Many small businesses don’t worry about HR until it’s too late. They manage to get by using spreadsheets or paper files to keep track of their human resources and payroll.
But the problem with this basic management system is that it doesn’t offer any insights into your team’s performance, employee satisfaction, and employee lifecycle. Instead of relying on data to make smart business decisions, you guess your way to a more profitable organization.
Human resources management systems (HRMS) help small business owners with recruiting, onboarding, performance tracking, compensation, employee development, and succession planning. They collect and interpret data from a variety of sources, and provide all the information you need to make calculated business decisions.
Read my review to discover the best HRMS for small business in 2022. My review includes a short description of each solution that made the list, screenshots, as well as a comparison chart outlining the differences between the solutions so you can determine which would be a good addition to your company.
What do I look for when I select the best HRMS for small business? Here’s a summary of my evaluation criteria:
- User Interface (UI): I look for solutions that offer a clean interface. You shouldn’t go through a series of unnecessary steps to access the right HR functions.
- Usability: I look for tools that are easy to use. You should be able to understand how the software works after going over the tool’s documentation or watching a series of training videos.
- Integrations: I look for software that integrates with your existing solutions so you’ll be able to simplify your work processes.
- Value for $: I look for tools that help you achieve a variety of HR goals, so you get the most out of your investment.
HRMS For Small Business Key Features
- Payroll management: The solution should help you manage the payroll process, so you can focus on other aspects of your business.
- Employee management: The tool should enable you and your team to forecast and manage workload, handle benefits, and schedule PTO in a self-service portal.
- Employee performance tracking: The software should enable you to identify top performers in your organization so you can reward them accordingly.
- Talent management: The solution should create a database for all your employee-related data and help with applicant tracking and employee onboarding.
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Overviews Of The 10 Best HRMS For Small Business
Here’s a brief description of each HRMS for small business to showcase each tool’s best use case, some noteworthy features, and screenshots to give a snapshot of the user interface.
Deel is an HR management platform that helps small businesses manage their HR processes, from storing employee data to time tracking and payroll. The software provides users with a central platform to run HR operations, allowing for a streamlined workflow.
The platform helps users with the onboarding process, allowing businesses to hire employees remotely and from various parts of the world without opening an entity. Small businesses especially benefit from the ability to outsource their payroll processes to Deel, saving on costs and resources of hiring additional talent. With its benefits enrollment portal, the platform helps small businesses provide and manage employee benefits, like time off and brand discounts. Users can connect with Deel’s team of experts to troubleshoot any problems or concerns.
Its extensive employee database streamlines the process of storing and managing employee information. You can engage with employees with the platform's built-in performance management tools to track employee progress and identify areas for improvement, allowing you to collect and give feedback as needed. Deel is user-friendly, with an interface that makes it easy for businesses to use the platform. It is a comprehensive HRMS that can help enterprises streamline and improve their efficiency, save on resources and scale freely.
Deel Standout Features and Integrations
Features include a mobile application, compliance and expense reporting, HR resources available to offset internal team bandwidth, wage distribution via PayPal or Cryptocurrency, and cloud-based storage and accessibility.
The software integrates with dozens of HR and Operation platforms like Bambook HR, Lever, Expensify, Workable, QuickBooks, Xero, and NetSuite.
As an HRMS, Paycor helps businesses manage employee data, onboard new employees, and automate payroll and tax compliance. Paycor’s payroll system can automatically calculate and withhold taxes, track employee hours, and generate pay stubs. It offers a wide range of reports that allow employers to track employees' compensation history and compare it to market rates, which can be used to ensure that employees are being paid fairly and identify opportunities for cost savings.
Paycor’s compliance tools help businesses comply with federal, state, and local employment laws. These tools include a compliance calendar, an onboarding checklist, and a document library. Its self-service portal helps small businesses manage their payroll and HR needs by providing a secure online environment where they can access their account information and take care of tasks such as managing employee records, running payroll reports, and paying invoices. The self-service portal helps businesses save time and money by eliminating hiring a separate payroll and HR provider. The portal has the ability to create custom reports, set up automatic payments, and track employee vacation days.
Paycor’s Work Opportunity Tax Credit (WOTC) feature allows employers to take advantage of federal and state tax credits for hiring employees from certain target groups, such as veterans and food stamp recipients. Businesses can offset the costs of training new employees. The HRM system provides dedicated customer support, ensuring users have the resources to run their businesses effectively. It integrates with various third-party applications, making it easy to manage all HR data in one central location.
Pricing for Paycor starts at $199/month.
monday is a flexible cloud-based platform you can configure to work as an HRMS software. The platform comes with 200+ HR-related templates and adaptable dashboards. With monday, you can set up employee management processes, applicant and performance tracking systems, recruitment and onboarding roadmaps, and payroll automation.
One of the great things about monday is that you can customize it to your specific business needs. The platform’s automation features are fantastic, allowing you to connect different elements in order to create complex processes.
When properly configured as an HRMS, monday excels at tracking and managing your hiring process. You can segment the applicants into different categories, assign recruiters, send out candidate surveys, and break down referral sources.
monday integrates with a wide variety of apps, including Slack, Microsoft Teams, Outlook, Zoom, Google Drive, LinkedIn, Zapier, and more.
monday costs from $8/user/month. The platform offers a free 14-day trial. You can also access a free-forever plan for up to two users.
Rippling is a cloud-based HRMS that combines payroll, benefits administration, onboarding, and IT management into one platform. With the click of a button, your HR teams can access all the information they need to make informed decisions about their HR operations. The platform eliminates the hassle of manual data entry by streamlining processes such as onboarding new employees or running payroll reports. By automating these key functions, small businesses can save time and money while providing a better employee experience.
Rippling allows employees to manage their personal information through its self-service portal. Employees can log in to view their pay stubs, W2s, contact information, vacation days remaining, benefits packages, and any other information they might need about their employment with the company. This ensures employee records remain accurate and frees the HR team from having to answer tedious questions about employee data.
Rippling’s time tracking feature keeps track of how many hours each employee works each week and how many vacation days they've taken throughout the year. This helps employers ensure their staff are working within their allotted hours according to company policies and relevant labor laws in their state or country. The feature also helps employers plan employee schedules when assigning work tasks or planning for vacation days throughout the year.
Rippling also includes advanced benefits management capabilities. Employees can enroll in their plan of choice as part of their onboarding workflow. Benefit deductions are synced directly to payroll, and Rippling ensures the plans offered are always compliant with local regulations too.
Integrations are available with 1Password, Asana, Checkr, Databricks, DocuSign, Dropbox, Google Workspace, Microsoft 365, Sage Intacct, Slack, Typeform, QuickBooks, Zendesk, Zoom, and many other systems.
Due to the modular nature of their system, pricing details are customized upon request. You can also request a free demo through their website too.
Eddy is an HR software that’s great for performance management. The tool acts as a database for your employee records and makes it easy to track employee engagement, run payroll and create standardized HR processes.
This human resources information system (HRIS) stands out from its competition thanks to its ease of use. Its interface is customizable and easy to navigate, and your team members should be able to learn how to use all of the tool’s features after a brief training period.
With Eddy, you can create a company directory rich with employee data, track billable time, manage time off, and store documents. The platform provides access to HR training materials and educational content, so your HR professionals can learn how to create onboarding, training, and people management processes.
Eddy integrates with a variety of tools, including QuickBooks, HelloSign, and Indeed.
Eddy costs from $8/user/month. The company offers a live demo.
Remofirst is a human resources management solution that helps companies with global HR services, international benefits, and compliance. Their Employer of Record (EOR) services help businesses manage payroll processes, benefits, and taxes for their workforce more effectively by accessing their pool of legal experts and HR professionals. Their software also helps users streamline HR operations and improve efficiency, helping save money on administrative costs.
Remofirst provides a centralized hub for all HR data, allowing users to create custom workflows and automate HR processes including onboarding, performance reviews, and compliance tracking. They provides a secure environment for storing employee data, ensuring that sensitive information is protected. Users can enroll employees in health, dental, and other benefits programs. Their payroll module makes it easy to calculate payroll taxes and send direct deposit payments to employees' bank accounts. It can also calculate and handle bonuses, equity, and benefits in compliance with local employment laws. In addition, Remofirst can handle the logistics of providing equipment like laptops to international hires too.
Their dashboard with visual graphs provides an overview of employees, expenses, and performance. Remofirst provides a comprehensive database of HR policies and procedures for a smooth onboarding process. Employees have access to self-service features that make finding the information they need a hassle-free affair. Its performance management tools help managers and employees set and track goals, receive feedback, and measure progress over time. Remofirst is a scalable solution that can be customized to meet the needs of startups and small-scale enterprises.
Pricing for Remofirst starts at $199/employee/month. There is no free trial available, but you can request a free demo through their website.
Freshteam by Freshworks is a low-code HR system that helps you manage hiring, onboarding, time off, employee data, and HR workflows. It automates repetitive routines to reduce recruiter workload by up to 75%.
Using Freshteam, you can organize and store all employee data and files securely. You can also manage time off, track absences, and report other employee events.
Managers can hire and onboard new team members without needing paper, as well as cutting down on new hire queries. Employees can use the self-service option to access their own records and update their information.
This tool integrates with a wide range of applications, including DocuSign, Google Calendar, Google Meet, LinkedIn, and Zoom.
Freshteam costs from $1.20/user/month. A 21-day free trial is also available.
Breezy HR is one of the best HR software solutions for startups and SaaS businesses that want to attract top candidates. The platform gives you actionable insight into how well your job postings are doing and enables you to identify the ideal recruiting channels for your business.
The tool has a great layout, making it easy to organize your work. You can track different job postings on your dashboard and use the app’s communication features to discuss each application you receive with your team.
The highlight of using Breezy is that it enables you to increase your volume of job applicants without adding to your workload. You can track your candidates visually, so you can get back to them without combing through spreadsheets for their contact information. The scorecard feature allows you to rank interviewees, making it easy to create candidate shortlists.
Breezy HR integrates with multiple solutions, including Zenefits, Indeed, Checkr, Google Calendar, Office 365 Calendar, Outlook, BambooHR, Rippling, Zoom, and others.
Breezy HR costs from $143/month. You can also access a free-forever version with limited functionalities.
ZenHR is a human capital management (HCM) platform that features a great employee self-service portal. The solution offers a mobile app version for Android and iOS devices, so your team members can clock in and out of work, check their leave balance, request time off, and store their payment slips.
Besides its time-tracking features, ZenHR also offers a configurable benefits management and payroll module. Once you set it up, the payroll process automatically calculates salaries, deductions, taxes, and social security. You can set up an additional pay structure for overtime, but you can also compensate for overtime with extra time off.
ZenHR has open APIs, so you can integrate it with other could-based solutions.
ZenHR offers customized pricing upon request. You can try out the platform for free for 14 days. The platform offers a live demo.
Qandle is an up-and-coming HR management software that features a strong employee self-service portal. The platform has a clean interface and is simple to use, so your team should be able to access all of its functions without training.
One of the things that make Qandle stand out is its flexibility. You can create company policies for minimum hours or late employees, facilitate mobile clock-ins for field employees with geo-fencing or geo-tagging attendance, and get real-time notifications about policy breaches.
The platform’s dashboard enables managers to review employee performance, schedule leaves, plan team activities, and create custom notifications.
Qandle enables you to link to various platforms with API integrations.
Qandle costs $38/company/month plus from $4.5 per employee/month. The company offers a free 14-day trial and a live demo.
Need Expert Help Selecting The Right Human Resources (HR) Software?
People Managing People has joined forces with the software comparison platform Crozdesk.com to assist you in finding the best tool for your needs. Crozdesk’s Human Resources (HR) Software advisors can create a personalized shortlist of software solutions with unbiased recommendations to help you identify the solutions that best suit your business's needs. Through our partnership you get free access to their bespoke software selection advice, removing both time and hassle from the research process.
It only takes a minute to submit your requirements and they will give you a quick call at no cost or commitment. Based on your needs you’ll receive customized software shortlists listing the best-fitting solutions from their team of software advisors (via phone or email). They can even connect you with your selected vendor choices along with community negotiated discounts. To get started, please complete the form below:
The 10 Best HRMS For Small Business Summary
Free demo available
|From $49/user/month||Visit Website|
Free demo available
|From $99/month + $5/employee/month||Visit Website|
14-day free trial + freemium plan available
|From $10/user/month||Visit Website|
Free demo available
|Pricing upon request||Visit Website|
Free demo available
|From $8/employee/month + a $49 base fee/month||Visit Website|
Free forever plan with limited features
|From $199/employee/month||Visit Website|
21-day free trial
|From $1.20/user/month||Visit Website|
14-day free trial
|From $143/month||Visit Website|
14-day free trial
|Pricing upon request||Visit Website|
14-day free trial
|From $38/company/month plus from $4.5 per employee/month||Visit Website|
Here’s a few more that didn’t make the top list.
Track your team’s activity with a simple solution
Manage your workforce effectively with an intuitive HRMS solution
Improve your HR initiatives with automation and simplified workflows
Cultivate your team’s skills with dedicated learning packages
Simplify your work with standardized processes for every HR task
- HR Cloud
Make the onboarding process easier with automation features
Workforce management tool that enables you to manage daily tasks, track hours, locate team members via GPS, and communicate
- ADP Workforce Now
Cloud-based HR solution with strong workforce management and payroll features
- Sage HR
HRMS platform that helps you plan shifts, handle timesheets, and conduct performance reviews
HCM solution that helps you run payroll, conduct performance reviews, and track billable hours
Help Your Small Business Grow With HRMS Solutions
Growing a small business is complicated because there are a lot of things owners have to look out for. But HRMS solutions make the process easier. Many of them help you automate repetitive HR tasks, so you can focus on other aspects of your business. And they help you save time with recruiting, talent management, onboarding, and workforce management.
But most importantly, HRMS software can help you and your team understand how to grow. Mary Karamanos, Senior Vice President, Human Resources at BDC, said “A common mistake that growing companies make is not taking enough time to plan their HR needs. […] The good news is small businesses often attract top employees because they can often offer challenging responsibilities, good learning opportunities, and personal growth.”
You can read more about human resources management systems on our blog. If you want to get tips on how to improve your small business with the help of HR, subscribe to the People Managing People newsletter.
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