We may earn commissions from featured providers. This helps keep Sonary free.

We may earn commissions from featured providers. This helps keep Sonary free.

Best HR software for startups in 2026

The best HR software for startup teams in 2026 is Gusto for most early-stage US companies ($49/month + $6/person), offering automated payroll, benefits, and onboarding. Startups hiring international contractors or remote staff abroad will find Deel to be the ideal fit (featuring a free HRIS for up to 200 people). Fast-scaling tech startups managing heavy device stacks should opt for Rippling.

Last updated: September 2026

1
Gusto
Gusto
4.6
Starting from: $49/mo
  • Award-winning payroll & HR Software
  • Run payroll in a few clicks
  • Payroll on Autopilot®
Pros
  • Accurate tax calculations & free tax filings
  • Easy integrations
  • Easy to use interface with simple time tracking
  • Customized onboarding tools
Cons
  • No mobile app
  • No annual plan, lifetime plan or money back guarantee
  • Fairly limited performance appraisal features
  • No option to e-sign custom documents in core plan
2
Deel
Deel
4.0
Starting from: $0/mo
  • Streamlined onboarding process
  • Integrations with leading HR tools
  • Cost saving features
Pros
  • Supports many payment methods and currencies
  • Easy to use for remote workers
  • 24/7 live chat
  • Automated workflows
Cons
  • No free trial
  • No mobile app
  • High-cost per-worker
  • No built-in time tracking tools.
3
Rippling
Rippling
3.6
Starting from: $8/+$8/user
  • Built for all businesses small to large
  • Automate tax registration
  • Hire and onboard remote employees
Pros
  • All-in-one HR solution
  • User friendly, easy processes
  • Great for small-midsize businesses
Cons
  • Technical issues
  • Poor report generating & customizing
4
Bamboohr
Bamboohr
4.7
Starting from: $19//mo /employee
  • All-in-one payroll software
  • Over 130+ seamless app integrations
  • 24/7 Award-winning support
Pros
  • User-friendly interface
  • Extensive reporting and analytics
  • Wide-range of learning and support resources
Cons
  • Payroll is an Add-on
5
HiBob
HiBob
4.8
  • Advanced analytics to track KPIs & impact
  • Automates onboarding, payroll & reporting
  • Designed to support fast-growing companies
Pros
  • User-friendly interface
  • Includes all the necessary features for an HRIS
  • Strong focus on employee engagement
  • Customizable global HR platform
Cons
  • Pricing may be higher than some competitors
  • Limited customization options for certain features
  • Recruitment module isn’t included

* Featured prices and terms can be updated. Free offers may include additional terms.

Best HR Software for Startups by Stage: At a Glance

Startup Stage / Use Case

Best HR Software

Key Advantage

Pricing

First US Hires (Pre-Seed/Seed)

Gusto

Automated US payroll, benefits, & multi-state tax filing

$49/mo + $6/person

Global Teams & Contractors

Deel

EOR & global payments; free HRIS up to 200 people

Free HRIS; $49/mo per contractor

Fast-Scaling Tech & Device Stack

Rippling

Unified HR, payroll, device management, & app SSO

~$8/user/module + base fee

Series A HRIS (15–50 Staff)

BambooHR

Centralized cloud HRIS for onboarding, records, & workflows

~$10/employee/mo ($250 min)

Series B Culture & Performance

HiBob

High-engagement portal, performance cycles, & surveys

Custom quote (~$8–$20/user)

Which HR Software Fits Your Startup Stage?

  • First US Hires (Pre-Seed/Seed) → Gusto: Handles payroll, benefits, and onboarding without needing a dedicated HR hire.
  • Contractor-Heavy or Global Remote → Deel: Simplifies cross-border compliance, contractor payments, and international EOR hires.
  • Fast-Scaling Tech Startup → Rippling: Integrates HR, IT device provisioning, and SaaS app logins into a single control panel.
  • Series A Formalizing HR (~15–50 Staff) → BambooHR: Establishes a centralized cloud HRIS for structured records and employee onboarding.
  • Series B Prioritizing Culture (30+ Staff) → HiBob: Drives culture, performance reviews, and employee engagement as headcount expands.
  • Cheapest or Free Entry Point → Deel HR + Gusto Contractor: Deel HR provides a zero-cost HRIS; Gusto offers a low-cost contractor plan.

Essential HR Capabilities Every Startup Needs

Selecting the best HRIS for startups requires balancing setup speed, affordability, and multi-state scalability.

  • Fast Setup: Founders lack dedicated HR staff; first payroll and onboarding must be operational within 48 hours.
  • Low Entry Cost: Pre-revenue budgets demand zero-cost tiers or low per-seat pricing.
  • Scalability (2 to 200+ Staff): Prevents the costly engineering and administrative overhead of switching platforms at Series A.
  • Multi-State Tax Filing: Automatically handles tax withholdings across all US states where remote employees reside.
  • Built-in Benefits Administration: Access to 401(k) and health insurance to compete with enterprise employers for top talent.
  • Contractor & Global Payroll: Simplifies compliant payments for international freelancers and Employer of Record (EOR) staff.

Startup HR Software Feature Matrix

Capability

Gusto

Deel

Rippling

BambooHR

HiBob

Fast Setup

Best

Yes

OK

Yes

OK

Affordable/Free Entry

OK

Best

OK

Limited

Limited

Scales to 200+ Staff

Yes

Yes

Best

Yes

Yes

US Payroll & State Taxes

Best

Yes

Yes

OK

Limited

Benefits (Health/401k)

Best

Yes

Yes

OK

OK

ATS / Applicant Tracking

OK

OK

Yes

Yes

OK

Global Hiring & EOR

OK

Best

Yes

No

Limited

IT & App Management

No

No

Best

Startup HR Software Cost Breakdown

  • Gusto: $49/mo base + $6/person (Simple plan); Full HR tier is $80/mo + $12/person. Contractor-only plan runs $35/mo + $6/contractor.
  • Deel: Free core HRIS up to 200 employees. Contractor management starts at $49/contractor/mo; EOR starts at $599/employee/mo.
  • Rippling: ~$8/user/mo per module + ~$35–$40/mo base. Typical all-in cost for HR + IT + payroll is $20–$38/user/mo.
  • BambooHR: ~$10/employee/mo (Core) or $17/employee/mo (Pro), with a ~$250/mo minimum for teams under 25 employees.
  • HiBob: Custom quotes averaging $8–$20/employee/mo; best suited for Series B+ companies.

Top HR Software Picks for Startups Detailed

1. Gusto: Best Overall for Early-Stage US Startups

Gusto logo
Gusto
Starting from$49 /mo
Free plan / Free trialNot Available
Overall score
4.6
Ease of use5.0
Performance4.5
Help & Support4.0
Features4.0
Price4.5
User reviews4.7
Gusto HR software is a leading solution designed to simplify payroll, benefits, and human resources for small and medium-sized businesses. With an intuitive interface and comprehensive features, Read more

Gusto HR software is a leading solution designed to simplify payroll, benefits, and human resources for small and medium-sized businesses. With an intuitive interface and comprehensive features, Gusto software streamlines workforce management, making it easier for businesses to handle complex HR tasks with confidence.

Learn more in our full Gusto review.

Pros & Cons
Pros
  • Accurate tax calculations & free tax filings
  • Easy integrations
  • Easy to use interface with simple time tracking
  • Customized onboarding tools
Cons
  • No mobile app
  • No annual plan, lifetime plan or money back guarantee
  • Fairly limited performance appraisal features
  • No option to e-sign custom documents in core plan
Features
  • Benefits Management
  • Self Service Portal
  • Calendar Management
  • Employee Scheduling
  • FMLA Tracking
  • Overtime Calculation
  • Reporting/Analytics
  • Time tracking
  • Monthly Payment
  • Android
  • Mac
  • Windows
Pricing
Simple

$49

mo/

month

Plus

$80

mo/

month

Premium

$180

mo/

month

Gusto delivers the most reliable payroll software for early stage startups operating in the US. It automates multi-state tax filing, benefits administration, and basic employee onboarding without requiring an HR department.

  • In Testing: Easiest setup of all platforms tested. Enables founders to process initial payroll within days of signup.
  • Pricing: Starts at $49/month + $6/person.
  • When to Skip: If hiring full-time international employees directly (requires EOR) or needing hardware device management.
  • Deep Dive:Read our in-depth Gusto review|Compare Gusto vs. Rippling

2. Deel: Best for Global Teams & Free Startup HR Software

Deel logo
Deel
Starting from$0 /mo
Free plan / Free trialNot Available
Overall score
4.0
Ease of use5.0
Performance4.0
Help & Support3.5
Features4.0
Price3.5
Deel is an all-in-one HR platform tailored for global teams, offering comprehensive solutions like global payroll, contractor management, and acting as an Employer of Record. Their suite includes Read more

Deel is an all-in-one HR platform tailored for global teams, offering comprehensive solutions like global payroll, contractor management, and acting as an Employer of Record. Their suite includes employee feedback tools, such as customizable 360-degree performance reviews and goal management, to foster continuous improvement. With free HR tools and a complimentary demo, Deel stands out as a premier choice for managing your international workforce. In this Deel review, I'll discuss performance, features, customer support, and Deel pricing structures.

Learn more in our full Deel review.

Pros & Cons
Pros
  • Supports many payment methods and currencies
  • Easy to use for remote workers
  • 24/7 live chat
  • Automated workflows
Cons
  • No free trial
  • No mobile app
  • High-cost per-worker
  • No built-in time tracking tools.
Features
  • Applicant Tracking
  • Benefits Management
  • Compensation Management
  • Employee Database
  • Employee Profiles
  • Onboarding
  • Payroll Management
  • Performance Management
  • Recruitment Management
  • Self Service Portal
  • Time & Attendance Management
  • Time Off Management
  • Calendar Management
  • Employee Scheduling
  • FMLA Tracking
  • Overtime Calculation
  • Reporting/Analytics
  • Time tracking
  • Assessments
  • Background Screening
  • Candidate Tracking
  • Interview Scheduling
  • Workflow Management
  • Auto Tax Payment
  • Tax Calculation
  • Tax Filing
  • Documentation
  • Monthly Payment
  • Mac
  • Chromebook
  • Windows
Pricing
Deel HR

$0

mo/

month

Deel Engage

$20

/mo /user/

/mo /user

EOR

$599

mo/

month

Deel is the premier solution for remote-first startups reliant on international talent. Its core HRIS is free for up to 200 members, making it the most cost-effective option for early recordkeeping.

  • In Testing: Created compliant local contractor contracts in under five minutes and effortlessly disbursed payments in multiple currencies.
  • Pricing: Free HRIS; contractors from $49/mo; EOR hiring from $599/mo.
  • When to Skip: If your headcount is entirely US W-2 staff, where Gusto provides simpler tax and benefits administration.
  • Deep Dive:Read our in-depth Deel review

3. Rippling: Best for Fast-Scaling Tech Teams Needing IT + HR

Rippling logo
Rippling
Starting from$8 /+$8/user
Free plan / Free trialNot Available
Overall score
3.6
Ease of use4.0
Performance3.0
Help & Support3.5
Features4.0
Price3.5
Rippling is an all-in-one employee management software that links human resources and IT management, all under one roof. It’s a cloud-based unified platform that helps manage employee data, payroll, Read more

Rippling is an all-in-one employee management software that links human resources and IT management, all under one roof. It’s a cloud-based unified platform that helps manage employee data, payroll, benefits, devices, apps, and more. The software takes some training to get started. From device and app management to payroll, talent management, benefits, and employee management, it does an excellent job of offering functionality that's the best of both worlds. With Rippling you can manage and automate every part of the employee lifecycle in a single system.

Learn more in our full Rippling review.

Pros & Cons
Pros
  • All-in-one HR solution
  • User friendly, easy processes
  • Great for small-midsize businesses
Cons
  • Technical issues
  • Poor report generating & customizing
Features
  • 360 Degree Feedback
  • Applicant Tracking
  • Benefits Management
  • Compensation Management
  • Employee Database
  • Employee Profiles
  • Onboarding
  • Payroll Management
  • Performance Management
  • Recruitment Management
  • Self Service Portal
  • Time & Attendance Management
  • Time Off Management
  • Calendar Management
  • Employee Scheduling
  • FMLA Tracking
  • Overtime Calculation
  • Reporting/Analytics
  • Time tracking
  • Assessments
  • Background Screening
  • Candidate Tracking
  • Interview Scheduling
  • Job Posting
  • Resume Search
  • Workflow Management
  • Tax Calculation
  • Tax Filing
  • Live Online
  • Webinars
  • Documentation
  • Monthly Payment
  • Annual subscription
  • Android
  • Mac
  • Chromebook
  • Cloud, SaaS, Web-Based
  • iPad
  • iPhone
  • Linux
  • On-Premise - Linux
  • On-Premise - Windows
  • Windows
Pricing
Starting

$8

+$8/user/

+$8/user

Rippling unifies payroll, human resources, app access (SSO), and laptop/device deployment under a single administrative umbrella.

  • In Testing: Provisioned apps and configured laptops in tandem with payroll setup—a capability unmatched by pure-play HR tools.
  • Pricing: ~$8/user/month per module + base fee (~$20–$38/user/month total).
  • When to Skip: If you are a 3-person team seeking minimal setup and cheap payroll.
  • Deep Dive:Read our in-depth Rippling review

4. BambooHR: Best Cloud HRIS for Series A Formalization

Bamboohr logo
Bamboohr
Starting from$19 //mo /employee
Free plan / Free trialNot Available
Overall score
4.7
Ease of use5.0
Performance5.0
Help & Support4.5
Features4.5
Price4.5
BambooHR is a powerful HR software solution tailored to simplify operations for businesses of all sizes. It features an employee feedback tool that supports 360-degree reviews, enabling Read more

BambooHR is a powerful HR software solution tailored to simplify operations for businesses of all sizes. It features an employee feedback tool that supports 360-degree reviews, enabling self-assessments, peer evaluations, and manager insights for a comprehensive understanding of performance. BambooHR Payroll streamlines payroll management with features like automated tax filings, direct deposit, and time-off tracking, ensuring accurate and efficient compensation processes. With these tools, BambooHR not only enhances employee engagement but also empowers HR teams to drive organizational success. In this BambooHR review i'll examine the features, performance, customer support and BambooHR pricing tiers.

Learn more in our full Bamboohr review.

Pros & Cons
Pros
  • User-friendly interface
  • Extensive reporting and analytics
  • Wide-range of learning and support resources
Cons
  • Payroll is an Add-on
Features
  • 360 Degree Feedback
  • Applicant Tracking
  • Benefits Management
  • Compensation Management
  • Employee Database
  • Employee Profiles
  • Onboarding
  • Performance Management
  • Recruitment Management
  • Time Off Management
  • Calendar Management
  • FMLA Tracking
  • Reporting/Analytics
  • Time tracking
  • Candidate Tracking
  • Interview Scheduling
  • Job Posting
  • Resume Search
  • Workflow Management
  • Auto Tax Payment
  • Tax Calculation
  • Tax Filing
  • Documentation
  • Monthly Payment
  • Annual subscription
  • Mac
  • Chromebook
  • Windows
Pricing
Essentials

$19

/mo /employee/

/mo /employee

Advantage

$49.95

/mo /employee/

/mo /employee

BambooHR provides centralized recordkeeping, custom onboarding workflows, and advanced reporting for teams growing past 15 employees.

  • In Testing: Exceptional employee database management and structured hiring handoffs.
  • Pricing: ~$10–$17/employee/month ($250 monthly floor for small teams).
  • When to Skip: Bootstrapped or pre-seed teams unable to justify the minimum $250/month spending floor.
  • Deep Dive:Read our in-depth BambooHR review

5. HiBob: Best for Series B Culture & Performance Management

HiBob logo
HiBob
Free plan / Free trialNot Available
Overall score
4.8
Ease of use5.0
Performance5.0
Help & Support4.5
Features5.0
Price4.5
HiBob is a leading global HR management software that is changing how businesses manage their workforce. Designed with a focus on employee experience and engagement, HiBob provides features Read more

HiBob is a leading global HR management software that is changing how businesses manage their workforce. Designed with a focus on employee experience and engagement, HiBob provides features supporting talent management such as employee feedback, payroll reporting and time management, and a manager dashboard for tracking employee performance. Let's explore the HR software's features, pricing, performance, and more in this HiBob review.

Learn more in our full HiBob review.

Pros & Cons
Pros
  • User-friendly interface
  • Includes all the necessary features for an HRIS
  • Strong focus on employee engagement
  • Customizable global HR platform
Cons
  • Pricing may be higher than some competitors
  • Limited customization options for certain features
  • Recruitment module isn’t included
Features
  • 360 Degree Feedback
  • Applicant Tracking
  • Benefits Management
  • Compensation Management
  • Employee Database
  • Employee Profiles
  • Onboarding
  • Payroll Management
  • Performance Management
  • Recruitment Management
  • Self Service Portal
  • Time & Attendance Management
  • Time Off Management
  • Calendar Management
  • Employee Scheduling
  • FMLA Tracking
  • Overtime Calculation
  • Reporting/Analytics
  • Time tracking
  • Interview Scheduling
  • Job Posting
  • Workflow Management
  • Auto Tax Payment
  • Tax Calculation
  • Live Online
  • Webinars
  • Documentation
  • Android
  • Mac
  • Chromebook
  • Cloud, SaaS, Web-Based
  • iPad
  • iPhone
  • Linux
  • On-Premise - Linux
  • On-Premise - Windows
  • Windows

HiBob focuses on workplace culture, employee engagement, performance reviews, and retention tools for scaling teams.

  • In Testing: Top-ranked UI and employee-facing portal, driving high daily active engagement.
  • Pricing: Custom quotes ($8–$20/employee/month).
  • When to Skip: Teams under 20 people that primarily need lightweight payroll and compliance.
  • Deep Dive:Read our in-depth HiBob review

How did we test these startup HR platforms?

Sonary tests HR software hands-on with real teams of 2–50. For this guide, we set each platform up as a startup would and pushed it through the jobs a young company actually faces.

  • Timed the setup from sign-up to first payroll or first onboarded hire, because a founder’s time is the scarcest resource.
  • Priced the entry point including any free tier, and modeled the cost at 5, 20, and 50 people to see how it scales.
  • Ran payroll and a contractor payment including multi-state and a cross-border contractor, the way an early team really hires.
  • Checked hiring and onboarding for an applicant pipeline and a digital, day-one-ready onboarding flow.
  • Looked at the scale path what you add, benefits, IT, performance, as you grow, and whether you’d ever have to switch tools.

Honest limit: our testing covered setup and everyday use with small teams, not a multi-year deployment. We can speak to how each tool works for a startup today; confirm country-specific compliance and enterprise features with the vendor as you scale.

See Sonary’s full rating methodology for how scores are assigned.

What’s the best HR software for a global or contractor-heavy startup?

Deel is the best HR software for startups built on contractors or global talent, and the closest thing to free startup HR software.

Why it fits

Plenty of startups hire remote contractors and international talent before their first US employee. Deel pays contractors in 150+ countries and, through an employer of record, hires full-time staff abroad without you opening a foreign entity. And Deel HR, the HRIS layer, is free for up to 200 employees, so you can keep clean records from day one at no cost.

What we found testing it

In our testing: Deel generated a compliant local contractor contract and paid in the contractor’s currency in minutes, and the free HRIS genuinely covered core records. The number to plan around is EOR at about $599/employee/month , worth it for a full-time hire abroad you can’t reach otherwise, overkill for someone you could engage as a contractor.

What does it cost?

  • Deel HR (HRIS): free for up to 200 employees.
  • Contractor management: from $49 per contractor per month.
  • Employer of record: from $599 per employee per month for full-time international hires.

When to pick something else

If your team is all US W-2 staff, Gusto is simpler and cheaper for payroll and benefits. And Deel’s performance and engagement tooling is lighter than HiBob’s.

What’s the best HR software for a fast-scaling tech startup?

Rippling is the best HR software for a fast-scaling startup that wants HR, IT, and payroll in one.

Why it fits

A startup adding engineers every month has an IT problem as much as an HR one. Rippling onboards an employee, ships a configured laptop, grants app logins, and starts payroll from the same screen, then revokes it all on their last day. For a tech startup juggling a growing SaaS stack and some international staff, one control panel beats stitching five tools together.

What we found testing it

In our testing: Rippling was the deepest platform we set up, and the device-and-app provisioning is something no other tool here matches. The trade-off is cost and setup time, you pay ~$8/user per module on a ~$35–$40/month base, and a real all-in-one lands near $20–$38/user/month, so it earns its keep once you’re scaling, not on day one.

What does it cost?

  • Base HR: from about $8 per user per month per module, plus a ~$35–$40/month base fee.
  • All-in-one: typically $20–$38 per user per month once IT and payroll are added.

When to pick something else

For a tiny team that just needs payroll, Rippling is more platform than you need, Gusto wins. For global EOR breadth specifically, Deel is the specialist.

What’s the best HRIS for a startup formalizing HR at Series A?

BambooHR is the best cloud HRIS for a startup formalizing HR around Series A.

Why it fits

Somewhere past 15 people, spreadsheets and Slack DMs stop being an HR system. BambooHR gives a growing startup one clean employee record, structured onboarding, PTO tracking, and reporting that scales toward 50+ , the backbone you put in before adding performance and payroll modules on top.

What we found testing it

In our testing: BambooHR had the most polished onboarding and employee-record experience for a scaling team, with repeatable workflows and a single source of truth. Watch the pricing floor, though: teams under 25 pay a flat minimum around $250/month, which can sting a lean startup.

What does it cost?

  • Core: about $10 per employee per month; Pro about $17.
  • Small teams: a flat minimum of around $250/month under 25 employees; payroll and performance are paid add-ons.

When to pick something else

Pre-Series-A with a handful of people, BambooHR’s floor is hard to justify; Gusto or Deel’s free HRIS is enough. And it isn’t built for global payroll; pair it with Deel for that.

What’s the best HR software for a startup building culture at scale?

HiBob is the best HR software for a Series B startup where engagement and culture matter.

Why it fits

Once a startup passes 30 people, keeping culture intact becomes a real job. HiBob (“Bob”) is a modern portal that employees actually log into, surveys, shout-outs, clubs, and performance cycles that make culture measurable. For a scaling, people-first startup in tech or creative work, that employee-facing polish is the differentiator.

What we found testing it

In our testing: HiBob had the strongest employee-facing experience and engagement tooling of the five. It’s sold by custom quote and priced above the basic HRIS options, so it fits a funded startup that will actually use the engagement layer , not a five-person seed team.

What does it cost?

  • Platform: custom quote, typically $8–$20 per employee per month, depending on modules and team size.

When to pick something else

If you mainly need payroll or global hiring, HiBob isn’t the core tool; Gusto, Deel, or Rippling are. It shines once headcount and culture are the priority, usually Series B and beyond.

Is there truly free HR software for startups?

Mostly no, but there are real free entry points if you know where to look.

“Free HR software for startups” usually means one of three things, and only one is genuinely free forever. Deel HR is free for up to 200 employees, a real, no-cost HRIS for records, onboarding, and documents, as long as you don’t need its paid payroll or EOR. Most other platforms offer free trials (a few weeks), not free plans, so they’re free to test but not to run. And a handful of lightweight tools advertise “free” tiers that cap you at a few employees or strip out payroll, fine for a two-person team, but you’ll outgrow them fast. The honest takeaway: use Deel HR’s free HRIS for records, pay per contractor only when you actually pay one, and add Gusto for payroll the month you hire a W-2 employee. You can run a very early startup’s HR for close to nothing that way , but real payroll and benefits always cost money.


See also


What’s the bottom line on the best HR software for startups?

There’s no single best HR software for startups; there’s the one that fits your stage and your team. For most early US startups, Gusto is the best HR software for startups: fast, affordable payroll, benefits, and onboarding with no HR hire. Hiring contractors or globally? Deel, whose HRIS is free up to 200 people. Scaling a tech team with an IT stack? Rippling. Formalizing HR at Series A? BambooHR. Building culture at Series B? HiBob. Buy for your stage plus one step ahead, start cheap, and only pay for the module you’re about to use.

FAQs

What is the best HR software for startup teams in 2026?
Gusto is the best choice for early US-based startups. Deel is best for international contractors and global teams. Rippling is top-rated for fast-scaling tech companies managing IT and hardware.
Is there truly free startup HR software available?
Deel HR offers a free startup HR software tier (core HRIS for up to 200 employees). While payroll tax filings and benefits administration always carry third-party fees, Deel HR provides zero-cost record management and document storage.
When should a startup purchase HR software?
Startups should implement dedicated HR software at the first operational milestone: hiring your first W-2 employee, onboarding a worker in a new US state, or hiring an international contractor.
What is the difference between HR software and a PEO?
HR software (like Gusto or Rippling) is a self-managed platform. A PEO (Professional Employer Organization, like Justworks) co-employs your staff to provide access to enterprise-grade group benefits at a higher per-employee cost.