Too often, HR departments find themselves getting bogged down in unnecessary manual processes. The best HR software for small businesses can help solve this issue by creating a more intuitive system for functions like time and attendance, payroll, applicant tracking, and onboarding.
There’s no shortage of options out there on the market today, but which is the best software for HR at your company? Here, we’ll look at some of the most popular programs and explain how their principal features can make your business more efficient.
1. Why Should Small Businesses Use HR Software?
Especially in smaller businesses where personnel may be more limited, HR software ensures you don’t need to hire an army of people to manage essential but repetitive tasks. Most of the options available today help you create custom automated processes, which increase productivity, reduce errors and help businesses check they are fully compliant with local laws.
Additionally, many platforms have built-in analytics, so you can gain insight into your workforce and create greater efficiencies. The result can be a better bottom line for the company and a more positive experience for staff.
2. Overview of the 20 Best HR Software for Small Businesses
| Deel | Best HR software for free core functionality |
| Paylocity | Best HR software for all-in-one payroll solution |
| BambooHR | Best HR software for an all-in-one solution |
| Trainual | Best HR software for training manuals |
| Ease | Best HR software for benefits management and preboarding |
| Hireology | Best HR software for the complete hiring process |
| Freshteam | Best HR software for ease of use |
| HiBob HRIS | Best HR software for automated workflows |
| Personio | Best HR software for centralized data |
| Paycom | Best HR software for a one-stop shop |
| Whale | Best HR software for custom learning journeys |
| APS | Best HR software for automated data input |
| GoCo | Best HR software for flexible integrations |
| ApplicantStack | Best HR software for combined hiring and onboarding |
| Oyster HR | Best HR software for global compliance |
| Monday.com | Best HR software for work management |
| Rippling | Best HR software for automation of HR processes |
| Eddy | Best HR software for easy-to-use core HR |
| Remofirst | Best HR software for global payroll and compliance |
| Gusto | Best HR software for US and global payroll |
3. Comparison Criteria
- User interface
User interface covers the design of an IT solution. This should be intuitive and easily navigable.
- Usability
Usability refers to the ease with which staff can utilize a piece of HR software. In most cases, you want a balance between simplicity and functionality.
- Integrations with other apps
The best HR software for small businesses will integrate with other apps in your organization, such as HRIS, ATS or LMS to provide enhanced functionality.
- Value for money
Good HR software delivers a high ROI and so you need to evaluate its cost against benefits like productivity and engagement when considering the cost factor.
4. Employee Onboarding Software Features
- Company details
One of the most basic features of HR software is to provide details about your company, such as code of conduct, policies and organizational structure.
- Employee information
Another basic function is to store the personal details of your staff. There should be sufficient built-in security to protect this stored data.
- Important documents and contracts
Similar to employee information, HR software should either store directly or integrate with systems that can manage key documents, such as contracts or benefits information.
- Employee feedback
Feedback helps companies improve employee engagement and ensures that the business is proactive in terms of ensuring staff satisfaction.
- ATS
Applicant tracking software (ATS) is used to monitor job applications. Having a pathway between the ATS and the rest of your HR can help streamline the process of bringing on new staff.
- Automated payroll system
Another system that is a key feature of HR software is payroll. A number of companies specialize in this particular aspect of HR because it’s simple and highly beneficial to automate for enhanced efficiency.
- Onboarding and offboarding workflows
Most HR software will include greater or lesser degrees of automation when it comes to onboarding and offboarding, speeding up the process and freeing up your HR team
5. 20 Best HR Software for Small Businesses
5.1 Deel – Best HR software for free core functionality
Best For: Small to medium-sized businesses
Kicking off this HR software list, Deel’s specialty is global hiring, payroll, and compliance. This is available throughout more than 90 countries around the world, from Germany to Malaysia.
What makes Deel special?
In addition to acting as an employee of record (EOR) for your business, Deel offers automated document collection, equipment management, and checklists for onboarding workflows. This can be integrated with HRIS like BambooHR as well as team communications tools like Slack.
Key Features:
- Payroll automation
- Compliance management
- Contract management
- Global payouts
Pricing:
Deel offers free HR software with basic functionality for companies with fewer than 200 people. Prices for the employee hiring and payroll portal start from $599.
Pros
- Easy-to-use platform
- Automated payments
- User-friendly interface
Cons
- Limited customer support
- May have issues with certain international currencies
5.2 Paylocity – Best HR software for all-in-one payroll solution
Best For: Medium to large-sized businesses
As its name suggests, Paylocity is primarily a payroll solution. Since starting out, it has evolved to include solutions for workforce management, benefits administration as well as talent management (including onboarding). A learning management system is built into the platform, as is a feedback function.
What makes Paylocity special?
Even if you don’t want to use Paylocity for all your core HR needs, there are hundreds of integrations available with other business software, such as QuickBooks, Kallidus, and Expensify. The solution is designed to work for mobile as well as desktop devices.
Key Features:
- Payroll processing
- Benefits administration
- Time and attendance tracking
- Performance management
- HR management
Pricing:
Prices are available upon request.
Pros
- Comprehensive payroll and HR tools
- Mobile app available
- Customizable reporting
Cons
- Limited third-party integrations
- Higher pricing than some competitors
5.3 BambooHR – Best HR software for an all-in-one solution
Best For: Small to medium-sized businesses
BambooHR is one the most common HR software for small and medium businesses looking to cover all essential aspects of human resources.
What makes BambooHR special?
Employee experience, payroll, time and benefits, hiring and onboarding as well as reporting tools are all united in one user-friendly platform. There’s also a marketplace that includes many different integrations, allowing you to unify onboarding with applicant tracking systems like JazzHR, payroll software like CloudPay, and learning management platforms like TalentLMS.
Key Features:
- Applicant tracking
- Onboarding
- Electronic signatures
- Time and attendance tracking
- Performance management
- HR reporting
Pricing:
Prices are available upon request.
Pros
- Simple and intuitive interface
- Customizable workflows
- Excellent onboarding features
Cons
- Limited reporting capabilities
- No option for custom branding
5.4 Trainual – Best HR software for training manuals
Best For: Small to medium-sized businesses
Trainual was programmed specifically to help with instructing new hires in standard operating procedures and company policies. T
What makes Trainual special?
The interface makes it incredibly easy to build a comprehensive repository of information that can then be segmented according to department and role.
Training manuals compiled by Trainual are easily searchable, with embedded videos to make the entire explanation crystal clear. Plus, the platform comes with numerous free onboarding templates to help you get started.
Key Features:
- Training documentation
- Onboarding automation
- Customizable templates
- Task management
Pricing:
Prices start from $99 per month, including 10 seats (additional seats $3 per month).
Pros
- User-friendly interface
- customizable training modules
- built-in analytics
Cons
- Limited integrations with other platforms
- Can be expensive for larger teams
5.5 Ease – Best HR software for benefits management
Best For: Small to medium-sized businesses
Principally known as a benefits brokerage software for small businesses, Ease helps businesses find the right benefits package for their team and then manage those benefits throughout the employee lifecycle.
What makes Ease special?
It’s also useful from an onboarding perspective. You can gather all necessary tax information from staff before their first day at work, as well as disseminate employee handbooks and compliance agreements. You can then check these documents have been properly perused using the e-signature function.
Key Features:
- Benefits administration
- Onboarding
- Time and attendance tracking
- HR management
Pricing:
Prices start from $379 per month, which covers up to 1,000 employees.
Pros
- Affordable pricing
- Easy-to-use interface
- Streamlined onboarding process
Cons
- Limited features compared to some competitors
- May not be suitable for larger companies
5.6 Hireology – Best HR software for the complete hiring process
Best For: Small to medium-sized businesses
Hireology’s solution covers every aspect of the hiring process, from attracting the right staff to managing the onboarding process.
What makes Hireology special?
Some handy features include job posting and sharing, pre-screening surveys, background checks, and automated onboarding.
Have important compliance documents signed and stored before new hires even start? This and other sensitive personal information can all be securely stored digitally on the platform. Use Hireology’s own payroll system or integrate with external software like Sage and Gusto.
Key Features:
- Applicant tracking
- Onboarding
- Background checks
- Skills testing
- HR management.
Pricing:
Prices are available upon request.
Pros
- Comprehensive hiring tools
- Easy-to-use interface
- Customizable job descriptions
Cons
- Limited integrations with other HR platforms
- May not be suitable for larger companies
5.7 Freshteam – Best HR software for ease of use
Best For: Small to medium-sized businesses
Created by software house Freshworks, Freshteam is an HR solution that focuses on a few key use cases.
What makes Freshteam special?
Hiring, onboarding, and holiday management are the three main areas of functionality. The clean interface allows you to track applicants through the hiring funnel, gather and store data in a secure data storage facility, and prep and send onboarding checklists.
Key Features:
- Applicant tracking
- Onboarding
- Custom workflows
- Interview scheduling
Pricing:
Freshteam is a free HR system for small business for up to 50 employees, but to access the more advanced features you’ll need to spend $59 for the platform per month, plus an additional $1 per employee per month.
Pros
- Customizable hiring workflows
- Automated candidate tracking
- Mobile app available
Cons
- Limited reporting capabilities
- Limited integrations with other HR platforms
5.8 HiBob HRIS – Best HR software for automated workflows
Best For: Small to medium-sized businesses
The HiBob human resources information system has modules for core HR, payroll, onboarding, time and attendance, and performance management. In each of these areas, you can create tailored workflows that lead to greater efficiencies.
What makes HiBob HRIS special?
It allows businesses to manage their HR processes in a single platform, automating workflows and providing insights through data analytics. HiBob HRIS also offers integrations with various third-party applications, enabling businesses to customize their HR processes based on their needs.
For example, HiBob’s onboarding platform helps you make different welcome packs, including an introductory video and an organization chart, based on office functions. There’s also a robust survey function that you can automate for pulse surveys.
Key Features:
- Onboarding
- Performance management
- Time and attendance tracking
- Benefits administration
- Employee engagement
Pricing:
Prices are available upon request.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Easy-to-use interface
Cons
- Higher pricing than some competitors
- Limited integrations with other platforms
5.9 Personio – Best HR software for centralized data
Best For: Small to medium-sized businesses
Personio’s collection of HR and talent management products are presented in a clean interface that’s designed for SMBs.
What makes Personio special?
A broad range of services is on offer, including applicant sourcing and tracking, onboarding, and payroll. Perhaps the strongest feature, however, is the digital employee filing system, which collates all data in one place.
Integrations include collaboration tools like Slack and performance management software like Leapsome, among many others.
Key Features:
- Applicant tracking
- Onboarding
- HR management
- Payroll
Pricing:
Prices are available upon request.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Higher pricing than some competitors
- Limited third-party integrations
5.10 Paycom – Best HR software for a one-stop shop
Best For: Medium to large-sized businesses
Another payroll specialist with expanded HR functions, Paycom’s solution has been designed to function just as well on mobile as on desktop.
What makes Paycom special?
This is one of the best HR software for small businesses that don’t want to spend time looking around for lots of specialized solutions. Paycom offers a one-stop shop, from ATS and payroll, to survey sending and an LMS with pre-built courses.
Key Features:
- Applicant tracking
- Onboarding
- Payroll processing
- Benefits administration
- Performance management
- Time and attendance tracking
Pricing:
Prices are available upon request.
Pros
- Comprehensive payroll and HR management tools
- Mobile app available
- Customizable workflows
Cons
- Higher pricing than some competitors
- Limited customer support
5.11 Whale – Best HR software for custom learning journeys
Best For: Small to medium-sized businesses
Whale is an onboarding specialist that helps HR teams build their custom training journeys.
What makes Whale special?
You can create your own employee handbooks and tech stack guides from scratch or use existing templates. Once you have built your materials, you can then incorporate them into learning flows. Knowledge absorption can further be tested using the quiz function.
Key Features:
- Remote hiring
- Onboarding
- Payroll processing
- Compliance management.
Pricing:
Prices start from $5 per user per month for basic functionality.
Pros
- Customizable hiring workflows
- Automated candidate tracking
- Mobile app available
Cons
- Limited features compared to some competitors
- May not be suitable for larger companies
5.12 APS – Best HR software for automated data input
Best For: Small to large-sized businesses
Combining hiring, payroll, attendance and performance management into one platform, APS is arguably the best HR and payroll software for small business looking to roll all functions into one interface.
What makes APS special?
All new-hire information is automatically synced throughout the system, removing the need for manual input during onboarding. There’s also a data dashboard where you can examine different aspects of your workforce, including hiring and attendance.
Key Features:
- Payroll processing
- Benefits administration
- Time and attendance tracking
- HR management and reporting
Pricing:
Prices are available upon request.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Mobile app available
Cons
- Limited integrations with other platforms
- May not be suitable for larger companies
5.13 GoCo – Best HR software for flexible integrations
Best For: Small to medium-sized businesses
If you’ve already got a lot of embedded HR software but require some additional functionality, GoCo is a great option.
What makes GoCo special?
It’s one of the best HR software for small businesses that want to add payroll, onboarding, or performance management features that will integrate with their existing solutions, such as QuickBooks, Asana, and Workable.
The platform also provides benefits administration, compliance recordkeeping, and a reporting function that can track staff productivity and satisfaction.
Key Features:
- Benefits administration
- HR management
- Onboarding
- Compliance management
Pricing:
Prices start from $5 per month per person.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Higher pricing than some competitors
- Limited integrations with other platforms
5.14 ApplicantStack – Best HR software for combined hiring and onboarding
Best For: Small to medium-sized businesses
ApplicantStack makes it simple to post job ads, pre-qualify potential employees, schedule interviews and, finally, onboard your preferred candidates.
What makes ApplicantStack special?
Even before new hires enter the office, get all the paperwork out of the way using the centralized document platform. Follow this up via the easy-to-use dashboard, which contains new hire checklists and onboarding task completion tracking.
Key Features:
- Applicant tracking
- Onboarding
- Background checks
- Job posting
Pricing:
Prices for the combined ATS and onboarding solution start from $150.
Pros
- Customizable hiring workflows
- Automated candidate tracking
- Mobile app available
Cons
- Limited reporting capabilities
- Limited integrations with other HR platforms
5.15 Oyster HR – Best HR software for global compliance
Best For: Small to medium-sized businesses
Specializing in global hiring and payroll, Oyster HR is an excellent overall solution for remote teams. Drawing upon an extensive knowledge pool, it covers more than 130 countries around the world with its platform, which allows you to set up self-service portals for new staff where they can view and sign any essential onboarding docs.
What makes Oyster HR special?
One of its USP’s is the virtual assistant, Pearl, which guides users through documentation requirements for compliance based on local and national regulations. Integrations include QuickBooks and Xero for payroll, and Greenhouse and BambooHR for ATS.
Key Features:
- Global payroll processing
- Compliance management
- HR management
- Contractor management
Pricing:
Prices start from $499 per employee per month for the full Oyster HR Suite.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Higher pricing than some competitors
- Limited integrations with other platforms
5.16 Monday.com – Best HR software for work management
Best For: Small to large-sized businesses
One of the world’s most popular work management tools, Monday.com allows you to manage each member of staff’s busyness, track progress, and measure OKRs.
What makes Monday.com special?
Create dedicated boards for specific projects, then assign tasks based on job function and availability. The program is particularly handy for remote teams since it allows everyone to stay synced up, no matter where they are based.
Key Features:
- Customizable workflows
- Task management
- Real-time updates
- Integrations with third-party tools
Pricing:
Prices start from $8 per user per month.
Pros
- Customizable workflows
- Project management tools
- Integrations with other platforms
Cons
- Limited HR-specific features
- May not be suitable for larger companies
5.17 Rippling – Best HR software for automation of HR processes
Best For: Small to large-sized businesses
In the running for best HR software for midsize companies, Rippling is an all-in-one solution that boasts workforce management, payroll and training, among many other functions.
What makes Rippling special?
The software’s automation claims to be so good, it can onboard staff across the globe in just 90 seconds using automation. This includes assigning compliance procedures based on location as well as enrolling staff in relevant benefits programs.
The program can also help you with applicant tracking, assigning app access, and managing pulse surveys through its simple, clearly laid-out interface.
Key Features:
- Payroll processing
- Benefits administration
- Time and attendance tracking
- HR management
- Compliance management
Pricing:
Prices start from $8 per month per user.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Higher pricing than some competitors
- Limited integrations with other platforms
5.18 Eddy – Best HR software for easy-to-use core HR
Best For: Small to medium-sized businesses
Eddy lives up to its friendly-sounding moniker with a very user-friendly interface. You can get all the documentation and compliance business out of the way before a new hire starts through the self-service platform, which comes with a trackable task list.
What makes Eddy special?
Eddy also has a full-service payroll solution, which allows you to automate monthly payments and any tax requirements according to US regulations.
Key Features:
- Onboarding
- HR management
- Benefits administration
- Compliance management
Pricing:
Prices are available upon request.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Limited integrations with other platforms
- May not be suitable for larger companies
5.19 Remofirst – Best HR software for US and global payroll
Best For: Small to medium-sized businesses
Designed for companies who want to hire remote workers, Remofirst is another option if you want global-facing software for payroll, documentation, and compliance.
What makes Remofirst special?
The company acts as an Employer of Record for your business, essentially taking a lot of the hassle of managing a distributed team out of your hands and helping you keep track of employee costs through a simple interface.
Remofirst is active in more than 150 geographies, with county guides on their site to help you come to grips with local regulations. If there are any hiccups, there’s a 24/7 customer service guarantee.
Key Features:
- Employee relocation
- Onboarding
- Compliance management
- Global payroll processing
Pricing:
Prices start from $199 per person per month.
Pros
- Comprehensive HR management tools
- Customizable workflows
- Built-in analytics
Cons
- Higher pricing than some competitors
- Limited integrations with other platforms
5.20 Gusto – Best HR software for US-based companies
Best For: Small to medium-sized businesses
Gusto is predominantly focused on payroll and benefits, assisting companies with their local, state, and federal tax filings.
What makes Gusto special?
You can also properly monitor time and attendance for remote staff using its mobile time tracking with a geolocation feature.
Other features include performance reviews, data-backed reports to help you optimize workforce costs, software provisioning, and integrations with popular ATSs such as JazzHR and Sapling.
Key Features:
- Payroll processing
- Benefits administration
- Compliance management
- HR management
- Time tracking
Pricing:
Prices start from $40 per month for the platform, plus $6 per month per person.
Pros
- Comprehensive payroll and HR management tools
- Mobile app available
- Customizable workflows
Cons
- Higher pricing than some competitors
- Limited customer support
6. FAQs
- How do small businesses onboard employees?
Generally, small businesses will have more compact teams and fewer operational complexities. For this reason, some small businesses manually onboard staff. While this is superficially cheaper than a software subscription, it is also more time consuming and could end up costing the company more through lost productivity.
- Which is the best HR software for startups?
Startups need to be creative and agile, which is why it’s advisable to look into platforms that will cover all core HR functions, so your team can focus on the fun stuff. If you’re not quite sure what capabilities you need, companies like Deel offer employee management software for small businesses free for up to a certain number of staff.
- How do I set up an HR for a small company?
You’ll almost always need at least some human resources people to take charge of hiring, payroll, benefits, and other employee management areas. However, the best HR software for small businesses will mean you can set up your HR with fewer people and at less cost.
