The verdict in three sentences
A SaaS HRIS costs EUR 6 to 15 per employee per month in 2026: ideal when your HR processes are standard. A custom HRIS (EUR 50,000 to 100,000) is justified once you have specific workflows, multi-country operations or heavy connection to existing systems (payroll, ERP, time clock). Over five years and a sizeable headcount, the two options cross: beyond 300-400 employees, custom often becomes the most profitable and leaves you the owner.
SaaS vs custom: the 5-year math
SaaS cost grows with headcount; custom is mostly fixed. That is what shifts the tipping point.
| Headcount | SaaS EUR 10/employee/month over 5 years | Custom (50-100k) + hosting 5 years |
|---|---|---|
| 100 employees | EUR 60,000 | EUR 60,000-115,000 |
| 250 employees | EUR 150,000 | EUR 65,000-120,000 |
| 400 employees | EUR 240,000 | EUR 70,000-125,000 |
| 700 employees | EUR 420,000 | EUR 80,000-140,000 |
At 400 employees, SaaS exceeds EUR 240,000 over 5 years with no ownership; a full custom build stays under EUR 125,000 including hosting. The tipping point sits around 250-350 employees.
The HRIS modules and their cost
An HRIS is built module by module; we deliver the most painful one first.
| Module | Function | Custom 2026 range |
|---|---|---|
| Leave & absences | Request, approval, balances | EUR 10,000-18,000 |
| Expense reports | Entry, workflow, reimbursement | EUR 8,000-15,000 |
| Reviews | Annual, professional, objectives | EUR 9,000-16,000 |
| Payroll interface | Export to payroll software | EUR 12,000-22,000 |
| Employee file & GDPR | Document vault, purge | EUR 11,000-20,000 |
The payroll interface is often the most value-creating block: it removes monthly re-keying and makes variable inputs reliable.
Mini case study
Nadia, HR director of a 380-employee industrial mid-market firm in Toulouse, pays a SaaS HRIS at EUR 11/employee/month, i.e. EUR 50,160 per year and EUR 250,800 over 5 years, owning nothing. Her multi-site leave processes and specific payroll interface are poorly covered, keeping two HR administrators on re-keying. A custom HRIS at EUR 96,000, plus EUR 9,000/year hosting (EUR 141,000 over 5 years), saves her ~EUR 110,000 over 5 years and frees the equivalent of 0.5 FTE. Return on investment is reached by year 3.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
FAQ
At what headcount does custom become profitable?
Generally around 250-350 employees, when the SaaS per-head cost (EUR 6-15/month) exceeds the amortization of a fixed build. Below that, SaaS stays cheaper and lower risk.
Can we keep SaaS for payroll and build the rest custom?
Yes, that's common. We develop leave, expenses and reviews custom and interface everything to your existing payroll software via API, without replacing it.
Is custom GDPR-compliant?
Yes. We build in a document vault, retention-period management, access rights and access logging. Compliance is native, not bolted on afterwards.
How long to deploy?
Allow 12 to 20 weeks for a multi-module core, delivered iteratively. We often put the leave module into production first, in 6-8 weeks.
What happens with growth or a new country?
A custom HRIS handles multi-country and multi-site by design: new leave rules, new currencies, new workflows are added without changing tools.
Let's scope your project. Share your headcount, priority modules and current payroll software: we frame a custom HRIS between EUR 50,000 and 100,000. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
