The Best HR Software For Small Businesses
HR automation is fairly new, but the benefits for small businesses are immense. Here are the best HR software options that are affordable and loaded with features to manage payroll and benefits.
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It is easy to see that the world of human resources is going digital. As more companies shift their attention to providing cloud-based HR opportunities, small business owners are taking advantage of HR software solutions that used to be attainable at the enterprise level only.
Fancy, highly interactive home pages greet employees and function as a way to sync important employee data and manage the legal requirements of managing human capital. Digital onboarding can take the stress out of new hire paperwork. Digital HR software also syncs time tracking with PTO counters to help manage payroll and scheduling. Want to promote employee education? Learning modules can be created for you. These companies even help create employee handbooks and provide expert HR advice with a quick chat or phone call.
Sometimes, HR can be the last department to develop as companies grow, but it doesn’t have to be that way anymore. HR software wants to make HR accessible to all, and there is no better time to try out the options and see if you can benefit.
Not all HR software systems are created equally. Some have better payroll capabilities, and some are more focused on offering a bevy of customizable features. Ultimately, every HR program needs to cover the full life cycle of an employee and represent your company’s culture from the onset. The decision comes down to your priorities, and no matter what those priorities are, there’s an HR software solution for your needs.
Learn More About Our Top Picks
| Company | Summary | Next StepsSummary |
|---|---|---|
Gusto  | Best HR software for payroll | Best HR software for payroll
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Zenefits  | Best HR software with the most advanced features | Best HR software with the most advanced features
|
BambooHR  | Best for the most intuitive HR software | Best for the most intuitive HR software
|
Paycor  | Best HR software for small businesses | Best HR software for small businesses
|
HR.my  | Best free HR software | Best free HR software
|
Read more below to learn why we chose these options.
Table of Contents
The 5 Best HR Software
Gusto, Zenefits, BambooHR, Paycor, and HR.my are five of the best HR software programs for small business owners looking to outsource or upgrade their HR department. The best HR software choices help you manage payroll; track employee hours, PTO, and compensation; administer benefits; write performance reviews; plus help with onboarding/offboarding.
1. Gusto: Best HR Software For Payroll
Gusto
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Best small business HR software for payroll.
Pros
- Built-in time tracking and HR features
- Readily available pricing information
- Easy to use
- Simplifies payroll
Cons
- Advanced HR features are not available on all plans
- Reporting capabilities are limited
Gusto started in 2012 as ZenPayroll and made a name for itself by simplifying payroll with its cloud-based platform.
With payroll as its central focus, Gusto is best for small businesses that find their most time-consuming HR task is payroll but might be interested in adding a few additional services.
Gusto Pricing
Gusto has four pricing plans. These range from the Basic Plan for $19/month plus $6/month per person, which offers basic payroll, all the way to the Concierge Plan, which costs $149/month plus $12/month per person and comes equipped with multiple tools for payroll and HR.
Gusto Features
While the HR options are limited, Gusto does cover onboarding employees with a seamless online program and helping your business stay compliant. Available at the third pricing tier, Gusto offers the following HR services:
- Employee directory and surveys
- Custom employee handbook
- HR and compliance support
Upgrading to the Concierge service, the most expensive Gusto plan, gives you access to additional HR tools, including:
- Customizable onboarding tools
- Certified HR pros
- HR resource center
When To Use Gusto
As a more payroll-centric company, Gusto is a great option for small business owners who might need simple but not sophisticated HR solutions. The interface is user-friendly on both the employee and administrative sides. If payroll is your company’s biggest headache, Gusto’s system is the best choice.
2. Zenefits: HR Software With the Most Advanced Features
Zenefits
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Best small business HR software for features and options.
Pros
- Employee-friendly mobile app
- Numerous features
- A robust foundation of available integrations
- Easy to use
Cons
- Unsuited for businesses with fewer than five employees
- Mediocre customer service
Zenefits deserves a pat on the back for relaunching its entire platform a few years ago and building its company from the ground up after a few scandals rocked the Silicon Valley darlings.
The new Zenefits focuses on affordable HR options that offer more features than the competition.
Zenefits Pricing
Zenefits has three pricing plans. Pricing starts at $8/month per employee for the Essentials plan up to $21/month per employee for the top-tier Zen plan. The more expensive the plan, the more advanced features you can access, including performance management and employee engagement surveys.
Payroll is not included in any of the plans and will cost an extra $6/month per employee. Additional add-ons include advisory services for $8/month per employee and the ability to use your own broker to manage employees for $5/month per employee.
Zenefits Features
Zenefits core features included with all plans include:
- Offer letters
- Background checks
- Self-onboarding with a mobile app
- Employee directory and company organization chart
- Automated workflows
- Time-off requests/tracking
- Numerous reporting options
- Document management
- Compliance services
All plans also include time and scheduling, integrations, and access to the Zenefits mobile app. More expensive plans include these advanced features:
- Compensation management
- Performance management
- Well-being
- Employee engagement surveys
- People Hub
When To Use Zenefits
With similar pricing to Gusto but more HR options with its core package, Zenefits is likely to be an asset for small businesses with advanced hiring/performance review/termination requirements. Zenefits is loaded with HR features and offers competitive pricing, which is why it’s one of our top picks for HR software.
3. BambooHR: Most Intuitive HR Software
BambooHR
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Best small business HR software for intuitive human resources management.
Pros
- APIs integrate with HR software vendors
- Easy to use
- Intuitive UI
Cons
- Some essential features only available as paid add-ons
- Limited benefits administration capabilities
- Non-transparent pricing
The functionality of BambooHR’s platform leads the competition with its ease of use, intuitive interface for both employees and administrators, and customization abilities.
This award-winning software is loaded with advanced features to help simplify the HR process throughout the employee lifecycle.
BambooHR Pricing
BambooHR has two plans but unfortunately does not offer pricing details online. Instead, the company requests that you get a personalized price quote by phone or through its website. A general price range provided by customers that have used this software is $6-$8/month per employee.
BambooHR Features
BambooHR offers two different plans: Essentials and Advantage.
Both plans include the following:
- Time-off management
- Employee directory and company organization chart
- Employee records
- Benefits tracking
- Document storage
- Standard workflow and approvals
- Standard reporting
Upgrading to the Advantage plan gives you access to more features, such as:
- Onboarding/offboarding
- Application tracking systems
- Full company branding/customization
- Training tracking
- Webinar library
- Customization options
BambooHR includes time tracking and performance management programs as add-ons. For payroll, the company partners with TraxPayroll to sync up data related to benefits, PTO, and compensation.
When To Use BambooHR
If a small business needs a comprehensive human resources management system, BambooHR has all the foundational requirements to manage your employees. It aims to make HR easy and intuitive, even if a company doesn’t have a specific HR department/team; its functionality for HR on the administrative end is designed for the novice/DIY small business owner.
4. Paycor: Best HR Software for Small Businesses
Paycor
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Best small business HR software for businesses with ten employees or less.
Pros
- Built-in payroll included in all plans
- Cloud-based with few software and hardware requirements
- Easy to use
- Easy to set up
Cons
- Non-transparent pricing
- Limited benefits administration features
- Mediocre customer service
Paycor is a great one-stop shop for a small business’s HR and payroll requirements. The company focuses on ease of use and streamlining its interface and is fully committed to listening to clients and adapting/updating its software to respond to feedback.
The options at this price point make Paycor a contender for small businesses looking for a simple platform at a competitive cost.
Paycor Pricing
For businesses with fewer than 40 employees, Paycor offers three pricing plans that range from $99/month to $199/month. The more expensive the plan, the more features you can access.
For businesses with 40+ employees, custom packages are available. Contact Paycor to learn more and get a price quote.
Paycor Features
All plans have full-service payroll as a foundation and not an add-on. All plans also include the following:
- Tax filing
- Reporting
- Self-service garnishments and child support
- Paycor Mobile
If you upgrade to one of the higher tier packages, you can also access features, including:
- Online onboarding with assistance
- Full-service payroll
- HR support center with 1:1 guidance
- Hiring wizard
- Advanced analytics
When To Use Paycor
Paycor’s basic packages do not include time management software, employee scheduling software, recruiting and application tracking, benefits administration, and learning modules. A small business with fewer than ten employees might not need some of these extras, however, and can find good value in the product for its foundational capabilities.
5. HR.my: Best Free HR Software
HR.my
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Best free HR software for small and medium-sized businesses with multilingual employees and/or international locations.
Pros
- Flexible payment scheduling
- Ideal for businesses with many multilingual employees
- Robust security capabilities
- Viable for multiple business sizes
Cons
- Limited customer support options
- No US labor law compliance
Managing employees is a major task for any business. When employees are spread across multiple locations and countries, that task becomes even more difficult. Businesses with many multilingual employees and international locations must contend with language barriers and added steps to manage human capital as well as payroll.
HR.my boasts support for a whopping 67 languages and is perfect for multinational teams that need human resource management tools and basic payroll processing features.
HR.my Pricing
For the number of features it offers for free, HR.my is a contender not to be taken lightly compared to other ostensibly free payroll software solutions, which sometimes gate certain features behind monthly fees and annual renewals. According to its home page, HR.my is “Free! Forever.” so what you see is what you get when you sign up. That means support for unlimited user accounts, time management, multiple pay schedules, a self-service portal, and much more.
HR.my Features
Through crowdfunding, HR.my offers free access to all its features and doesn’t require subscribing to any plans to unlock anymore. The company only requires an initial sign-up.
HR.my’s free features include:
- Support for multiple pay periods
- Attendance management tools
- Time-tracking
- Employee self-service portal
- Regular software updates
When To Use HR.my
Small business owners and HR managers who need free, multilingual HR software and payroll management features should give HR.my serious consideration. The software offers online HR and payroll, leave management, and expense reporting, which are essential to businesses that don’t yet have mature payroll processes set up.
However, HR.my may not be the best HR management software for any business new to using payroll software, as its customer service is run through a user-supported forum.
Choosing The Right HR Software For Your Small Business
When it comes to picking the right HR software for your small business, it helps to know what you need. If payroll is your biggest headache, you want to find a platform that meets your payroll needs first. If you hate the manual onboarding processes and paperwork takes years off your life, you want to find an HR platform that takes that process online.
Automation of HR is fairly new, but the benefits for small businesses are immense: Where a small business was priced-out of running enterprise-level HR services, now the market is booming. As each company prices its services differently, you must prioritize your needs. However, no matter what, outsourcing HR saves small businesses money in the long run. A yearly software expense does eliminate the potential need for a full-time HR manager, relegating those duties within your company and saving on salary costs.
Any HR software worth checking out should have options for syncing employee information, managing payroll, assisting with onboarding, running benefits administration, managing worker performance, and navigating all aspects of your company’s legal HR compliance requirements.
Ultimately, HR is about hiring the best people, growing the best people, and retaining the best people for your company’s growth. HR is also about company culture and setting the stage for what work looks like at your business: An easy system for both employees and administrators will save you time and hassle. Look for programs that have highly-rated mobile apps or functionality with a modern/social media feel to the presentation.
No matter which option you choose, always remember to do your research, take advantage of free trials, and fully explore your options before making a commitment. Good luck!
Interested in learning more about how HR software can benefit your business? Dive into our most effective ways to manage your business’s human resources.
HR Software FAQs
In Summary: The 5 Best HR Software
- Gusto: Best HR software for payroll
- Zenefits: Best HR software with the most advanced features
- BambooHR: Best for the most intuitive HR software
- Paycor: Best HR software for small businesses
- HR.my: Best free HR software
Noah Miller
Expert Analyst & Reviewer
Noah is a writer and content creator currently living in Fairfax, VA. When he isn't writing about IT solutions and innovations that help his clients, he's probably sitting behind a drumkit or adding new hardware to his computer. Since 2017, Noah has worked for federal, state, and commercial clients as a proposal writer, technical writer, copywriter, and analyst. He has a BA in Creative Writing and a Minor in German from Goucher College.
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