The Ultimate Guide to Best HR Software for Small Businesses

Contemporary small businesses face a myriad of challenges, among them is managing human resources (HR). However, the rise of HR software solutions has significantly simplified HR processes, allowing small businesses to automate key tasks. This article explores the top 10 HR tools suitable for small businesses, their core features, pricing, pros, and cons, and provides you with all the information you need to make an informed decision.

Understanding HR Software

HR software refers to a broad array of software systems designed to streamline common HR tasks and processes spanning across the employee lifecycle. They come under various names such as HR management systems, HR databases, or acronyms like HRIS, HRMS, or HCM. Regardless of the name, small businesses need the same core HR functions as larger ones like payroll, scheduling, time-tracking, etc.

Top 10 HR Software for Small Businesses

Now let’s take an in-depth look at each of these top-notch HR software for small businesses, breaking down their unique features, pricing, pros, and cons.

1. Rippling

Rippling stands out as the best overall HR software for small businesses. It’s a comprehensive platform designed for businesses of all sizes. Rippling’s global compatibility allows you to hire and manage freelancers and employees in 150+ countries without having to figure out local laws, tax systems, or international payroll management.

The Deel platform is user-friendly and integrates several features that make it easy to manage and pay workers compliantly without juggling multiple tools. Features include contract and stock option management, expense reimbursements, and compliance documentation tracking. Pricing starts at $8 per employee per month.

2. Gusto HR

Gusto HR is another excellent HR software known for its all-in-one HR platform that can be used by businesses of any size. Gusto HR offers expanded HR features that include employee benefits and employee management options, plus insights and reporting tools. Gusto’s Simple plan starts at a base monthly fee of $40, plus $6 per person.

3. Paychex

Paychex is a full-service HR solution that offers a wide variety of features in their lower-priced plans. Paychex’s HCM platform helps small businesses manage all aspects of HR, including payroll management, benefits administration, and compliance. The platform helps users manage expense reports and mitigate risk with compliance tools. Pricing for Paychex starts at a flat fee of $99/month plus $5/employee/month.

4. TriNet Zenefits

TriNet Zenefits is an all-in-one human resources platform that helps you reduce employee paperwork through automation and encourages employee collaboration through its People Hub. Zenefits came under some scrutiny in November 2016 and was fined $7 million by the California Department of Insurance for licensing violations before being acquired by TriNet in February 2022.

5. BambooHR

BambooHR offers an all-in-one HR system for small and midsize businesses. Collecting, storing, and analyzing employee data is a priority for BambooHR, but it also offers tools that can engage your employees. BambooHR’s pricing information is not available on the BambooHR website. Instead, you’ll need to complete a short online form to get a price quote.

6. GoCo

GoCo provides HR features including solid benefits administration with a focus on streamlining the hiring and onboarding process for new hires. You can explore the product through a free tour of a real account and even experiment with the data to get a feel for the product. The starting price is $5 per employee per month.

7. ADP Run

ADP Run offers HR software and services to businesses of all sizes, but we recommend it for small businesses starting out that may eventually scale. It also suggests it for solopreneurs because it’s the only one with a package for the self-employed, which includes payroll, a retirement plan option, and business incorporation services.

8. Paycor

Paycor is an HR and people management solution that caters to small businesses that need an affordable, all-in-one solution. It is purpose-built to serve as an all-in-one platform for human resources departments managing deskless employees, as well as hybrid or remote teams. It provides tools to help manage and train staff members, including non-desk workers within a mobile application.

9. Connecteam

Connecteam is an HR software for small businesses with shift scheduling and GPS tracking. It’s an excellent tool for businesses with a large number of deskless employees such as construction and manufacturing companies, healthcare and hospitality businesses. Connecteam offers an extensive help center to walk you through all the key features and functionality of the software.

10. Homebase

Homebase is a free HR software for small businesses that need a tool for employee scheduling, time tracking, and team communication. Homebase offers great value for money. It’s free for unlimited employees and offers an affordable premium plan with additional features.

Final Thoughts

Selecting the best HR software for your small business depends on various factors, including your budget, the size of your business, and your specific HR needs. The software solutions listed above are some of the best in the industry, offering a range of features to streamline your HR processes. Consider your business needs carefully before choosing an HR software solution. It’s always a good idea to take advantage of free trials and demos to ensure the software is the right fit for your business.