Best Human Resource Software for Small Business

If you manage the human resources (HR) department at your company, you probably have a lot of tasks to handle simultaneously. The right Human Resources software for small businesses can simplify your work and make your job much easier.

We analyzed the leading providers and narrowed it down to the 10 best HR software for small businesses based on features, support, integrations, user reviews, and more.

Top 10 Human Resource Software for Small Businesses

Based on comprehensive reviews and expert opinions, here are some of the best HR software options for small businesses:

1. Gusto

Gusto offers cloud-based payroll software with a user-friendly interface and an employee portal. It starts at $40 per month plus $6 per person.

It provides direct deposit for employees and contractors, automatic tax calculation and filing, and lifetime access to pay stubs and hours worked. Gusto integrates with QuickBooks, Xero, FreshBooks, Clover, Shopify, and more.

Best For: Freelance payroll accountants.

Features:

• Comprehensive payroll processing
• Benefits administration
• Compliance management
• Employee self-service portal
• Time tracking and project management

Pros:

• User-friendly interface
• Strong customer support
• Affordable pricing plans

Cons:

• Limited customization options
• Advanced features can be pricey

2. BambooHR

BambooHR provides employee self-service features like access to paystubs, W-2s, personal demographics, performance reviews, timesheets, benefits, and training courses. It helps reduce HR inquiries with a self-editing employee directory, org chart, and company calendar for PTO and holidays.

Employees can access these features via a mobile app. BambooHR supports customized data inputs and integrates with third-party apps. However, features like payroll, performance management, and time tracking are add-ons, and pricing is not listed online.

Best For:  Companies that offer self-service tools for easier employee access to information.

Features:

• Employee database management
• Performance management
• Time tracking
• Reporting and analytics
• Applicant tracking system

Pros:

• Intuitive user interface
• Excellent customer support
• Comprehensive reporting features

Cons:

• Limited payroll functionality
• Higher pricing for small businesses

3. Paycor

Paycor is well-known for its payroll solutions but also offers strong HR features. It uses a customizable pay grid to manage payroll and includes modules for leadership training and career development. Employees can update their profiles, sign documents, and complete tasks using self-service tools.

Paycor provides transparent reports on headcount, turnover, compensation, and absenteeism, with easy communication via mobile notifications and chat. It allows unlimited automated workflows and includes pre-made workflows for industries like healthcare, manufacturing, and retail.

Best For: A wide variety of features in lower-priced plans.

Features:

• Payroll processing
• Benefits administration
• Employee self-service portal
• Compliance management
• Performance management tools

Pros:

• Robust feature set
• Scalable for growing businesses
• Strong compliance management

Cons:

• User interface can be complex
• Customer support response time can be slow

4. Rippling

Rippling is an all-in-one HR software for small businesses, centralizing employee management for HR, IT, finance, and engineering departments. It features automated onboarding, digital document storage, payroll processing, and benefits administration.

Payroll automates time tracking and paychecks, ensuring accurate and timely payments. Rippling excels in automation, offering preset workflows and customizable if/then statements. It includes hundreds of workflow templates and supports benefits administration, applicant tracking, and learning management. Running payroll takes just 90 seconds, and the system automatically handles payroll taxes.

Best For: Small business HR software to centralize employee management

Features:

• Payroll and benefits administration
• Employee self-service portal
• IT management
• Compliance management
• Time tracking and attendance

Pros:

• Seamless integration with other tools
• Comprehensive HR and IT management
• User-friendly interface

Cons:

• Higher pricing
• Some features may require additional setup time

5. Deel

Deel is a comprehensive HR platform for businesses of all sizes, offering free HR tools for small businesses and startups. It supports hiring and managing freelancers and employees in over 150 countries, handling local laws, taxes, and payroll.

Deel includes features like contract management, expense reimbursements, and compliance tracking, with employees and contractors self-managing their pay and personal data. It integrates with major payment providers like Wise, PayPal, Payoneer, and Revolut, and offers 24/7 online chat support. Deel also integrates with various tools and offers an Open API for custom interfaces.

Best For: Global HR software for small businesses.

Features:

• Global payroll and compliance
• Employee and contractor management
• Benefits administration
• Onboarding and offboarding tools
• Employee self-service portal

Pros:

• Excellent for managing international teams
• Comprehensive compliance features
• Easy-to-use interface

Cons:

• Higher pricing for small teams
• Limited features for domestic-only businesses

6. GreytHR

GreytHR is a leading HR software that streamlines HR processes and empowers employees. Key features include automated payroll processing, simplified leave and attendance management, and a self-service portal for employee data management. It offers reports and analytics for valuable insights and ensures compliance with local laws.

GreytHR is best suited for medium and large-sized business. The minimum paid package starts at Rs. 3495 monthly for up to 50 employees, with additional employees at Rs. 30 per month.

Best For: Medium and large-sized business organizations

Features:

• Automatic payroll processing.
• Easy leave and attendance management.
• Employee data management through a self-service portal.
• Reports and analytics that offer useful insights.
• Compliance with local laws and regulations.

7. Zoho People

Zoho People offers various modules to support HR needs, including advanced workflow automations, recruiting, reports, analytics, and a learning management system (LMS). It is highly affordable, with the top-tier People Plus plan costing $9 per employee per month.

For budget-conscious businesses, Zoho People also offers a free plan. This makes it a cost-effective solution for comprehensive HR management.

Best For: Affordability, Integrating with other Zoho products.

Features:

• Employee database
• Leave management
• Attendance tracking
• Performance management
• HR analytics

Pros:

• Integrates with Zoho suite
• Affordable
• Easy to use

Cons:

• Limited customization
• Basic features

8. Namely

Best For: Midsize companies looking for an all-in-one solution.

Features:

• Payroll and benefits
• Compliance management
• Employee self-service
• Performance management
• Time tracking

Pros:

• All-in-one solution
• Good support
• User-friendly

Cons:

• Higher cost
• Setup can be complex

9. ADP Workforce Now

Best For: Comprehensive HR solutions.

Features:

• Payroll processing
• Benefits administration
• Compliance management
• Time tracking
• Talent management

Pros:

• Trusted brand
• Comprehensive features
• Scalable

Cons:

• Expensive
• Can be complex to set up

10. Keka

Best For: Indian small businesses.

Features:

• Payroll processing
• Attendance tracking
• Performance management
• Leave management
• Employee self-service

Pros:

• User-friendly
• Affordable
• Tailored for Indian businesses

Cons:

• Limited global features
• Basic integrations

Why Small Businesses Need HR Software?

Small businesses often operate with limited resources and staff. So it is important to make efficient HR management. Human Resource software can help by automating tasks such as payroll, attendance tracking, performance management, and compliance with labor laws.

Here are some key reasons why it is beneficial for small businesses to invest in Human Resource software

• Efficiency and Time-Saving: Automating routine tasks frees up time for strategic activities.
• Compliance: Ensures adherence to labor laws and regulations, reducing the risk of penalties.
• Employee Self-Service: Allows employees to manage their information, request time off, and access documents, reducing the administrative burden on HR staff.
• Data-Driven Decisions: Provides analytics and reporting features to make informed decisions.

Key Features to Look for in HR Software for Small Business

You should consider the following essential features before choosing the HR software for your small business.

1. User-Friendly Interface: An easy-to-use interface that allows employees and HR staff to navigate the software effortlessly.

2. Cloud-Based Technology: It Provides flexibility and accessibility from anywhere, which is important for remote work scenarios.

3. Payroll Processing and Integrations: Simplifies payroll management and reduces errors by integrating with existing payroll systems.

4. Compliance Management: Keeps track of labor laws and ensures that your business remains compliant.

5. Employee Self-Service Portal: Empowers employees to manage their information and reduces administrative tasks.

6. Applicant Tracking System (ATS): Streamlines the hiring process by managing job postings, candidate tracking, and interview scheduling.

7. Performance Management Tools: Helps in setting, tracking, and reviewing employee goals and performance.

8. Attendance Tracking and Time-Off Management: Efficiently manages timesheets, PTO, and leave balances.

9. Mobile Accessibility: Ensures that HR functions can be accessed on the go via mobile devices.

10. Reporting and Analytics: Provides insights into HR metrics, helping to identify trends and areas for improvement.

Benefits of HR Software for Small Businesses

Implementing HR software offers numerous advantages, including:

1. Streamlined HR Processes: The software automates and simplifies tasks such as payroll, attendance tracking, and performance reviews.

2. Improved Compliance: It helps you stay updated with labor laws and reduces the risk of penalties.

3. Enhanced Employee Experience: The software provides employees with tools to manage their information and access important documents.

4. Data-Driven Insights: It offers analytics and reporting features to help you make informed decisions about workforce management.

5. Cost-Effective: It reduces the need for a large HR team by automating routine tasks, making it a cost-effective solution for small businesses.

Conclusion

Choosing the best human resource software for small business can make a big difference. Options like Gusto, BambooHR, Paycor, Rippling, Deel, Zenefits, Zoho People, Namely, ADP Workforce Now, and Keka offer various features and benefits. Focus on user-friendly interfaces, comprehensive features, and compliance management to streamline HR processes, improve employee satisfaction, and make data-driven decisions.