GovTech vs HR Tech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than HR Tech (1.8%), a difference of 1.0 percentage points. GovTech median ARPU is $500 versus $210 for HR Tech.
Head-to-head benchmarks
| Metric | GovTech | HR Tech |
|---|---|---|
| Monthly churn | 0.8% | 1.8% |
| Annual churn | 9.2% | 19.9% |
| Median ARPU | $500 | $210 |
| Typical customer base | 50-500 | 200-5,000 |
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Top hr tech churn drivers
- HRIS platform consolidation eliminated standalone tools30%
- Headcount reduction reduced per-seat billing value25%
- Implementation failure or low adoption by HR team20%
- Competitor offered native integration with existing HRIS15%
Why govtech retains better than hr tech
The 1.0-point gap between GovTech and HR Tech reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. HR Tech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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