10 Best HRMS for Small Business
Here's my pick of the 10 best software from the 20 tools reviewed.
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There are seemingly countless HRMS for small business available, so figuring out which is best for you is tough. You want to manage various human resource functions efficiently—employee data management, payroll, recruitment, and benefits administration—but now need to figure out which tool is the best fit. In this post, I make things simple, leveraging my experience as an HR expert and using dozens of different HRMS tools with small teams to bring you this shortlist of the best HRMS for small businesses overall.
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Best HRMS For Small Business: Pricing Comparison Chart
This comparison chart summarizes pricing details for my top HRMS selections for small businesses to help you find the best 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 |
Rippling | From $8/user/month (billed annually) | Website |
BambooHR | From $6.19/user/month (billed annually) | Website |
Paycor | Pricing upon request | Website |
Remofirst | From $25/user/month | Website |
Trinet | Pricing upon request | Website |
Insperity | Pricing upon request | Website |
Lattice | From $11/seat/month | Website |
Freshteam | From $1.20/user/month + $71/month base fee | Website |
Eddy | From $8/employee/month + a $49 base fee/month | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareHow to Choose an HRMS for an SMB
An HRMS can help you streamline all your core HR functions into one system, for maximum efficiency. To help you figure out which HRMS best fits your small business's needs, you need to pinpoint your key users and document their specific challenges first.
As you work through your own unique software selection process, keep the following points in mind:
- What problem are you trying to solve - Start by identifying the challenges you're trying to overcome. This will help you clarify the features and functionality the HRMS needs to provide.
- Who will need to use it - To evaluate cost and requirements, consider who will use the software and how many licenses you'll need. For an HRMS, you'll likely want employee-level access for your entire workforce, with special access for your HR administrators and managers. Once that's clear, it's also useful to rank the needs of your different users to identify the key priorities for your power users, managers, and employees, to ensure they're all met.
- What other tools it needs to work with - Clarify what tools you're replacing, what tools are staying, and the tools you'll need to integrate with, such as training management software, single sign-on applications, or work operating systems like Microsoft 365 or Google Workspace. You'll need to decide if the tools will need to integrate together, or alternatively, if you can replace multiple tools with one all-in-one HR platform.
- What outcomes are important - Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to gain employee self-service capabilities to cut down on admin requests or digitize several paper or Excel-based tracking processes. You could compare software features until you’re blue in the face but if you aren’t thinking about the outcomes you want to achieve, you could waste a lot of valuable time.
- How it would work within your organization - Consider the software selection alongside your existing workflows and systems. Evaluate what's working well, and the areas that are causing issues that need to be addressed.
Remember every business is different — don’t assume that an HRMS will work for your organization just because it's popular.
Reviews of the Best HRMS for Small Businesses
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. Keep reading to find additional bonus picks at the bottom of the list.
Deel is a global HRMS solution designed for businesses of all sizes. Deel’s HR tools are completely free for small businesses, so it’s a powerful platform to manage additional help from anywhere in the world.
The Deel platform has a clean and straightforward user interface that makes it easy to manage employees and contractors without having to juggle several tools. Features include contract and stock option management, expense reimbursements, and compliance tracking. In addition, their automated onboarding with compliance document collection is a great time saver.
Employees and contractors can self-manage their pay and personal data, which reduces admin load. The platform provides a polished and consistent payment experience, making it easy to update their own data and set up withdrawals.
Deel has positive online reviews from clients and their workers. The company offers 24/7 online chat support.
Deel integrates with a handful of popular HR and accounting software systems, including Ashby, BambooHR, Expensify, Greenhouse, Hibob, Netsuite, Okta, OneLogin, Quickbooks, SCIM, Xero, Workday, and Workable.
Deel’s HR management tools are free for businesses. They offer flat rate pricing for their hiring and payroll services, so you can simply scale up or down depending on your situation. You can request a free demo through their website to discuss your hiring needs.
Rippling
Best HRMS for small businesses needing support with HR, payroll, IT and benefits
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.
BambooHR
Improve your HR initiatives with automation and simplified workflows
BambooHR is a leading cloud-based performance management system. The tool helps small business owners improve their existing processes with automation and simplified workflows.
The great thing about Bamboo HR is that it has all the HR tools a small business would need. You can track applicants, automate your onboarding and offboarding processes, and monitor your employees’ performance.
The platform enables you to carry out performance reviews, send out surveys, store and sign documents, schedule team events, and share company news. You can integrate the solution with your payroll software and training systems to centralize all your HR topics.
BambooHR integrates with Checkr, 15Five, Leapsome, Lattice, Slack, Indeed, Zapier, Deel, and others.
BambooHR costs from $4.95/user/month. You can try out the solution for free for seven days. The solution offers a live demo.
Paycor
Robust human capital management with an intuitive self-service portal
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.
Best HRMS to support growing international teams in 170+ countries
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.
Remofirst’s services cost from $199/employee/month and are available in 170+ countries. They also offer a $25/month plan if you only need to manage global contractors. There is no free trial available, but you can request a free demo through their website.
TriNet is a cloud-based HR technology platform that offers a suite of HR solutions for small and medium-sized businesses. It covers everything from payroll and benefits administration to compliance and risk management.
It's great for companies that are growing and need an all-in-one solution to manage their HR processes efficiently. It also has a user-friendly interface and robust feature set. What sets TriNet apart from other HRMS tools is its focus on compliance and risk management. The platform includes a team of HR professionals who stay up to date on the latest regulations and can help businesses navigate complex HR issues. This added layer of support is invaluable for small businesses that may not have a dedicated HR department.
Its standout features include payroll processing, benefits administration, time and attendance tracking, HR compliance, onboarding and offboarding, performance management and an employee self-service portal.
Integrations include QuickBooks, Oracle NetSuite, Sage Intacct, BambooHR, Lattice, Greenhouse Software, Carta, and Xero. This makes it easy to connect your HR data with other systems you may be using.
Best comprehensive and user-friendly HRMS software for small businesses
Insperity is a cloud-based HRMS (Human Resource Management System) software designed to help small businesses manage their HR tasks more efficiently. The software offers a wide range of HR-related features, such as payroll management, benefits administration, time and attendance tracking, employee onboarding, and more.
As a small business owner, I was looking for HRMS software that could help me streamline my HR tasks, improve my overall HR operations, and ensure compliance with all applicable laws and regulations. After researching and comparing several options in the market, I chose Insperity because of its comprehensive features, user-friendly interface, and excellent customer support.
Insperity offers many standout features that make it an excellent choice for small businesses. One of the most notable features is its HR support center, which provides access to HR experts who can help with employee-related issues and compliance matters. Additionally, Insperity's payroll management feature is robust and includes direct deposit, tax filing, and reporting. Another standout feature is the employee self-service portal, which enables employees to view and manage their benefits, pay stubs, and time off requests.
Insperity offers integrations with several popular business applications, such as QuickBooks, Microsoft Office, and various time and attendance tracking systems. This makes it easier for small businesses to integrate Insperity with their existing HR and payroll systems, saving time and improving accuracy. However, it's worth noting that Insperity's integrations are somewhat limited compared to some other HRMS software options in the market.
Overall, Insperity is an excellent HRMS software for small businesses looking to streamline their HR operations and improve their compliance. Its comprehensive features, user-friendly interface, and excellent customer support make it a top choice in the market.
Lattice is a people management platform designed to improve manager productivity and HR operations. It offers features such as performance management, employee engagement, OKRs & goals, compensation management, and advanced analytics. The platform aims to enhance employee experiences, align individual achievements with organizational success, and promote a culture of growth and engagement.
One of the key features of Lattice is its performance management system, which includes tools for real-time feedback, goal tracking, and customizable review cycles. These tools help small businesses maintain a high-performance culture by enabling continuous feedback and clear goal-setting, which are crucial for employee development and retention. Additionally, Lattice's performance management capabilities are integrated with its compensation tracking and analytics features, providing a holistic view of employee performance and enabling data-driven decision-making.
Additionally, the AI Enhancements integrated into Lattice create a more personalized employee experience, leveraging advanced technology to meet individual needs and improve overall satisfaction. Its other AI capabilities include a writing assistant and AI insights related to employee performance and engagement.
Lattice integrates with Slack, Microsoft Teams, Google Workspace, Okta, BambooHR, ADP, Greenhouse, Lever, Namely, and Zapier.
Empower your workforce with paperless employee self-service options
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.
Eddy
Stay on top of your company data with a detailed employee directory
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.
Other HRMS for SMB
Below is a list of additional HRMS for small businesses that didn’t make it into my top 10 list, but are still worth checking out:
- Factorial
Employee well-being and feedback module
- Kallidus Sapling
Simplify your work with standardized processes for every HR task
- HR Cloud
Make the onboarding process easier with automation features
- ZenHR
Improve employee experience with a mobile app for attendance tracking
- Qandle
Create company policies with a flexible HR software
- WorkforceHub
Track your team’s activity with a simple solution
- monday.com
Speed up your recruitment with a flexible all-in-one solution
- Justworks
For small businesses starting an HR team
- eloomi
Cultivate your team’s skills with dedicated learning packages
- Sage HR
For planning shifts and handling timesheets
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 HRMS for Small Businesses
Selecting the best HRMS 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 HRMS 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
Additional Standout Features (25% of total score): To help differentiate one HR software 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.
What is an HRMS?
Human resource management systems (HRMS) is a software tool designed to streamline and automate various HR functions, such as employee data management, payroll processing, benefits administration, and recruitment processes. It provides a centralized platform for storing and accessing employee information, simplifying HR tasks, and improving decision-making.
This software aids small businesses in efficiently managing a small workforce, ensuring compliance with labor laws, and reducing manual workload without costing a bundle. By using HRMS, small businesses can focus more on strategic growth and less on administrative burdens.
Features of an HRMS
Choosing the right Human Resources Management System (HRMS) is crucial for small businesses aiming to maintain compliance, enhance employee management, and focus on growth. The role of HR in small business and large enterprises is heavily reliant on the efficiency of HRIS systems, ensuring streamlined operations and data management.
An effective HRMS can streamline various HR tasks, ensuring that businesses operate smoothly and efficiently. Here are ten essential features to consider:
- Employee Database Management: Your HRMS will function as a centralized database for storing all your employee information. This ensures all employee data is organized and easily accessible, facilitating compliance with record-keeping regulations.
- Payroll Management: Automating payroll reduces errors and manual data entry requirements, making the payroll process far less time-consuming.
- Time and Attendance Tracking: This feature helps organizations track employee hours, manage labor costs, and comply with labor laws regarding overtime and the number of consecutive days worked.
- Benefits Administration: Efficient benefits administration helps attract and retain talent, contributing to overall business growth. Also, with monthly benefit costs linked directly with your payroll module, you'll reduce manual data entry.
- Performance Management: This feature refers to tools for setting goals and evaluating employee performance. Regular performance reviews help improve productivity and identify areas for development, driving business success.
- Recruitment and Applicant Tracking: Efficient recruitment and applicant tracking ensure that the business attracts the best talent quickly. Many systems now take advantage of AI-backed features that make candidate skill comparisons against job descriptions much more efficient and equitable.
- Compliance Management: HRMS systems come with tools to monitor and ensure legal compliance. This feature helps avoid penalties and legal issues, keeping the business operating smoothly.
- Employee Self-Service Portal: This important feature allows employees to access and manage their own HR information such as contact details, banking details, and benefits information. Empowering employees to manage their own data increases engagement and reduces administrative burdens.
- Reporting and Analytics: HRMS systems offer built-in reports and analytics templates to help teams make informed decisions, optimize HR strategies, and support business growth.
- Training and Development: This refers to tools to host and monitor internal employee training programs, often including an internal learning management system (LMS). For a small business, investing in employee development fosters a skilled workforce, which sets the stage for business expansion over time.
For businesses looking for more customization options, exploring advanced HR software can provide a wider range of features to tailor to your needs.
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 and other HR software designed for small businesses 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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