Best HR Software for Small Businesses

The best HR software, HRMS, HRIS, hand-picked for small businesses, along with benefits, pitfalls, pricing, and more.

Here's something that doesn't get said enough: some great companies are solely-focused on making the best HR software for small businesses. That's because being a small business doesn’t mean that you can’t have some of the best HR tech available. Among the top vendors in the space, there are those that have plans or solutions to fit the needs of smaller operations.

So, if reading the words “custom enterprise pricing” on a vendor’s website entices you to close the page, and you dread lengthy implementations that would require complex IT intervention, this is the guide for you. Through hours of research, we’ve rounded up the best HR software for small businesses.

Among these vendors, you’ll find the HRIS essential features that you’d like to cover with a single platform, such as applicant tracking, org charts, time and attendance, benefits administration, performance reviews, and much more.

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We spend hundreds of hours researching the best HR and recruiting software so you don’t have to.  We never take money from vendors during our research phase and rely heavily on practitioners and experts to help us recommend the right software.  However we may earn a small fee if you click on vendor links on this page. Learn more

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Vendors Reviewed

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Top Human Resource Software

We track thousands of HRTech solutions, these are the best HR Software vendors for small businesses per our research and expert council as of March 2021.

Freshteam

Review

This product from Freshworks is an all-in-one talent management solution specifically targeted for growing businesses but useful for all sorts of operations. Freshteam can handle your human resources experience from job postings and applicant tracking all the way to core HR features like an employee directory, benefits management, and many administrative tasks.

Freshteam

Stats

Freshteam

Pricing:

SproutBlossomGardenEstate
Free for up to 50 employees$50 per month per 50 users, billed annually$100 per month per 50 users, billed annually$200 per month per 50 users, billed annually

These prices are altered if you choose the monthly rate. There are no cancellation fees.

Best For

All kinds of businesses can benefit from Freshteam, but it’s ideal for teams that want to handle everything from a job posting to leave management in the same place at a competitive price.

Worth Checking Out:

Onboarding, offboarding, benefits, payroll, performance reviews - Zenefits has a broad set of solutions for most of what we typically think of as the core HR services and tasks. Notably, Zenefits is specially built for smaller organizations with an average customer size of just under 50 employees.

Zenefits

Stats

  • Trusted by 11k businesses
  • Used by 400k employees
  • Integrates with 50+ partners

Zenefits

Pricing

Zenefits starts with the Essentials plan at $8 per month per employee. This includes all the Core HR modules, Time & Scheduling, Integrations, and the mobile app. Those features are all included, plus other modules, as the plans go up in price. They also offer independent add-ons like payroll software for free, advisory services at $8 per month per employee, and benefits admin using your own broker at $5 per user per month.

Enterprise pricing is available upon request.

Best For

Smaller teams that want to save time by streamlining their HR services with an intuitive platform that lets them pay and tweak as they go.

Worth Checking Out:

Gusto was previously known as ZenPayroll, and originally started as the easiest way to run payroll for smaller companies. It has since added benefits administration as well as other features that are commonly found in your HRIS (onboarding, org charts, etc). Gusto continues to scale their customer base rapidly and has now acquired over 100,000 customers.

Gusto

Stats

  • Used by over 100,000 small businesses
  • Three out of four customers say Gusto makes compliance easier
  • 90% of customers found switching to Gusto to be simple

Gusto

Pricing

Gusto’s Core plan is $6 per month per person, plus a $39 monthly base fee. It includes payroll, employee benefits, employee self-service portal, workers comp administration, onboarding tools, and much more. If you need to upgrade, their Complete plan is $12 per user per month. 

Gusto Concierge is also $12 per user per month, but the monthly base fee is $149. Lastly, if you haven’t hired W-2 employees yet, they have a Contractor plan that’s $6 user/month with no monthly base fee.

Best For

Gusto is perfect for small businesses that need simple benefits administration. It's easy to scale up their plans as your organization continues to grow.

Worth Checking Out:

To any of Gusto’s plans, you can add modules for workers compensation, employee benefits, the Gusto Wallet app (for Cashouts), insurance, and more.

Factorial is a great HR software solution for small and medium-sized businesses. Their offering gives human resources teams their time back through managing employee onboarding, time tracking, PTO, org charts, payroll, talent acquisition, and much more. 

We also like that they place a good deal of importance on data security. With Factorial, all database information is encrypted and GDPR-compliant. They also use a Single Sign-On system and regularly perform vulnerability diagnostics.

Factorial HR

Stats

  • 60,000+ clients

Factorial HR

Pricing

The Factorial HR platform starts at $40/mo for up to 10 employees. After that, it’s $4 per additional user. There is a 14-day free trial and custom enterprise pricing is available for bigger teams.

Best For

Small and medium-sized businesses with many an HR process to streamline, good for those with a remote workforce and operations in Europe, the US, or Latin America.

Worth Checking Out:

BambooHR tries to offer a plan that will fit your business. Their HR platform spans across the employee lifecycle as they also have recruiting and performance management in addition to the core HRMS functionality. They offer a separate HRIS which is available as a small business package. They also boast and numerous amenities like an app marketplace of HR/recruiting vendors that integrate with their system, an HR glossary, and hosting HR events on occasion.

BambooHR

Stats

  • Over 1.8M active employees as of March 2021
  • 45,000+ new hires onboarded per month
  • 20,000+ active client organizations

BambooHR

Pricing

Pricing is not disclosed upfront, but they do offer a free trial of their all-in-one software and then go out of their way to find a version that will suit you. Before they come up with a personalized quote that will align with your budget, however, they are also likely to extend your free trial upon request or even give you a free demo of the advanced features.

Best For

Companies looking for a very customizable product and pricing that reflects their needs. It’s also popular among teams that are partially or even fully remote.

Worth Checking Out:

ClearCompany is another HRMS company that goes across the entire employee lifecycle from recruiting and applicant tracking through performance. They’re a great solution for SMBs looking for a talent management solution with very good customer service. Another noteworthy thing about ClearCompany is a feature in their ATS that identifies and sources the best available talent for your company based on its top performers.

ClearCompany

Stats

  • 99% retention rate
  • 640,000 total users
  • 96% employee approval rating 
  • 2,000+ customers
  • In business for 15 years

ClearCompany

Pricing

Custom subscription-based pricing is available upon request of a demo or free trial. No credit card is required for the free trial.

Best For

Clients in every industry and all sorts of company sizes.

Worth Checking Out:

This vendor is notable for being quick to create and launch new products depending on what their clients need, like COVID-19 resources during the pandemic or a voting incentive feature during the 2020 US election.

GoCo helps HR teams with everything from time off tracking to creating flexible PTO programs. It also helps employees request vacation time, maternity/paternity leave, sick time, and a myriad of other types of absences. Additionally, they have a mobile app that lets employees do this even more conveniently. Their desktop-based dashboard is fit to manage all sorts of HR tasks.

GoCo

Stats

  • 50+ employees
  • Received 7,000,000 in Series A funding
  • Founded in Houston in 2015

GoCo

Pricing

GoCo’s pricing starts at $5 per employee per month, but the way it works is that when you get in touch with their team, they’ll put together a custom plan based on your HR workflow.

All plans include onboarding, employee self-service, and MagicDocs. If you need anything else, they’ll offer it as a separately-priced module.

Best For

Small to medium-sized businesses looking for a cost-efficient platform with all the HR tools they need.

Worth Checking Out:

JazzHR is built and priced for small businesses (5-500 employees). They’re looking to empower SMBs on the importance of digitizing the hiring process. While they’re much more than an ATS, their capabilities mostly fall within the recruiting process. However, they’ve garnered over 250 partnerships with industry-leading technology and service providers. To create a seamless HR experience, JazzHR can be a key component of your tech stack.

JazzHR

Stats

  • 98% customer retention
  • 84 employees

Also, according to their case studies, they’ve managed to secure several wins for their customers, such as: 

  • Reduce annual hiring costs by 90%
  • Increase candidate volume by 500%
  • Save 10-15 hours of work per hire, at a minimum
  • 400% increase in applications

JazzHR

Pricing

JazzHR offers transparent pricing through three plans:

HeroPlusPro
$39 per month (paid annually)$229 per month (paid annually)$339 per month (paid annually)
Unlimited users, 3 open jobsUnlimited users, unlimited open jobs, ATS, Interviews and AssessmentsEverything from Plus, with Offers and eSignatures, reporting, and all-access support.

Best For

JazzHR is specifically built for teams at organizations with 5 to 500 employees, regardless of industry or recruiting maturity. Product users range from the HR expert to professionals with little to no prior experience in the space.

Worth Checking Out:

On the Hero plan, where you can only post up to 3 jobs at once, there’s the option to add more jobs for just $9 per job per month.

As a software company that makes all sorts of business applications, it makes total sense that they’d offer a very complete cloud-based HRMS. Zoho People has an impressive list of features on each plan, so it’s hard to imagine HR teams at SMBs not finding everything they need here.

Zoho

Stats

Over 40 integrated applications.

Zoho

Pricing

Zoho People is free for up to 5 users. After that, their HR Essentials plan starts for $0.83 per user per month, if you pay yearly, or $1 user/month. To put things in perspective, in case you grow fast, their enterprise plan is $5 user/month.

Best For

Zoho People has plans for many sorts of organizations, even offering custom pricing for those with more than 500 employees.

Worth Checking Out:

Zoho people also includes a basic learning management system for your internal training efforts.

Bob, or HiBob, has made it its philosophy to always put the employee first. You can see that ethos embodied in how easy the product is to use and the various ways this solution engages employees to better understand and cultivate culture. Bob is a great fit for forward-thinking HR departments that need tools like onboarding, time-tracking, payroll reports, time off management, surveys, benefits, and much more.

Bob

Stats

  • Unlimited customizable flows 
  • Over 13 modules 
  • Four packages to cover most needs 
  • 44 reviews with a 4.6/5 average 
  • Founded in 2016

Bob

Pricing

Bob offers custom pricing. They have flexible plans for growing companies and will work with you to offer the best possible cost.

Best For

Companies with fast-growing teams that want to manage all or most HR processes in a single platform, in a modern way.

Worth Checking Out:

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Last advice on buying HR software if you’re a small business

Now you’ll probably want to pick 2-3 vendors and either start free trials or book demos with them. Before you do that, however, our last piece of advice, as with any software buy within an organization, would be to make sure every stakeholder is aligned with the decision. 

Even if it’s easier to get everyone onboard with an X or Y solution and think that it’s the right HR software, you should also consider the future of the business. Will this solution still be able to handle your organization’s needs in two years? How about 5 years? 

Most of the vendors selected here are quite scalable, so even if you’re starting with the most basic plan, or even the free one, there is a decent chance that that vendor will be able to stay with you and your business, if all goes well, for many productive years.

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