Did you hire your software when it was just you and now there are ten people using the same plan? Choosing software based on the number of employees avoids paying more. It also prevents you from being short on features when your device changes size. For this reason, many businesses are just reviewing this point. That happens when they already feel that the current plan does not fit the real team. This guide on number of employees summarizes the criteria that should be reviewed before choosing. number of employees: this guide summarizes criteria, limits and steps for choosing with context.
Number of employees allows you to compare functions, limits and context before deciding. Number of employees allows you to compare functions, limits and context before deciding.
number of employees requires comparing functions, limits and context before deciding.
number of employees: criteria and guide
Official source: official Google Workspace prices.
Why team size changes the choice
The number of employees directly affects how many users you need, not just what features you are looking for. Therefore, two businesses with the same need can end up with very different plans. It all depends on how many people use the system daily. Additionally, if you still don't know what type of system your team needs, our guide on how to choose a CRM according to the size of your company helps sort out that first decision.
If you work alone or with one other person
With one or two users, most free or entry-level plans are usually enough without a problem. Likewise, it is advisable to avoid plans designed for large teams. They almost always charge for administration functions that a small team does not use. Therefore, checking the user limit of the free plan before paying for something larger saves money from the first month.
If your team has between three and ten employees
With a team of three to ten people, it is advisable to review intermediate plans with basic roles and permissions. Additionally, in this range the option to assign tasks or conversations between different team members usually appears. However, there is still no need to pay for functions designed for several separate departments.
If your team exceeds ten employees
With more than ten employees, role permissions, team reporting, and sometimes priority supplier support come into play. Therefore, this price jump is justified when several departments share the same system when choosing software according to the number of employees. Likewise, it is advisable to calculate the cost per additional user before adding the entire team at once.
What to look at besides the number of employees
What to look at also matters as much as counting how many people are going to use the system when choosing software based on number of employees. The way you bill each plan, per user or per closed package, changes the final cost quite a bit. Likewise, it is worth checking if the system allows you to add or remove users without penalty in the middle of the month.
What this looks like in practice
A business that just hired its first employee gains order almost immediately. All you have to do is add a second user to the current plan. A business that has already doubled its team, on the other hand, takes better advantage of role permissions and aggregated reports. However, no software solves a poor distribution of tasks within the team. In fact, it just organizes the information around that team better.
How to choose based on how much your team grows
If your team is growing slowly, review the user limit of your current plan before adding each new person. This way, you avoid paying for a plan change that you don't need yet. If, on the other hand, your team is going to grow quickly in a short time, it is advisable to choose from the beginning a system that scales well per user. That's why this approach avoids migrating platforms just when the team is growing. Since each business grows at a different pace, it is worth reviewing this point. Do it every time you add new staff.
If budget is your main limitation, our guide on how to choose software for your SME according to your budget delves into that decision.
Frequently asked questions about choosing software according to the number of employees
Is it worth paying for more users than I have today? No, it is advisable to add users only when you really need them, since most systems allow you to add them later.
Does the cost per user go down if I contract an annual plan? It depends on the provider, although several offer a discount for annual billing compared to monthly payment.
Can I remove users if my team shrinks? Yes, in fact most systems allow you to lower the number of active users. This way, you don't lose the data already loaded.
What if my team grows much faster than expected? It is a good idea to check if the system has a higher plan ready to scale, instead of having to migrate to another complete platform.
How to Choose the Best Software Based on the Number of Employees: in Summary
Choosing software based on the number of employees depends on first reviewing how many people are going to use the system daily. Only then should you compare functions between providers according to that team size. Therefore, a small business can start with a free plan. A larger one, on the other hand, needs role permissions and aggregated reports. In the next article in the series we compare free vs paid project management software. That's another typical decision when adjusting your business spending.
Frequently asked questions
Relate team size to actual users, permissions, shared processes, and required administration. The number of employees is an initial signal, not the only criterion.
Not always. A small business may value speed and simplicity, while a larger team often needs access controls, automations, reporting, and the ability to grow.
Check included users, permissions, storage, automations, support, export, and the cost of adding new people to the plan.
