9 Best HR Software for Small Business in 2025

• The user-friendly dashboard allows easy navigation through employee profiles, providing access to essential details such as contact information, job titles, tax forms (W-4s), and identification documents (driver's licenses and passports).
• GoCo enables HR teams to track, store, and manage employment-related documents in a structured and organized manner, ensuring that all necessary paperwork is up to date and easily accessible.
• The platform offers flexibility in customizing and storing different types of documents based on organizational needs, making it a valuable tool for companies looking to digitize and centralize employee data securely.

Our organization initially chose GoCo to manage and track all employee records, including important documents such as W-4 forms, driver's licenses, and passports. We used the platform for about two years, hoping it would streamline record-keeping and improve efficiency.

However, over time, we found that it lacked the level of organization needed to manage employee information effectively. Additionally, we encountered several technical issues that made the system challenging to use consistently. Due to these limitations, we decided to discontinue our use of GoCo and explore other solutions better suited to our needs.

• Employees occasionally experience issues signing important documents, leading to delays, confusion, and additional follow-ups.
• The platform’s design may not be intuitive for new users.
• Occasional glitches and bugs disrupt workflow.

I have used ATS to track employee information, and compared to other tools, GoCo feels more disorganized and less streamlined.

Is the platform easy to navigate for both HR professionals and employees? Does the tool provide efficient document management, allowing for easy uploading, storage, and tracking of essential employee records? Assess whether GoCo offers good value for its pricing—does it provide the necessary features at a reasonable cost?

• Earlier versions: Compliance features were not as comprehensive, making it challenging to keep up with changing labor laws and regulations.
• ‍Improvements: GoCo has enhanced its compliance tools, including automatic reminders for deadlines, better tracking of employee certifications, and integration with legal updates.

GoCo is well-suited for companies with more than 50 employees, as its features scale well with larger teams. Smaller companies may find other tools more efficient for tracking employee information.

• Workable’s UX/UI is excellent.
• The Candidate Sourcing Suite includes AI, LinkedIn, Boolean search, and the existing database.
• The CRM database is well-organized and functional.
• The ATS workflows are customizable.

We did not have an ATS and were using Google Sheets to track our recruitment efforts. I built the recruitment team from scratch (0 to 28 recruiters).

Workable was perfect for our needs at the time we built the recruitment program. It provided a unified solution with an intuitive interface and customizable workflows that streamlined our hiring process.

The UX/UI is top-notch. Features like automated interview scheduling and real-time feedback collection enhanced team coordination, allowing us to move candidates through the pipeline more efficiently.

I implemented Workable and used the platform for almost two years.

• Workable’s reporting functionality is poor.
• I had to create my own reports in Google Sheets using the basic data exported from Workable.

• If you have a small team (fewer than 20 people) and a limited number of roles to fill, this platform works well.
• Workable now offers plans for more than 20 users and unlimited job posts, which was not the case from 2019 to 2022.
• I enjoyed using Workable because it is a highly intuitive platform where workflows can be customized, automations can be set, and the built-in candidate sourcing tools are exceptional.

• Previously, I would have recommended Workable for smaller recruitment teams with fewer than 10 job openings.
• Today, Workable offers personalized plans to support companies of any size and with unlimited job posts.
• It’s a great option across a range of team sizes.
• Warning: the reporting functionality remains very basic. If your organization relies heavily on advanced reporting, you may need to generate your own or consider another ATS focused on data analytics.

• Workable has made significant improvements to its platform.
• In the past, it was limited to smaller teams with fewer job openings.
• Now, it offers personalized plans to support companies of any size and unlimited job postings.
• Their pricing is customized based on organizational needs.
• If these options had been available between 2020 and 2022, I might not have switched to iCIMS, as we needed more job openings, more users, and more robust reporting.

Any organization of any size with any level of growth plans. Just be aware that the reporting functionality is very basic.

• BambooHR is highly user-friendly, making it easy for organizations to integrate into their processes.
• It offers customizable fields and charts, allowing organizations to tailor the system to their needs.
• The platform receives frequent updates based on client feedback, continually improving the user experience.

I used BambooHR in my previous organization, which chose to purchase it for its user-friendly design. The company needed an HR management system that could centralize all employee information while also supporting performance reviews and document storage.

BambooHR provided these features while maintaining a simple and intuitive interface. The platform allowed HR teams to manage employee data efficiently without the complexity of more advanced systems.

• While some customization options are available, they are relatively basic.
• The performance review module only allows customization of questions but lacks options for adding charts or more detailed evaluations.
• The cost can be high, especially when considering add-ons, making it less accessible for smaller companies.
• Larger companies often require more customization, and while BambooHR may be more cost-effective, its limitations can be restrictive.
• The system is more payroll-focused, which may be unnecessary for organizations looking only for HR management features.

BambooHR is more affordable and easier to use than competitors like Paycom, Rippling, and ADP. While those systems offer more robust features, they are also more complex to set up and navigate. BambooHR’s simplicity makes it a strong choice for organizations that prioritize ease of use over advanced functionality.

A company should consider cost and, based on its budget, determine which system best fits its needs. Customer support is another critical factor, as implementing a new system comes with a learning curve, making reliable support essential, particularly in the first 6–12 months.

Additionally, organizations should assess which modules they need most and how well those features integrate to ensure accurate and efficient data management.

BambooHR has added more customization features over time to better meet user needs.

Small to medium-sized organizations can benefit from BambooHR.

Bob is a very user-friendly tool for both administrators and applicants. The recruitment analytics were effective for a company of this size, which had fewer complexities in terms of organizational structure and recruitment goals. It provided a strong candidate experience for those comfortable using computers and technology.

Our medium-sized US company needed a more efficient tool to enhance the recruitment process. During peak hiring seasons, we required a more organized approach to posting job openings, managing candidate pipelines, and streamlining the onboarding experience.

Bob proved to be user-friendly, and while I have used more intuitive HRIS systems in the past, this one effectively met our needs. It was particularly useful for managing high-volume recruitment during critical times. I used this tool for a couple of years during my time with the organization.

Bob's training posed a significant learning curve for management teams who were unfamiliar with similar tools. While it worked well for employees and managers regularly using computers (e.g., in customer service, sales, and accounting), it was challenging for frontline workers in packaging and production roles due to their limited technological skills.

The tool was not ideal for smaller companies or larger, more complex organizations with global needs.

From a user-friendliness perspective, Bob ranks highly. However, in terms of functionality, other tools I have used, such as Workday, Paradox, and PeopleSoft, offer more advanced features that are better suited for larger, more complex organizational needs.

If you are looking for a system that is user-friendly and well-suited for a medium-sized company with predominantly office-based employees, Bob would be a great fit. However, for companies with a diverse workforce, including frontline employees, or those with highly complex needs, other solutions may be more suitable.

It has been a few years since I used Bob, but at the time, it effectively met the basic needs we had. That said, it lacked the advanced functionalities required by larger organizations with more complex requirements.

Bob is ideal for medium-sized organizations, especially those without highly complex or global organizational structures. It is also more suitable for companies with employees who are comfortable using technology.

Gusto is a great beginner HRIS with basic functionality that is easy to use. Gusto is a cost-effective, affordable HR and payroll solution for small businesses. Gusto's document functions are very customizable, allowing for check mark boxes along with basic and more common features like signature boxes and text boxes.

Our company originally bought Gusto in 2020 and has been using it for four years. I have personally been using it for six months and have used it in the past while working contracts for other start-ups. We use Gusto as a solution for small businesses that need an HR and payroll system. The key benefits it provides include a time tracking system, payroll system, HR storage system, ATS, benefits solution, and more. When originally buying the tool, the company aimed to use it mainly for payroll purposes and to move off of QuickBooks for payroll and paper copies of documentation. Gusto provides document signing as well.

Gusto's customer service lacks urgency and has put us into very difficult situations regarding compliance around our benefits. While Gusto is very beginner-friendly, this means it also lacks the workflows and customizability that most experienced HR professionals are accustomed to when setting up and using an HRIS. Gusto does not have many options for custom reporting, which can be difficult for HR personnel and business operations.

I prefer a more customizable HRIS, even if it is a little more expensive. I think Gusto is a good start solution, but once you grow past 25+ employees, you will need to look into more advanced HR and payroll solutions. I would not recommend Gusto to anyone that has over 25 employees due to this.

Businesses should consider their projected growth and hiring plans. You do not want to implement an HR system if you will need to switch to another HR system further down the road. If you plan on keeping your business small or do not plan on hiring a dedicated HR person, then Gusto might be the solution for you.

I have not been with Gusto long enough to see any change or evolution.

Gusto is good for small businesses with under 25 employees and/or businesses looking for a very cost-effective solution.

1. Zoho People helped us manage all employee data in a single location and made it easier to track employee records.
2. Zoho People has features for employee self-service, performance tracking, and goal setting, which have helped our employees stay engaged and motivated in their work.
3. Zoho People automates a lot of HR processes we used to do manually including attendance tracking, leave management, and payroll processing.

There are many reasons why my organization chose Zoho People: it has customizable features, it’s easy to use, and also cost-effective. It helped us to improve our HR operations and create a more engaged and efficient workforce. I must say Zoho People is worth buying as it streamlines all HR processes. I have been using the tool for 8 months.

1. Zoho People could benefit from a more intuitive interface to make it easier to use.
2. While Zoho People does have a strong mobile app, there’s room for improvement in functionality and speed.
3. Zoho People does offer online documentation and support but it doesn’t cover everything so we do end up reaching out to the support team now and then.

While there are several competitors in the HR software space, Zoho People has several advantages that set it apart from the competition in my opinion.

1. Zoho People integrates seamlessly with other Zoho apps, such as Zoho CRM, Zoho Projects, and Zoho Books, which is great if you happen to use their other products too, and can keep virtually all of your employees on a single platform.
2. It is competitively priced and quite affordable for businesses of all sizes.

If anyone wants to buy a subscription to Zoho People, here are a few points to take into consideration:

1. Determine business requirements and the features you need from the HR management software to choose the appropriate subscription plan.
2. Check the pricing plans and select the one that fits the budget.
3. Before subscribing to Zoho People, take advantage of the free trial to test the software and its features to evaluate whether it meets your requirements or not.

When Zoho people was first released, it was only used by small-size organizations as this software was limited to employee database, leave, and time tracking. Zoho People has evolved over time to become a comprehensive HR management software that offers a wide range of features to businesses of all sizes. The software's integration with other Zoho applications and its focus on mobile accessibility and analytics have helped it stand out in the crowded HR management software market. It also added a few features recently like an onboarding management system and integration with Zoho Analytics.

Zoho People is a cost-effective HR management software that is ideal for small and medium-sized businesses that may not have fully staffed HR departments. Zoho People is also a great choice for remote-working employees to collaborate, track time, handle scheduling, and more.

• The user interface is easy to navigate and use.
• The biggest advantage for me is the automation features, as they save me a lot of time by reducing manual work.
• The reporting and analytics tools provide valuable insights.

We primarily purchased this tool to address inefficiencies in managing HR processes. We needed a solution to handle employee records, time tracking, payroll, and performance management without juggling multiple platforms.

Factorial HR worked well as an all-in-one platform and also offers automation and workflow rules for these processes. Additionally, its data analytics capabilities were a great and unexpected benefit. We have used it for roughly three years. The tool also has a user-friendly interface.

• Some of the integrations, like the payroll integration, can be tedious at times and do not always work as expected.
• The customization options for reports are limited.
• Customer support for complex issues has been difficult to manage, and response times could be improved.

Factorial HR stands out for its simplicity and ease of use compared to more complex HR systems like BambooHR or Workday. It successfully offers strong HR features without excessive complexity. The best part is that it doesn’t require a dedicated tech team to manage the software.

Consider the size of your company. This tool is great for small to medium-sized businesses. If you need software with extensive integrations, you may want to explore other options. If connecting to your payroll system via integration is a priority, another solution might be a better fit. However, if you need something simple and easy to use, this is a great choice.

Factorial HR has introduced more automation features and improved its reporting capabilities over time. One major benefit I’ve noticed is the expansion of its compliance and document management features, which better support remote and international teams. This is extremely important for my team due to the nature of our remote and hybrid workforce.

Factorial HR is ideal for small to mid-sized businesses looking for an easy-to-use, affordable solution. Startups and growing businesses will particularly benefit from its automation features and user-friendly design.

It is very easy to use. The country-based information guides are well-researched and helpful. The onboarding process is slick and pain-free.

My organization was struggling to get reliable resources in overseas locations. Freelancers did not stay around long enough and were expensive. The organization wanted to reduce salary costs and increase staff retention by hiring actual employees instead of freelancers.

However, we were only hiring one or two employees in multiple locations, so it didn't make financial sense to establish an offshore legal entity. We needed to use an Employer of Record service to quickly and efficiently employ staff offshore. We wanted to convert some of our freelancers to employees as well.

Oyster impressed us as it offered this service in a unique SaaS format, making it transparent, quick, and great for remote collaboration. I have been using it for about six months and appreciate the easy onboarding process, cost calculator, and HR information per country, which is great for planning.

We have converted several existing freelancers to local employees and hired multiple employees into the local EOR entities via Oyster's one-stop-shop service.

I wish there was more information and guidance on offboarding. Some help with finding talent could be useful. Integration with sites like Upwork for contracting to hire via Oyster would be beneficial.

It's a one-stop-shop SaaS digital service, whereas I have used more analog organizations. I prefer the Oyster model as it's better for remote collaboration across different time zones.

People should consider cost and ease of use when buying this type of tool. Additionally, the global HR information guides provided are crucial to successful offshoring.

They have evolved into a one-stop global payroll tool that can save a lot of time if you have many workers in different locations that need to be paid.

Organizations that have good HR knowledge but want to hire just a few staff (1 to 5) in multiple locations around the world will find Oyster to be the best fit.