Market Rates vs. Your Rates: The Shocking Truth About HR Tech Pricing

Market Rates vs. Your Rates: The Shocking Truth About HR Tech Pricing

To stay competitive and continue to attract top talents in the dynamic HR landscape, HR professionals are increasingly turning to HR technology. This, among other factors, have driven up the demand for HR tech, as well the number of providers in the industry. So, having a reliable HR solution can make your firm both competitive and attractive. 

But when was the last time you reviewed your HR technology contract? If it’s been a few years, you might be in for a not-so-good surprise. Over the past few years, the HR tech market has transformed dramatically, and the rates you locked in during your last negotiation could be costing you tens of thousands more than today’s market standards. 

At The Mission, we’ve seen companies overpay by as much as 70% simply because they didn’t have access to current market intelligence. The truth about current HR tech pricing is that what you thought was your vendor’s “best offer” might not be so great after all. Here’s why and how you can reclaim significant savings without disrupting your operations.

The HR Tech Market is a Rapidly Shifting Landscape

Today, the HR technology sector is evolving faster than ever. According to a 2024 HR Vision Events report, HR tech spending surged by 66% from 2020 to 2023, driven by new vendors entering the market, increasing demand for HR technology, and increased competition among established players like Paychex and ADP. 

This influx of providers has created a more competitive industry, pushing down pricing for new contracts. However, existing customers often remain stuck with rates negotiated years ago, when market dynamics were less favorable.

Vertice research found that 90% of SaaS buyers overpay by 20-30% because of a lack of pricing transparency in the SaaS market, so companies are locked into outdated contracts. As an example, consider a company with 100 employees, paying an average of $300 per employee annually for HR tech, a 30% overpayment translates to $9,000 in excess costs for all employees. 

For some of our clients, we have uncovered overpayments exceeding $115,000 a year. That’s enough to fund new hires, upgrade systems, or boost employee benefits. The reason you are overpaying is not because you made a bad deal initially. It’s because the market has moved on, and your vendor isn’t likely to proactively offer you the lower rates they’re giving new clients. The gap between your rates and current market rates is where your real cost lies.

The Information Disadvantage: You’re Out of the Loop

Negotiating an HR tech contract is something most HR leaders and business owners do every 3–5 years. Vendors, on the other hand, are in the game daily, closing hundreds of deals and adjusting their pricing strategies based on real-time competitive pressures. This creates an information asymmetry that puts even the savviest negotiators at a disadvantage. 

This allows vendors to maintain flexible rate cards and easily offer significant concessions when pressed, but only if you have current information and know what to ask for. For example, one of our clients, a mid-sized retail business, was locked into a 2022 contract with an HR tech provider. Their rates seemed competitive at the time, but by 2025, new market entrants had driven down costs. 

Using our industry insights and vast vendor relationships, we renegotiated their contract in 2025, reducing their annual costs by a whopping 65% — a savings of $22,000 — without altering their existing services or workflows. Another client, a professional services firm, was overpaying by $115,000 annually due to an outdated ADP contract. We secured market-aligned pricing, saving them enough to invest in a new training program without changing their provider.

To put it simply, vendors know the competitive landscape has shifted, but they’re not going to hand you a discount unless you come equipped with the right data.

The Zero-Disruption Advantage: Save Big, Change Nothing

With our HR tech consulting package, we help you save these costs at no cost — I mean, technically speaking. It’s like a commission-based approach to cost savings. We don’t ask you for any upfront fee, to overhaul your HR systems, train employees on new software, or endure lengthy implementations.

Our approach is simple: we help you secure current market rates with your existing provider, or guide you through a seamless transition to a better-suited vendor, without disrupting your operations. It’s cost optimization with zero operational impact.

How does it work? Our team, backed by a network of partners across all 50 states, uses real-time market intelligence and long-standing vendor relationships to renegotiate your HR tech contracts. We analyze your current rates against market benchmarks, identify overpayments, and negotiate terms that align with today’s pricing standards. 

In the end, we typically achieve a 20–70% savings on your current HR tech costs, all while keeping your existing processes, services, and employee experience intact. For instance,if you’re paying 25% above current market rates on your HR tech platform, we can renegotiate your contract with your provider to reduce your costs — no system changes, no employee retraining, just a leaner budget.

A Risk-Free Partnership That Pays for Itself

At The Mission, we’re not your typical consultants. Our compensation comes solely from the savings we achieve for you, shared over the first two years. If we don’t deliver any cost reductions, you pay nothing. This risk-free model aligns our success with yours, ensuring we’re fully invested in maximizing your savings.

Partnering with us allows you to gain a strategic advantage, accessing the same insider knowledge that industry professionals use daily. Whether you’re renegotiating with your current vendor or exploring a transition, we make the process seamless and results-driven.

Why Act Now?

The longer you wait, the more you overpay. With vendors facing annual fee increases of 5–15%, the gap between your rates and market rates is widening. Meanwhile, there’s a growing adoption of cost-efficient HR tech solutions, meaning competitors are already capitalizing on these savings.

The Mission empowers SMBs with 25–200 employees to unlock market-aligned pricing without the hassle. We handle the heavy lifting, starting from market research to vendor negotiations, and contract optimization, so you can focus on running your business. Our nationwide network and deep industry expertise allow us to get the best possible rates, whether you stick with your current provider or decide to transition to a new one.

Ready to uncover your savings potential? Check out our HR Technology Consulting to learn more and connect with our team. Let’s bridge the gap between your rates and market rates without changing a thing except your bottom line.