Your 2021 HR Tech Deal Is Now Costing You $78K Extra: Here's Why!

Your 2021 HR Tech Deal Is Now Costing You $78K Extra: Here's Why!

Picture this: It’s 2021, and you’ve just signed a good new contract with a major HR tech provider, let’s say Paychex or ADP. Your team negotiated hard, got what seemed like a killer deal, and maybe, breathed some sigh of relief after a long and tiring search for the best deal. 

Fast forward to 2025, and that “competitive” deal is now costing you an extra $78,000 a year. The irony is, your team doesn’t even know this. So, how did this happen? 

To be honest, it wasn’t your fault, and you don’t need to rip up your systems or fire your vendor to fix it. Let’s break it down. Here’s why your 2021 HR Tech deal is bleeding your budget and how you can save big without breaking a sweat.

The HR Tech Market Has Changed (and Your Contract Didn’t)

When you signed your HR tech contract in 2021, you made a smart move based on the market at the time. But the HR tech landscape has evolved faster than a viral TikTok dance. According to HR Vision Events, HR tech spending jumped 66% between 2020 and 2023, with new vendors flooding the market like startups at a tech expo. These new players, along with intensified competition among giants like Paychex and ADP, have driven down prices and created pricing flexibility that your vendor isn’t exactly advertising on a billboard.

About your 2021 contract? Well, it’s probably like buying a top-of-the-line smartphone three years ago. It’s still functional today, but way overpriced compared to current models. According to research by Vertice, 90% of SaaS buyers overpay by 20-30% because of a lack of pricing transparency in the SaaS market, making it difficult for buyers to compare costs and negotiate effectively. So, many companies are locked into outdated contracts. 

For a company with 100 employees and spending an average of $319 per employee in excess for HR tech costs. If you do the math, that’s approximately $31,900 annually. For a 200-employee firm? You’re looking at $63,800 or more. And for some of our clients, we’ve seen overpayments as high as $78,000 a year. That’s not pocket change; that’s a new hire or more cash to fund your business operations or more benefits for employees.

Here's the kicker: Your vendor’s “best and final” offer during your last renewal probably wasn’t their bottom line. Vendors know the market has shifted, but they’re not going to volunteer a discount unless you come armed with the right intel. That’s where the information asymmetry comes in.

The Information Gap: SMBs vs. the Vendor Pros

Here’s the deal: most firms negotiate HR tech contracts every 3-5 years. On the other hand, your HR tech vendors are closing hundreds of deals annually, tweaking their rate cards faster than a barista pulling espresso shots. So, it isn’t about your negotiation skills but about access to real-time market information. 

Industry pros like us at The Mission see the full picture: new market entrants, competitive pressures, and the pricing concessions vendors are quietly offering to new clients. For example, a spa we worked with was locked into a pre-2023 Paychex contract. It was a solid deal back then, but by 2025, market forces have driven down costs. 

Armed with current market data, we renegotiated their contract and slashed their costs by 70% — saving them $18,000 annually without changing a single process or provider. Another client, a manufacturing company with a 2021 PEO deal, was paying 70% above market rates. We helped them save $32,000 a year, keeping their existing setup intact. No new software, no employee retraining, just pure savings.

Here’s Why Your “Best” Deal Isn’t the Best Anymore

Let’s say you signed your HR tech contract in 2021, you locked in one of the best pricing based on 2021 market conditions. But since then:

• New Players Have Entered the Game: The HR tech market has seen a flood of innovative vendors, forcing established players to lower prices to stay competitive.

• Vendor Flexibility Has Increased: SHRM notes that vendors have flexible rate cards, and salespeople can move off them quickly when pressed with the right leverage.

• Market Saturation = Better Deals: With more options, vendors are offering pricing concessions to new clients that existing customers rarely hear about.

Like I mentioned earlier, your vendor is not going to tell you about the better rates unless you ask, and know exactly what to ask for. That’s where we come in.

Our Zero-Disruption Solution to Costly HR Tech: You Keep Everything and Pay Less

The good news is you don’t need to switch providers, overhaul your systems, or endure months of implementation headaches to save big. At The Mission, our technology consulting package is designed to get you current market rates with zero disruption. 

You keep your existing HR tech provider, your processes, and your employee logins; everything stays the same, except your annual costs. It’s like getting a new phone plan with better rates but keeping your same number and carrier. No muss, no fuss.

How do we do it? We leverage our nationwide network of HR partners across all 50 states and our deep industry knowledge to renegotiate your existing HR tech contracts. Or, if it makes sense for you and your team, we can guide you through a seamless transition to a new provider that better fits your needs and saves you cost. Either way, the savings are significant, often 20-70% off your current costs. But that’s not even the best part. 

It’s a Risk-Free Partnership That Pays for Itself!

Let’s talk about the elephant in the room: consulting fees. Most consultants charge hefty upfront costs, leaving you wondering if you’ll even see a return. For us at The Mission, we’re only compensated from the savings we achieve for you. If we don’t deliver any cost reductions, you pay nothing. 

It’s a risk-free partnership where our success is tied directly to your bottom line. We’re not here to sell you a new HR system or push you into a flashy platform. It’s like hiring a personal shopper who only gets paid if they find you a deal. No savings? No cost. 

Take the spa we mentioned earlier. They were thrilled with their Paychex services but shocked to learn they were overpaying by $18,000 a year. We renegotiated their contract, kept every service intact, and delivered savings that funded a new employee wellness program. In short, armed with current information and working with the right HR support team, you get insider-level advantages.

It's the Time to Act

The HR tech market isn’t slowing down. Reliable surveys such as HR Vision Events’ projects continued investment growth in 2025, with vendors doubling down on competitive pricing to win market share. Every month you stay on an outdated contract is another month of overpaying. And with annual fee increases of 5-15% from providers, the gap between your rates and market rates is only growing.

At The Mission, we specialize in HR Outsourcing, PEO brokerage, and growth strategies for SMBs with 25-200 employees. We give you the market intelligence and vendor relationships that industry pros use daily. Whether you’re renegotiating with your current provider or exploring a transition, we make it seamless, and cost-effective. 

Reach out today or learn more about our HR Tech Consulting to start your savings journey now.