Top 5 HR Software For Small Businesses

HR Software For Small Businesses

HR tasks can be time-consuming and overwhelming. Particularly if you have a company with limited resources. Usually, HR tools automate these processes, eliminate manual data entry, and improve accuracy. 

HR software for small businesses offers Payroll, Attendance, Case and Investigation Management, Performance Management, and Employee Self-Service portals too! These enhance employee engagement and satisfaction. 

In this article, you will learn about the top 5 HR software to choose from that can help you manage small businesses effortlessly.

Key Features of HR Software for Small Businesses

HR software is an essential tool for your small businesses looking to organize HR processes and improve workforce management. These software solutions offer a range of features-

Employee Management

HR software helps small businesses manage employee data, track employee performance, and run tasks such as scheduling and task allocation smoothly.

Attendance and Time Management

This software allows small businesses to track employee attendance and hours worked, automate time-off requests, and generate accurate timesheets for payroll processing.

Recruitment and Onboarding

HR software has recruitment and onboarding features for the hiring process. Automating job postings, resume screening, and applicant tracking, gives an A-Z solution for hiring. It’s hard to believe but it also manages new hire paperwork and onboarding tasks.

Payroll Management 

This type of software simplifies the payroll process by automating calculations, tax deductions, and direct deposits. It can also generate payroll reports and provide compliance support.

Performance Management

If you want to track employee performance, set goals, and conduct performance evaluations, you can simply go for HR software. It can also provide coaching and development resources to enhance employee productivity.


The Compliance feature of HR software helps small businesses stay up to date with federal and state employment regulations. It can automate compliance reporting and provide HR policies and procedures for employee training.

Factors to Consider When Choosing HR Software for Small Businesses

Before choosing HR software for small businesses, consider the following factors –

  1. The size of your business
  2. Budget
  3. User-friendliness
  4. Customization options,
  5. Integration with other tools

Choose software that is suitable for your business size and the other tools you use for your business. Also, see if it offers the features you need at a price you can afford.

Top 5 HR Software for Small Businesses

There are several HR software in this global market. Again, calling something “best” or “top” is subjective. So, here are the 5 suggestions on HR software for small businesses after analyzing individual features-

1. BambooHR


BambooHR is a cloud-based HR software that provides a comprehensive suite of HR tools. It features managing employee data, recruitment, onboarding, time off, performance, and reporting.

Key features

  1. An employee database
  2. Applicant tracking
  3. Onboarding
  4. Time off management
  5. Performance management
  6. Reporting
  7. Custom workflows
  8. Document storage
  9. Mobile access

Unique features: An employee satisfaction survey tool, an employee recognition program, and a company culture tool.

Pros and cons

Pros of BambooHR are- its user-friendly interface, robust features, and excellent customer support. It is also customizable and scalable. Cons include limited customization options for reports and forms and a lack of integration with some popular HR tools.


BambooHR pricing typically depends on the number of employees in the organization. Prices start at $99 per month for up to 10 employees and go up to $13,499 per year for organizations with over 1,000 employees.

User Review

Undoubtedly, BambooHR is a top-rated HR software. It has reviews for its user-friendly interface and comprehensive features. However, some users have reported issues with limited customization options for reports and forms, features, and excellent customer support. It is also customizable and scalable. Another drawback is its limited customization options for reports and forms and a lack of integration with some popular HR tools.

2. Gusto


Gusto is an all-in-one HR platform that helps small businesses manage their HR tasks effectively. It offers a lot of features like payroll processing, benefits administration, compliance reporting, time tracking, and employee onboarding.

Key Features 

  1. Intuitive and user-friendly interface.
  2. Employee self-service portals
  3. HR analytics
  4. Mobile apps for iOS and Android devices

Unique features:  Automatic payroll tax calculations, 401(k) management, and health insurance administration.

Pros and Cons

The pros of Gusto are its user-friendly interface, comprehensive HR features, and affordable pricing plans. The cons can be its limited customization options and the lack of a dedicated HR support team for all plans.


Gusto offers three pricing plans starting from $45 per month plus $6 per person per month. Each plan includes payroll processing, benefits administration, and compliance reporting. Additional features are available with higher-tiered plans.

User Review

Gusto is highly rated for its ease of use, comprehensive HR features, and excellent customer support. But, some users have reported issues with glitches and the platform’s limited customization options. Nonetheless, Gusto is a great HR software solution for small businesses looking for an affordable and user-friendly HR platform

3. Zoho People


Zoho People is another HR software solution that is famous for small businesses. It offers different types of HR tools to manage employee data, attendance, recruitment, payroll, performance, and compliance. 

Key Features

  1. Employee self-service portals
  2. Document management
  3. Leave management tools
  4. Integrates with other Zoho applications for a seamless experience

Unique features: Customizable forms, workflow automation, and mobile app access.

Pros and Cons

Pros of Zoho People include its robust functionality, cost-effectiveness, and ease of use. On the other hand, some users find its reporting capabilities limited, and customer support could be more responsive.


Zoho People offers several pricing plans. It starts with a free plan for up to five employees. Paid plans start from $0.83 per employee per month for essential features and go up to $4 per employee per month for advanced features.

User Review

Zoho People get a lot of recommendations from experts. It offers extensive HR functionality at an affordable price. Its integration with other Zoho applications adds value to the overall business experience.

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4. Workday HCM


Workday HCM is a cloud-based Human Capital Management software that manages HR processes, like recruitment, onboarding, payroll processing, talent management, and more. It is designed for medium enterprises and offers a user-friendly interface and mobile accessibility.

Key Features

  1. An intuitive dashboard,
  2. Employee self-service portal,
  3. HR analytics,
  4. Real-time reporting,
  5. Automated workflows
  6. Collaboration tools. 

Unique features: Machine learning capabilities, intelligent automation, and unified data model.

Pros and Cons

The pros of Workday HCM include its user-friendly interface, advanced analytics, and mobile accessibility. Workday HCM has relatively high pricing and limited customization options, which are its cons. 


Workday HCM’s pricing is not publicly disclosed. It varies based on the size of the organization and specific requirements. However, it is typically a subscription-based model with an implementation fee.

User Review

Workday HCM is highly rated among users. It’s machine-learning capabilities and intelligent automation are also highly praised. However, some users note that the platform can be costly and lacks customization options. In general, Workday HCM is a powerful HR solution that can help your enterprise streamline its HR processes and enhance employee engagement.

5. ADP Workforce Now


ADP Workforce Now is a cloud-based human resources (HR) software solution designed for small to medium-sized businesses (SMBs) to manage their HR tasks. The software offers a wide range of features that streamline HR tasks such as payroll, time and attendance tracking, benefits administration, talent management, and compliance management.

Key Features 

  1. Real-time data analytics
  2. Employee self-service tools
  3. An intuitive user interface
  4. Comprehensive compliance support like tax compliance, wage garnishments, and regulatory reporting.

Unique features: A mobile app that enables employees to access their payroll information, request time off, and update their personal information on the go.

Pros and Cons

Pros of ADP Workforce Now are customizable dashboards, comprehensive payroll, and benefits administration. It offers integrations with third-party software, making it easier to manage tasks. However, its limited customization options and pricing are not affordable for all users.


ADP Workforce Now offers flexible pricing plans based on the number of employees and specific business needs. The pricing starts at $59 per month and can go up to $129 per month for advanced features and add-ons.

User Review

On balance, ADP Workforce Now is a powerful HR software solution that performs HR tasks. Its comprehensive features make it an ideal choice for SMBs. But its limited customization options with that pricing may not suit everyone’s needs. 

Top 5 HR Software: At a Glance

FeaturesBambooHRGustoZoho People Workday HCMADP Workforce Now
Core HRYesYesYesYesYes
Time and AttendanceYesYesYesYesYes
Benefits ManagementOptionalYesOptionalYesYes
Onboarding YesYesYesYesYes
Employee Self-ServiceYesYesYesYesYes
Mobile AppYesYesYesYesYes
Reporting and AnalyticsYesYesYesYesYes

Wrapping Up

By using these HR software tools for small businesses, you can manage all core HR tasks efficiently. Choose the best HR software solution that matches your business needs and optimize your HR processes to drive business growth and success.

Want to know more? Feel free to get in touch in the comment section.

Meta: Need HR software for small businesses? Find here the perfect solution to organize your HR tasks and boost productivity with user-friendly software.

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