Hello Kavindu,
the licensing in this case is really simple:
1 Per HR User is actually the Dynamics 365 for Talent license, which is 40 $
2. the Per Employee is the Team Member license and it's 8 $.
the Team Member license has access only to the Employee Self-Service, Manager Self Service, Attract and Onboard.
all other features and modules can be access only with the full license.
you need minimum of 5 full licenses to activate the Talent environment
best regards,
nicu
read my blog: https://talent.asgcrm.com