Are you looking for HR software that supports your complex HR tasks? Then Personio could be just the right software for you! In this detailed insight, I would like to answer the question “What is Personio?” and show you why the software can be the right solution in many segments. Take a look at my HR software comparison, which gives you a good overview of the various providers.

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What is Personio?

Personio is a cloud-based HR software designed as an all-in-one solution for small and medium-sized enterprises (SMEs) with 10 to 2,000 employees. It is a centralized system that covers all core HR tasks such as personnel administration, recruitment and payroll accounting in one software package.

The aim of Personio is to increase efficiency through the automation and centralization of HR processes and to give HR managers more time for strategic tasks. The software can be adapted to the needs of any company and is designed for use in Europe.

What does Personio cost?

The cost of Personio depends on the size of the company and the functions required. There are no fixed price packages, but individual offers based on customer requirements.

Personio offers a core solution called “Core”, which includes a central data pool for all personnel information, reports and analyses, workflows and automation, absence management, working time recording, preparatory payroll accounting and a mobile app. An individual offer will be prepared for this.

In addition, optional applications such as Personio Payroll, DATEV Integration, Recruiting, Performance & Development, Compensation, Conversations and Whistleblowing can be booked. An individual quotation will also be prepared for this.

According to reports, the Personio solution can cost over 10,000 euros per year for a company with 50 employees. The costs increase with the size of the company and the additional functions booked.

Personio does not offer all-inclusive prices, but calculates the costs individually according to the number of employees, scope of functions and contract term. Potential customers must therefore request a non-binding quote in order to obtain a price for their specific requirements.

History of Personio

Personio was founded in 2015 by Hanno Renner, Ignaz Forstmeier, Roman Schumacher and Arseniy Vershinin, who all studied at the Technical University of Munich. The founding idea was developed as part of a program at the Center for Digital Technology and Management.

The cloud-based HR software was initially used primarily by other start-ups and thus covered a gap in the market for SMEs. Personio offers a complete solution for core HR tasks such as recruiting, personnel administration and payroll accounting in a subscription model.

Personio grew steadily in the following years and was able to raise a total of over 700 million US dollars from venture capitalists in several financing rounds, including a Series D of 125 million US dollars in 2021. Two Series E rounds totaling 480 million US dollars followed in 2022.

Personio has expanded internationally and now has offices in Berlin, London, Barcelona, Madrid, Dublin, Amsterdam and New York in addition to its headquarters in Munich. The company employs around 2,100 people (as of 2022) and has over 6,000 customers, mainly from the SME sector. With a valuation of 8.5 billion US dollars, Personio is one of the most valuable German unicorn start-ups.

Functions of Personio

Personio is a cloud-based all-in-one HR software that covers all core HR tasks in one solution. The main functions include:

Recruitment – Personio supports the entire recruitment process, from job advertisement and applicant management to electronic contract signing and onboarding of new employees.

Personnel management – This includes a digital personnel file, absence management, time recording and the offboarding of departing employees. Personio also offers a payroll function.

Employee retention – Personio enables performance and development management, the organization of training courses, employee surveys and a whistleblowing system.

Analytics and reporting – The software provides comprehensive analytics and automated reports to make data-driven HR decisions.

Support – There is AI-based support, an HR community and an academy with training courses on Personio.

The software can be adapted to the needs of the company through integrations with over 100 other tools such as Slack, Microsoft Teams or Google Calendar. Personio aims to increase efficiency by automating and centralizing HR processes and giving HR managers more time for strategic tasks.

Advantages and disadvantages of Personio

Personio is a cloud-based HR software that offers many advantages for small and medium-sized companies, but also has some disadvantages:

Advantages:

• All-in-one solution that covers all core HR tasks such as recruiting, personnel administration, payroll accounting and employee development in one software package. This saves time and costs, as no separate systems are required.
• The intuitive and user-friendly interface ensures a high level of acceptance among employees. Employees can carry out many processes such as vacation requests themselves (self-service).
• Automation and digitalization of HR processes increases efficiency and saves up to 50% of time in HR administration.
• Cloud-based solution enables access from anywhere and use in the home office
• Customizable through integration with over 100 other tools.
• Fast implementation and expert coaching by Personio.

Disadvantages:

• Some processes such as vacation entitlement calculation or target management are not optimally implemented and require manual effort.
• Some functions such as time recording or training management are only rudimentary.
• The development of new functions such as the integration of the electronic certificate of incapacity for work (eAU) sometimes takes a very long time.
• If the employment relationship changes (e.g. intern to working student), the employee must be completely recreated.
• Splitting the overall solution into individual, chargeable apps/products.
• Overall, Personio offers many advantages for the digitalization of HR work in SMEs, but still has room for improvement in some areas.

Which companies is Personio suitable for?

Personio is HR software developed specifically for small and medium-sized enterprises (SMEs) with 10 to 2,000 employees. It is particularly suitable for the following companies:

• SMEs looking for an all-in-one solution for all core HR tasks such as recruiting, personnel administration, payroll accounting and employee development. Personio bundles these functions in one software package.
• Companies that want to make their HR processes more efficient and digital. Personio automates and centralizes many manual tasks.
• Companies with limited resources in the HR department. Personio aims to save up to 50% of administrative time through automation.
• Companies from various sectors such as technology, consulting, retail, healthcare and education.
• Companies in various stages of growth, from start-ups to fast-growing companies.
• Organizations looking for a user-friendly and cloud-based HR solution that can be accessed from anywhere.

Overall, Personio is aimed at SMEs that want to simplify their HR work, digitize processes and reduce administrative costs.

Closing thoughts

Personio is a comprehensive, cloud-based HR software developed specifically for small and medium-sized companies. It covers all important HR functions from personnel administration and recruiting to payroll accounting. Personio scores with a user-friendly interface and the ability to automate processes, which leads to a significant increase in efficiency. Despite some weaknesses, such as the manual handling of some processes and the slow development of new functions, Personio offers a valuable solution for SMEs that want to digitize and optimize their HR processes. A comparison of applicant management software shows that Personio is particularly suitable for companies looking for an all-in-one solution to simplify and centralize their administrative HR tasks.

Books for your professional success

Would you like to further your education and increase your market value as an employee? Nowadays, you have to have an ever-expanding skillset. While some employers require hard skills that are difficult to learn, other companies place great value on soft skills. I’ve picked out a few books for you to help you improve your soft skills and become an Employee of Choice.