Top 9 Best HR Software For Small Businesses in 2024

Managing employees' HR needs can be difficult for small business owners. Your employees' work is vital to your business. However, managing a team is a substantial task that affects your business's performance. Therefore, choosing the best HR software for small businesses is difficult with so many options.

Even small businesses have a long to-do list of staff management tasks, from recruiting, hiring, and onboarding to leave requests, benefits administration, and performance reviews. If you want to automate and manage these tasks, in this post, we'll recommend the best HR software for small businesses to help you.

What is HR Software?

HR software, also known as Human Resource Management Software (HRMS) or Human Capital Management (HCM), is a digital solution designed to assist organizations in managing and optimizing their human resources functions. It automates administrative tasks, organizes and secures employee data, and helps create data-driven decisions for various HR aspects.

HR software has some key features as below:

• Employee data management.

• Recruitment and onboarding.

• Payroll and benefits administration.

• Performance management.

• Time tracking and attendance.

• Learning and development.

• Employee self-service.

• Reporting and analytics.

Small businesses can use human resources software to help them simplify their HR processes, cut down on mistakes and duplication, boost efficiency, and make HR management better overall.

Applicant Tracking Systems (ATS), Human Resource Information Systems (HRIS), Human Resource Management Systems (HRMS), and Performance Management Systems (PMS) are all types of HR tools.

Why Do Small Businesses Need HR Software?

Increased Efficiency and Reduced Workload:

• Automation: HR software automates repetitive tasks like payroll processing, benefit administration, and time tracking, freeing up valuable time for small business owners and HR personnel to focus on more strategic initiatives like employee engagement and talent development.

• Reduced Errors: Automating tasks minimizes the risk of human error, ensuring accuracy and compliance in areas like payroll calculations and tax deductions.

Improved Organization and Data Management:

• Centralized Data: HR software acts as a central hub for storing and managing all employee information, including personal details, employment records, and performance data, making it easier to access and manage data efficiently.

• Compliance Management: Some software helps with compliance by keeping track of relevant regulations and deadlines related to areas like employee benefits and leaves, reducing the risk of non-compliance penalties.

Enhanced Employee Experience:

• Self-Service Options: Many HR software solutions offer self-service portals for employees, allowing them to access their information, update personal details, request time off, and view payslips directly through the software, promoting employee self-sufficiency and reducing the administrative burden on HR.

• Streamlined Communication: HR software can facilitate communication between employees and the HR department by providing a centralized platform for announcements, feedback, and inquiries.

Cost-Effectiveness:

• Affordability: Nowadays, HR software solutions cater to varying budgets, including affordable options specifically designed for small businesses. Compared to hiring a dedicated HR professional, HR software can be a cost-effective way to manage HR functions, especially for smaller teams.

• Improved Decision-Making: Access to data and insights on key HR metrics like employee turnover and absenteeism empowers small businesses to make informed decisions regarding hiring, training, and employee engagement, potentially leading to cost savings in the long run.

Scalability

• Flexible Solutions: Many HR software solutions offer modular subscription plans that allow small businesses to choose the functionalities they need and scale up as their workforce grows. This prevents them from paying for features they don't currently require.

Top 9 Best HR Software for Small Businesses

Rippling

Rippling is an all-in-one HR software that enables small firms to manage employees from one place. The program streamlines key HR activities with automated onboarding, digital document storage and retrieval, and payroll processing.

Employee accounts are immediately set up with tax forms, benefits packages, and corporate policies using the onboarding tool, saving time and assuring correctness. IT and security management capabilities allow direct control over employee access points like email accounts and applications without IT or administrator intervention.

It offers single sign-on so employees can access numerous apps without remembering usernames or passwords. To track staff hours and expenses, the software offers time tracking and expense management.

Pros

• Offering employer of record (EOR) services and live employee profiles for more than 150 countries.

• Device control tools, such as an off-site warehouse for storing devices that aren't being used.

• IT and finance goods can be used to combine business software programs.

• Advanced tools for making workflows that can handle boring HR tasks.

• Compliance 360 is used to make sure that time and paid leave laws are followed both in the United States and around the world.

Cons

• Pay extra for payroll, benefits management, and time tracking.

• Doesn't have enough scheduling, geofencing, or mobile recognition features to help field workers.

• Small businesses that need plug-and-play options may find it hard to keep up with all the reports, workflow automation, and notifications.

• Only the US, Canada, and the UK can control their device inventories.

BambooHR

Bamboo HR is a popular small-business HR solution. The tool archives employee data throughout the lifecycle in secure databases, and access to records streamlines employee management.

Interesting elements include company culture building. Employee satisfaction surveys with anonymous comments might reveal work attitudes. Track this over time to assess if staff engagement is working.

Pros

• Workflows that are already set up to automate the most common HR chores.

• Simple applicant tracking system (ATS) for hiring people once in a while.

• A simple way to keep track of time off that encourages fairness and consistency.

• HR mobile app for workers who are always on the go.

Cons

• Add-ons like payroll, insurance, and time tracking are not part of either plan.

• Payroll and benefits administration support is only available in the U.S. It doesn't have built-in schedule tools for shift workers.

• You have to buy its advantage plan to use its welcome and signature features.

Paychex Flex

Paychex Flex, a cloud-based platform, provides payroll, benefits, time and attendance, and hiring. Its features are ideal for small businesses, but it's scalable so you won't outgrow it. It's highly customizable to fit your HR processes and operations. This flexibility lets the program expand with your business.

Paychex Flex simplifies employee benefits administration with good integration with insurance carriers and benefit providers. Paychex Flex coordinates employee, employer, and benefit provider interactions from onboarding to enrollment. It can also assist your firm to comply with COBRA and the Affordable Care Act. This is ideal for small firms without compliance staff.

Pros

• Easy to use.

• Good for small businesses with simple payroll needs.

• Integrates with other Paychex products.

• Can add on features like time tracking as your business grows.

Cons

• Lacks features compared to some competitors.

• Can be expensive for some businesses.

• May have a learning curve for new users.

PandaDoc

With PandaDoc, you can quickly and easily make, change, track, and e-sign documents. Find a better way to make plans, quotes, and contracts that look more professional. With unlimited e-signatures, reusable templates, editing in the app, CRM integration, and live help 24/7, you can close more deals. 

The average person makes a document in less than 4 minutes, and their closed rates go up by 20%. Join the 50,000 companies that have already automated their document processes to win more deals and speed up the sales process.

Pros

• Easy to use, intuitive user interface for creating and editing documents.

• Cost-effective, free plan available, with affordable paid tiers.

• Streamlined workflows, automated document creation, sending, and signing.

Cons

• Limited free plan, lacks features like analytics and custom branding.

• Limited customization, may not offer the deepest level of design control.

• Email deliverability, sending from your domain requires a higher tier.

TriNet Zenefits

Zenefits is a cloud-based SaaS HR tool that helps small and medium-sized businesses give their employees more power, handle change, and stay in line with the law. The People Platform from Zenefits is the most complete and easy-to-use HR system on the market. 

Its HR, benefits, payroll, and performance apps, along with advisory services and partner apps that work together, make HR management a lot easier. This means that companies can focus on starting, running, and growing their businesses instead of dealing with a lot of paperwork and complicated systems.

Pros

• Flexible benefits packages to fit a wide range of businesses, as well as help with COBRA and the Affordable Care Act.

• Every plan comes with time-tracking and organizing tools.

• A small business can lower its risk with built-in compliance tools.

• HR advice services that aren't required but can help with compliance, payroll, and managing employees.

Cons

• The TriNet TimeKeeper booth timekeeping app can only be used on Apple iPads.

• The Zen plan only lets you send company announcements and other types of cross-team contact.

• Not enough third-party salary plug-and-play integrations.

• Interface movement is hard to figure out.

Odoo

It's fully integrated and can be changed to fit your needs. Odoo HR helps HR workers with hiring, managing employees, tracking expenses, giving reviews, and other HR tasks. 

In the list view, users can change job roles, stages, medium, priority, and responsibility. They can also make reports about why applicants weren't hired. The Odoo suite of HR apps makes it easy for businesses to quickly handle HR tasks.

Pros

• An all-in-one solution integrates various business functions like CRM, inventory, and accounting into one platform.

• Customization, adaptable to specific business needs with minimal coding.

• Open-source version, free to use, reducing software costs.

Cons

• Customization complexity and extensive customization might require developers, to add cost.

• Learning curve, new users and employees need training to navigate the platform.

• Reliable support requires paid subscriptions or finding workarounds in the community.

BQE CORE Suite

The never-ending HR chores and functions can be automated and made easier with CORE HR, so you can focus on the "human" side of HR. Get rid of paper files and make it easier to keep track of employee information by putting all of their paperwork in one digital place. 

One easy-to-use platform lets you easily handle employee benefits, set up and carry out customized performance reviews, and make sure your company is following the rules.

Pros

• Streamlined workflow, integrates project management, accounting, time tracking, and invoicing for a central hub.

• User-friendly interface, simplifies complex tasks with a clear and easy-to-navigate design.

• Automated reporting, saves time by generating reports automatically based on your data.

Cons

• Limited customization, may offer a different level of customization for all business needs.

• It might be costlier than some accounting software for basic needs.

• The learning curve may require training or initial investment in getting up to speed.

Justworks

Justworks is the company you should work with for benefits, payroll, HR, and safety. Small business owners and their workers can use a set of products that give them big-company benefits. 

Their products include HR tools, automated payroll, and help with compliance. Employers can use the Justworks tool to focus on what's most important: growing their business, taking care of their team, and working without fear.

Pros

• All-in-one HR solution, handles payroll, benefits, compliance, and HR tools in one platform.

• Easy to use, streamlined interface for managing employees and HR tasks.

• Competitive benefits offer access to group health insurance at potentially lower rates.

Cons

• Can be expensive for very small businesses with minimal payroll needs.

• Limited integrations, may not integrate with all existing business software.

• Time tracking (additional cost): Requires a separate app for time tracking, adding to the cost.

APS Payroll

The goal of Automatic Payroll Systems (APS) is to make HR and payroll easy. Our unified system is made to make managing employees easier for mid-market businesses. We help our partners and clients reach their goals by giving them personalized service and support. 

With a single-system tool, you can speed up payroll, automate HR tasks, and improve employee lifecycle. We are APS, and we can help you find work.

Pros

• Easy to use, praised for its user-friendly interface and simple setup.

• Cost-effective, this can be a good option for small businesses with basic needs.

• Offering a mobile app for employee self-service and payroll processing on the go.

• Known for responsive and helpful customer service.

Cons

• May lack advanced features for complex payroll needs or large businesses.

• Might be limited in customization options for specific workflows.

• Limited self-service, some reviewers mention the self-service features could be more in-depth.

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Key Features To Choose HR Software For Your Business

Choosing the best HR software for your business involves considering a range of factors that align with your specific needs, size, industry, and growth plans. Here are key features to look for that can help you make an informed decision:

Integration Capabilities

Look for software that can seamlessly integrate with your existing systems (e.g., accounting software, project management tools, etc.). This ensures smooth data flow between systems, reducing manual data entry and potential errors.

Scalability

Choose software that can grow with your business. It should be flexible enough to accommodate additional employees, new locations, and evolving business needs without requiring a complete system overhaul.

Compliance Management

Ensure the software supports compliance with local, state, and federal regulations relevant to your business. This includes features for tax filing, reporting requirements, and compliance with labor laws.

Analytics and Reporting

Robust analytics and reporting tools can provide insights into workforce trends, help with decision-making, and improve HR strategies. Look for software that offers customizable reports and dashboards.

Security and Data Protection

Given the sensitive nature of HR data, the software must have strong security measures in place, including data encryption, secure data storage, and compliance with data protection regulations.

Cost-Effectiveness

Evaluate the total cost of ownership, including subscription fees, setup costs, and any additional charges for updates, support, or training. The software should fit within your budget while meeting your core needs.

Reviews and Recommendations

Research user reviews, and case studies, and ask for recommendations from peers in your industry. This can provide insights into the software’s performance, reliability, and quality of customer service.

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Tips To Choose The Right HR Software For Your Business

Buying employee management software for a small business can be hard to explain if you're trying to stick to a budget, but the extra efficiency, productivity, and accuracy can quickly pay for themselves.

To figure out if an HR system is right for you, ask yourself the questions below:

How long do you spend on HR work?

You or your HR staff may be spending too much time on administrative HR tasks like paperwork, data entry, and reports by hand. HR software can automate many of these tasks, giving you and your staff more time to do more strategic HR work.

Is it important to stay in compliance?

Keeping up with work laws and rules can be hard or confusing. Small business HR software can help you stay on top of your duties by offering features like tracking compliance and managing documents.

How often do you have employees leave your company?

If you have a lot of employees leaving, it could mean that there are issues with how you handle HR. HR software can help you figure out what's wrong, like employees who aren't interested in their jobs or onboarding methods that don't work well, which could be causing people to leave.

Do your HR strategies depend on facts about your employees?

It can be hard to make decisions about your employees based on data. HR software can help you find trends, keep track of performance, and make smart choices about your employees by giving you stats and reports.

Do your workers feel like they are being educated and helped?

If you want to make things better for your workers, HR software can give them access to self-service features like requesting time off and enrolling in benefits. These can help them feel like they have more control over their work lives.

Conclusion 

Many small business owners are multitaskers. They handle people, HR, accounting, compliance, and strategic and operational aspects of a corporation. Buying the correct software and tools to support you will make all the difference. Choosing the best HR software for your small business is a good start.

Hope that this post helps you choose the right HR software for your business.

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