Small businesses face numerous HR challenges that can impact their operations and growth. From the time-consuming manual payroll and employee onboarding to the complexities of benefits management, HR responsibilities can quickly overwhelm even the most organized business owners and managers. As your company grows, these challenges only intensify, making it crucial to find scalable solutions that won't break the bank.
Staying on top of labor laws and regulations adds another layer of stress, especially without dedicated HR personnel. And let's not forget the chaos that can ensue from trying to track employee performance, manage time-off requests, and handle documentation without proper systems in place.
Recognizing these pain points, we've compiled a guide to the 9 best HR software options for small businesses. We've selected platforms that address various needs—whether you're looking for streamlined solutions for a growing team, robust payroll management, or simply affordable and user-friendly options.
The benefits of HR software for small businesses
HR software can be a big help for small businesses, here’s how:
- Time savings through automation: HR software automates repetitive tasks like payroll processing, time tracking, and benefits administration. This automation can save hours of manual work each week. For example, instead of manually calculating hours and overtime, the software can pull data from time-tracking systems and apply the correct pay rates automatically. The time saved can be significant for small businesses where HR staff often wear multiple hats. Just like how digital business cards have eliminated the need to manually exchange contact information, automation streamlines everyday business processes.
- Enhanced employee experience: HR software often includes self-service portals for employees. These portals allow staff to easily access their personal information, request time off, view pay stubs, and manage benefits. This accessibility improves employee satisfaction by giving them more control over their information. It also reduces the administrative burden on HR, as employees can handle many routine tasks themselves.
- Improved legal compliance: Many HR platforms include built-in compliance tools and updates. These tools help small businesses stay current with changing labor laws and reporting requirements. The software can also generate required reports automatically, reducing the risk of errors or missed filings. This is particularly valuable for small businesses that may not have dedicated legal teams to keep track of complex HR regulations.
- Scalability for growth: HR software provides a centralized system to manage an increasing workforce without a proportional increase in HR staff or costs. The software can handle additional employees, new locations, or more complex organizational structures. It maintains consistency in HR processes as the company grows, ensuring that new hires have the same positive experience as earlier employees.
9 Best HR software for small businesses in 2024
Below, we review the top HR tools for small companies.
Software 1: Softr
Softr is an intuitive, no-code platform that allows small businesses to build customized HR tools, manage employee data, and automate HR processes—all without the need for technical expertise. As a small business owner, you can create personalized HR solutions such as employee onboarding systems, time-off management, payroll tracking, and customizable performance review platforms.
Softr's intuitive interface allows you to design user-friendly portals for employee self-service, automate routine HR tasks, and create dynamic reporting tools for better decision-making. This flexibility enables you to adapt your HR processes as your business grows, all while maintaining full control over your data and user experience.
Key features
- Custom form builders
- Automated workflow designer
- Employee self-service portal
- Onboarding process tracker
- Recruitment pipeline tracker
- Performance review templates
- Goal setting and tracking
- Search functionality
- Document management system
- Payroll information dashboard
- Employee feedback surveys
- Company directory builder
- Integration with Airtable, Google Sheets, and MySQL
- HR analytics dashboard
- White-labeling options
- Internal communication tools
Pros
- Easy to use
- Cost-effective
- 30-day free trial
- High scalability as the business grows
- Responsive customer support
- Active user community
Cons
- Filtering options could be improved
- Occasional issues with specific data display
Pricing
Softr’s free plan provides a solid starting point, allowing unlimited app visitors, 5 workspace collaborators, and 100 external users. It also includes full access to all data sources, which is typically a paid feature.
For those requiring more capacity, the basic paid plan starts at $49/month (billed annually) or $59/month (billed monthly), supporting up to 1000 external app users.
Businesses needing advanced features like email code sign-in, Kanban view, eSignature, and conditional forms can opt for the Professional plan at $139/month.
Customer reviews
- G2: 4.8 out of 5 (403 reviews)
- Capterra: 4.7 out of 5 (60 reviews)
- Product Hunt: 4.8 out of 5 (371 reviews)
Software 2: Lattice
Lattice is a performance management and employee engagement platform. It focuses on aligning employee growth with company goals through continuous feedback, goal-setting, and performance reviews. Lattice is known mainly for its user-friendly interface and comprehensive approach to people management.
Key features
- Performance reviews
- Customizable review templates
- 1 on 1 meeting agendas
- Employee feedback
- Anonymous feedback
- Engagement surveys
- Career development plans
- OKR management
- Praise and recognition
- Competency matrices
- Talent management
- Goal setting and tracking
- Learning and development tracking
- Employee Net Promoter Score (eNPS) tracking
Pros
- Intuitive user interface
- Comprehensive performance management tools
- Strong employee engagement features
Cons
- Complex setup for customizations
- Some features may be overwhelming
Pricing
Lattice offers flexible pricing based on seat-per-month rates. For example, its HRIS features are priced at $5/seat/month and come with features like employee records, onboarding, and report builder. Alternatively, if you’re only interested in talent management features (e.g., performance reviews, 1:1s, etc.), you’ll have to pay $11/user/month.
Customer reviews
- G2: 4.9 out of 5 (5 reviews)
- Capterra: 4.7 out of 5 (28 reviews)
Software 3: SafeHR
SafeHR is a human resource information system (HRIS) that focuses on streamlining HR processes for small to medium-sized businesses. What we like about SafeHR is that it covers core HR tasks such as employee record management, time-off tracking, and performance management, helping businesses consolidate their HR operations in one system.
Key features
- Employee onboarding
- Time and attendance tracking
- Payroll management
- Benefits administration
- Employee self-service portal
- Performance reviews
- Employee records management
- Leave and absence management
- Document management
- Compensation planning
- Workforce planning
- Pre-built HR reports
Pros
- Strong employee onboarding tools
Cons
- Limited integration options
- Expensive
Pricing
SafeHR offers two main plans: HR software-only and HR support service. Its software is ideal for businesses needing a simple HR system, and its cost starts at £3/user/month, with a minimum of £25/month. It includes absence management, performance tracking, employee and company databases, and reporting tools.
Customer reviews
- G2: 4.9 out of 5 (5 reviews)
- Capterra: 4.7 out of 5 (28 reviews)
Software 4: Gusto
Gusto is a cloud-based HR management and payroll software for small businesses. Gusto stands out for its modern design and emphasis on automating complex HR tasks, making it particularly appealing to startups and tech-savvy small businesses.
Key features
- Payroll processing
- Benefits administration
- Employee self-service portal
- Health insurance management
- Paid Time Off (PTO) management
- Onboarding tools
- Time tracking
- 401(k) plans
- Wage garnishments
- Contractor payments
- Customizable payroll reports
- Automated payroll reminders
- Employee directory
Pros
- The initial setup is smooth
- Easy to navigate
- 150+ integrations
Cons
- No free plan
- Creating reports could be easier
Pricing
Gusto’s pricing starts from $40/month, plus $6/muser/month. This plan is ideal for small businesses needing basic payroll, and it offers full-service single-state payroll including W-2s and 1099s, employee profiles and self-service, payroll and time-off reports, and more.
Customer reviews
- G2: 4.5 out of 5 (2186 reviews)
- Capterra: 4.6 out of 5 (3970 reviews)
Software 5: Homebase
Homebase is a comprehensive scheduling and time tracking software tailored for small businesses, particularly in the retail and service industries. It's ideal for businesses with hourly employees and multiple locations, offering tools to manage schedules, track time, and handle payroll.
Key features
- Employee scheduling
- Timesheets management
- PTO tracking
- Time clock
- Late and overtime alerts
- Shift swapping
- Availability management
- Break tracking
- Employee onboarding
- Hiring and applicant tracking
- Customizable scheduling templates
- Employee shift reminders
- Team performance tracking
- Job posting integration
Pros
- Mobile app for scheduling
- Built-in messaging
- Free plan available
Cons
- Limited customization
Pricing
Homebase’s monthly plans kick off at $24.95/location/month for unlimited employees. This plan is packed with advanced scheduling, team communication, and time-off request management. If you’re looking for only basic scheduling and time tracking features along with real-time messaging, then its free plan may suffice for you.
Customer reviews
- G2: 4.2 out of 5 (109 reviews)
- Capterra: 4.6 out of 5 (1042 reviews)
Software 6: PurelyHR
PurelyHR is a modular HR software solution that allows businesses to customize their HR toolkit. It's particularly loved by small to medium-sized businesses for its flexibility and affordability.
Key features
- Time off management
- Overtime tracking
- Time tracking
- Custom leave policies
- Performance reviews
- Attendance tracking
- Manager approvals
- Employee self-service portal
- Vacation accrual management
- HR reporting and analytics
- Custom notifications
- Employee directory
- Team calendar
Pros
- Mobile app
- 21-day free trial
- Payroll process is simple and fast
Cons
- No mobile app
- Expensive
Pricing
PurelyHR uses a flexible pricing model based on your employee count and selected HR features. The cost starts at $5.17/user for basic functions like bulk user upload, employee self-service, and onboarding tools. For more advanced features such as leave management, pricing is $3.10/user for a 10-person plan, or $31.05 for a single user. The per-employee cost decreases as your team size increases, making it more cost-effective for larger organizations.
Customer reviews
- G2: 4.5 out of 5 (283 reviews)
- Capterra: 4.5 out of 5 (326 reviews)
Software 7: Agendrix
Agendrix is another employee management software for small businesses designed to simplify employee scheduling and time tracking. What sets Agendrix apart is its focus on communication as it offers tools for team messaging and shift swapping, which helps improve overall workplace coordination.
Key features
- Employee scheduling
- Employee onboarding
- Time clock
- Shift management
- Shift swapping
- Attendance tracking
- Employee availability management
- Overtime alerts
- Employee shift reminders
- Team communication
- Customizable scheduling templates
- Paid and unpaid break management
- PTO Tracking
- Labor cost tracking
- Task management
- Payroll integration
- Requests management
- Document management
Pros
- Mobile app
- Affordable pricing
Cons
- Occasional scheduling Issues
- Learning curve for new users
Pricing
Agendirx’s pricing starts from $2.95/user/month which comes with employee scheduling, communication, request management, overtime tracker, and more. If you wish to use features like HR document storage, sharing, and requests, internal survey creation and management, and advanced reports on turnover, seniority, hirings, and departures, then you’ll have to upgrade to a higher plan which starts from $4.45/user/month.
Customer reviews
- G2: 4.7 out of 5 (209 reviews)
- Capterra: 4.8 out of 5 (200 reviews)
Software 8: TalentHR
TalentHR is a popular human resource management system designed to streamline HR processes for small to medium-sized businesses. It offers features like employee data management, time and attendance tracking, performance management, and payroll processing—all integrated into a single platform.
Key features
- Employee onboarding
- Time and attendance Tracking
- Employee self-service portal
- Leave and absence management
- Document management
- Performance reviews
- Employee records management
- Employee surveys
- Training and development tracking
- Compliance management
- PTO tracking
- Goal setting
- Google Calendar integration
- Workforce planning
Pros
- Mobile app
- Highly customizable
- Easy to use and implement
Cons
- Limited integration options
- The reports could be better
Pricing
TalentHR's pricing starts at $2.4 per user per month, offering features like time off tracking, document management, and benefits administration.
Their free plan supports up to 10 users and includes document storage, real-time reports, custom exports, activity tracking, onboarding automation, and a talent pool database. Given the comprehensive feature set available at no cost, TalentHR's free plan stands out as really generous in the HR software market.
Customer reviews
- Capterra: 4.8 out of 5 (26 reviews)
Software 9: Rippling
Rippling is a comprehensive human capital management (HCM) platform designed to streamline HR, IT, and finance operations for businesses of all sizes. It offers a wide range of features including payroll processing, benefits administration, time tracking, learning management, and employee onboarding.
Key features
- Compensation management
- Recruiting and applicant tracking
- Headcount planning
- Talent signal
- Performance management
- Benefits administration
- Time and attendance tracking
- Payroll processing
- Employee onboarding
- Compliance management
- PTO and leave management
- Employee self-service portal
- Trigger actions based on responses
- Offboarding tools
Pros
- Mobile app
- Advanced workflow creation
Cons
- Pricing isn’t transparent
Pricing
Rippling offers customized pricing, so you’ll have to get in touch with them for a quote.
Customer reviews
- G2: 4.8 out of 5 (3331 reviews)
- Capterra: 4.9 out of 5 (3073 reviews)
How to choose the right HR software for your small business
Follow these steps to find the right HR software for your small business:
- Review the core feature set: Ensure the software covers essential HR functions like employee data management, time off management, time tracking, performance management, and benefits administration. We also recommend that you look for absence management tools that streamline leave requests and tracking. Payroll integration is another important element you may want to consider for accurate compensation management.
- Evaluate automation capabilities: Features like automated reminders for performance reviews or benefits enrollment deadlines can save significant time. Also, look for systems that can automate workflow approvals and document routing to reduce manual intervention.
- Examine reporting and analytics: Prioritize solutions with real-time reporting capabilities. The ability to generate custom reports on key metrics like turnover or hiring efficiency is important. Some HR platforms even offer AI-powered analytics to provide predictive insights on workforce trends.
- Analyze integration potential: Consider how well the HR software integrates with your existing tools. Smooth integration with your accounting software, time tracking systems, or project management tools can greatly enhance efficiency.
- Verify compliance support: Opt for software with built-in compliance features. This should include up-to-date labor law information, required reporting capabilities, and tools to ensure you're meeting legal obligations. Compliance support is especially important for small businesses without dedicated legal teams.
FAQs about HR software for small businesses
Can HR software integrate with payroll and accounting software?
Yes, many HR software solutions integrate with payroll and accounting systems. This integration allows for seamless data flow between HR, payroll, and financial processes. Common integrations include automatic syncing of employee hours, salary information, and tax data.
What’s the cost of HR software for a small business?
The cost of HR software for small businesses varies widely based on features, number of employees, and deployment model. Many vendors offer tiered pricing, starting from as low as $5-10 per employee per month for basic features. More comprehensive solutions can range from $12-30 per employee per month. Some providers also offer flat-rate plans for very small businesses.
Is HR software necessary for a company with fewer than 10 employees?
While not strictly necessary, HR software can still provide great benefits for companies with fewer than 10 employees. It can streamline processes like time tracking, onboarding, and compliance management, saving valuable time for small business owners. HR software also establishes good practices early, making it easier to scale as the company grows.
How secure is HR software for managing sensitive employee data?
Reputable HR software providers prioritize data security, often employing advanced encryption standards, secure data centers, and regular security audits. Many cloud-based solutions offer better security than in-house systems, with features like two-factor authentication and role-based access controls. However, it's important to review each vendor's security measures, data handling practices, and compliance with regulations like GDPR or CCPA.
What is Softr
Softr is the easiest way to turn your data into powerful business apps—no code required. Connect to your spreadsheet or database, customize layout and logic, and share with your team or clients.
Join 700,000+ users worldwide, building client portals, internal tools, CRMs, dashboards, project management systems, inventory management apps, and more—all without code.
Join 700,000+ users worldwide, building client portals, internal tools, CRMs, dashboards, project management systems, inventory management apps, and more—all without code.
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