20 Best HR Software for Small Businesses Reviewed for 2024
10 Best HR Software for Small Businesses Shortlist
Here's my pick of the 10 best software from the 20 tools reviewed.
Get free help from our HR software advisors to find your match.
With so many different HR software for small businesses available, figuring out which is right for you is tough. You know you want to automate and manage employee-related tasks like recruitment, payroll, performance tracking, and benefits administration, but you need to figure out which HR system is best.
In this post, I'll help make your choice easier. I've evaluated numerous HR platforms using specific criteria to assess their core features, usability, onboarding process, customer support, user reviews, and overall value for price. To save you loads of time, I used this research to create this list of the best HR software for small businesses. Plus, I'll share my personal experiences using different HR systems within a small HR team to help you find the best fit for your business needs.
Why Trust Our HR Software Reviews
We've been testing and reviewing human resources software since 2019. As HR professionals ourselves, we know how critical and difficult it is to make the right decision when selecting software.
We invest in deep research to help our audience make better software purchasing decisions. We've tested more than 2,000 tools for different HR use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent, and take a look at our software review methodology.
Need expert help selecting the right tool?
With one-on-one help, we guide you to your top software options. Narrow down your software search & make a confident choice.
Best HR Software for Small Business: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top HR software selections to help you find the best HR software for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| BambooHR | From $6.19/user/month (billed annually) | Website |
| Rippling | From $8/user/month (billed annually) | Website |
| Lattice | From $11/seat/month | Website |
| Paycor | Pricing upon request | Website |
| Workable HR | From $49/month (billed annually) | Website |
| GoCo | From $5/employee/month | Website |
| Homebase | From $20/user/month | Website |
| Remofirst | From $25/user/month | Website |
| Paychex Flex | Pricing upon request | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose HR Software
HR software can help small businesses solve many different challenges and improve numerous workflows. To help you figure out which HR software best fits your small business needs, you need to pinpoint your key users and document their specific challenges first.
As you work through your own unique HR software selection process, keep the following points in mind:
- What HR challenges are you trying to solve? Identifying your challenges can help you clarify the right type of HR software for your needs. Common challenges may include:
- large volumes of manual data entry,
- repetitive HR tasks that are tedious and time-consuming,
- compliance information that is difficult to oversee at a glance,
- managing a heavy volume of administrative requests from your employees for simple tasks (e.g., updating banking details or contact information), or
- inefficient recruiting processes that are slow and cumbersome, leading to poor hiring outcomes.
- What outcomes are important and how will you measure success? Being clear on your desired outcomes upfront is crucial to avoid wasting valuable time. Key outcomes for implementing your new human resources software could include:
- increased efficiency and productivity following the full digitization of your employee data,
- reduced repetitive tasks as a result of setting up new workflow automation rules to digitize core administrative processes (e.g., approval workflows),
- digitized compliance data that is automatically updated so information is always accurate and up-to-date,
- a reduction in administrative requests from employees as a result of improved self-service capabilities, or
- improved time-to-hire and better candidate quality due to enhanced recruiting tools with sophisticated features for sourcing and screening.
- Who are your main users? Consider who will use the software and how many licenses you'll need. Will you need access for your entire HR department, or only your senior HR professionals or those involved in key tasks (e.g., payroll or recruiting)?
- Once that's clear, you should rank the needs of your different users to identify your key priorities for your HR software power users, managers, and employees, to ensure they're all met.
- What is your budget? To evaluate cost, do a headcount of your existing workforce, plus your projections for the next 5 to 10 years. Since most HR software charges a monthly fee per employee, this will help you estimate your monthly costs proactively.
- It's crucial to determine a realistic budget for your new HR software up-front, so you don't waste time considering software that is out of your price range.
- Do you require specific software integrations? Clarify whether your new HR software will replace existing tools, or need to integrate with them. Depending on the type of HR software you're looking for, some key integrations to watch for include accounting, time-tracking, and payroll software systems, plus any internal communication tools you already use.
- Are all the integrations you need available, or can they be custom-configured using an API?
- Can you reduce your monthly SaaS overhead costs by replacing multiple tools with an all-in-one HR platform?
- Does the new software satisfy your technical requirements? Consider the software selection alongside your existing workflows and systems. Evaluate what's working well, and any problem areas that need to be addressed.
- Does the new system offer security features that meet your needs (e.g., two-factor authentication (2FA), etc.)?
- Does the new system integrate with your corporate workspace (Microsoft SharePoint, Google Workspace, etc.),
Remember, every business is different — don’t assume that an HR system will work for your small business just because it's popular.
Reviews of the Best HR Software for Small Businesses
Here you’ll find my overviews of the 10 best HR software I selected specifically for small and midsize businesses. In my research, I kept core HR challenges of SMBs in mind, like hiring and retaining top talent, ensuring legal compliance, and driving professional development. I’ve outlined each provider’s best use case, standout features, and pricing information.
Deel is a comprehensive HR platform designed for businesses of all sizes. Deel's platform is user-friendly and integrates several features that make it easy to manage and pay workers compliantly without juggling multiple tools.
Why I picked Deel: For small businesses and startups, Deel has made their new HR tools free, so it’s an excellent option for onboarding and managing additional help. Furthermore, Deel’s global compatibility lets you hire and manage freelancers and employees in 150+ countries without having to figure out local laws, tax systems, or international payroll management.
Deel Standout Features and Integrations:
Features include contract and stock option management, expense reimbursements, compliance documentation tracking, and 24/7 online chat support. Employees and contractors can self-manage their pay and personal data, which reduces admin load. Deel uses major payment providers like Wise, PayPal, Payoneer, and Revolut to offer flexible withdrawal options and reduce unnecessary international transfer fees.
Integrations are available with Ashby, BambooHR, Expensify, Greenhouse, Hibob, Netsuite, Okta, OneLogin, Quickbooks, SCIM, Xero, Workday, and Workable. They also have an Open API solution that allows developers to build their own interfaces on top of the Deel platform too.
BambooHR
Best HR software for measuring employee engagement and satisfaction
BambooHR is a popular HR management solution made for small businesses that covers the entire employee lifecycle, from onboarding to offoarding.
Why I picked BambooHR: Some of the most interesting features are around building company culture. You can create employee satisfaction surveys with anonymous feedback to learn what people think about work. You can then track this over time to see how your employee engagement efforts are paying off.
BambooHR Standout Features and Integrations:
Features include an employee database, hiring and onboarding tools, time off and benefits tracking, performance management, and employee experience and community-building tools. BambooHR also offers add-ons for payroll, benefits administration (US companies only), and time-tracking.
Their performance management module also helpfully connect performance tracking with compensation updates, promotions, and raises, making managers' lives easier.
Integrations include Slack, Deel, Lattice, Officevibe, TalentLMS, Bonusly, Lever, Payscale, Papaya Globa, Oyster, and dozens more.
Rippling
Best small business HR software for employee and IT management
Rippling is an all-in-one HR software that helps small businesses manage all aspects of employee management from one centralized location. With features such as automated onboarding, digital document storage and retrieval, and complete payroll processing, the software provides an efficient way to handle the most important HR tasks.
Why I picked Rippling: Rippling's IT & security management features offer complete control over employee access points, such as email accounts and applications, without requiring manual intervention from IT staff or administrators. It provides a single-sign-on solution that allows employees to easily access multiple applications without remembering individual usernames or passwords. These features make Rippling's software stand out compared to others in this list.
Rippling Standout Features and Integrations:
Features include automated payroll and time tracking, eliminating the need for manual entries. The platform also offers time tracking and expense management so that users can easily keep track of employee hours worked and expenses incurred while on the job.
Rippling's onboarding tool helps employers automatically set up employee accounts with all necessary information, such as tax forms, benefits packages, and company policies, which saves time and energy while ensuring accuracy. The offboarding feature allows employers to quickly terminate employee accounts and access all relevant documents in one place—making it easy to track who is currently employed by a company at any given time.
Integrations include Slack, QuickBooks, Gusto, ADP, Greenhouse, Lever, Okta, Zoom, Google Workspace, Office 365, Dropbox, and Salesforce.
Lattice is an HR software that focuses on employee performance, engagement, and compensation management. The platform has tools for performance reviews, goal setting, feedback exchanges, and one-on-one meetings. Each module is sold as a separate add-on, making it a flexible and customizable solution ideal for small and scaling businesses.
Why I picked Lattice: The software's continuous performance management allows for real-time feedback and development discussions, helping to foster growth and address issues promptly. Integrating compensation management with performance evaluations and goal tracking enables small businesses to make informed and equitable pay decisions. Engagement surveys provide insights into employee sentiments, helping small businesses create a supportive and productive work environment.
Lattice Standout Features and Integrations:
Features include 360-degree feedback and real-time updates, which help promote a culture of continuous improvement. The OKR and goal-setting features align individual and team objectives with overall business goals, enhancing focus and productivity. Detailed analytics and reporting tools offer data-driven insights that can inform strategic HR decisions, critical for small businesses looking to optimize their workforce effectively.
Integrations include ADP, BambooHR, Google Workspace, Humaans, Jira, Microsoft Suite, Okta, Rippling, Salesforce, Slack, UKG, and Workday. These integrations ensure that Lattice can seamlessly fit into existing workflows, further enhancing its value for small businesses by reducing the need for multiple disconnected systems.
Paycor
Best HR software for a wide variety of features in their lower-priced plans
Paycor's HCM platform helps small businesses manage all aspects of HR, including payroll management, benefits administration, and compliance. In addition to its core HR offerings, Paycor provides a range of services, such as employee onboarding, performance management, and time & attendance tracking.
Why I picked Paycor: I included Paycor in this list because even their most basic plan covers a wide range of features. Plus, Paycor helps you identify talent gaps and create succession plans. Its talent management module provides you and your managers with data-driven insights into which employees are thriving and which ones may be struggling. This information can then be used to provide targeted training and development resources. Additionally, its employee feedback tools help managers ensure that their team members are on track and meeting expectations.
Paycor Standout Features and Integrations:
Features include centralized employee data management, employee onboarding, time tracking, job costing, and new-hire reporting. You can confidently pay your employees on time and accurately track labor costs. The platform also helps users manage expense reports and mitigate risk with compliance tools.
Paycor also allows employees to view their own employee records and track their progress, empowering them to take control of their careers and ensuring that everyone is working towards the same goals. Managers can also set up automated reminders for their employees to submit their timesheets and review their vacation requests.
Integrations include Instant Pay, Goodhire, WEX, bswift, Humana, Indeed, and LinkedIn, plus dozens of other integrations through its marketplace.
Workable HR is a comprehensive software solution designed to manage recruitment and employee management processes. It offers an HRIS and integrated recruiting features.
Why I picked Workable HR: I like that Workable HR provides small businesses with the option to create customizable onboarding workflows. This means that onboarding experiences can be adapted to newly created roles, ensuring new hires only receive the most relevant information. The HRIS also facilitates the collection of important documents and e-signatures for policies and agreements.
Workable HR Standout Features and Integrations:
Features include customizable employee profiles based on role and location, organizational charting features, a central employee directory, and an onboarding portal for new hires. These features ensure that all information is easily accessible to employees and HR teams.
Integrations include ADP, Xero, BambooHR, Greenhouse, Lever, Namely, Rippling, Sapling, and Zenefits.
GoCo is an employee management software with a wide variety of features for running your human resources department.
Why I picked GoCo: Small businesses don’t often have their own IT departments, which makes handling software issues challenging. GoCo is an excellent choice because they assign a dedicated Customer Success Manager for every GoCo subscriber to ensure that you have somebody attending to your software concerns.
GoCo is also flexible and ensures that its software will work great with the other software you're already using. Instead of replacing your trusted software platforms like payroll or benefits, GoCo integrates with them to ensure that you can continue using software that works great for you.
GoCo Standout Features and Integrations:
Features include an HRIS, onboarding, document management, benefits administration, payroll, time tracking, performance management, and compliance. You can use GoCo to automate your onboarding checklist to ensure new employees have an organized new hire experience.
GoCo also offers a self-service portal where employees can track and manage their time-off requests, update their contact information, and make changes to their benefits and dependents, promoting self-sufficiency.
Integrations include 15Five, CheckHR, Greenhouse, JazzHR, Microsoft Outlook, Slack, Workable, Zoom, and others.
Homebase
Best all-in-one employee management software with built-in compliance
Homebase is an all-in-one employee management software with scheduling, time tracking, hiring and onboarding, team communication, employee happiness, and HR compliance features.
Why I picked Homebase: The HR compliance functionality helps startups and small businesses automate paperwork like employee records and has e-signature capabilities for virtual documents. The system tracks employee certifications and sends users notices when labor laws change to ensure they remain compliant with federal and state-level laws.
Users can manage employee time off requests and set PTO policies directly in the software. Scheduling can be managed in the software and time clocks help track employee working time, breaks, and time off. Employee payroll is automated based on timesheets, and the system processes tax filings on the user's behalf.
Homebase Standout Features and Integrations:
Features include overtime alerts, automated scheduling, shift trading and claiming, time-off management, labor cost tracking and optimization, timesheets, and payroll with tips and compute wages, total hours, paid and unpaid breaks, and overtime.
Homebase also facilitates team collaboration with its built-in messaging platform. Direct messaging, company-wide announcements, and group and team communication can all be facilitated through the messaging portal.
Administrators can track employee performance metrics and send shout-outs through the platform. Hiring and onboarding can also be managed, including posting open positions on job boards and tracking candidates throughout the recruiting and onboarding process.
Integrations include ADP, Clover, Google, Lightspeed, Payanywhere, Paychex, Quickbooks, Shopify, Square, Toast, Upserve, Vend, and Wells Fargo.
Best HR software for small businesses needing global payroll options
Remofirst is a cloud-based HR software solution that helps small businesses and startups comply with tax regulations and labor laws. It automates the tax and payroll process and offers a compliance guarantee, which protects businesses from potential penalties. Furthermore, it provides support and resources to help companies comply with changing regulations.
Why I picked Remofirst: Their global payroll reporting feature makes it easy for businesses to keep track of employee payroll information. The report includes detailed information on employee salaries, deductions, and contributions. Remofirst can also generate tax reports and evaluate employee benefits and compensation packages. This information can verify that employees are being paid correctly and ensure that deductions are being withheld correctly.
All employee data is stored securely in the Remofirst cloud, making it easy for businesses to access and use when needed. Remofirst provides 24/7 customers with a live chat feature, giving access to its team of experts to help with troubleshooting problems.
Remofirst Standout Features and Integrations:
Features include a self-service portal where employers can view and update their employees' information, including contact information, job titles, and salary data. Plus, you can use Remofirst to enroll employees in health insurance, dental insurance, and other benefits programs. Employees can use the tool to view their benefit options and make changes to their coverage.
Remofirst also offers a mobile app that allows users to access their accounts from anywhere. The app makes it easy to keep track of employees' hours and vacation days, as well as calculate payroll taxes. It also provides a convenient way for employees to view their pay stubs and W-2 forms.
Integrations include Google Workspace, Microsoft Office 365, Slack, and Zoom. An API is also available to support custom integrations, as well.
Paychex Flex
Best HR software for integrated payroll and benefits management
Paychex Flex is a cloud-based platform that offers a wide range of HR services, including payroll, benefits administration, time and attendance, and hiring.
Why I picked Paychex Flex: Its comprehensive functions are perfect for supporting a small business, but it is also designed to be scalable, so you won't outgrow it as you expand. It offers a high level of customization, allowing you to tailor the system to match your specific HR processes and workflows. This flexibility ensures that the software will grow and evolve with your business.
Paychex Flex Standout Features and Integrations:
Features that make Paychex Flex stand out include its payroll service, which integrates smoothly within its broader HR and benefits administration solutions. This integration streamlines data management, eliminates the need for duplicate data entry, and ensures consistency across various HR functions. Paychex Flex's payroll service also generates various reports related to payroll, taxes, benefits, and labor costs, which can be customized and exported for further analysis.
Paychex Flex also features excellent benefits administration that is integrated with insurance carriers and benefit providers, simplifying the administration of employee benefits. Starting with employee onboarding, Paychex Flex handles the communication and coordination between employees, employers, and benefit providers throughout the enrollment process.
Paychex Flex can also help ensure that your business is in compliance with various laws and regulations, including the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Affordable Care Act (ACA). This is perfect for small businesses that may not have someone on staff who can help ensure compliance.
Integrations include BambooHR, Clover, Flowtrics, GoCo, JazzHR, Oracle, QuickBooks Time, Webtimeclock, Timeero, and Xero.
Other Small Business HR Solutions
Are none of the above tools a good fit for your organization? Then here are some options that didn’t make our top list but might be a good choice for the right business. You can also check out our article on the overall best HR tools for more advice.
- Bambee
For automatic compliance monitoring plus support from a dedicated HR manager
- Arcoro
HR software for small construction companies
- Paylocity
HR software for employee self-service
- Eddy
All-in-one HR software for local businesses with deskless workers
- Factorial
HR software for SMBs wanting a linked team-wide calendar and scheduling tools
- Kallidus Sapling
HR software for SMB's needing scalability
- CuteHR
HR software for managing remote teams
- Beams
For collecting employee feedback and exchanging recognition
- Fingercheck
HR software for workflow automation and approvals
- HR.my
Completely free HR software
Related HR Software Reviews
If you still haven't found what you're looking for here, check out these other related tools that we've tested and evaluated:
- HR Software
- Payroll Software
- Recruiting Software
- Employer of Record Services
- Applicant Tracking Systems
- Workforce Management Software
Selection Criteria for HR Software for Small Businesses
Selecting the best HR software for small businesses requires an understanding of how software can help solve common frustrations small businesses face when trying to manage HR processes efficiently. My approach to creating this list is grounded in thorough research into how these tools can solve the needs of business owners and employees alike.
I also drew on my years of experience as an HR professional to pinpoint the key features that add a lot of value and cut down on time-consuming processes.
Here's a short summary of the selection criteria I used to build this list of the best HR platforms for SMBs:
Core HR Software Functionalities (25% of total score): To be considered for inclusion in this list, each solution had to fulfill these common use cases first:
- Core HR data management capabilities that centralize all your employee data
- Integrated modules for easy digital data management
- Some form of employee self-service module to reduce administrative requests
- Tools to manage the recruiting and hiring process, payroll process, time and attendance tracking, or performance management processes
- Customizable user roles and permissions to curate who can access your employee data
In this case, since HR software is a very broad category, determining the core functions was a little trickier than usual! However, I also intentionally included a broad set of tools in this list. As a result, each software system in this list is a top choice within its area of expertise and has something unique to offer.
Additional Standout Features (25% of total score): To help differentiate one HR system from another, I also keep a keen eye out for any unique features, including:
- Advanced analytics and reporting capabilities that offer deeper insights into HR metrics
- Customizable dashboards and workflows to suit specific business needs
- Integration capabilities with other business tools and systems for seamless operations
- Built-in notifications and alerts to ensure no key details or changes slip through the cracks
- Data visualization tools that represent your workforce data visually in charts, graphs, or dynamic dashboards
- A user-friendly mobile experience or dedicated mobile apps for Android and iOS mobile devices
Usability (10% of total score): To evaluate the usability of each HR software, I considered the following:
- An intuitive design that simplifies complex processes and requires minimal training to master
- Quick access to essential features without overwhelming users
- A clean, user-friendly interface that you can customize with your company branding to enhance the user experience
- Role-based access control that's straightforward to configure
Onboarding (10% of total score): To get a sense of each software provider's customer onboarding process, I consider the following factors:
- The availability of best practice guides to streamline the setup process
- Whether comprehensive training materials are available, including videos and interactive tutorials, to speed up internal training for new users
- Customizable templates that are easy to adapt to speed up onboarding
- Evaluating the availability of dedicated customer success managers or on-call customer support teams, including 24/7 help via chatbots
- Support for migrating employee data into the new platform
Customer Support (10% of total score): To evaluate the level of customer support each vendor offered, I considered the following:
- The availability of multiple support channels, including email, phone, and chat
- Whether they offer a customer-facing knowledge base, FAQs, or other self-service tools to aid problem-solving
- Whether customer support is only available within specific time frames or zones, or 24/7 via chatbots
- The overall quality, responsiveness, and helpfulness of the support team during customer onboarding and post-purchase, as inferred from customer reviews
Value for Price (10% of total score): To gauge the value of each software, I considered the following factors:
- The availability of free trials or demos to test the software before purchasing
- Transparent pricing models that clearly explain which features are included at each level, with no additional hidden costs for training or set-up
- Tiered pricing plans with an option catered specifically to small businesses' needs with the option to scale up over time
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how well a product performs in the hands of real users. Here are the factors I considered:
- Whether a product has consistently high ratings across multiple review platforms, indicating a broad level of user satisfaction
- Specific praises, criticisms, or trends in customer feedback that indicate the software's strengths or areas for improvement
- Whether customer feedback specifically mentions issues with ease of use, customer support responsiveness, or lacking features
- Any testimonials that highlight how a platform solved a particular challenge or adapted to changing business needs
Using this assessment framework helped me identify the HR software that goes beyond basic requirements to offer small businesses additional value through unique features, intuitive usability, smooth onboarding, effective support, and overall value for price.
Trends in HR Software for Small Businesses in 2024
Successful small businesses stay ahead of the curve—and the software that propels you needs to do the same! HR software is continuously evolving to keep pace with the changing nature of running a small business.
Here are some of the trends I'm seeing (and anticipating) in these tools:
- Integration with AI and Machine Learning: There's a clear trend towards leveraging AI and machine learning to automate and enhance decision-making processes. This includes AI-driven candidate screening in the hiring process, predictive analytics for employee performance, and automated payroll systems. These features are rapidly evolving, with software increasingly able to handle complex tasks with minimal human intervention, suggesting a shift towards more predictive and personalized HR management.
- Enhanced Data Security and Privacy: With the increasing digitization of HR processes, data security and privacy features have become paramount. The latest updates show a significant emphasis on advanced encryption methods, secure data storage solutions, and compliance with global data protection regulations. This trend is a response to the growing concern over personal data security in digital platforms.
- Mobile Accessibility: The push for mobile accessibility continues to be a critical trend. HR software is becoming more mobile-friendly, with apps or mobile-optimized web interfaces that allow managers and employees to access information and perform tasks from anywhere. This trend caters to the increase in mobile workforces and the need for flexibility in accessing HR services.
These emerging trends in HR software are not just technological advancements; they are strategic tools addressing the key pain points and needs of HR professionals in small businesses. Adopting these trends can streamline operations, improve efficiency, and foster a more engaged and compliant workforce.
These trends demonstrate a significant shift towards more intelligent, flexible, and secure HR software solutions that help small businesses stay adaptable, agile, and poised for future growth.
What is HR Software?
HR software is a digital tool for managing employee-related activities, aimed at streamlining HR processes like hiring, payroll, performance management, and benefits administration.
The primary purpose of HR software for small businesses is to ensure that all HR functions are taken care of without breaking the bank or expending more resources than needed.
Features of HR Software for Small Businesses
Choosing the right HR system for your small business is crucial to ensure your internal processes run smoothly. Plus, it's also important to ensure the HR system you choose is compliant with the industry standards and regulations in your jurisdiction.
For example, leading HR platforms that serve clients in the US should comply with the CCPA (California Consumer Privacy Act), while HR software designed for European clients should comply with data security regulations like GDPR (General Data Protection Regulation). Many systems also strive to match the Fair Labor Standards Act (FLSA) in the US, or meet ISO 27001 standards for information security management, ensuring the protection of sensitive employee data.
Here are the most important features to look for as you're considering different human resources management software:
- User-Friendly Interface: A straightforward and intuitive user interface ensures that employees and HR personnel can navigate the software without extensive training. This ease of use is crucial for the adoption and effective utilization of the system across the organization.
- Cloud-Based Technology: Access to HR functions from anywhere at any time is essential, especially with the rise of remote work. Cloud-based HR management software offers flexibility, scalability, and less investment into IT resources, allowing businesses to adjust as they grow.
- Payroll Processing or Integrations: Software with built-in payroll management functions, or integrations with other payroll systems will simplify your payroll process, reduce errors, and run payroll faster. These payroll modules can often manage tax filing at the local and federal levels too.
- Compliance Management: Monitoring changes to labor laws and regulations is a constant challenge. HR software that offers compliance management features helps ensure that businesses stay on top of these requirements, reducing the risk of penalties.
- Employee Self-Service Portal: Empowering employees to manage their personal information, request time off, and access payslips reduces the administrative burden on HR.
- Applicant Tracking System (ATS): An ATS streamlines the hiring process by organizing and simplifying candidate tracking and communication. These tools can help you manage your job postings, schedule interviews, send out offer letters, and more. They're super valuable for small businesses looking to improve their hiring efficiency and attract the best talent.
- Performance Management Tools: Effective performance management tools help teams set, track, and review employee goals and performance. This feature is key to aligning individual objectives with the company’s goals and fostering a culture of continuous improvement.
- Attendance Tracking & Time-Off Management: These combined features help small businesses manage timesheets, PTO, overtime, absences, and leave balances efficiently. Accurate time tracking is also essential for payroll accuracy and labor compliance.
- Employee Lifecycle Management: Another helpful feature for small but growing companies is setting up automated employee onboarding processes and employee offboarding workflows. Just create a list of all the things new hires need to do before starting, send them a link to your tool, and they can work through the tasks independently.
- Reporting and Analytics: Access to real-time data and analytics enables businesses to make informed decisions. This feature provides insights into HR metrics, such as turnover rates and hiring efficiency, helping businesses identify trends and areas for improvement.
- Mobile Accessibility: With the increasing reliance on smartphones for professional purposes, mobile accessibility allows employees and managers to access HR functions on the go, providing a more flexible employee experience.
Choosing HR management software with these features can significantly improve the efficiency and effectiveness of your HR processes. By automating routine tasks, ensuring compliance, and providing valuable insights, the right HR software can support the growth of your small business, allowing you to focus more on your strategic goals.
Benefits of HR Software for Small Businesses
HR software is designed to make your human resource functions more efficient. By investing in modern HR software, you can reduce administrative burdens, make better data-driven decisions, and uncover actionable insights to help you strategically manage your workforce more effectively.
By selecting the best HR software for your needs, you can expect to gain the following benefits:
- Increased Efficiency: HR software automates routine tasks, freeing up time for HR staff to focus on strategic initiatives. This automation reduces the time spent on administrative tasks, allowing HR personnel to concentrate on more value-added activities.
- Streamlined Data Management: By centralizing HR data, HR management software ensures that all employee information is stored in one place, making it easily accessible. This ensures that all employee records are kept up-to-date and can only be accessed or updated by authorized personnel, reducing the risk of data discrepancies and loss.
- Enhanced Decision-Making: With access to real-time data and analytics, HR software provides insights that aid in informed decision-making. This enables businesses to make strategic HR decisions based on accurate and up-to-date information.
- Improved Compliance: By keeping track of changing labor laws and regulations, HR software helps ensure that businesses remain compliant. This reduces the risk of legal issues and penalties associated with non-compliance.
- Enhanced Employee Experience: Most HR platforms offers employee self-service portals that empower employees to manage their personal information, submit time-off requests, tap into digital document management tools, and access their payroll and benefits information online. This level of autonomy improves the overall employee experience, leading to higher engagement and satisfaction levels.
HR software for small businesses can help you manage your HR functions more efficiently and effectively. From improving compliance and decision-making to enhancing your employee experience, the benefits are clear.
For small businesses looking to streamline their HR processes and focus on growth, investing in HR software is a step in the right direction. Read more in our article on the benefits of human resource management software.
Costs & Pricing for HR Software for Small Businesses
HR software solutions offer different pricing options to meet the diverse needs of small businesses. These plans typically range from basic free versions to more advanced packages with additional features. Understanding the specifics of each plan will help you choose the most suitable option for your business needs and budget.
Plan Comparison Table for HR Software
| Plan Type | Average Price | Common Features |
|---|---|---|
| Free | $0 | Employee self-service, basic reporting, and access for a limited number of users |
| Basic | $4-7 per user/month | Employee self-service, payroll processing, basic reporting, and email support |
| Standard | $8-12 per user/month | Basic features plus time and attendance tracking, performance management, and chat support |
| Premium | $15-30 per user/month | Standard features plus advanced reporting, HR analytics, priority support, and custom integrations |
When selecting the best plan for you, consider your current and future needs. A free or basic plan might suffice for now, but if your business is poised to grow, a standard or premium plan may be a better fit for the HR features you need.
If cost is your biggest factor, this article digs into the costs of HR software and how you can decide what's best for your company.
New & Noteworthy Product Updates
Below, I've summarized the most recent release notes and product updates for my top HR software recommendations for small businesses. Discover what’s now possible through new feature releases, improvements, and updates for web, desktop, and mobile apps. Learn what’s new, if it’s hot—or not, and how these updates can help small HR teams.
August 2024: Human Resources Software Updates
Greenhouse Update Notes
On August 29, 2024, Greenhouse released several new improvements to their recruiting software. These include enhanced talent filtering using AI, scheduled job posts, and a high-level view of interview schedules across an organization. The update also features improvements to candidate management, including redesigned prospect pools and upgraded visibility controls, plus minor updates to candidate profiles and reports.
All combined, these updates help improve the precision of the candidate screening and hiring process. The AI-powered filtering helps recruiters identify top candidates quickly, using a combination of required and preferred skills to sift through large volumes of applications for the best skill match. In addition, the updated candidate management tools work together to improve the user experience, reduce errors, and provide better oversight for recruiting teams.
Verdict: Hot! These updated features both enhance team-based hiring and speed up the candidate review process, leading to better hiring outcomes.
GoCo Update Notes
On August 20, 2024, GoCo announced its summer product update, with several new features designed to enhance HR processes. Notable updates include goal tracking, AI-powered performance review summaries, and integration with Remote for global payroll. In addition, an enhanced Slack integration also adds functionality for expense approvals and survey participation.
These updates provide practical tools for HR teams, making it easier to align goals, manage reviews efficiently, and handle international payroll seamlessly, reducing time-consuming tasks and improving workflow management.
Verdict: Hot! These updates offer valuable improvements, empowering HR teams to work more efficiently across multiple platforms.
BambooHR Update Notes
On August 12, 2024, BambooHR released three new updates to its integrated applicant tracking system (ATS), which is part of its HRIS product (Core and Pro levels). The three key updates are disqualifying questions, job pipelines, and automated emails, all aimed at improving job creation and editing workflows.
The disqualifying questions feature lets recruiters filter candidates based on custom yes/no responses, while the job pipeline provides an overview of candidate progress through the hiring stages. The automated emails feature enables automatic messaging when candidates reach specific milestones.
Verdict: Hot! These updates save time, offer clearer candidate management, and enhance communication, improving the overall recruitment experience.
Paycor Update Notes
On August 8, 2024, Paycor launched a new Compensation Management solution designed to enhance pay transparency and retention. The new tool reduces the manual effort involved in pay cycle management and gives leaders insights into total rewards, supporting compensation discussions and budget management.
The update allows leaders to collaborate across departments, manage budgets dynamically, and conduct efficient approval processes. The solution’s analytics offer visibility into employee timelines and the effects of pay changes, providing a clearer picture for leadership when making compensation decisions.
Verdict: Hot! For Paycor users, this new tool can help boost employee retention by promoting fairness and transparency in compensation decisions, which helps build trust and engagement within the workforce.
Workable Update Notes
On August 6, 2024, Workable released new rating scales to their candidate evaluation tool. In addition to their previously existing Thumbs Up/Down scale, Workable users can now choose a 5-star scale or 10-point scale as well. These visual flags were designed to help recruiters spot top talent from within their candidate stack quickly and easily.
At the same time, Workable also introduced a separate new field that allows teams to track why a candidate was disqualified, including an option to block unsuitable candidates from applying to future roles too. Users have the option to make the disqualification field required, at their own discretion.
Verdict: Warm? These are useful new features, but they also aren't groundbreaking additions either.
Rippling Update Notes
In August 2024, Rippling introduced several new features to improve the user experience across HR, IT, and payroll management. The update includes smarter interview scheduling options, enhanced search functionality, and new IT management tools to streamline operations and increase efficiency.
This update allows users to automate candidate scheduling, manage IT tasks from a single dashboard, and search across the entire platform effortlessly. Additionally, Rippling expanded global payroll capabilities, allowing users to fund pay runs in 14 currencies and support new countries.
Verdict: Hot! These updates enhance user productivity by simplifying HR, IT, and payroll processes, ensuring greater oversight and flexibility across these key functions.
July 2024: Human Resources Software Updates
Deel Update Notes
In July 2024, Deel released several updates to improve global workforce management. These updates include visa support in 20 countries, enhanced tools for secure contract signing, access to global salary data, and the ability to view salary trends by role and region. In addition, to improve organizational management, Deel users can now create customized org charts that are easy to export and share with key stakeholders.
These changes help companies reduce administrative work and make faster, smarter decisions. Visa processing and contract management become easier, while access to salary data makes employee compensation, on a global scale, more efficient.
Verdict: Hot! These new features will collectively help global organizations work through their hiring, onboarding, and compensation processes more efficiently.
Paychex Flex Update Notes
In July 2024, Paychex Flex introduced a new product to supplement their payroll software called HR Analytics Premium Plus to help teams transform their HR data into actionable insights.
This update offers over 160 standard reports, customizable dashboards, and trend exploration tools, allowing users to track key performance indicators, employee mobility, compensation details, and diversity metrics.
The new features include predictive insights and AI-driven analysis to reduce subjectivity in data interpretation. Users can analyze labor costs, monitor retention, and turnover, and benchmark against market data, providing comprehensive support for HR strategy and decision-making.
Verdict: Hot! These new features help users leverage technological advancements to get the most value out of their existing employee data.
Frequently Asked Questions
Here are some answers to popular questions we hear often about HR software for small businesses:
Are there different types of HR software that are suitable for small businesses?
As a small business owner, what else should I know to help me select the best HR software?
How scalable are these HR software solutions for growing businesses?
What kind of customer support and training do HR software companies offer?
Do small businesses require HR?
What can you do if your company doesn't have an HR department?
How do HR software systems manage data security and compliance?
How can HR software facilitate change management?
How long is the average implementation process for HR software?
How can you measure the ROI of implementing new HR software?
Do HR software companies also provide small business HR services?
Yes, many HR software companies also provide small business HR services as part of their offerings. In addition to their HR software programs, they may offer small business HR outsourcing services, which help small businesses manage their human resources without the need to hire a full-time HR team.
For small businesses, having access to both small business human resource software solutions and outsourced HR services can be incredibly valuable. This can include services like recruitment, onboarding, performance management, and compliance with labor laws.
The combination of small business hr systems and small business HR support allows companies to efficiently track employee information, streamline administrative tasks, and ensure they remain compliant with local regulations. This strong combination can significantly reduce the burden on small business owners, allowing them to focus on growing their businesses while leaving HR responsibilities to experts.
Why HR Software is Crucial for Small Business
HR software is a relatively broad product category, and includes tools that simplify or automate common HR tasks and processes, help you manage the employee lifecycle, process your payroll, and more. So depending on the specific software—and your specific business—it might serve a number of use cases. For small businesses with limited resources, implementing human resources software can be a huge help. Here’s how:
- Provides a cost-effective solution to ensure a well-established foundation for your HR operations, ensuring compliance as you scale.
- Streamlines and automates key HR functions and business processes, reducing manual workloads and margin for human error.
- Lets you measure and enhance employee satisfaction and engagement levels as your teams grow.
- Gives self-service options to employees so they can manage their contact information, benefits, pay and tax documents, etc.
- Creates strategic alignment between your HR functions and your broader organizational goals.
Other HR Resources for Small Businesses
Working within a tight budget can sometimes be stressful. However, we have a lot of other software lists that were specifically prepared with that in mind.
Here are our top resources for small businesses you should check out next:
- Applicant Tracking Systems for Small Businesses
- Employee Scheduling Software for Small Business
- ERP Systems for Small Businesses
- Free Payroll Software for Tight Budgets
- HRMS for Small Business
- HRIS for Small Businesses to Manage HR Data
- Learning Management Systems (LMS) for Small Businesses
- Payroll Services for Small Businesses
- Payroll Software for Small Businesses
- Recruitment Software for Small Businesses
Small Businesses Need Tools to Support Their HR Operations
Many small business owners become Jacks of all trades. They end up taking on not just the strategic and operational side of running a business but also people management, HR, accounting, compliance, and more. Investing in the right software solutions and tools to help support you will make a world of difference, and finding the best HR software for your small business is one step in the right direction.
To discover more of the best tools for your various small business needs, and get expert insights from industry leaders, be sure to sign up for the People Managing People newsletter.