The verdict in three sentences
An off-the-shelf HRIS (8 to 20 EUR/employee/month in 2026) covers 80 % of standard needs and deploys fast, but bends badly on a mid-market firm's specific processes (collective agreements, annualised hours, in-house bonuses). A custom HRIS (80,000 to 200,000 EUR) fits those rules and removes the per-employee cost, but takes 7 to 12 months. The right reflex: compare the 5-year TCO and consider a hybrid approach (market core + custom modules on differentiating processes).
Off-the-shelf vs custom: the decision grid
The choice is not just price. It depends on how specific your processes are and on headcount, which drives the SaaS per-employee cost.
| Criterion | Off-the-shelf HRIS | Custom HRIS |
|---|---|---|
| Cost | 8 - 20 EUR/employee/month | 80,000 - 200,000 EUR |
| Cost at 300 employees | 28,800 - 72,000 EUR/yr | Maint. 9,600 - 21,600 EUR/yr |
| Specific processes | Workarounds | Natively handled |
| Payroll | Usually interfaced | Custom interfaced |
| Employee self-service | Standard | Custom |
| Timeline | 2 - 4 months | 7 - 12 months |
| Ownership / extensibility | Limited | Full |
5-year TCO for 300 employees
At scale, the SaaS per-employee cost becomes the dominant line. 2026 order of magnitude for a 300-employee firm, SaaS at 14 EUR/employee/month versus custom at 150,000 EUR and maintenance of 1,300 EUR/month.
| Line item | Off-the-shelf (5 yrs) | Custom (5 yrs) |
|---|---|---|
| Subscription / initial build | 252,000 EUR | 150,000 EUR |
| Maintenance | Included | 78,000 EUR |
| Specific configuration | 20,000 - 45,000 EUR | Included |
| Payroll/accounting interfaces | 15,000 - 30,000 EUR | 15,000 - 25,000 EUR |
| 5-year total (order of magnitude) | ~287,000 - 327,000 EUR | ~243,000 - 253,000 EUR |
At 300 employees, custom slips under off-the-shelf over five years; below 100-150 employees, SaaS usually stays cheaper.
Mini case study
Sarah is the HR director of a 300-employee industrial firm in Amsterdam. Her off-the-shelf HRIS costs 14 EUR/employee/month, i.e. 50,400 EUR/year, plus 30,000 EUR of workarounds to handle annualised working time, poorly supported natively.
She opts for a hybrid approach: market core for payroll and core HR, a custom module at 55,000 EUR for annualisation and in-house bonuses, maintenance 500 EUR/month. The module eliminates the 30,000 EUR of recurring workarounds and removes 0.3 FTE of manual reprocessing (~18,000 EUR/year loaded). Net annual gain near 48,000 EUR: the custom module is amortised in just over a year, without discarding the existing SaaS investment.
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FAQ
How much does a custom HRIS cost for a mid-market firm in 2026?
An order of magnitude of 80,000 to 200,000 EUR depending on scope (leave, interfaced payroll, self-service, reviews). A leave + self-service core often starts around 85,000 EUR.
At what headcount does custom become worthwhile?
Generally beyond 150 to 300 employees, where the SaaS per-employee cost overtakes an owned tool's maintenance over 5 years. Below that, off-the-shelf is often cheaper.
Can we keep our payroll and build only the rest?
Yes, that is the recommended hybrid approach: interface existing payroll and custom-build only the differentiating processes, sharply cutting the budget.
How long for a full custom HRIS?
Expect 7 to 12 months for a full version; a targeted module (annualisation, bonuses) can ship in 3 to 5 months.
Is custom compliant with GDPR and labour law?
Yes: retention periods, access traceability and rules aligned to your collective agreements, with controlled EU hosting.
Let's scope your project. Share your headcount, specific processes (annualisation, bonuses, reviews) and indicative budget, and we will frame an off-the-shelf, custom or hybrid path. 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.
