17 minutes read

Best HR Software for Small Business

Sam Turner

Written by:

Sam Turner

Reviewed by:

John ThompsonJohn Thompson
best hr software for small business

HR software is crucial for any small business and emerging enterprises. Today I shall teach you about the necessity of HR software in the workplace and give you my recommendations for the best HR software for small businesses to help you make smarter decisions! 

Let's begin!

What Are Human Resources Processes in Any Business or Organization?

The HR processes in any business include the following responsibilities:

1. Employee Management

  • Maintaining databases on employees and recording all employee-related information in an organized and easy-to-access manner. This includes information on both present and past employees.
  • Making financial decisions which include payroll calculations, regular salaries, overtime, deductions, reimbursements, etc.
  • Conduction surveys, feedback, and assessments on employees and workplace instances to improve the workforce's experience.
  • Set up and schedule short-term and long-term plans and make strategic decisions.
  • Track, monitor, and calculate productivity, performances, efforts, etc. employees.
  • Training and educating employees on workplace rules and regulations, maintaining best practices, safety training, etc.

2. Benefits Administration

  • Ensuring the benefits of employees as per company regulations and policies.
  • Take care of PTOs, unpaid leaves in general, and also any special requirements of employees and acknowledge them.
  • Ensure workplace equality and maintain order and stability.

3. Recruitment

  • Creating job circulars, job openings, and posting vacancy notices.
  • Applicant tracking, CV/Resume analysis, background check on applicants, and credibility analysis.
  • Onboarding new recruits, educating them on company policies and regulations, and orientation. 
  • Maintaining paperwork and documentation.

Why Is Automation Necessary?

best hr software for small business

Human resources departments need to routinely examine how closely the goals of their processes coincide with those of the organization. Human resources are able to confirm that they are making the right choices by periodically reevaluating and conducting surveys geared toward achieving long-term goals.

Automation of HR processes helps ensure that operations are performed effectively. For example, listing tasks on a checklist helps teams, and supervisors might utilize the checklist to organize their responsibilities and distribute responsibilities effectively.

It also serves to act as a reminder for employees about their job responsibilities as well as time to facilitate easy interaction and cooperation from both directions. 

Automation of HR processes makes operations such as recruiting, letting go of employees, migrations, and important interactions among employees easier. 

Tracking activity, identifying instances that need development, and redesigning processes to work more effectively are all things that can be accomplished with the assistance of Human resources automation.

Since HR is all about working with people, there must be opportunities for fluidity, independent thought, and different points of view. Automation can achieve this easily with the help of tools and smart AIs. 

People have countless instances of opinions, insights, and experiences to share with regard to how HR may more effectively adjust different processing elements. HR personnel can learn how to improve company policies by conducting polls and surveys about workplace and worker satisfaction or work assessment that includes dynamic feedback and then analyzing the results of either of these instances.

Why Do Small Businesses Need HR Software?

HR software can help small businesses in many ways. Check the following list to learn why small businesses should use HR software.

1. Improves Administrative Processes

Employees are able to take care of their own needs using HR software tools and dashboards. Almost all HR platforms have built-in tools that facilitate practically all instances of workplace communication and sharing. They also organize and sort information and data in a customized and easy-to-access manner. 

These platforms also automate processes such as collecting, sorting, organizing, and updating data and records. This helps companies reduce the costs of hiring additional personnel and makes the lives of existing employees easier.

2. Modernizes Paperwork

Modern tools and AI can revolutionize Human resources features and functions. Nowadays, almost all platforms are web-based. This translates to easier management and access as even handling employees on the other side of the world becomes effortless.

3. Assessing and Monitoring Performance

Suppose an organization wants its employees to advance to their true capacity, raise their efficiency, and experience more accomplishment. In that case, it must first learn the management discipline of its employees' performance. Through the utilization of HR software, businesses can encourage input and incorporate objectives, discussions, and surveys.

4. Improves Communication

Even though your company is on the smaller side, utilizing data-driven technologies enables your team to communicate more efficiently with one another. Because it makes it possible for employees and managers of an organization to communicate with one another, an HR information system is a valuable instrument for fostering improved communication in the workplace. 

Employees can use portals to update their contact information, view their schedules, and exchange information to help maintain consistency throughout the workforce while reducing the amount of work the HR department has to do.

5. Streamlines Data Management

HR software makes the process of data retrieval and access simple and convenient. This increases efficiency tremendously as it saves everyone valuable time and requires less effort to manage and use stored data.

6. Increases Productivity in the Workplace

Automation directly results in increased productivity as it frees up personnel and resources alike. It saves time, energy, and input of employees. This helps and facilitates activities that would otherwise need to be done by employees manually.

What to Consider When Choosing the Best HR Software for Small Businesses?

best hr software for small business

There are a few key things you need to consider:

  • The size and scale of your business
  • Your budget 
  • Employee's willingness to learn
  • Functionality
  • If it matches your use cases
  • Trial options
  • Customer reviews
  • Reliability

Here Are the Best HR Softwares for Small Businesses

best hr software for small business

1. ADP Workforce Now

ADP Workforce Now is one of the best solutions for payroll and workforce management, as well as talent management.

Features

  • Dashboards
  • Employee management
  • Employee benefits management
  • Employee Payroll management
  • Performance and progress tracking
  • HR management
  • It is organized
  • User-friendly UI

The web-based ADP Workforce Now platform streamlines and simplifies all sorts of workplace-related tasks that HR departments usually manage. WorkForce Now functions using AI tools that can detect instances that require development and attention.

HR teams receive insights that enable them to adjust and modify those instances efficiently and effectively to boost productivity and make long-term plans. 

The ADP Workforce Now also helps business owners in automating HR procedures, including managing employees, productivity, and transaction policies which also include employee reimbursements and payroll management.

Small businesses can use this one-stop platform to perform all of their HR-related tasks, removing human inputs, cutting down on discrepancies, and generating detailed reports.

Why we chose it

  • It is web-based
  • Positive user feedback
  • It works on mobile devices
  • Live support options
  • Satisfied users and business owners

Things to consider

  • UI is sometimes confusing
  • Difficult to understand for some

2. BambooHR

BambooHR is undoubtedly an extensive and comprehensive SaaS solution for any small business or fast-growing organization.

BambooHR is a well-known SaaS organization that offers HR services and solutions to businesses online. Businesses of any size can gain a significant advantage from it, especially medium and small-sized ones.  

Their web-based platform offers emerging enterprises superior and inexpensive options for workforce management. They truly make the lives of human resources department individuals easier by automating significant portions of all management processes.

BambooHR users have the ability to track, monitor, incentivize as well as reward the workforce, as it's crucial in improving retention and increasing long-term employment as well as productivity.

Furthermore, BambooHR also conducts workplace surveys, highlighting instances that need change by providing a detailed insight into the factors that contribute to increased workplace participation.

Features

  • Employee management
  • Payroll management
  • Benefits administration
  • 401(k) monitoring
  • Recruitment and onboarding management
  • Absence management
  • Payroll management
  • Reporting and analytics

Why we chose it

  • It is Customizable
  • It is one of the best well-rounded options out there
  • It works on PCs and mobile devices
  • It offers live support
  • It has no hidden costs
  • It is customizable
  • It has trial options

Things to consider

  • Some parts of it cannot be customized
  • It is somewhat limited in terms of being adaptable
  • Does not offer time-tracking features

3. Bitrix24

Bitrix24 is one of the top-tier HRIS systems that has a wide range of tools that also include CRM functions and much more, all in a single package.

Features

  • It offers administrative management
  • It allows call management
  • It has client management services
  • It has employee management tools
  • It offers customization by having a lot of template options
  • It has KPI measurement features
  • It allows CRM solutions

Bitrix24 serves SMBs perfectly and offers effortless HR solutions. Bitrix24 has received stellar reviews in all categories: in-built tools, costs, and functionality.

They received relatively lower scores in the client service category. It also received a lower score in the UI category because of its relatively complicated and, to some extent, confusing UI and installation.

Bitrix24 also serves as a comprehensive customer relationship management platform that helps organizations automate their workplace managing tasks.

It provides business owners with important tools that enable them to run their businesses in a streamlined and automated manner. It is perfect for SMBs as it can reduce costs and greatly improve their productivity.

Why we chose it

  • It offers free options for trials
  • It also offers a free option
  • It is cloud-based
  • It works on PCs
  • It works on mobile devices
  • It offers live support
  • It has great user reviews

Things to consider

  • It is prone to bugs
  • It has a few accessibility options
  • Unreliable reporting options

4. ClearCompany

ClearCompany is popular among its user base because of its onboarding and talent management features that can be useful for businesses of any given size.

Features

  • Dashboards
  • Employee management
  • Employee benefits administration
  • Recruitment management options
  • Payroll management
  • Remote access features
  • Feedback options
  • Workplace management

ClearCompany allows users to conduct and perform various assessments and surveys to help businesses in planning long-term goals, as well as monitor all aspects of their workforce and focus on instances that require immediate attention.

It also has worker performance and participation monitoring tools that increase morale and overall worker satisfaction by incentivizing and rewarding them.

ClearCompany is a web-based human resources management platform that has a wide array of tools and functions which may be purchased separately according to any business's specific requirements. 

Why we chose it

  • It is web-based
  • It works on desktops
  • It works on mobile devices
  • They offer live support

Things to consider

  • Limited reporting options
  • Limited communication features

5. Connecteam

Connecteam offers complete solution for internal HR solutions for SMBs in a cohesive well-built platform.

Features

  • It offers automation
  • It has employee management options
  • It is highly customizable
  • Wide selection of templates
  • Performance tracking
  • Employee benefits management
  • Payroll management services
  • Reporting and analysis

Connecteam is a human resources application for businesses that cannot provide all of their worker's computers or are very limited in office space.

It is highly recommended for business owners that require a straightforward, powerful, and still user-friendly application that enables them to manage all Human resources department functions easily and quickly.

Connecteam also allows business owners to perform tasks like employee management, productivity monitoring, recording attendance, recruitment, as well as other vital duties related to administration, all on its app. Owners and workers alike can easily access it by just creating an account by registering their personal phone numbers.

Why we chose it

  • It offers users free trial options
  • It even has a totally free version as well
  • It is web-based
  • It works best on mobile devices
  • It also works on desktops
  • They offer live support

Things to consider

  • The communication system is not well designed
  • Some features are only available on expensive packages

6. Gusto

Gusto is a high-rated HRIS platform for small and emerging businesses. It is equipped with modern and automation features that help scale up businesses effectively.

Features

  • Employee management
  • Employee database
  • Recruitment management
  • Benefits administration
  • Payroll management
  • Productivity monitoring

Gusto is a user-friendly human resource management system. It includes all the typical features a small business needs.

Users can use Gusto to keep track of absenteeism and quickly set up and authorize paychecks. Its resources for managing employee benefits assist businesses in setting up annuities, medical, and retirement funds for personnel.

Gusto's concierge service is a terrific option for companies lacking specialized HR Departments or experts. Users can quickly contact and gain access to a team of Human Resources professionals who are reachable by just a call or e-mail.

Gusto's concierge service plan also includes notifications and tips to assist businesses in maintaining adherence to all applicable laws.

Why we chose it

  • It is cloud-based
  • It works on PCs
  • It works on mobile devices
  • They offer live support
  • Has free options
  • It is an exceptional CRM
  • It has automated sales and management features

Things to consider

  • It needs to be purchased
  • It can get expensive
  • Support options require payment as well
  • It is prone to bugs

7. Paycor HCM

Paycor helps business owners to automate and modernize their workplace management procedures with their internal HR tools.

Features

  • 401(k) facilities
  • Employee management
  • Employee benefits management
  • Performance management
  • Payroll management
  • PTO management
  • Tax facilities
  • Integration with other platforms and services

Paycor serves the function of a human resources information system that is web-based and specializes in its development. It is designed to be user-friendly and has built-in web-based functions and tools which are accessible worldwide.

Its features satisfy almost any human resources department's requirements for small businesses.

Paycor allows HR managers to improve and enhance every aspect of employee and workplace management by freeing them up and enabling HR departments to concentrate on other things that require their attention. 

Thanks to Paycor's HCM, it becomes a one-stop solution eliminating the need to use multiple platforms. All records, reports, and data are stored in one place for easy access. P

aycor is the go-to solution for business owners looking to make all their processes automated, reduce inherent risks, improve productivity, and gain a better grasp of business requirements through robust analytics and insights.

Why we chose it

  • It is cloud-based
  • It works on mobile devices
  • It offers live support

Things to consider

  • It is sometimes difficult to operate
  • Its UI is sometimes confusing

8. Rippling

Rippling is an all-rounder HR solution in a complete and user-friendly platform for businesses of any size. It is truly one of the best HR platforms out there.

Features

  • Employee management
  • Employee database
  • Recruitment management
  • Benefits administration
  • Payroll management
  • Productivity monitoring

Rippling serves a variety of HR functions that users can opt to incorporate anywhere at any given moment, making it an overall ideal human resources software for any small business.

It is comprehensive in providing more than just primary HR functions compared to other software and additionally provides features like PEO.

Rippling is also an excellent option for tech-focused businesses because of its fluidity; it allows Rippling to manage IT tasks.

It provides functionality for employee removal as well as features for departing employees. It also has the ability to allocate PCs and software to recruits in the recruitment process.

Why we chose it

  • It is cloud-based
  • It works on PCs
  • It works on mobile devices
  • They offer live support
  • Has free options
  • It is an exceptional CRM
  • It has automated sales and management features

Things to consider

  • It needs to be purchased
  • It can get somewhat expensive
  • Support options require payment as well
  • It is prone to bugs

9. Zenefits

Zenefits is one of the most high-performing and comprehensive HR management platforms that helps SMBs improve their workforce exponentially.

Features

  • Advanced security options
  • COBRA administrative features
  • Onboarding management
  • Talent acquisition and recruitment automation
  • 401(k) tracking
  • Payroll management benefits management
  • Customization options and templates

Zenefits automates all human resources tasks and responsibilities in a simple and user-friendly UI. It was designed with small businesses in mind.

This platform is able to handle different kinds of operations and management tasks, including recruitment, employee management, employee benefits, productivity monitoring, payroll management, etc. 

 

Zenefits always puts great emphasis on providing its users with a great experience by making its products easy to use. This platform has been successful in attracting and retaining a good number of the most talented individuals of all sorts of professions.

Zenefits was designed specifically with SMBs in mind, so their typical user has less than fifty workers on their payroll. As a consequence of this, it is mostly an independent-use program.

Why we chose it

  • It has free trial options
  • It has a full free version
  • It is web-based
  • It works on desktops
  • It works on mobile devices
  • They offer live support

Things to consider

  • No payroll taxing options
  • Fewer customization options

10. Zoho People

Zoho is one of the best small business HR systems out there available on the market at a reasonable price.

Features

  • Attendance management
  • Dashboards
  • Employee management
  • Employee benefits
  • HRIS solutions
  • Punch card functions
  • Customization and templates

Zoho People is used by small-sized businesses as they are usually concerned with staying within their financial means.

This separates them from their competitors. Any company that has 4 or fewer workers can utilize this platform for maintaining their absenteeism policy as well as records using Zoho. 

It isn't possible for users to access worker databases using any of the platforms we mentioned except this one.

However, if business owners wish to use its other functions and tools, then they need to pay extra.

Why we chose it

  • It is web-based
  • It works on mobile devices
  • They have live support
  • It offers exceptional employee benefits management
  • It helps automate tasks
  • It offers to leave and absence tracking

Things to consider

  • Sometimes it may crash
  • Notifications may show some errors
  • Support is a bit slow and not efficient

To Summarize

I hope that now that you have deeper knowledge and our recommendations, you will be able to locate a piece of software that meets your requirements and helps you save money, time, and other valuable resources!

FAQs

1. What is HR software? What does it do?

Human resources systems can be used to handle and automate HR operations. It can refer to a complete human resources management system (HRMS) or package of features, or it can be broken down into more specific applications that provide specific functions, including time monitoring and attendance tracking, recruitment, benefits administration, etc.

2. What is meant by HCM?

HCM stands for Human Capital Management, and it encircles all instances of human capital resources and manages them. Human resources management (HCM) is primarily focused on individuals and frequently covers the routine administrative duties of human resources management.

3. What is ERM?

Employer-based solutions like Employee Relationship Management (ERM) help companies strengthen bonds with their staff by providing improved interactions and streamlining internal operations, fostering a far more collaborative environment in which employees can efficiently accomplish their tasks and the company's goals.

4. What does an HRMS do?

An HRMS, or human resources management system, serves as a comprehensive platform that facilitates overall processes of HR functions and information and procedures effectively to facilitate efficiency and effectiveness.

5. Are analytics and reporting the same?

Even though they are used interchangeably, they are not the same. Analytics and reporting are related in the sense that reports are generated based on the analysis of data.

6. In what ways is HR software different from Employee Relationship software?

Human resources application facilitates HR administration in its entirety or partially. In comparison, Employee Relationship Software has functions that go beyond just HR functions. 

7. Why should people use HR software?

Human resources management (HR) software allows businesses to organize their workforce better, cut down on administrative tasks, and grow or shrink as needed.

8. What is Employee Analytics?

Employee analytics, commonly known as human resources data or analytics, provide businesses with a comprehensive understanding of their workforce as well as the information they collect regarding employees in order to make informed decisions. The importance of Employee Analytics has skyrocketed in the past few years.

9. Why are web-based systems better?

Web-based HR systems utilize the internet and its remote accessibility options. This implies that workers can log in and make changes to their profiles and submit expenditure reports from anywhere at any time and other information, even remotely!

10. Exactly what do HR software's advantages consist of?

With an HR system, you can see everyone's information in one place, streamline many tasks, drastically cut administrative hours, and give managers and staff access to their information.

11. What are the advantages of integrated human resources software?

In a comprehensive single-solution system, all the data needed for report generation, analytical graphs, and feedback are accessible in one place. This makes things faster and eliminates instances of human error from occurring.

Sam Turner

Written by:

Sam Turner

Writer

With over seven years of experience in the HR field, Sam is a go-to source of information for professionals. Sam helps people with data regarding the latest software and following trends and developments in HR. He is fond of testing HR and productivity software out there. His expertise exposes his knowledge in productivity, educating others and so forth.

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