The 5 Best HR Software for Small Businesses

Ashish Gupta

June 12, 2024

To optimize the functioning of a small enterprise, entrepreneurs can consider investing in the best HR software for small businesses. Successfully running a small business is a demanding but rewarding task. Employees often have to shoulder more responsibilities and higher workloads in exchange for a meaningful working environment. However, the logistical and operational demands of a small business are no less than a larger enterprise, and can sometimes often be more. With HR software, small businesses can automate various areas of human resource management to allow their teams to focus their effort elsewhere. This article will cover the 5 best HR software for small businesses so you can streamline operations and focus all your effort into growing your business.

Before we dive into the best HR software for small businesses, let us cover some basics. 

Functions of HR Software

Depending on what you pick, HR software will have a mix of the following capabilities: 

Track and manage employees day-to-day activities and performance at work 
Manage payroll 
Manage leave requests 
Applicant tracking 
Recruitment data management 
Raise and investigate inquiries and requests 
Automate essential administrative tasks 
Centralize data and maintain paperwork digitally 
Facilitate decision-making with comprehensive people analytics 
Manage employee onboarding and training 
Facilitate smoother communication between HR and other departments 
Facilitate smoother communication between the business and employees 

How to Pick an HR Software

To pick the right HR software, you will need to make the following considerations: 

Identify the problem you are trying to solve with the software
Identify the people who will use it
Determine the other tools the software should be able to work with
Determine the outcomes you are looking to achieve by investing in HR software

Only after you answer these critical questions can you make an informed decision about which software will best fit your needs. 

HR Software for Small Business 

Here is a list of the 5 best HR software for small businesses. 

Best HR Software for Small Businesses #1: Rippling 

Rippling is an HR software that specializes in centralized employee management. It is one of the most recommended software for small businesses.  

It supports the following functions: 

Payroll management 
Automation of benefits, payroll, and labor law compliance 
Tracking employee hours and attendance 
IT management of software on employees’ devices 
Advanced workflow creations 
Employee onboarding 
Employee promotions 
Employee offboarding 
Platform localizations 

Rippling is holistic solution that supports some of the most vital HR functions. However, some of its features are locked behind paid add-ons or only limited to the US, Canada, and UK. 

Best HR Software for Small Businesses #2: Deel 

Deel enables human resource management for global teams being a platform that works in 150+ countries. Deel is great for small businesses that have a remote, international workforce. Additionally, some of its newest tools are free for small-sized companies, allowing small businesses to manage their people at a lower cost. 

Here are some of Deel’s most useful features for HR: 

Quick and easy employee onboarding 
Automation of key HR processes and tasks 
Managing time-off requests, approvals, and reporting 
Managing expenses and payouts globally 
Organizational charts and employee directory 
Document management (signing and storage) 
Organizational reporting across multiple parameters 
Access and permission automation for key apps used in the organization 

Best HR Software for Small Businesses #3: BambooHR 

BambooHR is a popular HR software used by some of the most well-known businesses globally. What sets it apart from other HR software tools in the market is its ability to capture insights about employee engagement and satisfaction through anonymous surveys. BambooHR is a great option for businesses looking to build a strong company culture. 

BambooHR’s tools and features include: 

A complete hiring feature-set that supports creating, tracking, and managing job ads and and applicants 
Setting up and managing payroll 
Managing employee benefits 
Tracking employee hours 
Employee onboarding 
Collecting employee feedback 
Delivering regular performance reviews 

Best HR Software for Small Businesses #4: Paycor

Paycor is another holistic HR solution that supports all core HR functions. One of its most unique selling points is its comprehensive performance management features. 

Here’s what Paycor can do for your small business: 

Employee onboarding 
Time and attendance tracking 
New-hire reporting 
Tracking and monitoring compliance 
Supporting the management of expense reports 
Talent management with data-driven employee performance insights 
Identifying performance gaps in the organization 
Creating succession plans 
Support managers in providing performance feedback to employees 

Best HR Software for Small Businesses #5: GoCo 

Another well-rounded HR software you can choose as a small business is GoCo. While GoCo has a lot to offer to all kinds of users, it is especially helpful for businesses that don’t have a dedicated IT department due to its excellent customer service. GoCo provides a Customer Success Manager to all its users so they have all-around support. 

GoCo’s features include: 

Managing employee onboarding 
Document signing and management  
Managing and tracking time-off requests 
Performance management and reporting 
Delivering feedback to employees  
Snapshots of company’s people with organizational charts 
Payroll management 
Benefits management 
Employee offboarding 

Benefits of an HR Software for Small Businesses 

Out of the HR software mentioned above, you can pick any of your liking, based on your business’ needs. Let us now go over the benefits of HR software: 

Save Time

HR software programs automate or reduce the time required for many HR tasks, such as onboarding, time-tracking, leave requests and approvals, payroll, benefit claims, etc. By doing so, they save the business previous hours that can be utilized elsewhere, on more growth and business-driven activity.

Centralized Data

HR software centralize your data, bringing it all in one place. This makes access quick, easy, and convenient. You can also give different members different levels of access, ensuring that the right data goes to the right people and that all data remains secure.

Sophisticated Employee Performance Management

With HR software, you can optimize your employees’ performance by tracking their day-to-day activities and giving them data-driven feedback. HR software lets you support employee growth and development by delivering insights, identifying gaps, aiding professional growth-related activities like succession planning, and more.

Comprehensive Business Analytics

HR software also give you comprehensive reports on your teams’ and people’s functioning. This gives you an overview of the state of your business’ functioning and allows you to adjust to and tackle any challenges proactively.

For small businesses, these benefits can significantly make operations smoother, reducing the load for teams and allowing them to shift their focus to functions that add more value to the business.

Infographic

The 5 Best HR Software for small businesses

Knowledge Check!

Please enable JavaScript in your browser to complete this form.
1. With HR software, small businesses can automate various areas of human resource management.
2. Which of the following is a feature of HR software?
3. Before picking an HR software it is crucial to identify the problem you are trying to solve with it.
Name

Frequently Asked Questions (FAQs)