Top 5 HR Software for Small Businesses to Use in 2023

The word ‘small businesses’ often indicates that most of the activities and departments are handled by the business owners themselves. While this might be true to an extent, like any other big business, small businesses also need better HR that can help them with all the activities and processes. 

Having a good and efficient HR team is important for small businesses to grow and therefore it is vital to have the best HR software for small businesses that can make a difference. 

When you don’t have plenty of people working in your office you need to ensure that the majority of the employees feel competent at the job. This would allow you to bring more efficiency and productivity to your business operations. Having an HR team for your small business would offer a better employee experience and help you focus on your business. However, to empower your HR team you need to look for the top HR software for small businesses that can make a difference. 

Best 5 HR Software for Small Business

In simplest terms, HR software is a digital tool that empowers HR staff and managers to optimize their time by automating certain daily tasks and repetitive activities. This would make it possible for the HR personnel to better allocate their time and resources to more productive and profitable efforts. 

Over the years, HR software has evolved and has become better through constant technological advancement and innovation, and regular feedback from users. Hence, Hr software today is packed with more prominent features that allow HR staff and professionals to do more in less time. 

If you are a small business owner you can look for the top HR software for small businesses listed below.

#1 Paycor

When you are looking for HR software that can help you do multiple things you need software that has key features. Paycor is an integrated Human Capital Management software (HCM) that helps HR staff with recruiting, reporting, onboarding, timekeeping, payroll, and even tax compliance-related issues. The software works seamlessly with different business applications and therefore it has gained a good reputation in the business community. The user-friendly technology and interface make Paycor very easy cloud-based HR software to learn and use thereby saving plenty of training time. 

Features:

  • Excellent HRIS System
  • Reporting and Analysis
  • Human Resource Management System
  • Time Keeping Software
  • Payroll and Tax Compliance
  • Employee Screening
  • Onboarding Options
  • Worker’s Compensation Management
  • ACA Compliance
  • Applicant Tracking System

Pros:

When it comes to comprehensive HR software, Paycor has core features that can help HR staff and managers to manage their daily activities and repetitive tasks and automate them to allocate their time the right way. 

  • Ease of Use: Paycor comes with an easy and simple interface that makes it easier to learn
  • Comprehensive Solution: Instead of opting for multiple HR programs and software you can look for a unified solution that can help you handle more HR administrative tasks. 
  • Better Analytics and Insights: Paycor has a single source of employee data that can provide you with richer insights and analytics that can help you know more about labor costs, employee retention, and other key HR metrics that you set.
  • Accurate Compensation, Payroll, and Tax Compliance: Paycor can provide you with a seamless payroll integration that works with rich time-keeping software to help you maximize efficiency and data.
  • Device Support: Paycor is also compatible with Windows, Android, iPhone, iPad, Mac, and Web-based devices. 
  • Free Trial: Yes, you can opt for the free trial version.

Cons:

  • The implementation process can be complex
  • Integration options are limited

Pricing:

The monthly basic plan starts at $99, the essential plan is $149 per month, and core and complete plans are $199 per month.

#2 BambooHR

When you are looking for end-to-end HR solutions, BambooHR can provide you with the comprehensive solution that you need. The software works well with small and medium-sized businesses that want simple and easy-to-use interfaces and advanced features. The software also comes with a robust Applicant Tracking System that can administer the entire employee life cycle and provide necessary solutions for automating some of the repetitive tasks.

Features:

  • Centralized Employee Database
  • Accurate Reporting
  • Easy-to-use system
  • Applicant Tracking System
  • Report Generation
  • Smart Reminders
  • Controlled Access
  • Employee Onboarding
  • HRIS Software
  • HRMS Software
  • Performance Management
  • Absence Management
  • Applications Management
  • Bonus Management
  • Data Import/Export
  • Email Invitations & Reminders
  • Employee Portal
  • Goal Management
  • SSL Security
  • Secure Data Storage
  • G Suite

Pros:

  • Excellent Applicant Tracking System: If you are looking for HR software that comes with a robust ATS then BambooHR can offer you the best experience. Although optional, the ATS works efficiently and ensures better control over information related to applicants as they arrive. 
  • Great Onboarding Options: BambooHR also provides a great onboarding system for HR staff allowing them to automate most of the major features and manual tasks. For instance, sending new hires information about training and all necessary files and corporate documents. 
  • Delegate Access to Data: BambooHR also offers a great way to allow HR managers to be assigned role-based access to information. Hence, it is the administrators and managers that control and decide who has access to what information. 
  • Employee Benefits and Performance Administration: The HR software also has all the core HR features and options that are required to manage employee benefits and performance. In this, the administrator has the authority to assign tasks, and employees are notified to work on them immediately. 
  • Devices Supported: BambooHR also supports all devices including Windows, Linux, Android, iPhone, iPad, Mac, and web-based software.
  • Free Trial: Yes, you can opt for the free demo version. 

Cons:

  • No in-house payroll management option
  • Updates can hamper software features

Pricing:

BambooHR has two packages. The Essentials Package comes with basic tools for smaller companies. The Advantage Package is a complete package for big companies that want a comprehensive HR solution.

#3 Gusto

If you are interested in an online HR tool that can provide you with automation for payroll and employee benefits solutions you can look for Gusto. This software works seamlessly for small and medium-sized businesses and can help customers with onboarding, paying, and other employee benefits-related issues. The software automatically calculates and files payroll (401k) taxes, keeps companies compliant, and provides excellent customer support.

Features:

  • Lifetime Accounts for Employees
  • Digital Paystubs
  • Easy Charitable Donations
  • Employee Self-Enrollment
  • Automated New Hire Reporting
  • Automatic Payroll Tax Processing
  • Payroll on Autopilot
  • Contractor Payments
  • Net-To-Gross Payments
  • Unlimited Payroll
  • Cancel Payroll
  • Flexible Schedules
  • Detailed Payroll Reports
  • Multiple Pay Rates
  • Multiple Pay Schedules
  • Hourly and Salary-based Computations
  • Collaboration
  • Time Management
  • Direct Deposit and Checks
  • Software Integrations
  • Pre-Tax Benefits
  • Reimbursements
  • Filterable payroll reports 
  • Custom offer letters
  • Visual organization charts
  • Coworker directories
  • Digital Signature

Pros:

  • Payroll Automation: Gusto provides good payroll automation and saves time by doing time off calculations.
  • Zero-Error Payroll Management: Critical human errors in payroll management can lead to business capital loss. With payroll automation, Gusto can reduce or eliminate these errors.
  • Easy to Use: Gusto interface is easy to use and therefore takes less time to learn and train.
  • Facilitates Access to Information: The administrator has the authority to assign access to information to different individuals and teams to manage data.
  • Simplifies Benefits Administration: With detailed budget plans, new hire reports, and payroll automation Gusto also makes the entire benefits administration process simpler.
  • Compliant with HIPAA, ACA, and ERISA Standards: All Gusto operations meet HIPAA, ACA, and ERISA standards ensuring that your business HR work is perfect.
  • Better Integration with Third-Party Systems: Gusto also works in sync with other third-party software like BambooHR, FreshBooks, Nimble, HomeBase, TSheets, and Xero.
  • Devices Supported: It is compatible with Windows, Windows Mobile, Mac, Android, iPhone, iPad, and web-based software.

Cons:

  • Per-person pricing is expensive
  • No invoicing or accounts receivable feature
  • Not very scalable when the company grows bigger
  • Basic timekeeping app
  • Lacks ATS or performance management system
  • Average customer support

Pricing:

Gusto offers three packages for their HR software:

Simple Plan – $40 per month + $6 per person

Plus Plan – $60 per mo + $9 per person

Premium – Quote-based

#4 KekaHR

KekaHR is excellent HR software perfect for small businesses and organizations looking for human resource management and payroll solutions. This is a perfect digital tool for companies looking to move away from traditional workforce management practices and opt for digital solutions. The software interestingly blends conventional options with modern digital features making it easy to learn the software.

Features:

  • Excellent Payroll Management
  • Employee Finances
  • Statutory Compliance
  • Expense Management
  • Loans and Bonuses
  • Leave Management
  • Attendance Management
  • GPS Attendance
  • Timesheets
  • Performance Management
  • Applicant Tracking

Pros:

  • Attendance with Geo-Location: KekaHR comes with real-time attendance, web clock-in, remote location, geo-location, and other health benefits that allow HR to monitor the location of the employees on the field to create a comprehensive attendance report.
  • Simple Payroll Processing: KekaHR also helps with simple payroll processing features making it easier for the HR team to create employee pay slips, and automate expense claims and loan management processes.
  • Excellent Performance Management: With KekaHR’s performance management and appraisal features you can reward your employees that display sincerity and hard work without having to do a lot of work.
  • Devices Supported: Android, iPhone, iPad, and web-based programs.
  • Free Trial: Yes, a free trial is available on the website.

Cons:

  • Limited product integration
  • Lacks onboarding features
  • Average UI experience

Pricing:

KekaHR offers various pricing packages which include:

Foundation Package – $85 per month (up to 100 employees) + $0.72 per additional employee.

Strength Package – $121 per month (up to 100 employees) + $1.09 per additional employee.

Growth Package – $170 per month (up to 100 employees) + $1.57 per additional employee.

Apart from these packages, there is also Blue Pricing (Quote-based) and Startup Pricing (Quote-based).

#5 Monday.com

Monday.com is one of the leading all-in-one digital solutions for small business HR processes. It has an intuitive and user-friendly interface which is easy to learn. Hence, it makes it easier for small businesses to manage their HR operations right from the first day. The software provides options for customizable automation of all kinds. From notifying your team or getting a status update, or creating a task or workflow you can do it all on Monday.com. It also integrates seamlessly with other third-party software and programs like Slack, Zoom, and Microsoft Teams. 

Features:

  • Seamless Collaboration with the team
  • Assign and communicate tasks
  • Track team progress
  • Delegate tasks to team members
  • Keep everyone aligned with automation
  • Create custom notifications
  • Integrates with Gmail and Outlook
  • Send and Receive Updates by email
  • Integrate with platforms with Slack, Dropbox, Pipedrive, and more
  • Document and manage work all in one place
  • Onboard new employees easily
  • Role-based Access to Information
  • Upload files directly from Adobe for easy peer review
  • Leave live comments on visuals
  • Reduce emails and meetings

Pros:

  • User-Friendly Interface: Monday.com provides an easy and user-friendly user experience which makes it convenient for small businesses HR to begin with.
  • Customizable Dashboards: Users can customize the dashboard and embed analytics which makes it easier for them to constantly monitor progress and status. 
  • Drag and Drop Technology: Monday.com comes with a set of powerful drag and drop technology that allows users to build custom solutions based on their requirements. The software also has more than 200 ready-made templates to help you create a unique workflow.
  • Easy Collaboration: The software also allows you to collaborate with other platforms like Facebook and Twitter asking for comments, questions, or discussions.
  • Better Reporting and Analytics: With all the workload, Monday.com can also provide you with all the custom reports and analytics that you need to manage your HR activities. The software also allows you to embed graphs and charts directly into the team’s workspace. 
  • Easy Integration: Monday.com also integrates seamlessly with other third-party software and programs like G-Suite, Dropbox, Zapier, and other management tools. 
  • Multi-Language Support: Monday.com provides support in 13 different languages including, English, Chinese, German, Japanese, French, Spanish, Russian, Italian, Dutch, Portuguese, Polish, Turkish, and Swedish.
  • Devices Supported: Windows, Mac, Android, iPhone, iPad, and Web-based

Cons:

  • Takes time to load information
  • Plenty of dropdowns and buttons can be overwhelming
  • Limited statistical data on projects
  • Higher learning curve

Pricing:

Monday.com offers 5 types of pricing options:

Individual – Free (up to 2 seats)

Basic – $8 per seat per month (Total $24 per month)

Standard – $10 per seat per month (Total $30 per month)

Pro – $16 per seat per month (Total $48 per month)

Enterprise – Quote-based

Conclusion

Having HR personnel for your small business can make a big difference to your business. Hence, you need to provide your HR staff with the right HR software that would allow them to improve employee relations and motivate them to do more. With the best HR software for small businesses, your HR staff can automate simple and daily activities and streamline processes to increase overall productivity and work management. 

FAQs on HR Software for Small Businesses

Is HR Software necessary for a small business?

Though there is no compulsion to buy HR software, you will need to gauge your needs. You will need to check the size of the company, manpower, and the processes you want to automate. Based on this, you can decide how important it is to have HR software. 

What key features do I need to look for?

Other than the cost, you will need to look for software that can give you payroll management, built time-tracking tools, custom report creation, etc. 

Which integrations should I check for before buying the HR software?

You should be able to integrate payroll, leave management, team calendars, task scheduling, etc. within the HR software. This needs to be done so that you do not need to buy multiple software to do all the core HR activities.  

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