Best Human Resources (HR) Software for Small Businesses 2024

Lani Le

6 min read

Published: Jun 23, 2024

Revised on: Jun 23, 2024

Small businesses need efficient and effective tools to manage their human resources (HR) functions. HR software has evolved into a vital asset, helping small businesses streamline their operations. Choosing the right HR software can transform how small businesses manage their human resources. The right platform can streamline processes, improve employee engagement, and ensure compliance with labor laws. 

With numerous options available, finding the best HR software tailored to small businesses can be daunting. This article explores the top HR software solutions designed specifically for small businesses, highlighting their features, benefits, and pricing to help you make an informed decision.

Why Do Small Businesses Need HR Software?

Managing HR functions manually can be time-consuming and error-prone, especially for small businesses with limited resources. HR software automates repetitive tasks, reduces administrative burden, and provides valuable insights into workforce management. 

Here are the key benefits of HR software for small businesses:

• Efficiency and Productivity: Automates routine tasks such as payroll processing, leave management, and employee onboarding.
• Compliance: Helps ensure adherence to labor laws and regulations, reducing the risk of penalties.
• Data Management: Centralizes employee information, making it easier to access and update records.
• Recruitment and Retention: Streamlines hiring processes and improves employee engagement and retention through performance tracking and feedback systems.
• Cost Savings: Reduces the need for a large HR team, lowering operational costs.

What Is the Best HR Software for Small Businesses?

Choosing the best HR software for small businesses depends on several key factors tailored to meet the unique needs of each business. 

Here are the general aspects to consider when selecting HR software:

• Ease of Use: The software should have an intuitive interface that is easy for HR personnel and employees to navigate. This minimizes the learning curve and maximizes efficiency.
• Core HR Functions: Essential features typically include employee data management, payroll processing, time and attendance tracking, benefits administration, and compliance management. Ensure the software covers these basic needs.
• Scalability: The software should be scalable to accommodate business growth. Look for solutions that can easily add new users and features as your business expands.
• Integration Capabilities: It should integrate seamlessly with other business systems such as accounting software, CRM systems, and other productivity tools. This ensures data consistency and streamlines processes across different departments.
• Customization Options: The ability to customize workflows, reports, and user interfaces is important for aligning the software with your specific business processes and requirements.
• Compliance and Security: The software must help maintain compliance with local, state, and federal regulations. Additionally, robust security features are essential to protect sensitive employee data.
• Employee Self-Service: An employee self-service portal allows employees to access their information, request time off, and update personal details, reducing the administrative burden on HR staff.
• Customer Support: Reliable customer support is crucial. Look for software providers that offer comprehensive support options, including live chat, phone support, and detailed documentation.
• Cost: The cost of the software should align with your budget. Consider the total cost of ownership, including subscription fees, setup costs, and potential charges for additional features or users.
• User Reviews and Feedback: Research user reviews and feedback from other small businesses. This can provide insights into the software's reliability, performance, and quality of customer service.

How Much Does HR Software Cost for Small Businesses?

HR software costs for small businesses can vary significantly based on several factors such as the features offered, the number of employees, and the specific needs of the business. Basic HR software packages often start at a few dollars per employee per month, making them accessible even for businesses with tight budgets. These entry-level solutions typically include essential features like employee data management, time tracking, and basic payroll functions. However, as businesses grow or require more advanced functionalities such as performance management, benefits administration, or compliance reporting, the costs can increase. Some comprehensive HR software platforms may charge higher fees, which can range from tens to hundreds of dollars per employee per month, depending on the extent of the features and the level of customization required. Providers may offer tiered pricing plans or volume discounts, which can help manage costs as the number of employees increases. It's important for small businesses to carefully evaluate their specific needs and compare different software options to find the best balance between functionality and cost.

Can HR Software Integrate with Other Business Systems?

Yes, many HR software platforms offer integrations with other business systems such as accounting software, CRM, and third-party applications. These integrations are designed to streamline business operations by allowing data to flow seamlessly between different systems, reducing the need for manual data entry and minimizing errors. For instance, integrating HR software with accounting systems can automate payroll processing, ensure accurate financial reporting, and facilitate compliance with tax regulations. Similarly, connecting HR software with CRM systems can enhance workforce management by aligning sales and customer service activities with employee performance and scheduling. Integrations with third-party applications can extend the functionality of HR software, providing tools for advanced analytics, employee engagement, learning management, and more. This interconnected ecosystem of business systems enhances overall organizational efficiency, supports better decision-making, and enables a more cohesive and agile operational structure.

What Features Should I Look for in HR Software for My Small Business?

The right features depend on your business’s specific HR needs. Key features to look for in HR software:

• Employee Self-Service: Enables employees to access their personal information, request time off, and view pay stubs without HR assistance.
• Payroll Management: Integrates payroll processing with attendance and time-tracking features.
• Recruitment and Onboarding: Simplifies hiring processes with applicant tracking systems (ATS) and onboarding workflows.
• Performance Management: Facilitates performance reviews, goal setting, and feedback.
• Compliance Management: Helps maintain compliance with labor laws and regulations.
• Reporting and Analytics: Provide insights into HR metrics and trends to inform decision-making.

Top 10 HR Software Platforms for Small Businesses

Let’s review ten of the best HR software platforms designed specifically for small businesses. We’ve evaluated their features, ease of use, and overall value to help you find the perfect fit for your company's needs.

1

BambooHR

Pricing

Contact sales for pricing

• Free trial available

Rating 4.5 (4,993)

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BambooHR is a well-established HR software solution known for its simplicity and effectiveness. It offers a wide range of features tailored to the needs of small and medium-sized businesses.

BambooHR Key Features:

• Employee Database Management: BambooHR centralizes employee information, making it easy to access and update records.
• Time-Off Tracking: The platform includes robust time-off tracking and approval workflows, simplifying leave management.
• Performance Management: BambooHR provides tools for performance reviews, goal setting, and feedback, helping businesses manage employee performance effectively.

Pros

1. User-friendly interface - Many reviews praise how intuitive and easy to navigate BambooHR is. Both employees and HR admins find it simple to use.
2. Streamlined HR processes - Automates tasks like onboarding, document signing, PTO requests, etc. Saves HR teams time and effort.
3. Excellent customer support - Numerous reviews highlight BambooHR's responsive and knowledgeable customer support as a major plus.
4. Customizable - Can tailor BambooHR to fit organization's specific needs via custom fields, workflows, access levels, etc. Provides flexibility.
5. Integrations - BambooHR integrates with other HR tools like payroll, applicant tracking, and performance management systems. Allows connecting workflows.

Cons

1. Limited customization - Some reviews note inability to customize certain aspects like performance reviews. Can be an issue for unique needs.
2. Complex configurations - Setting up advanced workflows and custom fields requires learning and experience. Can impact productivity.
3. Missing features - Lacks some common HR features like scheduling, recognition programs, advanced analytics. Requires add-ons.
4. Lack of personalization - Dedicated account manager promised during sales but not provided post-signing according to some reviews.
5. Reporting limitations - Reporting functionality could be more robust and flexible as per some user reviews.

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2

Deel

Pricing

Contact sales for pricing

Rating 4.7 (3,424)

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Deel is a modern HR software solution designed for businesses that operate on a global scale. It simplifies the management of international payroll, compliance, and employee benefits, making it an ideal choice for small businesses with a global presence.

Deel Key Features:

• Global Payroll Management: Deel allows businesses to manage payroll for employees and contractors across multiple countries, ensuring timely and accurate payments.
• Compliance Automation: The platform automates compliance with local labor laws and tax regulations, reducing the risk of legal issues.
• Contractor Management: Deel provides tools to manage contractor agreements, invoicing, and payments, streamlining the onboarding and management process.

Pros

1. Easy to use platform with an intuitive interface. Many reviews mentioned how user-friendly Deel's platform is.
2. Good customer support. Numerous reviews praised Deel's customer service for being responsive, knowledgeable, and helpful.
3. Flexible payout options. Reviews liked the variety of payout methods offered by Deel, from bank transfers to PayPal and crypto.
4. Simplifies international hiring and payments. Deel makes it easy to hire and pay contractors globally by handling compliance and paperwork.
5. Offers features like advances. The ability to get advance payments on earnings was called out as a useful feature.

Cons

1. Expensive, high fees. The most common complaint was that Deel's fees were too high, especially for larger teams.
2. Issues with transfers and payments. Some reviews cited problems with transfers getting lost or delayed.
3. Limited customization and flexibility. Deel provides standardized contracts and processes which some found inflexible.
4. Buggy interface and tech issues. Bugs and glitches with the platform were called out as annoyances.
5. Lack of local knowledge and expertise. Reviews mentioned Deel lacking expertise on local laws and regulations in some countries.

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3

Assembly

Pricing

$2.80 per user/month

• Free version
• Free trial available
• Seat Minimum: 1 User

Rating 4.7 (291)

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Assembly consolidates the functionalities of multiple onboarding tools into a unified platform, streamlining the process. It includes a wide array of features aimed at enhancing engagement and simplifying onboarding for HR teams, ensuring a welcoming experience for new employees.

Assembly Key Features:

• Integrated HR Management: Assembly centralizes employee data, resources, and onboarding procedures, simplifying HR management.
• Employee Feedback Mechanism: Assembly enables HR to conduct surveys such as the New Hire Survey, gathering feedback to enhance the onboarding journey.
• Analytics and Insights: Assembly offers analytics that provides visibility into the onboarding process, enabling HR to track progress, identify patterns, and make data-driven decisions.

Pros

1. Easy to use and intuitive interface. Many reviews mentioned Assembly is simple, easy to navigate, and user-friendly.
2. Good customer support. Reviews mentioned Assembly's support team is responsive in resolving issues.
3. Rewards redemption process is smooth. Users liked the gift card and other reward options that can be redeemed with points.
4. Integrates well with Slack and Microsoft Teams. The integration makes giving recognition quick and seamless.
5. Good for employee recognition and engagement. Reviews highlighted Assembly's peer-to-peer recognition features that help boost employee morale.

Cons

1. Limitations in analytics and reporting features. Some reviews wanted more detailed analytics and user statistics.
2. Creating flows and automations can be tricky. Reviews noted workflows and automations are sometimes hard to setup.
3. Limited customization options for recognitions. Users wanted more ways to customize recognitions with images/GIFs.
4. Lack of mobile apps earlier on. Reviews mentioned lack of mobile apps made it hard to use when not by a computer.
5. Confusion due to branding changes. Reviews noted frequent name changes of the reward units was confusing initially.

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4

HiBob

Pricing

Contact sales for pricing

Rating 4.4 (1322)

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HiBob is an HR software platform designed to enhance employee experience and engagement. It offers a range of features to help small businesses manage their HR processes and foster a positive workplace culture.

HiBob Key Features:

• Employee Engagement Tools: HiBob includes features such as surveys and feedback tools to measure and improve employee engagement.
• Onboarding: The platform provides a comprehensive onboarding experience, helping new hires integrate smoothly into the company.
• HR Analytics: HiBob offers advanced analytics to track and analyze HR metrics, providing insights to improve HR strategies and decision-making.

Pros

1. HiBob streamlines processes like onboarding and approval workflows, saving time and reducing administrative burden.
2. The platform offers robust automated reporting capabilities, making it easier to schedule and distribute HR data to relevant stakeholders.
3. Features like shoutouts and kudos foster a positive work environment by encouraging recognition and engagement within the team.
4. Users appreciate the ease with which HiBob can be tailored to fit specific organizational needs, reducing reliance on external consultants.
5. HiBob's support team is highly rated for their responsiveness and helpfulness, ensuring that users receive timely assistance when needed.

Cons

1. Users have noted limitations in the flexibility of reporting filters, such as the inability to use 'OR' filters instead of 'AND', which restricts complex reporting needs.
2. Creating and managing e-signature templates can be cumbersome and restrictive, especially with formatting issues and limited visibility into pending documents.
3. Managers find it challenging to track where specific approval requests are in the chain, lacking real-time visibility until final approval or rejection.
4. While generally user-friendly, some users have suggested that certain features could be more intuitive or require fewer clicks to accomplish tasks.
5. Integration with other systems, such as Docusign, is lacking, which may require additional workarounds or manual processes for document management.

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5

Rippling

Pricing

$8.00 per user/month

• No Seat Minimum

Rating 4.7 (8020)

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Rippling is an all-in-one HR and IT platform that automates many aspects of employee management. It's designed to be highly scalable, making it suitable for growing small businesses.

Rippling Key Features:

• Payroll Automation: Rippling automates payroll processing, including tax filings and deductions, ensuring compliance and accuracy.
• Benefits Administration: The platform simplifies benefits administration, helping businesses offer competitive benefits packages.
• IT Management: Rippling also offers IT management features, such as device management and app provisioning, integrating HR and IT workflows.

Pros

1. Many users appreciate Rippling's intuitive and easy-to-navigate interface, which simplifies HR and payroll tasks.
2. It offers a wide range of features including payroll management, time tracking, benefits administration, and more, all integrated into one platform.
3. Rippling integrates well with other software systems like QuickBooks, which reduces manual data entry and streamlines accounting processes.
4. It's praised for its ability to handle global HR needs such as compliance and payroll across different countries, making it suitable for multinational companies.
5. Many users find customer support to be responsive and helpful.

Cons

1. The pricing is often cited as a downside, particularly for small businesses, as some features and add-ons can be expensive.
2. Several users mentioned difficulties during the implementation process, including overpromising features and delays in functionality.
3. Additional features such as advanced reporting and automation come at an extra cost.
4. There are complaints about inconsistent support quality and delays in issue resolution during critical times.
5. Despite its user-friendly interface, there's still a learning curve for fully utilizing all features effectively, especially for complex organizational needs.

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6

ClearCompany

Pricing

Contact sales for pricing

• Seat Minimum: 5 Users

Rating 4.4 (1,187)

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ClearCompany is an HR software solution that focuses on talent management and employee engagement. It provides tools to help small businesses attract, hire, and retain top talent.

ClearCompany Key Features:

• Applicant Tracking System (ATS): ClearCompany offers a powerful ATS to streamline the recruitment process and improve the candidate experience.
• Onboarding and Training: The platform includes comprehensive onboarding and training tools to ensure new hires are well-integrated and productive.
• Performance Management: ClearCompany provides performance management features, including goal setting, feedback, and reviews, to help businesses optimize employee performance.

Pros

1. Easy to use and user-friendly interface
2. Good customer support/service
3. Helps manage and track candidates through hiring process
4. Integrates well with other systems (e.g. payroll, job boards)
5. Useful features like interview scheduling, offer letters, reporting

Cons

1. Slow response time for support at times
2. Reporting functionality needs improvement
3. Lack of customization options
4. Issues with forms not working properly
5. Implementation process can be bumpy

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7

Monday.com

Pricing

$8.00 per user/month

• Free version
• Free trial available
• No Seat Minimum

Rating 4.5 (17,385)

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Monday.com is a versatile work operating system that includes robust HR management features. It offers flexibility and customization, making it suitable for small businesses with unique needs.

Monday.com Key Features:

• Customizable Workflows: Monday.com allows businesses to create customized HR workflows to match their specific processes and needs.
• Collaboration Tools: The platform includes collaboration features, such as task management and communication tools to improve team coordination.
• Time Tracking: Monday.com provides time tracking features to monitor employee hours and manage project timelines effectively.

Pros

1. Easy to use and intuitive interface. Many reviewers mentioned how user-friendly Monday.com is.
2. Visual project management. Reviewers liked the ability to visualize workflows and track progress through boards and timelines.
3. Enhanced team collaboration. Monday.com facilitates task assignment, communication, and real-time updates to improve collaboration.
4. Customizable boards and workflows. Users appreciated the ability to fully customize boards and automations to match their needs.
5. Centralized hub. Storing all project information and files in one centralized place made managing projects easier.

Cons

1. Steep learning curve. Some reviewers found the initial setup and learning process time-consuming and complex.
2. Limitations of free plan. Key features like automations are only available on paid plans.
3. Integration issues. Some users faced challenges integrating Monday.com with other tools they use.
4. Slow performance. A few reviewers complained about occasional lagging or platform slowness with heavy usage.
5. Price. Monday.com's pricing model makes it cost prohibitive for larger teams to use all features.

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8

Lattice

Pricing

$11.00 per user/month

• No Seat Minimum

Rating 4.6 (4,010)

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Lattice is a comprehensive HR software solution focused on performance management and employee engagement. It offers a suite of tools to help small businesses foster a high-performance culture and retain top talent.

Lattice Key Features:

• Performance Reviews: Lattice enables businesses to conduct regular performance reviews, providing actionable insights and feedback to employees.
• Goal Setting and Tracking: The platform supports OKRs (Objectives and Key Results) and goal management, helping teams stay aligned and focused.
• Employee Engagement Surveys: Lattice offers customizable surveys to measure employee satisfaction and gather feedback, allowing businesses to improve workplace culture.

Pros

1. Easy to use interface and intuitive navigation. Many reviews mentioned that Lattice has a user-friendly interface that makes it simple to find features and navigate the platform.
2. Effective performance management system. Reviews highlighted that Lattice streamlines the performance review process through customizable templates, continuous feedback features, and automated workflows.
3. Robust goal setting and tracking features. Reviews noted the ability to easily set, track, and update goals at the individual, team, and company level as a major benefit.
4. Integration with other tools like Slack. Reviews praised the integrations Lattice offers to platforms like Slack to enable easier sharing and communication.
5. Useful reporting and analytics. Reviews mentioned the ability to pull reports and gain insights into performance metrics as a valuable capability.

Cons

1. Steep learning curve for some features. Some reviews noted that certain advanced functionality like setting up OKRs can have a difficult learning curve.
2. Mobile experience needs improvement. The mobile app experience was called out in reviews as an area for improvement.
3. Dashboard/homepage not intuitive. The homepage and dashboard views were mentioned as sometimes being confusing to navigate and cluttered.
4. Not enough customization in review templates. Some reviews wanted more ability to customize performance review templates.
5. Data formatting issues in reporting. Reviews pointed out occasional formatting errors when pulling reports from the platform.

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9

Eddy

Pricing

$6.00 per user/month

• Free trial available
• No Seat Minimum

Rating 4.5 (68)

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Eddy is a user-friendly HR software designed specifically for small businesses. It combines core HR functions with intuitive tools, making it easy for businesses to manage their HR needs without extensive training.

Eddy Key Features:

• Applicant Tracking System (ATS): Eddy streamlines the recruitment process with its ATS, helping businesses attract and hire the right talent efficiently.
• Onboarding Tools: The platform provides comprehensive onboarding features to ensure new hires have a smooth transition into the company.
• Employee Self-Service: Eddy empowers employees to manage their own HR tasks, such as updating personal information and accessing pay stubs, reducing administrative burden.

Pros

1. Easy to use and intuitive interface. Many reviews mentioned Eddy is simple to navigate and easy for employees to use.
2. Good value/affordable pricing. Multiple reviews liked that Eddy provides a lot of functionality for the price.
3. Helpful customer support. Reviews praised Eddy's customer service for being responsive, friendly, and willing to customize the software.
4. Streamlined hiring/recruiting. Eddy makes it easier to post jobs, track applicants, and move candidates through the hiring pipeline.
5. Centralized HR information. Reviews liked having employee data, documents, time-off, etc. all in one place.

Cons

1. Limited customization/personalization. Some reviews wanted more ability to customize Eddy to their specific needs.
2. Missing some key features. Reviews mentioned lacking scheduling, messaging, and full payroll integration.
3. Reporting capabilities need improvement. Reviews said Eddy's reports could be expanded and customized.
4. Still new/developing product. As a newer HR software, some features are still in development.
5. Lacks some HRIS/HRMS robustness. Reviews noted Eddy may not suit larger companies needing advanced capabilities.

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10

Zoho People

Pricing

$15.00 per user/month

• Free trial available
• No Seat Minimum

Rating 4.1 (10,984)

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Zoho People is part of the Zoho suite of business applications, offering a versatile HR solution for small businesses. It integrates seamlessly with other Zoho products, providing a cohesive experience.

Zoho People Key Features:

• Employee Self-Service Portal: Zoho People allows employees to manage their own HR tasks, such as leave requests and attendance tracking.
• Time and Attendance Management: The platform offers detailed time and attendance tracking, ensuring accurate payroll processing.
• HR Analytics: Zoho People includes powerful analytics tools to provide insights into various HR metrics, helping businesses make data-driven decisions.

Pros

1. Affordable pricing compared to competitors
2. Easy to use and intuitive interface
3. Lots of customization options
4. Good integration between different products in the suite
5. Helpful customer support

Cons

1. Steep learning curve for some products
2. Limitations in functionality compared to specialized tools
3. Some bugs and glitches
4. Slow performance at times
5. Lack of native integrations with major third-party apps

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Conclusion

Choosing the right HR software for your small business can significantly impact your efficiency, employee satisfaction, and overall growth. Each of the platforms reviewed above offers unique features and benefits tailored to different business needs and budgets. Whether you prioritize payroll processing, comprehensive HR management, or a user-friendly interface, there is an HR software solution to meet your specific requirements. Investing in the right HR software will streamline your operations and help you create a more engaged and productive workforce.