Finding the right HR software for a small business can be difficult. With so many options, it’s hard to know which will best fit your business needs and budget. Lucky for you, we’ve researched and found the best HR software for small businesses in 2023.
No matter what size or type of business you have, there’s HR software to help you manage and streamline the human resources processes.
From payroll management and employee tracking to learning management systems and performance reviews, the right software can give you the insight and control you need to keep your business running smoothly.
As a small business owner, I’ve used some of the best HR software on the market, so I’ve decided to give you an in-depth review of the best software for small businesses and what they can do for your business needs!
What’s the Top HR Software for Small Businesses?
The best HR software for small businesses will depend on your business needs and budget. Some of the top picks include:
- Gusto
- Paychex
- Rippling
- ADP Run
- BambooHR
- Zoho People
- Homepage
- Freshteam
- TriNet Zenefits
- Monday
Gusto
Gusto is one of our favorite picks for the top HR software for small businesses in 2023. Gusto is an all-in-one platform that offers payroll and tax filing, workforce management, onboarding, and time tracking.
It’s simple to use, secure, and affordable. Plus, it integrates with other popular business tools like Quickbooks. Gusto also offers excellent customer support and a massive library of resources that can help you get up to speed quickly.
Key Features
Gusto comes with various HR tools to help small businesses with their HR needs.
- Time and Attendance: Gives the ability for time tracking and organize time off requests.
- Hiring and Onboarding: You can organize offer letters, checklists, and software setup, among other HR tasks.
- Integrations: Integrate hiring workflows by syncing Gusto with applicant tracking systems.
Pricing
Gusto has several pricing options for all kinds of small businesses.
- Simple Plan: This plan is $40/month plus $6 for each additional person. It offers essential onboarding tools, payroll and time-off reports, and integrations for time tracking.
- Plus Plan: This plan is $60/month plus $9 for each additional person. This includes comprehensive payroll, benefits, and HR tools for employers.
- Premium Plan: This plan has exclusive pricing. You’ll need to contact Gusto to get it. This plan includes scalable payroll and benefits, expert HR, and dedicated support.
Pros
- Employee/Contractor payroll is easy
- Automatic tax filing
- Integrated free checking and savings account
Cons
- Pricing for the additional-person model gets expensive
- No invoicing features
- No mobile app
Paychex
Another excellent option for the top HR software for small businesses is Paychex.
This platform offers a comprehensive HR solution, including payroll, time and attendance tracking, tax filing and compliance support, employee benefits administration, and talent acquisition services.
Key Features
Paychex offers a wide range of core HR tasks and services, such as:
- Payroll: Automate payroll processing, garnishments and deductions, time-off tracking, and more.
- Tax Filing & Compliance: Automatically file taxes, gain insights into filing deadlines, access IRS forms and notices, and get help from an expert team.
- Human Resources: Manage onboarding and employee documents, time-off tracking, performance reviews, and more.
- Employee Benefits: Design and manage benefits plans such as health insurance, 401(k)s, life insurance, and more.
Pricing
If you’re interested in Paychex HR software, you’ll have to contact the company for a free pricing quote.
Pros
- The support team is knowledgeable
- Payroll breakdown from gross to net
- Great retirement plans
Cons
- Pricing isn't listed upfront on the website
- Long timesheet for the approval process
- Lacks customization of reports
Rippling
Rippling is one of the best HR software for small businesses. It offers a comprehensive suite of HR solutions that include employee onboarding, offboarding, payroll and tax filing, and time tracking.
The easy-to-use platform integrates with popular business tools like Slack and Salesforce. Rippling can help with IT onboarding, automated payrolls, and full-stack HR management.
Key Features
Rippling offers an impressive suite of HR features and services, including:
- Onboarding & Offboarding: Automate the entire employee onboarding process, from background checks to email setup.
- Payroll & Tax Filing: Automate payroll processing and gain insights into filing deadlines with tax filing, deductions, and garnishments.
- Time Tracking: Track employee time off and hours worked from anywhere.
- IT Onboarding: Automatically provision user accounts for popular applications like Slack and Salesforce.
Pricing
Rippling’s pricing plan starts at $8 a month per user. Varied pricing is based on the features and the number of users your small business needs.
Pros
- Great at integrating 3rd party HR tools
- Payroll processing includes tax filing services
- Ability to sync all IT and HR tasks into one streamlined process
Cons
- Not suited for larger companies with a lot of employees
- Customer assistance is only through tickets; no phone help is available
- No performance or engagement modules
ADP Run
ADP Run specializes in employee benefits administration and talent acquisition services.
This platform offers a comprehensive suite of payroll and HR services, such as payroll processing, tax filing, and compliance support.
Plus, ADP Run makes it easy to manage your employees from anywhere, so you can access all the tools from any device.
Key Features
ADP Run offers a wide range of HR features and services, such as:
- Payroll & Tax Filing: Automate payroll processing and gain insights into filing deadlines with tax filing, deductions, and garnishments.
- Payment Solutions: Streamline payouts and employee payments with direct deposits, mobile pay, and gift cards.
- Employee Benefits Administration: Design and manage benefit plans such as health insurance, 401(k)s, life insurance, and disability insurance.
- Talent Acquisition Services: Automatically post jobs to the most popular job sites and track applicants.
Pricing
To receive a free quote, contact the ADP Run team to discuss your business’s needs.
Pros
- Very good for small businesses with up to 49 employees
- Extensive HR options available
- Add-ons such as time tracking and retirement services
Cons
- Reputation for an expensive software option
- Lack of pricing transparency
- Additional cost for many features
BambooHR
BambooHR is one of the best HR software for small businesses. This platform offers a range of HR solutions, including employee onboarding, offboarding, payroll and tax filing, and time tracking.
The easy-to-use platform makes it easy to manage all tasks from one place. Plus, BambooHR integrates with popular business tools like Slack and Salesforce.
Key Features
- Applicant Tracking System: Keeps applicant information organized through multiple phases of the hiring process.
- Mobile Hiring App: Talent acquisition is around the clock, and this helps the speed, power, and ease of the BambooHR applicant tracking process.
- E-Signatures: HR managers can say goodbye to collecting paper signatures. Use E-signatures to gather signatures fast and efficiently, saving time and money.
Pricing
To receive the final pricing, you must contact BambooHR’s team directly.
However, BambooHR has two different pricing plans available:
- Essentials Plan: This plan offers time-off management, employee records, and self-service.
- Advantage Plan: The advantage plan offers onboarding & offboarding, training tracking, and phone/chat support.
Pros
- User-friendly interface
- A secure platform
- Extensive report and analytics
Cons
- Cloud only server
- Lack of pricing transparency
- Not much customization in the cheapest package
Zoho People
Next, Zoho People is a comprehensive Human Resource Management software for small businesses.
It helps you automate your HR processes and provides an easy-to-use platform to manage all aspects of employee management, including payroll, performance tracking, talent management, time tracking, and analytics.
Zoho People has many features, such as employee self-service, cloud storage, and mobile access.
Its user-friendly interface makes it simple to manage all your HR tasks from one place.
Key Features
Here are some of the key features Zoho People offers:
- Employee Self-Service: empower employees with self-service tools such as leave requests, timesheets, and appraisals.
- Payroll Management: Automate payroll and benefits administration and manage tax deductions and garnishments.
- Time & Attendance Tracking: Track employee time on the clock with timesheets, attendance tracking, holidays, and leaves.
Pricing
Zoho has a handful of different pricing plans for its HR management software, such as:
- Professional Plan: $2 a month per user
- Premium Plan: $3 a month per user
- Enterprise Plan: $4.50 a month per user
- People Plus Plan: $9 monthly per user
Pros
- Affordable monthly rates
- Advanced time tracking tools
- Integrated, customizable software solutions
Cons
- Employee profiles cost extra
- Support hours are limited
- Payroll is a different product of Zoho
Homebase
Homebase is one of the top HR software for small businesses.
It provides an all-in-one digital platform that simplifies employee scheduling and time tracking, allows easy payroll processing, and helps you comply with applicable laws.
This platform includes a mobile app that efficiently manages employee schedules and time tracking from anywhere.
Key Features
Here are some of the key features that come with Homebase:
- Employee Scheduling: Create automated schedules in minutes, send notifications to employees, and track hours worked.
- Time & Attendance: Track employee hours, overtime, and PTO with one-click payroll reporting.
- Employee Self-Service: Empower employees to access their schedules and time cards and manage vacation requests.
Pricing
Homebase is free to use and offers three different paid pricing plans for users to choose from.
These are the three pricing plans Homebase provides:
- Essentials Plan: This plan costs $20 per month per location and includes team communication, performance tracking, and remote/field tools.
- Plus Plan: This plan costs $48 per month per location and includes labor cost controls and budgets, time off limits & PTO tracking, permissions & policies.
- All In One Plan: This plan costs $80 per month per location and includes new hire onboarding, employee documents, and HR/Compliance.
Pros
- Integrates with Gusto and Square payroll
- A free forever plan
- User-friendly employee scheduling and time tracking
Cons
- Difficult to alter time clock issues
- Change notifications aren't always received by staff
- The software can be a bit clunky
Freshteam
Freshteam is one of the best HR software for small businesses because it offers a comprehensive cloud-based suite of HR tools and features.
This software helps manage all aspects of employee management, from payroll to scheduling to performance tracking. Plus, Freshteam’s intuitive dashboard makes it easy to use, and its affordability makes it ideal for small businesses.
Key Features
Here are some of the features Freshteam offers:
- Employee Management: Track employee information, skills, qualifications, performance reviews, and more in one easy-to-use platform.
- Performance Tracking: Get real-time insights into employee performance, set goals and objectives, and track progress.
- Time & Attendance Tracking: Track employee time on the clock with timesheets, attendance tracking, holidays, leaves, etc.
Pricing
Freshteam is a free platform that provides plenty of pricing options, including:
- Growth Plan: $71 platform fee + $1.20 per employee every month, which includes resume management, document management, and job board integration.
- Pro Plan: $119 platform fee + $2.40 per employee every month and includes 100 active job postings, employee data, and job requisitions, among other basic hr features.
- Enterprise Plan: $203 platform fee + $4.80 per employee monthly, including performance management and one-click data export.
Pros
- Manage employee data is efficient
- The scheduling feature is easy to understand
- Follow employee lifecycle from beginning to end
Cons
- Software integration can be difficult to learn
- Pricing can be a little expensive
- The free plan lacks plenty of features
TriNet Zenefits
TriNet Zenefits is one of the best HR software for small businesses because it helps you streamline employee management tools and provides a suite of additional services to help your organization grow.
This software simplifies hiring, onboarding, and payroll with its cloud-based platform.
It can also track employee productivity, manage timesheets and attendance, and handle compliance-related paperwork.
Key Features
Here are some features included with TriNet Zenefits:
- Performance Management: Create surveys to track employee satisfaction and engagement levels.
- Onboarding Automation: Automatically generate onboarding tasks for new hires and track each step of the process.
- Time & Attendance Tracking: Manage employee time off, vacation requests, clock-in/out times, and more.
Pricing
TriNet Zenefits has three pricing plans available for HR solutions, which are:
- Essentials Plan: This pricing plan is $8 a month per employee and comes with automated onboarding, a mobile app, and an analytics dashboard.
- Growth Plan: This pricing plan is $16 a month per employee and comes with performance management, compensation management, and people analytics.
- Zen Plan: This pricing plan is $21 a month per employee and comes with employee engagement surveys, a people hub, and payroll software as an add-on.
Pros
- Mobile App
- Robust human resources features
- Employee self-service portal
Cons
- Lacks learning management tools
- Process payroll is part of advanced features
- Most pricing plans must have up to five users
Monday
Monday is great HR management software for small businesses since it provides all the features needed to manage a team. It offers a comprehensive suite of tools to help you gain visibility into employee performance, onboarding, and payroll.
In addition, Monday’s intuitive dashboard makes it easy to use, and its affordable pricing options make it ideal for small businesses.
Key Features
- Kanban Software: This software helps handle any workflow with easy setup and configuration. It’s also fully customizable and allows collaboration with stakeholders.
- Automations: Gives HR management the ability to automate email notifications, assigned tasks, and document management.
- Dashboards: Create custom dashboards for business needs like employee information, process payroll, and other HR functions.
Pricing
There are many different pricing plans depending on the number of team members involved.
Here are the three monthly subscription plans Monday offers users:
- Basic Plan: $10 a month per employee and includes unlimited free viewers, 5 GB storage, and prioritized customer support.
- Standard Plan: $20 a month per employee, including guest access, automation (250 actions per month), and integrations.
- Pro Plan: $27 a month per employee, including time tracking, formula column, and bar and line graphs.
Pros
- Allows every team member to access software for a price
- 24/7 customer service support
- Dashboards are easy to follow
Cons
- Very few features in the basic plan
- Integration issues
- Applicant tracking lacks features
How We Chose the Best Small Business Human Resources Software
Easy-to-Use Interface
We chose HR software for small businesses based on their user interface. It should be easy to use and understand to complete tasks quickly without confusion.
Integrations With Other Software
As a small business, it’s essential to integrate HR software with other software for more efficient workflows. We looked for options that could easily integrate with payroll and accounting software.
Value for Money
We considered value for money when selecting the best HR system. We looked at features included in various pricing plans and weighed them against their cost to determine which offered the most bang for its buck.
HR Software Features to Look For
Payroll Automation
Payroll automation makes it easy to process payroll, calculate Accrued Leave, and track employee wages. It should also provide accurate data on taxes and other deductions.
Hiring Management
Look for software that provides tools to help you manage the hiring process. These features should include automated job postings, applicant tracking, and background checks.
Attendance Tracking
HR software should include attendance tracking features such as time punches, leave requests, and employee scheduling.
Onboarding
It’s essential to have onboarding features that help you set up new employees quickly and easily. This should include automated paperwork, training programs, and employee orientations.
Offboarding
Offboarding is just as important as onboarding. Look for software with features to help you manage departures, such as exit interviews, document archiving, and payroll processing.
Easy Interface
Next, the user interface should be easy to use and understand. A good HR software will have an intuitive and customizable dashboard for your business needs.
Benefits Management
The best software for HR should also come with tools to help you manage employee benefits such as health insurance, vacation time, and retirement plans. This will make it easier to set up and track these critical details.
Performance Management
HR software should include performance management features. This should consist of tools for job tracking, goal setting, and employee reviews to help you keep track of team accomplishments and goals.
Employee Data
Finally, HR software should come with tools to collect and store employee data. This includes contact information, job history, tax forms, and more. Having this data in one place will make it easy to access whenever needed.
Employee data is an essential part of any Human Resources Software package. It helps businesses stay organized and compliant while providing easy access to critical employee information. Small businesses need to look for ways to save time and money.
Wrap Up
The best human resources software for small businesses should be easy-to-use, come with integrations for other software, and provide value for money.
It should include payroll automation, hiring management, attendance tracking, onboarding/offboarding tools, and benefits management.
Considering HR software packages, consider these points to ensure you get the most out of your purchase. This article has provided an overview of what to look for when selecting the best HR software for small businesses.
With these factors in mind and a little research, you can find the right solution that meets your needs and budget. Investing in great HR software for small businesses can save time and money while ensuring that your business runs smoothly.
HR Small Business Software FAQ
If you’re looking for the best hr software for your new startups, there are several factors to consider. The first factor would be price. Most startups don’t have an excess budget to throw away on unneeded features.
So, look for software solutions that offer a free trial and/or monthly payment plans to get started.
Second, consider what features you’ll need now and in the future. Look for solutions that offer customizations, integrations, reporting tools, and more.
Lastly, make sure to choose a software solution that has a good customer support and a user-friendly interface.
The best HR software for small businesses should have features such as payroll automation, hiring management, attendance tracking, onboarding/offboarding tools, benefits management, and employee data.
Additionally, make sure the software has an easy-to-use interface with integrations to other platforms.
Yes, there is HR for small businesses. Having good human resources software can make all the difference in managing employee data, payroll processing, and performance reviews.
Look for software packages that offer easy-to-use features and integrations to other tools you may be using (such as accounting or marketing platforms).
Setting up an HR system for a small business can be done in a few steps. First, consider what features you’ll need, such as payroll automation, hiring management, attendance tracking, onboarding/offboarding tools, benefits management, and employee data.
Next, shop around for the best software to suit your needs. Consider pricing, ease of use, customer support, and integrations when making your decision.
Finally, implement the software and adjust as needed. Make sure to train your employees on how to use it correctly so that you can ensure accurate information is being collected.
With a little planning and practice, setting up an HR system for a small business can be a relatively straightforward process.
Human resource management software is a system used to manage personnel information and processes associated with employee performance, recruitment, development, and compensation.
These solutions often include features such as payroll automation, hiring management, attendance tracking, onboarding/offboarding tools, benefits management, and employee data.
When searching for HR software packages for small businesses, look for solutions that offer easy-to-use features and integrations to other tools you may be using (such as accounting or marketing platforms).
Overall, human resource management software is a great way to streamline the HR process and ensure accuracy when collecting data. With the right software, small businesses can save time and money while managing.