The 5 Best HR Software for Small Businesses

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. 

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

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

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

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

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: 

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. 

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: 

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: 

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: 

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: 

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: 

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.

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.

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.

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.