The 10 Best HR Software for Small Business of 2025
The best HR software for small business as picked by SSR's expert HR tech reviewers. Read about features, benefits, pitfalls, pricing, and more below.








Small business HR software provides a range of functionalities designed to streamline and manage various human resource tasks.
The HR software market is packed with options. So many, in fact, that buyers are left confused and frustrated. We’re here to help! This guide offers general guidance and an expert perspective on crucial features like employee self-service, automation, and integrations.
Between product testing, user research, and talking to experts, we have put hours into this guide. In addition to offering product suggestions, we'll teach you how to evaluate HR software on your own. You’ll learn what to expect, what to avoid, and what to ask.
We’ve reviewed hundreds of HR software products over the years. In that time, we’ve learned the best way to give you what you’re looking for is to distill it down to the essentials.
This guide evaluates the most critical functions of HR software for small businesses. With our hands-on experience in HR, we were able to trim it down to three key elements: employee self-service, automation, and integration.
- Employee self-service: Small businesses are especially vulnerable to the harmful effects of wasted efforts, and this risk should be accounted for in the features of its HR software. Self-service portals empower employees to enter and update their own information. It may seem like the impact of employee self-service (ESS) is minimal, but the cumulative effect is substantial. Among other factors, our ESS evaluations note the ease of use, the number and type of data employees could access and update, and the platform's attention to information security protocols.
- Automation: Streamlined workflows save time, reduce errors, and allow your HR team to apply their efforts to tasks that need a human touch. To evaluate this factor, we asked industry experts to use their wide-ranging HR experience to assess the workflow of each tool. We coupled that with input from our user researchers, who ran simulations of typical sequences across the employee experience, like hiring, onboarding, and running payroll for a new employee.
- Integrations: Choosing HR software that doesn’t integrate with your current tech stack will cause significant challenges in the future. When testing integration capabilities, our evaluations were essentially pass/fail: our team checked for compatibility with common, standalone tools (the kind that small businesses use when starting out) and rated each platform on the number they could connect to.
You should know that we are approached by far more vendors than you see on our site. After careful vetting, only about one in ten make the cut. It’s a lot of work, but to offer you solid advice on buying HR software for small businesses, we must reevaluate our choices constantly.
You can learn more about our selection criteria and research methods by reading this article on how we assess HR tech vendors.

GoCo

GoCo provides payroll and benefits administration, performance management, hiring, onboarding, documentation, time tracking, and HR support from a centralized dashboard. It’s also a versatile solution that seamlessly integrates with some of the most popular apps and services.
PROS
- GoCo is a highly affordable solution for small teams and organizations that only have a few employees, especially if those employees work remotely and maintain flexible schedules.
- GoCo gives users the ability to automate recurring tasks and activities, i.e. providing new hires with the necessary documents, collecting their e-Signatures, and setting termination protocol in motion.
- GoCo is also available as a mobile app. This provides even more support to today’s mobile workforce by giving them the luxury of requesting time-off, managing their benefits, or viewing their performance reports from nearly any location in the world.
- GoCo includes a fully embedded payroll solution that is highly secure. Alternatively, GoCo’s Payroll Sync feature is capable of connecting with several cloud-based payroll solutions.
- GoCo is a highly affordable solution for small teams and organizations that only have a few employees, especially if those employees work remotely and maintain flexible schedules.
- GoCo gives users the ability to automate recurring tasks and activities, i.e. providing new hires with the necessary documents, collecting their e-Signatures, and setting termination protocol in motion.
- GoCo is also available as a mobile app. This provides even more support to today’s mobile workforce by giving them the luxury of requesting time-off, managing their benefits, or viewing their performance reports from nearly any location in the world.
- GoCo includes a fully embedded payroll solution that is highly secure. Alternatively, GoCo’s Payroll Sync feature is capable of connecting with several cloud-based payroll solutions.
CONS
- Transitioning your payroll to the GoCo platform can be challenging and some users report a steep learning curve with the GoCo platform in general.
- Some users report difficulty when scheduling time-off for employees that aren’t full-time, especially if their pay is prorated.
- In certain cases, benefits plans cannot be edited by your administrative staff, ultimately requiring customer support to add information for new carriers or edit the information of existing providers.
- There are a few persistent technical glitches that are yet to be resolved by technical support.
- Transitioning your payroll to the GoCo platform can be challenging and some users report a steep learning curve with the GoCo platform in general.
- Some users report difficulty when scheduling time-off for employees that aren’t full-time, especially if their pay is prorated.
- In certain cases, benefits plans cannot be edited by your administrative staff, ultimately requiring customer support to add information for new carriers or edit the information of existing providers.
- There are a few persistent technical glitches that are yet to be resolved by technical support.

GoCo functions as an all-in-one solution to your HR, payroll, and compliance needs. Not only will your team save time by accessing all of these activities in one convenient location, but their direct line to HR ensures that their voices are being heard.
One of GoCo’s key features is the ability to automate certain tasks, like onboarding and even pre-boarding. This ensures that your new hires have everything needed to get started while freeing up your managers and supervisors to look after their daily responsibilities.
GoCo is used by organizations such as Comit Developers, Caliper Foods, Synstelien Community Services, Stoughton Area School District, and Dom & Tom.
GoCo pricing starts at $5 monthly for each employee. Custom pricing plans are available.
Best For
GoCo would make a great addition to the tech stacks of small to medium-sized businesses (SMBs) looking for a budget-friendly yet comprehensive HR software.
When you log into GoCo, you access a centralized platform for managing all employee information. The system allows you to navigate through a dashboard where you can select individual employees to view their personal details. This includes essential information such as contact details, job titles, identification records (e.g., driver's licenses and passports), and any other relevant paperwork stored within the system.
The platform provides flexibility in customizing and storing different types of documents based on organizational needs. Additionally, GoCo offers an organized way to oversee employee data, ensuring that everything is easily accessible when needed.
- 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.
Organizations with fewer than 50 employees will not find GoCo helpful.

Workable

Workable has done an excellent job expanding beyond recruiting into a full-fledged HRIS for SMBs. We like that the platform’s user interface is modern and intuitive, and features for onboarding, employee self-service, and HR reporting are particularly well-developed.
PROS
- Automated onboarding with customizable workflows, e-signatures, and task reminders.
- Self-service employee portal for updating records, accessing documents, and submitting HR requests.
- Intuitive time-off management with leave tracking, policy customization, and approval workflows.
- Comprehensive HR reporting tools with export options for deeper analytics.
- Regularly introduces new features and enhancements.
- You can post jobs with one click to over 200 sites. You also get access to access to Workable’s talent pool with over 400 million profiles.
- Workable has built-in cognitive and personality candidate assessment. The platform also has features for offer management, which means you can create offer letters and collect e-signatures without needing to use third-party tools
- You can reduce unconscious hiring bias with Workable’s anonymized screening feature. It helps you hide identifying candidate information from the sourced and applied stages of the hiring process.
CONS
- No built-in payroll tool and payroll integrations are only available on the highest-tier plan.
- Time tracking and performance management features are relatively new and lack some depth in functionality.
- Higher price points compared to some alternatives like Connecteam and Zoho People.
- Workable doesn’t provide automated reference checking and onboarding features.
- Useful features such as candidate texting, video interviews, and assessments are not offered in any of Workable’’s plans and instead, sold separately.
- Several users complained about the reporting feature not being detailed or customizable enough, and that the candidate search function could use more filters.
Workable may be best known for its recruiting tools, but after testing its HR features, we quickly saw why it deserves a spot among the top HRIS options for SMBs. From onboarding to time-off management, the platform takes a lot of the manual work off HR’s plate, and we were pretty impressed with how smooth it made things.

One of the biggest highlights for us was its automated onboarding. Setting up a personalized welcome portal took minutes, and we loved how smoothly it handled e-signatures, progress tracking, and task reminders for hiring managers. What really impressed us, though, was the ability to customize workflows for different roles—something that could save businesses significant time compared to manual processes.
Managing employee records was another area where Workable stood out. Employees could update their own information, access company documents, and submit HR requests without having to rely on HR for every little thing. It might not sound like a huge deal, but in our test run, this small change noticeably reduced admin back-and-forth, and it was reassuring to have a detailed history of role changes, salary updates, and approvals all in one place.
Time-off and PTO management were equally well-executed. Employees could check their leave balances and submit vacation requests through an intuitive self-service portal, while HR had full control over policy customization and approval flows.
We also liked the HR reporting tools, which made it easy to generate reports on workforce trends, attendance, and time tracking. Plus, being able to export data to BI tools was a nice touch, especially for small businesses looking to get deeper insights without investing in separate analytics software.
However, we couldn’t help but feel disappointed by the lack of a built-in payroll system. Payroll integrations do exist, but they’re locked behind the highest-tier plan, which might not be realistic for smaller teams on a budget.
Teams with a largely mobile workforce may also find Workable’s time tracking tool limiting, as it doesn’t provide a GPS-enabled clock-in feature for tracking remote or field employees.
And pricing is another factor worth considering. Workable is transparent about costs, but it’s unfortunately not the most budget-friendly option out there. Compared to some alternatives like Connecteam (starting at $0), Goco (starting at $5 per user per month), and Zoho People (starting at $4.61 per user per month), Workable’s pricing (starting at $99 per user per month) might be a tough sell for SMBs that only need basic HR functions.
That said, Workable is continuously evolving. The vendor rolls out new features almost every month, and the recent updates like automatic calendar updates for booked time off and a time-off balance calculator have already made a difference. So if you’re an SMB looking for an intuitive, automation-driven HRIS that keeps improving, rather than a low-cost option with only the basics, Workable is definitely worth considering.
30,000+ companies, including Bevi, Dribbble, and Moodle.
Workable's HR bundle starts at $99 per month (billed annually), with a 15-day free trial and bundle discounts.
Best For
If you’re an SMB looking for a modern HRIS with strong employee management, HR automation, and compliance tools, Workable is worth considering—especially given its frequent product updates and ongoing feature improvements.
We leverage Workable's platform to broadcast job opportunities across a wide range of prominent channels, such as Indeed, LinkedIn, Facebook, Google, and Glassdoor, ensuring maximum visibility for our job postings.
Upon receiving applications, Workable enables me to assign specific roles to the relevant hiring manager within our organization, streamlining the recruitment process.
Each hiring manager uses Workable's intuitive interface to assess candidate profiles, review CVs, and track application progress from a centralized dashboard.
This collaborative approach fosters transparency and accountability, engaging all stakeholders in the hiring process.
Workable acts as a comprehensive solution, providing a centralized hub for optimizing recruitment and onboarding processes. It consolidates various functionalities necessary for efficient talent acquisition and the seamless integration of new hires.
From posting job openings to managing applications and scheduling interviews, Workable streamlines every step of the recruitment lifecycle. A standout feature is its ability to foster collaboration between HR teams and hiring managers, ensuring strategic and cohesive hiring decisions.
We were in search of a comprehensive solution to enhance our recruitment and streamline our onboarding processes. Workable emerged as the ideal platform to effectively meet these needs. It offers a suite of powerful recruitment tools, including job posting management, candidate sourcing, and applicant tracking. These features enable us to attract top talent, manage applications efficiently, and streamline the entire hiring process.
Workable allows us to tailor our recruitment workflows to our specific needs and organizational structure, enhancing efficiency and consistency across all hiring activities. It also facilitates collaboration among hiring teams with features like candidate feedback, interview scheduling, and communication tools, ensuring informed hiring decisions.
While Workable's interface is user-friendly, it can become overly complex or cluttered, particularly when navigating through multiple features or conducting advanced searches. A more streamlined and intuitive interface would improve usability.
Workable excels in providing an intuitive and user-friendly interface, making it accessible to users of all technical proficiencies. Its well-designed layout and straightforward navigation enhance usability, enabling users to efficiently perform recruitment tasks without the complications of complex interfaces.
When considering an ATS tool, evaluate its features and functionality. Ensure it includes essential capabilities such as job posting management, applicant tracking, CV review, candidate communication, interview scheduling, and reporting/analytics. Also, consider whether it offers advanced features like AI-driven candidate matching, automated workflows, and customizable dashboards to streamline the recruitment process.
Workable continually enhances its feature set, providing users with more robust tools for recruitment and hiring. Improvements to applicant tracking, job posting management, candidate communication, interview scheduling, and reporting/analytics have been made. New features such as AI-driven candidate matching, automated workflows, and customizable dashboards have been introduced to further streamline the recruitment process.
Workable is an excellent solution for businesses of all sizes, from small startups to large enterprises. Its versatility and scalability make it suitable for organizations at different stages of growth.
Workable may not be the best fit for very large enterprises with complex organizational structures and extensive hiring requirements, which may need more advanced features and customization options. Additionally, highly regulated industries such as healthcare, finance, or government may require specialized ATS solutions tailored to their specific regulations and security standards.

Connecteam

Connecteam stands out as the premier all-in-one HR software tool tailored specifically for small businesses with a significant number of deskless employees. It comprehensively addresses most core HR concerns in a way that caters to the unique needs of unanchored workers.
PROS
- Among the rare fully-mobile HR tech tools designed for deskless workers
- Great value for its features, SMB-friendly pricing
- Highly receptive to user feedback, incorporating suggestions as new features
- One of the only fully-mobile HR tech tools for deskless workers
- Very adequately-priced for all it entails, SMB-friendly
- Quite open to feedback, having implemented user suggestions as features in the past.
CONS
- In the communication hub, the app lacks confirmation for sent and/or seen messages.
- Certain essential features like GPS-tracking are restricted to higher-tier pricing plans.
- In the communication hub, the app offers no confirmation that messages were sent and/or seen.
- Certain features that some teams consider essential, such as GPS-tracking, are only available in the higher-tier pricing plans.

Connecteam is the HR app for companies with a high percentage of deskless workers to manage. If you need a simple, robust, yet intuitive tool that lets you take care of HR processes for low-tech employees who don’t have a computer, this one is certainly worth checking out.
From the Connecteam app, managers can handle administrative work, like staff scheduling, task management, attendance management, time keeping, training, onboarding, and much more. Non-desk workers then interact with all of this via a mobile app, where they need nothing but a phone number to create an account.
Nike, Herbalife, Billabong, Footlocker, Mason Construction, American Eagle, McDonald’s, and many more.
Connecteam’s pricing can range from free-for-life to up to $159 per month. Final numbers will vary depending on the number of users and modules you choose. To give you an idea, here’s an overview of each plan within the operations module:
Connecteam’s payment structure is fixed for the first 50 employees you add. Once you add more, there would be an extra payment of $1.5 per additional employee per month.
These pricing options are yearly, where you save 18%, but you can also opt for month-to-month payments. They also offer enterprise pricing with more features and a personal account manager. Each paid plan also has the option of a 14-day free trial.
Best For
Connecteam connects and empowers teams and businesses of all sizes. Its user-friendly workforce management tool caters to low-tech, deskless workforces without extensive IT intervention. Industries served include healthcare, manufacturing, security, and more.

BambooHR

BambooHR is a leading HR software, catering to both large companies and small businesses with its flexible pricing options.
PROS
- BambooHR is an HR tool tailored for small businesses, providing flexible packaging and customizable pricing, enabling you to expand features as your business scales.
- BambooHR is a simple and straightforward tool that is easy to navigate. This user-friendly interface and intuitive design is especially great for SMBs since tools like these tend to be used by managers across departments.
- Robust employee self-service features include onboarding, time off requests, and surveys.
- Flexible packaging and custom pricing is the way they roll. You can pick out one or two packages and pick other modules as add-ons based on your needs.
- Very simple and straightforward tool, easy to use.
CONS
- Payroll functionality within BambooHR is currently limited to U.S.-based employees.
- Small businesses operating in time zones outside of the U.S. should note that customer support is not available outside of U.S. business hours.
- Some features, including time tracking, employee surveys, and the entire performance management suite, are only available as add-ons that can add-up on an SMB budget.
- BambooHR's reporting capabilities, although sufficient for many small businesses, may not provide the advanced analytics and customization options required by some data-centric organizations.
As a cloud-based HR tool, BambooHR's offline functionality is limited. This may be a drawback for small businesses in areas with unreliable internet connectivity or those with a high percentage of deskless employees.
BambooHR - one of the best HR software for small businesses
- Payroll is only available for US-based employees
- Customer support is only offered during US business hours.
- Some modules like time tracking, performance management, and surveys are only available as add-ons.

Having once been a small business, BambooHR strives to provide custom plans to suit growing business needs. Their HR platform covers the entire employee lifecycle, though some features, including performance management, are available only as an ad-on.
For small businesses, they offer the HR Essentials plan. They also offer various amenities, including an app marketplace for HR/recruiting vendors, an HR glossary, and occasional HR-focused events.
Among the 20,000+ companies that use BambooHR, you’d find names like Quora, Universal Group, Reddit, Asana, Change.org, University of Maryland, Grammarly, Stance, Postmates, Wistia, the Jacksonville Jaguars, and ZipRecruiter.
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
BambooHR is a go-to resource for countless small businesses for good reason. It’s always been an approachable tool, well-known for its customizable capabilities. Its flexible pricing options cater to the requirements of growing organizations. Additionally, BambooHR's popularity among partially or fully remote teams further makes it an ideal choice for small businesses embracing flexible work arrangements.
I use BambooHR for onboarding and offboarding. I also administer it personally in my organization. We've been digging into the performance management piece of it. We've been able to participate in trainings sponsored by BambooHR to acquire deeper skills. Overall, BambooHR is a key aspect of our employee experience.

I like BambooHR because it's user-friendly. I also like that it's a system where you can really track important data like job titles and salary changes. Finally, I like that BambooHR is easy to use.
We bought BambooHR to establish a centralized place that could securely store our employees' data for our HR team. We also wanted to create a seamless onboarding and offboarding process. The customer service is impeccable at Bamboo and they're always very helpful. It's also very user-friendly. I've used the product personally for one year.
I wish BambooHR offered a way for us to administer stock options and 401K directly through the program. I also wish we had a dedicated account rep, which we, unfortunately, do not have at this time. I would love to see more engaging ways for our employees to be onboarded, as well.
They're different because they have a very attractive interface and the response rate of the customer service team is higher. They also tend to offer a more diverse set of program features.
I'd recommend really digging in to make sure you're taking advantage of all of the features and integrations Bamboo has to offer. Also, I'd recommend smaller companies (less than 50 people) really consider if this is a tool that's right for their size.
The training content they've offered is impeccable.
I'd say an organization of at least 50+ people.
An organization with fewer than 50 on its team.

HiBob

Bob is a modern-looking HR solution notable for its ease of use. Small businesses in various countries use it to streamline their HR operations with remarkable customization and efficiency. It’s excellent for managing international teams.
PROS
- Good customization for international operations. It’s easy to manage workflows like time off requests, parental or other types of leave, and employment types, across several countries, depending on how you’re set up.
- Contains some intranet-like features, which is odd for an HRIS, but a nice-to-have, people frequently point out. For example, people can post ‘shout-outs’ to the home page.
- They have tons of modules, which makes them a real one-stop shop. Beyond Core HR, they have modules for most things People Ops-related.
- Bob is a fast-growing company and their product looks the part, as it has one of the sleekest-looking platforms in the HRMS space right now.
- Their payroll hub allows you to connect all your payroll systems, which works great if you want to pay people in multiple locations without switching providers.
CONS
- Reporting can be somewhat basic for an HRIS
- As it’s made to be an HRIS, some modules are limited in function compared to more specialized tools. For instance, its performance module can also do surveys, but some of the users we consulted think these would benefit from more options and customizable parameters.
- Customer support is only offered via a chatbot and email.
- As to implementation, several users commented that they felt there could be more attention via personal walkthroughs provided at the beginning. Many had to resort to reading documentation and watching videos or just figuring things out by themselves.
- Pricing is only custom and available upon request, so you can’t just sign up, pay, and start using the tool.

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.
Tufin, Yotpo Ltd., Fiverr, Happy Socks, Taptica
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.
We use HiBob HRIS everyday as all of the employee info is stored in there. We used it for creating key reports, onboarding, offboarding, internal communications, and kudos. Once you're in the system, you have the capability to set up workflows to automate which is helpful. For onboarding, we had it integrated into our ATS which was Jobvite. Overall it was pretty seamless and easy to use.
- Bob was a fun and engaging HRIS that employees really enjoyed.
- It allowed a lot of interaction within the platform, and for people to get to know each other better.
- There was a surprising amount of customizability you could get from the system.
I used HiBob HRIS between 2019-2020. We unfortunately had to move off of BambooHR, and HiBob was the next best platform for our company of 250+ employees. During my time, we'd used it for about 1 year. It's a very people and engagement oriented HRIS that encourages a lot of opportunities to celebrate each other, interact around any announcements, and is very culture focused. The key benefit it provided was a culturally engaging HRIS that employees enjoyed using once they were trained on it.
- It had a lot of bugs and the server can be slow at times. Hopefully this issue has resolved over time.
- It's not an all-in-one platform, they encourage you to partner with other best in class payroll, time keeping, etc. systems.
- The UI looked great, but the UX was a bit clunky. For almost all processes, there was a lot of click through that had to be made and the experience was not very user friendly.
Bob excels at creating a people first and culture centric HRIS which most do not do. At most it's where you check for your payroll. However, we got a lot of great positive feedback around the platform itself. Around HR Processes though, they seemed to still be growing in functionality at the time (2019). They are integrated with a lot of the major brands / companies around payroll, timekeeping, etc. so it makes it easy to use across platforms.
- All-In-One Platform: If you're looking for an all in one platform, this won't be the best fit. However, if you're looking for a good culturally engaging HRIS this would be a good option!
- Onboarding -> Payroll -> Offboarding Workflow: It's important to think about where you're starting your employment/ onboarding workflow since it's not an all in one system. To avoid double work / entry, it's very important to map out where you want to include what data and how you can transfer that across platforms.
Bob was very hands-on and interactive throughout the implementation, training process. They've got an aggressive and extensive roadmap which is exciting. They receive feedback very well, and it was exciting to grow alongside the company and system because we did see things change rapidly within the system for the better.
I think Bob is best for <500 employee companies. It would also probably be better for companies who have a majority of salaried employees vs. hourly non-exempt. And also for a company that wants to use the best in class platforms for various parts of the people experience.
Bob would not be great if you're looking for an all-in-one HR platform. If you use your HRIS for timekeeping and time off tracking, it also may not be the best fit. Larger organizations may have a hard time using Bob.

Gusto

Gusto's new native ATS enhances its offerings, allowing job posting, syndication, interview notes, and basic scheduling. Designed for employers with moderate hiring needs, it seamlessly integrates with the Gusto platform and demonstrates promising functionality and reliability.
PROS
- Gusto automatically files state new hire paperwork for users.
- Self-onboarding allows employees to add or update personal info, including bank details and withholdings.
- I-9s and W-4s are e-signed and stored within the system.
- Customizable offer letters and onboarding checklists for new hires.
- Native features to post jobs on popular job boards (LinkedIn, Indeed, ZipRecruiter, etc.) and track applications in one place.
- Accessible phone and email support.
- Payroll support for U.S.-based W-2 employees and domestic/international contractors.
- Transparent pricing without long-term contracts or setup fees.
- The dashboard feature keeps tabs on compliance tasks
- The hiring and onboarding sequence is nicely streamlined between HR and the new hire
- Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
- Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
- Person-to-person phone support, email, and other customer service resources
- The business model is responsive to customer needs
CONS
- No capacity for hiring or paying non-U.S. employees
- Time tracking and e-signatures missing from Simple plan
- Only Premium plan users can access 24/7 support
- Free trial not offered
- Gusto can support payments for international contractors, but not employees
- No native accounting feature to keep earning and spending under the same roof
- Analytics dashboard is simplistic

Gusto's HR solution with its native ATS is a reliable and efficient tool that simplifies hiring, onboarding, and payroll processes.
The ATS feature integrates with popular job boards like LinkedIn, Indeed, and ZipRecruiter and is particularly useful in reaching a wider pool of candidates. It also automatically files state new hire paperwork, helping users save time and ensure compliance.
Another quality feature is Gusto’s self-onboarding: employees can update their personal information, including bank details and withholdings, here on their convenient devices. The e-signature capability for I-9s and W-4s also eliminates manual paperwork.
Gusto provides customizable offer letters and onboarding checklists, allowing users to tailor the onboarding experience for new hires.
As Gusto’s core product is payroll, its capability to provide this service is excellent. Users can use Gusto to pay their W-2 employees and contractors across the U.S. and worldwide. Paying global employees is the only thing Gusto payroll hasn’t covered yet. Thus, the tool is not a good fit if you’re doing international employee hiring.
Gusto serves over 400,000 businesses nationwide, with a large portion made up of small and midsize companies.
Gusto’s HR software for small businesses starts at $49 per month plus $6 per employee, with higher-tier plans available that offer more advanced HR features, including time tracking, performance tools, compliance alerts, and access to certified HR experts.
Best For
Gusto offers a budget-friendly basic plan, making it accessible to startups with limited budgets. For SMBs with smaller HR departments and greater financial capacity, the Premium plan is a recommended choice to invest in human resources effectively.
I used payroll biweekly, then switched to weekly (payroll changes of this type are extremely well handled in their system). Annually, we update the employee handbook (which is automatically emailed/text-blasted to the employees for an electronic signature), semi-annually for all harassment/employee education (also via a partner listed in Gusto), as needed to onboard/terminate a new employee, and daily as needed to update employee records or pull reports for analysis.
The software is laid out very nicely, making it easy to find anything, and all employee documents are in one place. Reports are easy to find and customize. Their help desk is extremely knowledgeable. If they can't help you, it's elevated via a ticket system to an in-house engineer. Gusto is so user-friendly that an employee can learn what they need to know in minutes.
Gusto was purchased for a small company's payroll, HR management, and processes.
We needed to simplify payroll, become fully HR compliant, and organize processes (handbook, reviews, job descriptions, tax documentation, etc. for the team). HR at the time had worked with various large platforms that would not suit our needs because they were overly complicated with a cumbersome setup for a small company.
Combined with features we would never use, these platforms were an unworkable option. This led us to find a vendor specific to small businesses. A colleague of the owner suggested Gusto. After one demonstration, we decided to go with the full suite of offerings (Premium) but later reduced to Plus. Once you learn the features, you know what you can do without and save some money.
One problem we had, which Gusto was unable to solve at the time, was timekeeping. We added a timekeeping system that partners with Gusto for a seamless hourly staff payroll. There are lots of options listed within Gusto.
I've used the Gusto tool for four years. All our HR problems were solved. Gusto works perfectly for a small business (under 100 employees). Payroll is a snap. Managers approve their employees' time, it's filtered into the Gusto system, and ready for final approval/submission within minutes.
Additionally, you have a window to pull back payroll to make changes. All adjustments (healthcare, court-ordered payments, etc.) are easily set up via each employee, and changes can be made within seconds. Employees can update their personal or tax information right in their app, which is very convenient for them.
Gusto simplified the entire onboarding process, along with payroll, handbooks, employee reviews, etc. Gusto needs to add their own time clock system (if they haven't already), but their time clock partners work extremely well.
One last point, if you want to be very specific about which employee's information their manager is allowed to see, Gusto has levels of permissions for managers and employees built into the software.
It would be nice if they had a timekeeping system (that wasn't on the internet), reducing the need for another app. It would also be nice if Gusto had an applicant tracking system. PTO can be cumbersome to figure out on an accrual basis.
Gusto is by far the best payroll, HRIS software I've used mainly due to its simplicity and speed.
How many employees do you plan on running through the system? Payroll over 100 could be run better on a different platform. Understand what Gusto cannot do that you'll need to add on (timekeeping app, harassment training). What does your accounting firm do for you that Gusto can automate? 940/941 filings, tax setup for unemployment in each state.
I'm a fan of their customer service; however, many think they're too slow. Growing pains, Gusto's management will catch up. They've streamlined even more in the last four years.
The entire HR department and all managers with staff in small business can find Gusto to be a great fit.
Gusto is not suited for a company with a large number of employees. They gear their product to small businesses, and they're good at it.

Zoho People

Zoho People provides a comprehensive solution. Features include employee self-service, time and attendance management, performance tracking, payroll management, announcements, and user access control. What sets it apart is its budget-friendly pricing options and forever-free plan. This makes it an ideal, scalable solution for fast-growing businesses, startups, and small teams.
PROS
- All core HR features in a single dashboard.
- Gives certain users access based on job roles, hierarchies, or locations.
- Announcements feature helps users stay updated with work-related activities.
- Wide array of integrations.
- Has an Android and iOS app.
- Transparent and affordable pricing. Has a free plan and a 15-day free trial.
- 24/5 support.
- Available in multiple languages.
- All core HR features in a single dashboard
- Wide array of integrations
- User-friendly UI, constantly updated
- Available in multiple languages
CONS
- Since they offer so many modules, some maybe not be as robust as other products that have been more specific about covering particular needs. For instance, some teams have found their payroll offering quite basic.
- The mobile app isn’t very user-friendly.
- Some users reported that the platform can be slow to load every now and then.
- Since they offer so many modules, some may be not as robust as other products that have been more specific about covering certain needs. For instance, some teams have found their payroll offering to be quite basic.
- Not all that’s available in the web platform is available in the app
- Some users reported that the platform can be slow to load every now and then.

Zoho People offers an impressive list of features on each pricing plan, so most teams can find a good feature fit at a price they can afford. The platform even provides a free plan for up to five users.
Cases is a unique feature. It allows employees to submit HR questions into specific topic categories and receive immediate responses from agents assigned to them. It's a simple yet remarkable feature that saves employees and HR colleagues time.
With its access control management feature, users can assign permissions based on specific roles, defining precise access levels for each individual. This ensures that admins can effectively control what others can or cannot access within the system.
Another noteworthy feature is Announcements, which allow administrators to share information using diverse content types. The feature's customization options, including formatting and location-specific visibility, further enhance its usefulness.
Zoho People’s self-service feature enables employees to access their records and perform HR operations like leave management, timesheets, and policy documents.
The mobile apps further enhance accessibility, although some users have expressed dissatisfaction with their occasional instability and subpar performance.
Some room for improvement can be found in tools like payroll, which is relatively basic compared to similar tools.
ZPE Systems, Cloudfronts Technologies, Zomato, SpiceJet, Foresight CFO.
Zoho People is free for up to 5 users. After that, it has four plans that priced as follows:
- Essential HR: $1.25/user/month billed annually.
- Professional: $2/user/month billed annually.
- Premium: $3/user/month billed annually.
- Enterprise: $4.5/user/month billed annually.
Best For
Zoho People is an affordable yet powerful solution for small and medium businesses to manage and access employee data from a centralized location.
From an HR perspective, Zoho People functions similarly to other HRIS platforms. It allows you to add new employees and input their personal information, compensation, documents, PTO, training, and performance tracking.
From the user side, the interface wasn’t the most intuitive when we used it last in 2024, which was a common piece of feedback. I still have access to Zoho People now, and it has changed drastically in terms of design since then.

Our use of Zoho People was part of a larger bundle that included multiple Zoho systems like CRM, Sign, and Learn. We paid just over $2K monthly for access to these tools, with CRM being heavily utilized by the team.
The main advantage was the cost-effectiveness of the bundled package. If not for that, Zoho People wouldn’t have been our first choice. A user-friendly interface is important to us since our demographic is predominantly millennials, followed by Gen Z.
Ease of use and modern design were key factors in our selection process, which ultimately led us to transition away from Zoho People.
The company I worked for used Zoho People for three years since it aligned with Zoho CRM, a tool the sales team already used. It was the logical choice to stay within the same ecosystem. It also offered many free features that met our initial needs as a startup. As the company grew, we required more advanced functionalities, which eventually led us to transition to a different HRIS system.
The user interface was not as intuitive as other systems I've used as an HR leader. Navigation often felt outdated and clunky. Customization options were limited compared to competitors.
It’s not on my list of preferred HRIS platforms. It does the job and works well for companies just starting out that need a basic system for storing personnel files, providing easy employee access, and offering competitive pricing. From both a backend and user perspective, it’s not ideal. I would still choose other HRIS options like BambooHR or HiBob.
Usability should be the top priority. I’ve launched several HRIS platforms, and at the end of the day, employees need to actually use the system. No matter how great the backend is for HR or how competitive the pricing may be, if the user interface is too complicated, adoption will be a challenge. The system’s overall aesthetic should align with the company’s demographic to support engagement and success.
It improved over the time we used it, but the challenge was that competitors remained ahead of the curve. This made it a tough business decision to stick with Zoho People while waiting for it to catch up. Since we migrated out in December, I’ve noticed significant interface changes, but not enough to make me regret leaving the platform.
Zoho People is a good fit for teams already using Zoho CRM, as it makes sense to keep everything within the same ecosystem. It’s a practical choice for companies looking for a cost-effective, all-in-one solution. I personally think the interface seems to cater more to older generations. It sometimes feels like an elevated version of what AOL Instant Messenger would look like.
Anyone in the creative industry or millennial users and younger.

Keka

It’s nice that Keka’s HR software blends core HR, payroll, and workforce engagement into one platform that grows with a business. Its tiered pricing lets SMBs start small with essential automation, then add advanced analytics, engagement, and performance management tools without switching systems.
PROS
- Three tiered plans let SMBs scale features as they grow.
- Payroll is included in all tiers with direct deposit, tax filing, and benefits tracking.
- Customizable onboarding workflows and interactive employee profiles.
- Built-in time and attendance with overtime automation; GPS and selfie attendance in higher tiers.
- Performance reviews, OKRs, and continuous feedback available in the top plan.
- Mobile app access for employees from the entry-level plan onward.
- Federal and state tax filing is included at all tiers.
- Flexible pay schedules with direct deposit support.
- Overtime and leave policy automation to match local labor laws.
- Benefits, loans, and expense tracking in one place.
- Built-in dashboards and reports to monitor payroll trends.
- Accounting integrations for streamlined finance workflows.
CONS
- “Free Trial” requires a sales demo before access, which isn’t communicated upfront.
- Implementation fees apply for setup, payroll configuration, and data migration.
- Some advanced features (custom reports, asset tracking, engagement tools) locked to higher tiers.
- Multi-entity payroll and API access sold as add-ons.
- Slow page load times during demo could affect productivity.
- “Free Trial” access is gated behind a sales demo and disclosed only after signup.
- Implementation fees for setup, tax configuration, and data migration.
- Advanced tools (custom reports, asset tracking, engagement surveys) only available in higher tiers.
- Multi-entity payroll and API access require add-on fees.
- Slow load times in the demo raise usability concerns about payroll deadlines.
For SMB HR teams, the appeal of Keka is clear: payroll, core HR, and compliance are all included from the start, and you can add more sophisticated tools as your business matures. At $9 per employee per month, the Foundation plan handles essentials like profiles, onboarding, payroll, benefits, time-off, and attendance without the complexity of dealing with multiple vendors.

What stood out most in our demo, perhaps, was how well onboarding and employee self-service are executed. HR can set up department-specific onboarding checklists, and employees can manage their own documents, personal details, and leave requests through both the web and mobile app. For small teams, this can mean fewer emails and faster updates to employee records.
As companies expand, the Strength and Growth tiers unlock more control and strategic tools such as advanced roles and permissions, custom reports, GPS or selfie attendance for distributed teams, and performance management with OKRs and continuous feedback. And as we briefly mentioned earlier, this lets SMBs avoid the “rip and replace” cycle when their needs outgrow basic HRIS tools.
To be fair, the buying process may frustrate some users. Keka offers a free trial, but you can’t access the product until you sit through a sales demo. This may not be a huge issue, but the fact that this condition isn’t communicated upfront on their website left us with an unexpectedly frustrating feeling. We also learned that the platform includes an implementation fee for setup and data migration, which could be more burdensome for smaller budgets. And during our demo, slow page load times made us wonder how the platform would perform when processing payroll for hundreds of employees at once.
Used by over 10,000 companies, including eBay, Randstad, and ONEPLUS.
Keka HR software pricing starts at $9 per employee per month.
Best For
Small to mid-sized businesses seeking an all-in-one HRIS and payroll platform with the option to add advanced engagement and performance tools as they grow.

Factorial

Factorial is an all-in-one HR platform used by thousands of teams across the globe. They have always placed a considerable emphasis on being SMB-friendly, evidenced in their pricing and flexibility, and comprehensive feature list.
PROS
- Flexible pricing scheme
- Complete HR Suite + ATS
- Strong SMB focus
- Good UX/UI and frequently updated design
- Flexible pricing scheme
- Complete HR Suite + ATS
- Strong SMB focus
- Good UX/UI and frequently updated design
CONS
- Some users have pointed out that the tools are not very customizable.
- Because it covers such a wide range of functions, we’ve found that modules like payroll and reporting could be further developed.
- Some users have pointed out that the tools are not very customizable.
- Because it covers such a wide range of functions, we’ve found that modules like payroll and reporting could be further developed.

Factorial is an excellent HR software solution tailored for SMBs. Their comprehensive offering handles employee onboarding, time tracking, leave management, organizational charts, payroll, TA, and more. enabling HR teams to save time and increase operational efficiency.
We've been familiar with the tool since early 2020, and have always applauded their commitment to data security". With Factorial, all database information is encrypted and GDPR-compliant. They also use a Single Sign-On system, and maintain good security hygiene with regular diagnostic assessments of vulnerability.
The Power MBA, The Hotels Network, Nextail, Ulabox, Vicio
The Factorial Core HR platform starts at $60 per year, then it's $4 per additional user. There is a 14-day free trial and custom enterprise pricing is available for bigger teams. Their ATS is available as an add-on, starting at $39 per month for 10 job offers. Then you can upgrade to Pro, with unlimited job offers, for $119 per month (all if billed yearly).
Best For
Small and medium-sized businesses with many HR processes to streamline. It's specially suitable for organizations with a remote workforce and operations in Europe, the US, or Latin America.
I primarily used Factorial to organize and store employee documents, ensuring that all personnel records were easy to access and well maintained. It also served as our time and attendance system, allowing us to track employee hours and manage time-off requests in a more structured way.
We used it for performance management as well, helping us document employee progress and evaluations. While it covered multiple HR functions, the system wasn’t as robust as some of the larger competitors, which meant we sometimes had to find workarounds to achieve the functionality we needed.
- 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.
Larger organizations or companies with complex HR needs may find Factorial too limited. If your business requires advanced reporting, highly customizable workflows, or a more robust performance management system, a more established HRIS would be a better choice.
Companies with more than 50 employees may outgrow the platform quickly, making it less ideal for long-term scalability.

Oyster

Oyster is loved for its automated onboarding and robust benefits & payroll. If you’re a distributed team, you’ll love Oyster’s native HR tools, strong compliance support, and how well it handles your global employment as a legal employer on your behalf.
PROS
- Oyster takes care of necessary documentation through self-onboarding tools: employees access, sign, and upload documents themselves through the platform.
- Targeted for a remote workforce: Whether your employees are in one country or 100, Oyster can accommodate them accordingly with its current partners.
- Helpful HR tools that are free to access. For example, you can use Oyster’s Benefits Advisor tool to research benefits that local companies offer and local experts recommend in a specific country.
- Support salary payouts in over 120 currencies.
- Pearl — Oyster’s virtual hiring assistant is handy to suggest on the system's hiring, onboarding, and employment terms (the standard probation period and vacation leave credits) for new recruits based on where they’re based.
- Generous discounts for nonprofit organizations and refugee recruitment.
- Intuitive: The platform is easy to navigate and makes logical sense.
- competitively priced: The flat rate for employees and contractors makes cost comparisons simple, and is competitive in the market.
- Targeted for a remote workforce: Whether your employees are in one country or 100, Oyster can accommodate them accordingly, and this is a feature few platforms can boast.
CONS
- Expanding the integrations is on Oyster’s plan, so you may want to check whether your current software is or will soon be compatible with Oyster before making a purchase.
- Oyster doesn’t provide tools for employee performance at the moment. There are no in-app communication features either.
- Oyster’s benefits packages, while being robust, are available as add-ons.
- Slight delays in processing times for payments in the local currency are somewhat common.
- Immediate communication via phone support is not an option, but they do offer live support via Zoom when necessary.
- An initial security deposit is necessary to begin the engagement and is refundable.
- The platform lacks native time-tracking functionality and provides only an in-app tool for managing time off.
- If you’re looking to co-employ your employees and partially outsource HR responsibilities, Oyster isn’t for you. They are more akin to employer of record services (EOR) than a Professional Employer Organizations (PEO).

Oyster is built with remote-first businesses in mind. The platform has gained trust over the years by taking on the role of a capable legal employer to handle global employment on the customers’ behalf.
What we love most about Oyster is that its robust health and benefits options are country-tailored and reflect employees' local laws and cultures in over 180 countries. This feature, thus, is rejoiced by organizations that are scaling fast and globally.
More recently, there is also a feature calledOyster Total Rewards. It provides insights tools and compensation consulting to help businesses design salary, equity, and benefits plans for their employees according to their locations. The offboarding also has a more simplified flow for team members to follow throughout the offboarding process.
Quora, Wagestream, Impala, and Grover are some companies on Oyster’s long list of customers.
- Contractor: From $29 per contractor per month. It includes hiring contractors in 180+ countries, drafting, editing, signing compliant contracts, processing invoices, and paying contractors in 120+ currencies.
- Employee: Between $499-$699 per employee per month, billed annually. The plan enables you to hire full-timers in 130+ countries with compliance and liability coverage, get automation, and IP protection, set up global payroll, and manage expenses, allowances, and bonuses in 130+ countries.
- Scale: Custom pricing and comes with a discounted rate, dedicated guidance, and support to navigate global employment and bulk hiring.
- Optional Benefits (as opposed to those locally-required) are available as add-ons to the Employee and Scale plans.
- Special discounts for nonprofits and refugee employment.
Best For
Remote, hybrid, and distributed teams looking for an HR tool possessing global payroll, country-custom benefits, and robust compliance support.
As an HR consultant, I used Oyster HR to manage several key workflows for our organization. Primarily, I utilized the platform to handle the end-to-end hiring process for our international employees, from posting job openings to onboarding new hires. Oyster simplified compliance and guaranteed that all our contracts and employment practices followed local labor law regulations, which was brilliant and would have been too complicated for us to manage. I also oversaw payroll management, ensuring that all our remote employees were paid accurately and on time, and handled complaints and inquiries. Additionally, the platform helped us administer localized benefits. Oyster streamlined many of our HR processes.
The interface was intuitive, so even employees who were not tech-savvy could use it. There is a built-in time zone coordination feature, which is perfect for international team alignment. It made scheduling easy. Customer service was exemplary. I think they probably had 24/7 people on call because we never had to wait "till tomorrow" for a reply.
We set up an account with Oyster about four years ago and used it for about two years. We were expanding rapidly and needed a workforce from countries with lower salary rates to be more economically efficient. We did not want to go through the hassle of setting up entities in different countries, and our HR team did not feel confident we could do it in-house and remain compliant. So, we outsourced this service. The platform's ability to handle international payroll has been a game changer.
Cost. We dropped it because of the cost; it simply made no sense for us to use such a pricey platform. If the company had been developing as fast as we hoped, we might have stayed with them, but not under the circumstances we had. There were also some limitations with the integrations, and we could not lose some of the other platforms we were using for other aspects of people management. I also would have liked to see more customization; the system was rather robust and did not allow finesse.
Oyster stood out from its competitors mainly because of its top-notch compliance management across countries, which was a game changer for us. Many other tools don't cover this as thoroughly. I also found Oyster's interface incredibly user-friendly, which isn't something I can say about all the HR platforms I've tried—some of them feel like navigating a spaceship. One special thing I really appreciated is how it helps with time zone coordination; it's a small detail, but it makes scheduling across a global team much easier.
Other than the compliance aspect, look for a user-friendly interface that makes daily operations smooth and straightforward. It is important to evaluate the integration capabilities with your existing HR systems to avoid tech compatibility issues. Lastly, consider the quality of customer support, as having reliable, real-time assistance can save you a lot of trouble down the line and is a reason clients would walk away.
Initially, Oyster was mainly about helping companies hire and stay compliant with local laws globally. Over time, they added stronger payroll management features, making it easier to pay employees accurately and on time, which goes hand in hand with the first service. They also kept working on the interface and the integrations.
Oyster is perfect for companies that want to hire talent from all over the world without getting bogged down by local labor laws and payroll hassles. It is ideal for startups looking to grow quickly and mid-sized businesses expanding their global footprint.
Oyster might not be the best fit for very small businesses or startups with tight budgets that don't plan to hire internationally. If your organization primarily hires locally and doesn’t need to navigate different countries' labor laws, Oyster may be overkill.
FAQs on buying HR software for a small business
What is the best Human Resources software for small businesses?
The best HR software for a small business will, at minimum, address an organization’s most troublesome pain points while fitting into the desired budget. Individual needs and budgets vary, but the best platforms automate and streamline basic HR processes like employee data management, payroll, time/attendance, and benefits.
Why does a small business need HR software?
Small businesses can use HR technology to save time and improve the employee experience, performance, and hiring process. Another significant benefit is compliance: most small businesses do not recover from the fallout of even minor compliance issues.
What’s the difference between HRIS, HCM, HRMS, and HR software?
Let’s start by unpacking the letters. HRIS stands for Human Resources Information System, HCM stands for Human Capital Management, and HRMS stands for Human Resources Management System. The difference between HRIS, HCM, and HRMS comes down to methodology and specific features, but each is an example that falls under the umbrella of HR software.
What can you expect from modern HR software?
Software for small businesses has grown increasingly sophisticated (or complex, depending on your perspective) over time. Early platforms offered the basics, like employee information management, payroll processing, time/attendance, and benefits management. Modern small business HR software can do much more, like drive employee engagement with features that look and feel like social media.
Pitfalls of buying HR software for a small business
The most common pitfall of buying HR software is not buying HR software.
Often, small businesses realize they need HR software when it’s almost too late. It is common to start a business with spreadsheets for payroll and shared passwords on sticky notes.
Obviously, this works. No business would ever make it past the idea stage if it didn't. But we’ve seen a lot of panicked small business owners who’ve had the rug of sticky notes and spreadsheets pulled out from under them, and they would back us up on this: don’t wait to buy HR software.
Here are the most common mistakes people make:
- Choosing a vendor with no employee self-service: Since the whole idea of HR software is to save time, Employee self-service features are a must. ESS features are handy during employee onboarding or when starting a PTO request, for example. In these cases, an automated, self-service workflow can save time and reduce errors.
- Choosing a vendor that lacks automation: Speaking of automated workflows, it’s also recommended that your vendor has this capability in some of their features. Whether it’s running payroll, onboarding, or signing documents, many menial tasks can be done automatically.
- Rushing the decision: You should expect and allow for this process to take some time. That’s easy to say when you’re not the rug-pulled-out-from-under-you-guy, but even if you’re under pressure, make the time for good choices.
- Among the most critical considerations of your selection should be integration. If you’re starting with sticky notes, this won’t be an issue, but your HR software will be baked into the middle of all business operations, so integration with your entire tech stack is crucial.
- Rushing the implementation: For small businesses, implementing cloud-based HR software is often a self-service process. This is a critical step that requires time and deep focus.
- Basic data entry mistakes can have massive implications. For example, provisioning access to employee data to the wrong person (or, even worse, a whole team!) is much worse than embarrassing: it’s illegal.
- Moving slowly and keeping the vendor’s customer service resources handy can avoid this worst-case scenario.
Benefits and ROI of HR software for a small business
While reading this, there might still be a small part of you that says, “I’m a small business. Do I really need a fancy HR system?”
The answer is yes.
If you plan to grow your business, you need HR software. With the right platform, the HR software you use today to streamline operations for a dozen people could be the same one you use in a year when you’ve grown to a hundred people.
HR software can do more than manage basic employee data. Modern platforms can orchestrate training programs and track metrics like satisfaction and engagement. There are limits to the effect software can have on company culture or turnover, but consider this: at the very least, the software will free up your HR team and managers so they can attend to the tasks only people can do.
How are most HR management solutions for small businesses priced?
The vendors listed in this roundup represent the most common pricing models in HR tech. Most charge monthly per user, and some have an additional base fee. Many offer independently priced add-ons, which is excellent for small businesses who want to pay only for the features they’ll actually use.
Vendors in this space are familiar with the tight margins of small businesses, so they are often willing to negotiate. Be sure to ask about custom pricing tailored to your business needs.
The following estimations offer a rough idea of what you can expect to spend based on the size of your team on an annual basis. This information is drawn from data points collected from our personal experience, user interviews, and consultation with other HR tech experts.
- 1-100 employees: $12,000 annually
- 101-500 employees: $48,000 annually
- 501-1000 employees: $72,000 annually
We’d love your input, too! To help us provide the most accurate figures, we're crowdsourcing data on HRIS pricing. The survey is anonymous and takes about two minutes. Plus, anyone who helps the community by filling it out will be given access to the entire data set.
Key HR software features for small businesses
If this is your first HR tech purchase, which features should you prioritize? While that depends primarily on your particular situation and business needs, the following features are standard:
- Employee management: Core HR functions related to employee management should be included. Features like an employee directory or org chart are staples, and you can expect time management features like scheduling, time tracking, and leave management.
- Onboarding & Documents: Many of these tools include a basic Applicant Tracking System (ATS) that can do everything from sourcing candidates to onboarding a new hire. Some of them can even process the necessary documentation through automated workflows.
- Employee Performance: HRMS features are relatively standard in HR software for small businesses. They can be used to define and track individual and team goals, and many also support collecting feedback and performance reviews.
- Benefits Administration: Basic benefits administration is reasonably common, but tailor-made administration functionality is rare due to variations between states.
Some other features that you should consider include:
- Social recruiting
- Sourcing
- Reporting & Analytics
- A good mobile app (Android & iOS)
Questions to keep in mind when demoing HR software for small companies
While most of the top HR software solutions for small businesses like yours offer a free trial or an instant self-service demo, some will ask you to schedule a live demo with one of their reps. Come prepared with questions reflecting the time you’ve spent exploring the market and defining your company’s specific needs.
Below, you’ll find some sample questions to get you started. Be sure to download our totally free and super-helpful spreadsheet organizer to make notes on each vendor and compare them later.
- How will this solution seamlessly integrate with our existing tech infrastructure, and what integrations will be required?
- How will other team members effectively utilize this solution within the organization?
- What are the critical functionalities I should inquire about?
- How can this tool enhance and elevate the applicant experience?
- What aspects might make me or my team apprehensive when transitioning from our current processes to this platform?
- How does this product ensure the security of employee data?
- What can I expect about the caliber of customer support? Does the platform have a help center? Online guides? Are the support resources high-quality and accessible to all?
Just because you’re a small business doesn’t mean that you should be reluctant to control the demo. These solutions are specifically designed for businesses like yours, so it’s better for everyone involved if you can articulate your needs and the use cases you care the most about.
Last advice on buying HR software if you’re a small business
Before you start doing free trials or schedule demos, get all the input you can from stakeholders who will be affected by the decision. The direct experience of people in other departments is invaluable for finding the right tool for your team. Encourage them to consider how the new software would impact their work today and how it might hold up in the future.
Software built for small businesses is usually designed to scale. You can expect this whether you’re starting with the most basic plan or even the free one.
It’s impossible to plan for everything, but with the right HR software, you can feel confident knowing that you’re prepared for anything from the success you expect to the setbacks you don’t.
You’re probably aware that with 50 or more workers, businesses must adhere to federal guidelines under FMLA and EEOC. But 50 is no longer the magic number. As it becomes common for states to require employers with fewer than 50 people to provide health coverage and retirement planning, the conventional wisdom has shifted.
Coupled with new laws, the perception of HR as a critical element of strategic operations has steadily narrowed the HR-to-headcount ratio.
And as a final note, If you're buying to implement in the US and seeking a custom evaluation, feel free to schedule a complimentary one-on-one consultation with an HR tech advisor here.
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