The Best HR Software For Small Businesses

HR software for small businesses helps out in a number of ways. It saves a growing company money by not hiring a full human resources department. It aids in the hiring, payroll, benefits, and performance management process. A common small business HR solution is to create online systems that offset the need for full-time personnel to handle. Human resources software for small businesses can oversee everyday tasks related to HR using all-in-one programs or cherry picked software.

List Of The Best HR Software For Small Businesses

• Rippling: Best HR software for small businesses and tech-based companies.
• Gusto: Best HR software for small businesses needing basic payroll and HR services.
• Paychex: Best small business HR solution for one-person companies and startups.
• TriNet Zenefits: Best human resource software for contract and temporary hires.
• Zoho People: Best low cost HR software for small businesses.
• ADP Run: Best human resource software for a small business that’s quickly growing.
• Paycor: Best HR software for a small business looking to add additional HR features.
• Bamboo HR: Best HR software for small businesses on a budget.
• Homebase: Best small business HR software for calendaring and time tracking.
• Freshteam: Best HR software for small businesses needing application tracking solutions (ATS).

Comparison Table

The Best HR Software For Small Business In 2023: 

Here are the top human resource software for small business this year. The list comes with each HR solution’s pros and cons. Picking the right human resources software for your small business will take care and consideration. Not every HR software for small business will be the right one. Sample a handful of free trials to find the perfect fit for your company.

Rippling: Best HR Software For Small Businesses And Tech-Based Companies.

Looking for full-service human resource services, including payroll options? Rippling for your complete small business HR solution. The PEO services come with the software. Rippling makes up for it by offering some of the most comprehensive HR solutions–applicant tracking, benefits, and onboarding, amongst others–that can be integrated in your small business at any time.

Pros:

• Modular HR, payroll, benefits, and IT solutions included.
• International payroll included.
• Over 500 apps can integrate with software.

Cons:

• Each additional add-on feature is expensive.
• HR expert phone support not included in base plan.
• No IRS or ESAC certification for PEO service.

Gusto: Best HR Software For Small Businesses Needing Basic Payroll And HR Services

HR software priced at a reasonable rate? It all comes down to Gusto. It is an affordable small business HR solution and comes equipped with payroll tools that are easy to use. Taxes, workers’ compensation, paid time off – all are tracked under Gusto. The health insurance benefits option is restricted from several states. Check to make sure the size of your company and the state it’s located in are a good match for Gusto. 

Pros:

• Files payroll taxes on the local, state, and federal levels.
• Payruns are automatic and unlimited.
• Job posting and tracking are offered with the basic package.

Cons:

• Health benefit options limited to 37 states.
• No international contractor payroll services available.
• Unable to be customized for larger businesses.

Paychex: Best Small Business HR Solution For One-Person Companies And Startups.

If you think that you don’t need human resources software for a small business with one person or tiny staff, think again and get Paychex. Their HR software is designed for solopreneurs. Paychex handles one-person companies’ payroll, a retirement plan option, and business incorporation services. The pricing is not as transparent as other HR software for small businesses.

Pros:

• Customer support provided 24/7.
• Dedicated payroll specialist.
• Flexible plans for solopreneurs, including HR and payroll.

Cons:

• Learning curve comes with most of the software.
• Different support systems setup for HR and payroll issues.
• Additional costs for document management, time tracking, benefits, and recruiting.

TriNet Zenefits: Best Human Resources Software For Contract And Temporary Hires

Zenefits is now TriNet Zenefits. The same streamlined process for organizing employee information exists, now with extra features for contractors and temporary workers. There is now even the “Compliance Assistant” which tracks your company’s compliance status and sends alerts for upcoming deadlines. TriNet Zenefits does come with payroll tools for an additional fee. It is mainly a human resources software for small businesses.

Pros:

• Plans are very affordable and come with a variety of options.
• HR advisory services included with strong compliance features.
• Very easy to use and learn.

Cons:

• Hawaii does not have access to medical, dental, or vision plans.
• Five employee minimum required for all plans and add ons.
• Additional costs for payroll and advisory services.

Zoho People: Best Low-Cost HR Software For Small Business.

Nothing is truly free these days, yet somehow, Zoho People is able to offer an HR solution at no cost. If you are a small business of five employees or less and in need of human resource software, Zoho People might be the best option. Companies that size can use the PTO tracking and employee database features without paying. Payroll is a separate paid option. It is only available in California, Florida, Illinois, Kansas, New Hampshire, New York, North Carolina, South Dakota, Tennessee, Texas, Utah, and Washington.

Pros:

• Plans range from free to affordable.
• Syncs with the larger Zoho HR suite.
• Manages recruiting, payroll, sales and marketing, and expense management.

Cons:

• Free plan limited to five employees’ PTO and employee management tools.
• Payroll tools unavailable nationwide.
• Employee benefit tools are scarce.

ADP Run: Best Human Resources Software For A Small Business That’s Growing Quickly.

Your little company is starting to get bigger–1,000+ employees—so you need HR software for a smaller business that can turn it into a larger one. ADP Run has a track record of helping companies scale up with HR solutions that fit their growth. This includes PEO in the first steps of expansion. Plans are customizable and include payroll tools. ADP is a large company itself and communication can be tricky to navigate and their HR software is priced higher.

Pros:

• Plans are flexible and can be tailored to your company.
• Advanced fraud protection comes with secure paychecks.
• Payroll, PEO, and HR solutions are all included.

Cons:

• Pricing can be high and often not detailed upfront.
• Additional costs for W-2/1099 form delivery and filing services.
• Must pay more for time tracking, health insurance, and workers’ compensation.

Paycor: Best HR Software For A Small Business Looking To Add Additional HR Features.

The number one feature of Paycor is payroll. That doesn’t mean that it can’t be the human resources software for your small business as well. Customizable tools include pay grids and pay slips. Other features oversee hiring, time tracking, compensation planning, and talent development. Like many other HR solutions, make sure to double-check all the pricing details as the cost is not transparent with Paycor.

Pros:

• Plans are flexible and can be tailored to your company.
• Very easy to use and learn.
• Payroll and HR solutions, plus engagement surveys, are all included.

Cons:

• Pricing is often not detailed upfront.
• Must pay more for benefits administration, recruiting, and workers’ compensation.
• Additional costs required for HR advisers and advanced HR tools.

Bamboo HR: Best HR Software For Smalls Businesses On A Budget.

Every small business is on a budget. That makes Bamboo HR the perfect solution for handling all things human resource related. From overseeing applicants to onboarding new employees, employee work to PTO hour tracking, Bamboo makes HR software for small businesses easy and affordable. How affordable? For that, you’ll need to call in and get a quote from a Bamboo representative.

Pros:

• Plans are affordable for companies over and under 20 employees.
• Very easy to use and learn with an intuitive interface.
• Wide range of human resource tools provided.

Cons:

• Pricing is often not detailed upfront.
• Minimal to no employee benefit options.
• Support via phone and chat is only available with the highest-priced tier.

Homebase: Best Small Business HR Software For Calendaring And Time Tracking.

The saying goes that “time is money” and Homebase is here to make sure your money and time are well spent. This small business HR solution is designed for one business location with up to 20 employees with scheduling and time tracking features offered at no cost. Higher tiers include job postings and applicant tracking. Payroll is an additional cost no matter what level you purchase.

Pros:

• Free plans offered to one location with under 20 employees.
• Time tracking, scheduling, employee management, and POS integration features offered at no additional cost.
• Affordable price tiering for upgraded versions.

Cons:

• Payroll not included and must pay extra for.
• Minimal to no employee benefits options.
• Minimal to no benefit administration tools.

Freshteam: Best HR Software For Small Businesses Needing Application Tracking Solutions (ATS).

Streamline your hiring process using Freshteam as your small business HR solution. Applicant tracking solutions (ATS) make it easy to post jobs and monitor applicants using the features offered by Freshteam. Their HR software for small business is affordable and can grow with your company. Job postings are unlimited at the highest tier.

Pros:

• Free plans available.
• Free 21-day trials of higher tiers.
• Payments structured on a pay-as-you-go plan.

Cons:

• There is a three-job posting limit on the free plan.
• Relationship management capabilities not offered.
• Unlimited job postings only available with highest priced plans.

Methodology:

Our list is composed of the best HR software for small businesses as of 2023. Companies with affordable plans–as well as free trials or no-cost options–were given top consideration. Payroll inclusion factored into the analysis based on if it was an additional fee or integrated into the software solution’s basic package. Other add-ons, including Professional Employer Organization (PEO), National Health Benefits, Applicant Tracking Solutions (ATS), and state availability for health benefits were all taken into account for making the top marks on this list.

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