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.

• It allows us to easily input time off.
• Provides easy redirects to benefits links.
• Displays a company-wide news feed.

We bought Bob for our talent management and employee management needs. We have used it for 1.5 years. It allows employees to easily view their time off and provides redirects to links for benefits and payroll information. The main issue our organization aimed to solve was finding a more affordable talent management tool.

• Limitations in its capabilities as an applicant tracking system (ATS).
• Limited functionality in managing the recruiting funnel.
• Does not have its own benefits portal.

• Employee-Centric Approach: Unlike many HR platforms that prioritize administrative functions, Bob enhances the employee experience with tools like recognition, surveys, and social features.
• Flexible for Modern Work Environments: Bob is tailored for hybrid and remote work setups, offering intuitive tools for managing distributed teams and fostering collaboration.
• Cultural Insights: Bob’s "People Analytics" dashboard tracks workforce engagement and provides insights to strengthen organizational culture.
• Global Reach: Bob supports global operations with localized compliance and multi-country payroll integrations, appealing to multinational companies.

Consider your company size—Bob is more suited for mid-sized to large organizations. Assess whether your industry operates remotely or in person; Bob is ideal for remote or hybrid setups. Finally, review your current integrations and tools, as Bob is focused on enhancing the employee experience rather than serving as an ATS or HRIS system.

• Learning Management System (LMS): The introduction of Bob Learning equips organizations with tools for managing employee development and continuous learning.
• UK Payroll Integration: HiBob expanded payroll functionality with a modern approach to payroll management for UK-based employees.
• Workforce Planning Module: This feature facilitates planning for scenarios such as reorganizations and mergers, aiding strategic decision-making.
• 1-on-1 Meeting Feature: HiBob introduced templates for onboarding, goal setting, performance reviews, career growth, and regular check-ins to strengthen manager-employee relationships.

• Mid-Sized to Large Organizations: Bob is ideal for companies with 100 to 5,000 employees, offering advanced functionalities for managing larger teams.
• Global Organizations: Bob’s multi-country support and compliance features make it a great fit for multinational companies.
• Companies Prioritizing Employee Engagement: Bob’s tools for goal setting, performance reviews, and social recognition foster strong workplace culture and employee retention.
• Tech-Savvy, Forward-Thinking Teams: Bob’s sleek, intuitive interface appeals to organizations that value modern, user-friendly platforms.
• Organizations with Hybrid or Remote Workforces: Bob supports collaboration and communication in flexible work environments.
• HR Teams Seeking Data-Driven Insights: Its analytics capabilities provide valuable data for decision-making regarding employee performance and organizational health.

Gusto has a user-friendly and intuitive interface for basic payroll and onboarding functions. Their app is easy for our employees to understand and navigate. They integrate with several other third-party apps, such as Checkr for background checks and Guideline for 401k plans.

My company purchased Gusto because it was recommended to us by our CPA as a great payroll provider for small businesses. We needed to find a way to automate as much of the payroll process as possible. We looked for software that would file new hire reports for us, automate the onboarding experience, and pay our employees accurately and on time. We also needed something easy to use and that had the option to integrate with other frequently used apps. I have used Gusto for over two years.

I have experienced several "bugs" when we have unique issues with employees, such as messages indicating an overdue payroll from a year previous after entering an employee's promotion. Their customer service team is available during business hours for calls, but I have been given inadequate solutions several times when speaking with one of these representatives. Their reporting function is very limited and doesn't allow for complex custom reports.

Gusto is an affordable solution for small businesses that don't require complex reporting. If you have a company with 50 employees or less, it may be a great solution. I have used other payroll and HRIS systems, such as ADP, Paychex, and Paylocity, which have more advanced capabilities, and I would recommend one of those for mid- to large-sized companies. The biggest difference between Gusto and these other systems is the ability to create custom reports and formulate data analytics as a tool for talent acquisition planning.

If you're in the market for a tool like this, consider the size of your business and what you will be using the tool for. If you're operating a small business and just want the basics covered, a platform like Gusto may be affordable and practical. If you want the ability to create data analytics and grow your talent, you'll need a system with advanced custom reporting capabilities. Government-required reports such as OSHA 300 and annual EEOC reporting will require data each year, so you'll want to have a tool to handle these needs without manual number crunching.

Gusto meets virtually with customers on a quarterly basis to review their accounts and ensure customers are aware of all the capabilities they have access to. They accept feedback and send ticket requests to their support team for consideration when updates are requested. Since I started using Gusto, they've expanded by giving companies the ability to address employee performance, send out monthly anonymous employee surveys, and upgraded their payroll entry process so that data can be imported from other apps.

Small to mid-sized businesses without complex reporting needs will find Gusto very helpful.

It is affordable and user-friendly. The customer support that is available in the software is good and always active in responding to customers. The application is easy to use for most users. Zoho People is a great option for storing employee information and tracking time.

5 years ago our company started to use Zoho People to deliver exceptional digital HR experiences to our employees while managing the entire employee life cycle on a single platform. I like its simplicity and integration with other Zoho tools like Zoho Payroll, Zoho Books, Zoho Expenses, etc. I love that the request permission, approval, and tracking features are so helpful. I like that the interactive form builder allows us to create different forms that meet our needs and help our HR team.

Sometimes I run into difficulties in terms of data integration between other integrated programs. Zoho People software does not integrate with other similar applications. They only provide a limited number of administrators for Standard and Premium pricing plans. The system is cloud-based only and not flexible to use.

Zoho People comes with an employee portal, organization chart, self-service, performance appraisal, employee leaves management, and salary tool features. All the HR processes can be managed from a central location which can help users to save time and reduce costs. The software offers a fully-mobile self-service that can help employees to get easy access to their HR data from anywhere, anytime. It can help employees have better control over their work.

The price of the solution is low and most people can afford it. Customer support includes online and email user support. Easy to learn and use.

They offer cloud-based hosting, which means IT resources are retrieved through web-based tools and applications and you don't need to buy servers and additional hardware equipment.

It is very good for small and medium size companies.

• Factorial has a clean and user-friendly interface, making it easy for employees and administrators to navigate.
• It covers a wide range of HR functions in one platform, which is helpful for smaller companies that need an all-in-one solution.
• The pricing is reasonable compared to more well-known HRIS systems, making it a good option for businesses with a limited budget.

At a previous organization, we decided to invest in Factorial HR because we needed an actual HRIS instead of piecing together different tools. At the time, we were storing personnel data in various cloud solutions, benefits information was scattered across different platforms, and there was no centralized way to manage key HR functions.

We wanted a system that could streamline employee data, track time-off requests, and handle performance management in one place. Factorial seemed like an affordable solution that covered multiple HR needs without requiring a large budget or extensive implementation.

I used the platform for a while and found that, while it met basic needs, it had some limitations compared to more established HRIS solutions.

• The customer service experience wasn’t great, as response times were slow and support wasn’t always helpful.
• The platform, while functional, lacked the depth and flexibility of more established HRIS solutions.
• Some features, like reporting and customization, felt limited, making it harder to tailor the system to our specific needs.

Factorial is a smaller platform compared to major HRIS providers, which means it offers a more simplified experience. One unique advantage was its ability to handle international payroll and support multiple currencies, which was useful for our global operations.

While it doesn’t have all the features of larger competitors, it provides a budget-friendly option for businesses that need core HR functionalities without a steep learning curve.

It is important to assess where your business is currently and where you see it growing in the future. Factorial is a strong choice for small businesses that have little to no HR support and need a tool to centralize employee data and processes. It is suitable for companies looking to improve HR workflows without making a large financial commitment.

Larger organizations or those with complex HR needs may benefit from a more established HRIS that can scale with growth.

Since I last used Factorial, they have improved their payroll functionality, making it more reliable and user friendly. They have also resolved some issues in key modules like time-off tracking and time and attendance, which had previously caused frustrations.

The platform appears to be making steady improvements, though it still has room to grow in terms of advanced HR capabilities.

Factorial is a great fit for small businesses with fewer than 50 employees, especially those with little or no dedicated HR staff. It helps keep employee records organized, streamlines time tracking, and provides basic HR functions without requiring extensive training or setup.

I like the user experience. I like that the platform takes a fun approach (not cookie-cutter). I really love that I can set up a page for each country we do business in but have all the pages in one portal.

Our organization had many pain points as a startup. We needed the flexibility to hire people outside of the US quickly. Oyster was super user-friendly and was a wonderful EOR for us. I can't say enough nice things about their product and people! I have personally used them for just over a year.

Cons of having an EOR (or a PEO) are that we have less control over growing costs year over year (especially benefits costs - you are pretty much stuck with their recommendations). Another disadvantage of Oyster is the detailed customization usually wanted in smaller businesses. The cost of the tool is also steep.

Oyster is different from Atlas, for example, in the user interface. Oyster is more fun to use! In HR, so much of what we do is serious, urgent, and complex - high stress. This tool makes the work a bit more enjoyable.

Do you need an EOR? Have you researched EOR versus PEO, and why is an EOR more of a fit for your company?

They seem to be making continual improvements. Not stagnant.

Oyster can be a great fit for a company with employees, contractors, or vendors in multiple countries worldwide.