional benefits to boost retention and offer competitive packages to potential employees. There are medical benefits packages including dental and vision care, disability insurance, and even fitness benefits. Few employees may even get perks like corporate cars, meal allowances, company phones, and recreation reimbursements.

HR tools strive to automate benefits as much as possible, for instance by creating benefit plans and employees follow those plans. This is how to benefit management, by eliminating the need for awkward spreadsheets.

5. Training

Education is important. Сompanies that invest in their employees by offering training, workshops, and other educational events gain a competitive edge over companies that don’t. One of the responsibilities of a human resources manager is to organize training for employees. Most companies usually employ a variety of specialists who all require different educational strategies, managing the training process properly can be the most exciting part.

HR software tends to streamline training processes by offering automated processes instead of traditional spreadsheets. For example, HR managers might create training events and invite employees, send notifications about upcoming tasks and tests, and identify employee progress throughout the training process.

6. Payroll

Payroll management might seem like the responsibility of the finance department, but HR specialists still handle a number of payroll-related tasks such as tracking information about employee salaries, time off, sick leaves,  vacations, and taxes.

The payroll features in HR software store information about benefits and compensation, and generate reports about employee earnings and additional details.

Common Issues with HR Tools

Although the existing human resource management tools offer plenty of useful features that help HR specialists save time and highlight strategic tasks, there are still a few shortcomings. Please have a look at the issues we’ve identified during our research of HR (Human Resource) software.

1. Too Many Tools

If you want to automate all your human resource (HR) management processes, you would need to get an app like CakeHR to take care of onboarding and offboarding employees, an app like Broadbean to distribute job posts to multiple job platforms, and also a few other apps to manage benefits, payroll, and training. Using many tools at the same time isn’t always the best solution.

Even though these apps are quite effective, few of them are truly the Swiss army knife for HR that covers the full cycle of talent management: from recruiting CRM and hiring to onboarding and retention.

2. Not all HR tools engage employees together with HR managers

The trends in HR software have shifted: today, HR tools tend to engage not only HR specialists but also finance managers and employees as well. But why is it important to engage employees in HR software?

First, the overwhelming majority of the new workforce are millennials who demonstrate a proactive approach to the work process: they’re interested not just in getting paid but in acquiring new skills and being important to their company. If people have gotten used to having easy access to any kind of information, the HR software admin should think about producing products that allow both employees and HR managers to combine and make stronger relationships.

3. Poor User Interfaces

Third, user interfaces (UI) and user experiences (UX) are often poorly designed. Users simply get lost in a complicated structure of applications, never discover the full potential of the software, and grow disappointed with the app. In today's era of automatically generated Linkedin resumes and video interviews, the absence of mobile versions of HR applications is quite discouraging.

How much does it cost to develop your own HR app?

Before we speak about rates, let’s first define what sort of work will be implemented. We’ll estimate a common scope of work related to UI/UX design and web app development. The costs for software development differ across the world, and every company sets its own rates, which largely depend on two factors: “location” and the “quality of work”. We’ll take an industry average rate of $20 per developer hour to give you an approximate understanding of the cost of HRIS software development.

If we talking about an app that can handle all your HR management processes, let’s see what this solution might cost given all the features listed below:

Applicant tracking

Build your own applicant tracking system to regulate the entire hiring process and help managers save time and avoid an error.

Job search

Build a job board like other job portal sites for your niche to make it easier to find, post, and search for jobs and candidates.

Candidate assessment

Help recruiters turn out unqualified applicants and make better hiring decisions with software that offers candidate performance checking tests.

Interview scheduling

Make it easier for recruiters to schedule interviews. Configure with calendars, inform all the participants via email, and collect interviews and feedback.

Jobseeker marketplaces

Connect workers, part-time workers, and freelancers with companies looking to outsource work to professionals.

HR automation

Develop custom HR software that automates the workforce system, benefits administration, performance tracking, and much more.

Employee training

Allow companies to provide online courses and training programs to their employees.

Employee engagement

Build tools that help companies admit employee achievements and increase talent retention processes.

Payroll & benefits

It helps agencies with payroll systems, maintains employee salary details, calculates bonuses, and much more.

Develop a new product for HR & recruitment

Here are some benefits you get from building your custom application with IIH Global.

  • Intuitive user interface
  • Custom workflows
  • Advanced analytics and reporting
  • Data security and compliance
  • High performance
  • Responsive on mobile
  • Continuous delivery and automation
  • Integrations with other systems

Why IIH Global for HR & recruitment Software

  • Experts in HR & recruitment web-based software development
  • Deep understanding of recruitment processes and workflows
  • End-to-end product development solutions provider and certified developers
  • Hand-on expertise with data parsing tools and AI-based solutions

Wrapping up

It takes a lot of time and effort to build a web application for a specific purpose. However, we’re used to these challenges, and in fact, we’ve already built a few applications for HR departments. The rough estimates we’ve provided in this article are based on our own previous experience – but if you want an estimate specific to your needs, feel free to contact us and explain your idea!

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