Best HR Software for Small Businesses

Human resource management is an often-overlooked area of business that can make or break a company. The best companies offer exceptional human resource services. However, hiring a dedicated team can be cost-prohibitive for small businesses still growing. That’s where human resource software comes in. The best HR software for small businesses streamlines services and automates processes so you can deliver excellent value to employees in less time. Read on to learn more about the best HR software for small businesses. 

8 Best HR Software for Small Businesses

Like much of the best software for entrepreneurs, the best HR software for small businesses offers greater value to help you save time. Here are some great options to choose from. 


If you’re looking for an employee experience platform that combines HR, payroll, ATS, and performance management, consider Keka. This suite of tools allows organizations to seamlessly manage human resource processes by simplifying common tasks. Keka has mobile apps for iOS and Android. 

Pros of Keka

  • Centralized information
  • Customizable to your business
  • Manages hiring as well as employee departures easily
  • Simplifies employee reviews

Cons of Keka

  • Integration issues
  • Some bugs in the software that cause delays


Gusto is an online payroll and HR solution that lets you hire, pay, and manage your small business team all in one place. Gusto can run payroll in minutes, automatically file taxes, and help with compliance. Perhaps most impressive, 75% of customers say they run payroll in 10 minutes or less with Gusto. A simple plan starts at just $40 a month plus $6 per month per person. 

Pros of Gusto

  • Simple to use
  • Low cost
  • Automatically files taxes
  • Helps with compliance

Cons of Gusto

  • Doesn’t include some other HR features of competitors

QuickBooks Payroll

QuickBooks Payroll offers online payroll services for small businesses. It can help you to streamline payday, track time, manage HR, and offer team benefits. Other perks include taxes, fast employee payments, seamless integration of payroll, time tracking, and accounting data to save you more time. You’ll also get 24/7 support. Plans start at $75 a month plus $6 per employee, but you could get a 50% discount for the first three months. 

Pros of QuickBooks Payroll

  • Easy to use
  • Good integrations
  • Fast employee payments
  • Tax penalty protection up to $250,000 in case of filing errors

Cons of QuickBooks Payroll

  • Expensive than other options
  • Doesn’t include hiring/firing support software


OnPay is fast, precise, and backed by payroll experts. It will help eliminate the busy work so you can focus on your core business. OnPay’s payroll and HR tools are a versatile solution for companies of all sizes. The user-friendly interface and affordable pricing make it an attractive solution. Prices start at $40 per month plus $6 per employee. 

Pros of OnPay

  • Fast payroll processing
  • Good integration
  • Supports vertical industries
  • Good employee versions
  • Online help files to set up new systems

Cons of OnPay

  • No automatic payroll
  • Some functions missing in the mobile admin version


If you need the best HR software for small businesses beyond payroll, consider Rippling. It is an award-winning HR software that can help you scale from two employees to 2,000. In addition to payroll and financial management, Rippling offers powerful tools for inventory management, device management, and more. It claims you can set up new hires up to 10 times faster, simplify compliance, and bring HR and IT together. Prices start as low as $8 per user per month. 

Pros of Rippling

  • Easy to use
  • All-in-one HR solution
  • Brings on new hires easily
  • Scales with your business
  • Compliance support

Cons of Rippling

  • You’ll need to get a quote for the exact plan cost


Square positions itself to “power your entire business” and to help you work smarter, automate, and open up new revenue streams. Its software and hardware platform have already helped millions of businesses grow. Square HR offers access to many templates to create HR documents and employee handbooks. It can help you maximize your team’s potential while saving time and money. Pricing starts at $35 per month, plus $3 per team member. 

Pros of Square

  • HR manager
  • Payroll management
  • Team communication
  • Integrates with other Square apps
  • Compliance support
  • Easy to use

Cons of Square

  • Not as easily scalable as other options
  • Needs better customer support

Bamboo HR

Bamboo HR markets itself as the complete HR software, offering hiring and onboarding, HR data and reporting, and employee experience and performance. It offers more than 125 integrations, including Slack, TalentLMS, Google, indeed, Gifted, Netsuite, Okta, and more. Impressively, Bamboo estimates that its customers reduce HR costs by 40%. 

Pros of Bamboo HR

  • Easy to use
  • Intuitive interface
  • All-in-one HR solution
  • Many integrations
  • Helps companies save time
  • Clients rate Bamboo HR highly across all areas of performance

Cons of Bamboo HR

  • Some updates caused onboarding delays for some companies
  • You’ll need a customized price quote


Paychex is an all-in-one solution that helps small to medium-sized businesses manage HR, payroll, benefits, and more. With no cost obligation until your first payroll, it’s a solution that can help companies just starting and looking to grow faster. 

Paychex offers customized HR solutions by company size, which include payroll, HR, time and attendance, retirement benefits, health insurance, and more. Pricing depends on business size. Plans start at $39 a month plus $5 per employee.

Pros of Paychex

  • Easy to use
  • Customized solutions for your business size
  • Option for additional wellness packages
  • Creates reports by demographic and more
  • All information is organized in one location
  • Reliable

Cons of Paychex

  • Some issues with the clock and timer functions

What Is HR Software?

Human resource management, or HR software, offers automated and simplified ways to keep multiple sources of information in one place. This software often combines several systems and processes to easily manage human resources, business processes, and data. It can do everything from payroll processing and tax calculations to effectively filing information and health forms, insurance, pensions, and more. 

Why Do Small Businesses Need HR Software?

Small businesses need HR software, arguably even more than large businesses. Since the cost of each additional employee for an HR team is significant, HR software can streamline the work so a single person can easily manage all HR issues and support employees within a small company. 

Features to Look for in HR Software for Small Businesses

When looking for HR software, you’ll want to consider the functionality, interface, compliance support, and more. Here’s what to look for: 

Core HR Functionality

Core HR functionality to look for in the best HR software for small businesses includes recruiting and hiring, training and development, payroll and insurance, performance management, and employee engagement. Look for software that can support your company’s growth and expand as you develop new goals or hit new growth targets.

User-Friendly Interface

A user-friendly interface is essential to bring on new team members and prevent lost time in attempting to navigate complicated software. If the software is too complex, it’s worth the company’s resources to choose another option. 

Compliance Management

Compliance management includes ensuring all HR policies and procedures align with state and federal laws, codes of ethics, and regulations. The best HR software for small businesses can help your company ensure compliance across all areas of company management. 

Employee Self-Service

The best HR software for small businesses allows employees to access a dedicated portal, communicate with the HR team, or check updates about hiring, promotion, and more. Look for software that enhances communication and transparency with employees and can further build trust within your organization. 

Reporting and Analytics

Reporting and analytics on performance, compliance, training, development, and more can improve company efficiency while helping identify growth opportunities. The best HR software for small businesses allows useful, customized reports that fit your business needs. 

Integration Capabilities

Integration with other software the company already utilizes ensures a seamless flow of communication and ease of management between departments within the company. 

Mobile Accessibility

Most people work on their phones at some point each day. The best HR software for small businesses allows managers and employees to access a dedicated app or portal from their phones to find information about payments, taxes, complaints, insurance, and more. 


Ideally, your business will grow. The HR software should have the bandwidth to grow with your company as your team expands. If you’re ready to expand to the US, learn more about how to get a visa for a US business, or get support from doola to form a US LLC

Should You Use HR Software for Your Small Business?

The best HR software for small businesses can boost company growth by offering a better employee experience while saving valuable time. Looking for accounting support? Consider the best-in-class bookkeeping software designed for busy founders like you. Get doola books to help you with accounting and financial management so you can focus on company growth! 


How much does HR software for small businesses typically cost?

HR software for small businesses typically costs $8 to $40 per month plus an additional fee per user or employee. However, this can vary widely based on the software you choose. 

Are there different types of HR software designed specifically for small businesses?

There are a number of HR software companies that cater to businesses with as few as two employees. The HR software solutions discussed above can all work well for small businesses. 

How does HR software help with employee management and tracking?

HR software can help employee management and tracking by ensuring efficient use of time, location, and device. It can also automate processes so your team has more time to focus on the most important tasks. 

Can HR software handle payroll and other administrative tasks for small businesses?

Yes, HR software can handle payroll and administrative tasks for small businesses. Depending on the software you choose, it may also automate many HR and payroll processes to save significant time. 

Are there any legal requirements or compliance measures that HR software for small businesses should have?

Small businesses must meet all legal and compliance requirements. The best HR software for small businesses can help you to better manage compliance and protect your company. 

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