10 Best HR Software Platforms Reviewed & Compared in Q4 2025

While tiny businesses may be able to handle all of their employee information in spreadsheets, purpose-built HR software becomes increasingly essential as your business grows. If you’re still not sure if HR software is right for your business, here are some key signs that you should be thinking about implementing one:

• You Have More than 25 Employees: While 25 employees is not a rigid threshold (a startup with under 20 employees can still benefit from HR tools), it is an excellent place to start thinking about using an HR software system. With more than 25 employees, keeping track of data becomes a chore, and at a certain point, it becomes impractical (and error-prone!) to manually enter and update all employee data.
• Many of Your Jobs Require Licensing or Certification: If you are in an industry where employees require up-to-date certifications for legal reasons, staying on top of the schedule is critical. HR software can streamline the process by setting up automated reminders when certificates are due to expire.
• You’re Growing Fast: Companies face changing legal requirements as they pass different size thresholds. Keeping up with the legal requirements of a growing company is much easier to do automatically with HR software than by hand in spreadsheets.
• You Want Your HR Team to Play a More Strategic Role: Having one easily searchable system that stores employee information, runs payroll, and handles benefits saves a lot of time for your HR team. It allows them to focus on more strategic projects for your business, like increasing employee engagement and retention or improving organizational culture.
• You Manage Hourly Employees: With hourly employees, you often have to track hours and manage changing schedules. This is another process that is made infinitely easier with HR software.‍
• ‍You Need Custom Workforce Data Reports: As businesses become increasingly data-driven, accurate and readily available people analytics becomes more and more critical. Many HR software solutions have features that enable you to hone in on data-driven recruitment and gain better ideas of your company's health.

At SelectSoftware Reviews, we like to start with the “why?” behind any piece of software. With HR software, many assume that the answer is simple: it’s a must-have because a database that tracks your employee information is necessary.

In fact, buying an HR software is not the no-brainer choice it’s made out to be. It is a major strategic decision that requires a lot of time, thought, and buy-in, and in some cases, it’s just not the right tool for the job. However, I’ve seen HR software systems offer tremendous benefits when they are adopted at the right place and time. Here are the key ones:

Save Time with Automation

By automating recurring tasks like benefits, payroll administration, new employee orientation, time tracking, and attendance management, HR software with a core human resources information system (HRIS) helps make tedious HR processes quick, simple, and less prone to error.

According to Nucleus research, companies that do use HR automation reported 67% faster new hire onboarding and 90% more time savings on admin work.

Improve the Employee Experience

HR software doesn’t just benefit your business and bottom line. It’s also a direct asset for your employees. With a user-friendly employee portal, your employees can navigate benefits options easily, review and update personal information, manage requests for time off, and much more.

Employees who feel their employers’s onboarding software is effective are five times more likely to report high levels of engagement.

Employee Performance

Beyond simply reviewing conduct and achievements, your HR system can drive employee performance.

Performance reviews, engagement surveys, performance management capabilities, and customizable integrations with other tools can all be used to build culture and turn company values from ideas to action. Statistically, 72% of HR generalists engaging in self-service HR software reported a lighter workload.

Increase Compliance

If you are careful with the setup and initial data entry, HR software can significantly improve your business’ data accuracy and accessibility.

In addition to helping out in a pinch, data accuracy, and task automation support compliance year-round. Automation results in fewer human errors. Many vendors do a great job of staying on top of changes in laws and regulations, keeping you in the loop, and updating their products accordingly.

Better Organization

If a team’s starting point is pencil and paper, using an HR system will alleviate some data security risks and the hassle of sifting through physical files. For teams who have moved beyond the paper files to a patchwork of spreadsheets and other tools, buying a complete HR suite will help keep everything in the same place.

Stacey Richey (VP of People at Corvus Insurance, 18+ years in HR) shared her personal experience with this problem, and how an HR software platform solved it.

Early on, her company used multiple tools for people processes: one tool for payroll, one for employee perks and benefits, one for talent development, one for performance management, etc. Does this sound familiar? She knew it was time for an all-in-one HR software system. First, she identified the needed features and set her team off with a headstart and a list of non-negotiables. 

The result: they identified the right tool for the right price, and today, they save hours each month by not having to switch from one app to another, build integrations, or transfer info.

Streamline the Hiring Process

Some HR software tools can also act as lightweight applicant tracking systems (ATS), and some have a full-fledged ATS built-in.

These features allow you to easily collect resumes, review candidate info, and speed up employee onboarding and training, providing new hires with a seamless transition into your company. Custom workflows also help ensure the onboarding process does not overlook key steps or necessary documents.

Business Intelligence

Analyzing data metrics becomes increasingly important as your business grows. By creating custom reports, your HR software system makes it easy for your HR team to analyze hiring costs, calculate turnover, and employee engagement, and ultimately use data to help inform business decisions.

Workforce Management

The top HR software platforms come from best-in-class HR technology companies. Progressive, forward-thinking HR departments can count on comprehensive HRIS, HCM, or HRMS (human resource management software) platforms for complete workforce management.

For example, employee engagement is sometimes built right into HRIS or HCM systems, along with intuitive employee onboarding, easy-to-access payroll and benefits, mobile first-time and attendance, and payroll management. This is done through a cloud-based service that automatically updates as new modules roll out.

Making mistakes is a great way to learn, but with this complex and expensive software, sometimes it’s best to learn from the missteps of others.

The best way to avoid buying the wrong HR software system is to ask the right questions. Keep this in mind as you start working with vendors — check out my suggested questions below, and take note of these shortcomings that are typical traits of bad HR software.

Lack of Employee Self-Service

If your HR software doesn’t allow employees to update their personal information or choose their own benefits plans, then it’s not saving your human resources team time. The tools that offer the greatest returns always include employee self-service capabilities.

Inability to integrate with other systems: If you want to save time with HR software, make sure it integrates with your current tech stack. Manually transferring data from one system to another is the exact opposite of saving time.

Take, for example, the integration of a standalone ATS. Though there are some exceptions, most HR software platforms don’t include an ATS that is sophisticated for high-volume hiring. Remember this as you shop: chances are good that your ATS and HR software system will be neighbors but not roommates. You can ensure they get along if you think ahead about integrations.

Lack of Data Accuracy

Your HR software is only as good as the data it stores. A system full of inaccurate data is useless and potentially hazardous, so make sure your HR system takes measures to ensure accuracy. This applies to data entered manually or via API from another HR software or recruiting solution — be sure that your HR software takes this step seriously.

Lack of Consideration of the Application’s Limits

The right HR software for a small business and/or a startup is not the right HR software for a 1000-employee company. Your company’s current size must be a major factor in your decision, and if your business is growing fast, you’ll want an HR system that can grow with it.

For very large teams, the options are relatively limited compared to what is available for small groups. This owes to the fact that the latest and greatest tech often comes from small, boundary-breaking startups that are too curious (and sometimes distractible) to focus on making incremental improvements to the feature set needed by enterprise-size organizations.

Incorrect or Rushed Implementation

Take your time. There are few things worse than technical debt, one of which is technical debt that results from preventable mistakes.

Do not rush the data transfer process when setting up a new HR software platform. If you cut corners, data will likely be entered or transferred incorrectly. Without a doubt, you will meet that data again during a frustrating and preventable moment when you discover you’ve entered the wrong pay rate or manager permissions.

It’s advisable to get a consultant if you can afford it. Someone who “has been there, done that” when transitioning data from one system to another can be advantageous. And, of course, if your new HR software comes with a ton of vendor support, use it all! Many companies offer tremendous support to their new clients to ensure a smooth implementation of their platform.

Non-user-Friendly Platform

HR software is only effective if employees actually use it. A poorly designed platform may generate net-negative productivity and net-positive frustration. Make sure your new system is designed for the humans who will use it: it must be easy on the eyes with good UX in all environments in which it will be used, whether an app, browser, or mobile web.

Insufficient Data Security

It will surprise nobody to read that a data breach on an HR software system is very, very bad. These platforms store scads of sensitive, personal employee information, so even a minor instance of compromised security could cause irreparable damage to your business.

Be cautious and methodical when setting up your system’s security measures — and remember the sometimes blurry difference between your HR pros and your IT pros. And one rule of thumb: be weary of vendors with fewer than 20 employees listed on LinkedIn.

Insufficient Planning

HR teams who have not sufficiently mapped out the process of installing and introducing their HR software system will face tremendous struggles getting their solution off the ground. To prevent this, your team should create a concrete timeline that outlines each implementation phase in great detail.

Communicate with the relevant set of employees/managers at each implementation stage. Ask and expect a lot of questions, and remember: no rushing!

Having led many HR software implementations, Richey has “been there, done that''. In her experience, she found that one of the biggest mistakes companies make is purchasing a product that works only for where they are today, with little thought of where they may be in the near or distant future.

‍“Think of all the possible changes your company might experience in the next five years and plan for that.” She shared. “You want a system that scales with the company to ensure you won't switch HRIS for a long time.”

A clever way to save money on buying an HR software platform is to think about your goals and codify them into an organizer spreadsheet to make notes throughout your vetting process. It’s worth thinking through some of the key HR software features. Here are a few you’ll want to consider.

• Employee Self-Service Portal: Employee data management can be a lot of work for your HR department. The self-service function of many human resource management systems helps eliminate this challenge by enabling employees to view and edit their information, including benefits selection, time off, and more through a self-service portal.
• Time and Attendance Management: HR software simplifies tracking time off and planned and unplanned absences due to sickness, injury, maternity leave, or unauthorized leave.
• Onboarding Capability: While onboarding typically involves a lot of paperwork, with HR software, employees can complete much of the onboarding process electronically, including open enrollment. Most HR platforms even have electronic signature functionality, allowing employees to sign scanned documents that can be stored in the system.
• Custom Reporting: As HR increasingly relies on data and trends, it’s crucial to have a system that can create reports to help improve business decisions. A powerful people analytics system takes the manual labor out of preparing reports and replaces it with empirical evaluation speed, accuracy, and objectivity.
• Learning Management: Though a learning management system (LMS) may be baked into your HR software, it's much more likely that, like the ATS, you’ll use this tool as a standalone solution. Whether integrated or built-in, the LMS is critical for managing educational materials during employee onboarding and throughout the employee lifecycle.
• Employee Database: The employee database of an HR software platform allows you to store all employee records and information in a centralized location. The data is searchable, making finding details on employee salary and position, performance appraisal histories, disciplinary histories, and training records easier.
• Recruiting Functions: Many HR solutions allow you to air job postings, conduct interviews, store resumes, and transfer information when a new candidate is hired. While not all HR software systems have applicant tracking system features, they often allow native ATS integration so that you can transfer new-hire data to your system quickly and smoothly.
• Training and Development Management: Tracking employee training is essential, particularly in an industry where employees require specific certifications or licensing. HCM or HRMS platforms let you see what training employees need or want and helps you stay current on any required recertifications.
• Central Storage for Company Documents: As a centralized location for any information your employees might need, your HR software should be where employees can find HR policies, employee handbooks, emergency evacuation procedures, safety guidelines, and more.
• Benefits Administration: Your HR software should enable employees to enroll in health insurance, manage their 401(k), and track their benefits information. Many systems also offer payroll software and services to keep your employee benefits information auto-updated though often the payroll features cost extra.‍
• ‍Compensation management: To reduce the risk of error when handling employee compensation, HR software systems often offer payroll and compensation management functions. This allows you to handle many forms of incentive compensation, including salaries, paid time off, overtime pay, and bonus programs automatically.

Pricing of HR software depends on the breadth of the feature set offered and the size of your organization.

• Typically, it is charged on a per-employee/per-month basis. You can find HR software that costs you $2/employee/month and solutions that run as high as $30/employee/month (plus additional fees for payroll and benefits, as well as extra modules for hiring and onboarding).
• As with many things in life, you get what you pay for. If you just need to check the box, a cheaper solution makes sense. Suppose you want to use your HR system as a tool for increasing employee engagement, retaining employees, and generally driving business value through human capital management. In that case, you’ll have to pay for one of the better solutions.
• Some vendors will also charge ancillary fees in addition to the recurring SaaS cost. Be aware that these add-ons can add up, and realize that you can often negotiate these fees much more easily than the recurring per employee/per month cost of the cloud-based solution. Setup, consulting, support, and software fees are all fair game for negotiation.

A quick note: SelectSoftware Reviews continuously crowdsources data on HR software pricing through a survey. We do this to increase transparency and help HR teams better understand their options. It's anonymous and takes only two minutes; anyone who helps the community by filling it out will get access to the entire data set.

Any time you manage a significant purchase for your business, internal stakeholders will be watching. In fact, part of the process of buying a new HR software platform is stakeholder management. You must justify your choices from start to finish, from vendor selection to HR tech buy-in to implementation.

Generating wholehearted stakeholder buy-in is particularly important because it is crucial to maximizing the solution's value. Identify these key stakeholders early and understand how to maintain their support.

Below is a brief overview of the various important stakeholders and advice for managing each.

Company Leadership

If you want your HR software to have the best chance for success, you’ll need to get CxO buy-in and continuous support from the top leaders at your company. To accomplish this, present the business case to them and carefully lay out the ROI your new HR software will drive.

Present your implementation plan and provide them with a detailed timeline. Throughout the life of the HR software, provide leaders with updates about how the system is meeting the goals laid out for it, and how you plan to stay on track to achieve future goals.

Human Resources

The rest of your HR team is one of the biggest stakeholders involved in the implementation and must not be overlooked. A successful solution will make HR functions much easier, and a failed solution will make them much, much more difficult. It is important to use their help to get this right.

Because they will lead in handling employee questions, issues, and possibly grievances with the system, make sure your people team feels good about the selection and is properly trained to use it. 

Communicate to all human resources team members how a new HR system will change some employees’ duties, especially with the automation of tasks that they previously performed manually.

Benefits Brokers

Some of the HR professionals I talked to consider it essential to involve benefits brokers in the process. First, ensuring that the HR software vendors you're considering work with the benefits carriers you currently use are vital.

If they do not, part of your implementation process will include justifying to your employees why they are being forced to make a difficult change. In some (but not all) cases, a benefits broker can help with this.

Although keeping current benefits unchanged may narrow down and simplify your search from the start, brokers can be helpful to help navigate the notoriously tricky ins and outs of benefits and coverage.  Finally, some benefit brokers have an internal HR software team you can partner with during the RFP (request for proposal) process.

Operations Team

Your operations team will be involved in the budgeting, reporting, and legal compliance of your HR software. They may also communicate with benefits management providers and external partners affected by your new system. Communicating with your operations team is crucial to their continued support of your HR solution.

IT Teams

Your tech teams will play an important role in helping implement and update new software, so involve them in the decision-making process to ensure they are comfortable with the technology and any security implications.

It may also be helpful to open a communication channel between the vendor’s tech people and your IT team, so if they do run into problems, you are already one step closer to a solution. If the system will require a lot of updates, especially if they are not the automatic, cloud-based type, make sure that your tech team is aware and prepared.‍

Employees

Every employee has a stake in the success or failure of your HR software. A successful, easy-to-use system is a massive benefit to workers.

At the same time, the success of your HR software is dependent on your employees using it correctly, so be sure to provide the necessary training and communicate the solution clearly and early. You should listen to your employees' feedback at every step of the road and take their complaints and concerns seriously.

Be sure to carefully explain the positive ways an HR platform will impact their day-to-day work and focus specifically on how the system will benefit them now and in the future.

The next step is working with vendors and doing demos. For this step, it’s essential to come prepared with questions that address the core needs of your organization from a functional standpoint, as well as the various items internal stakeholders are looking for (security, data migration, self-service portals, etc.).

Here are questions you should have in your back pocket to ensure your company's needs are met by the tool your vendor is selling.

• How will information be exchanged with carriers (for benefits)?
• How can we put important data into this system? (API, Excel spreadsheets, documents, other databases, and paper documents)
• Does it accommodate benefits carriers’ rules?
• Does it integrate with ATS/payroll system/any other systems you might have that impact workforce management?
• What built-in security measures does it contain?
• Does this solution have SSO (single sign-on) capabilities?
• Are there multiple authorization levels for different types of users?
• Is there a maximum number of employees it will support?
• What types of reporting capabilities does it have?
• Does it include features to help HR communicate with employees, like mass emails or sophisticated message filtering?
• How much technical training will be required?
• What kinds of technical support are provided?
• What recruiting capabilities are built in?
• Which HR processes will be automated?

Richey points out, “Demoing software can be painful, but it pays to go into the weeds for every single module.” When approaching a demo, Stacey likes to get a feel for what every workflow will feel like for her employees. She believes they must be getting a tool that makes their lives easier, and often, this commitment requires a trial version to test out the software after the demo.

Here are some best practices to help you ensure a successful HR software implementation.

• Fully commit: To take full advantage of the services your HR software offers, you must fully understand all of its features and how to use them. Get your data migrated into your new system quickly (but do not rush!) and dedicate time to get used to the new processes.
• Decide on an implementation team: It’s always wise to have a team that will take full responsibility for the rollout process of the product. This team should be in charge of communicating the new HR software to staff from different areas of the company so they’re equipped to take full ownership of the implementation process.
• Concentrate on adoption: To prevent poor adoption, ensure employees are aware of the new technology before you roll it out. It’s also essential to select a user-friendly HR system and provide the necessary training so all employees, from new hires to executives, feel comfortable using the technology.
• Seek support from the vendor: It’s unrealistic to rely entirely on the vendor to fix all your problems, but they can certainly be helpful in many cases. Understand in detail the support that will be offered, and get SLAs in place if you can.‍
• Be able to adapt: Being adaptable is always important for an HR team in many cases, including when implementing an HR software solution. If the roll-out lacks energy or employees are responding negatively to the system, you need to be ready to change your approach to set your HR software up for success.

What is an HRIS?

An HRIS is an employee management platform that allows HR teams to store and manage employee records. They generally include or integrate with standalone tools that offer core HR functions like payroll, performance reviews, and ATS. Almost all HR software systems have an HRIS at their center, functioning as their employee database management tool.

What does HRIS stand for?

HRIS stands for Human Resource Information System.

What does HCM stand for?

HCM stands for Human Capital Management.

What does HRMS stand for?

HRMS stands for Human Resource Management System.

What’s the difference between HRIS, HCM, and HRMS?

On the surface level, there isn’t a massive difference between HRIS, HCM, and HRMS. They are all comprehensive people management systems that help companies optimize their HR processes.

However, there can be some subtle differences between HRIS, HCM, and HRMS.

• An HRIS is an all-encompassing in-house software for managing people, procedures, and policies.
• An HCM has all the features of an HRIS but often includes talent management capabilities.
• An HRMS is an end-to-end system with all of the features of an HRIS and HCM but often includes payroll and time and labor management capabilities.

What are the different types of HR software?

There are many types of HR software, each addressing specific aspects of human resource management. While some tools do far more than what their label suggests, we group the ecosystem into the following main categories:

• HRIS/HRMS/HCM: Manages employee data, self-service portals, absence and PTO management, benefits administration, performance management, and recruitment tracking.
• ATS: Manages the recruitment process by organizing candidate information, tracking application statuses, and facilitating communication with applicants.
• Recruitment Software: Automates job postings across multiple platforms and track applicant responses, often integrating with ATS to build a pool of engaged talent and improve the candidate experience.
• Onboarding and Offboarding Software: Simplifies the integration of new employees into the organization and ensures smooth exits for departing staff.
• Learning Management System: Administers and tracks employee training programs, focusing on skills development and compliance training.
• Payroll Administration Software: Automates payroll calculations, tax compliance, and financial reporting.
• Performance Management Software: Monitors employee performance, sets objectives, and facilitates regular feedback to support development and organizational growth.
• Employee Benefits Administration Software: Manages employee benefits like health insurance and retirement plans, ensuring accurate enrollment and compliance with policies.

When should a company use an HR software system?

According to Danielle Jones (CEO of Pinnacle Consulting Services, 10+ years in business and HR), if an organization has at least one employee whose full-time job it is to manage people systems and benefits administration, then it is time to start using an HR software system.