Best HR Software for Small Businesses: Top 20 Tools Compared

HR is no longer just paperwork and payroll. For small businesses, it’s the heartbeat of your team—managing hiring, onboarding, time tracking, benefits, compliance, and culture. But without the right tools, it can quickly become overwhelming. That’s where HR software comes in.

Modern HR platforms streamline operations, reduce admin work, ensure compliance, and help create a better employee experience—even if you don’t have a dedicated HR team. Whether you’re a 5-person shop or a 50-employee startup, the right HR tool can save time, money, and stress.

In this guide, we’ve reviewed and compared the 20 best HR software tools for small businesses, with full details on features, pricing, pros, and how to choose what works for you.

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💡 Top 20 HR Software Tools for Small Businesses

1. Gusto

• Best for: All-in-one HR with payroll
• Features: Full-service payroll, tax filing, benefits administration, employee onboarding, time tracking.
• Pricing: Starts at $49/month + $6–8 per employee/month
• Pros: Great user experience, automated compliance.
• Cons: Cost increases with extras like benefits and advanced reports.

2. BambooHR

• Best for: Growing teams that need hiring and performance tools
• Features: ATS, employee records, PTO tracking, performance reviews, reports.
• Pricing: Custom quotes; typically $5–20 PEPM + base fee
• Pros: Intuitive, strong hiring workflow.
• Cons: Payroll is an add-on.

3. Rippling

• Best for: All-in-one HR + IT stack
• Features: HRIS, payroll, onboarding, app/device management.
• Pricing: $8/user/month (annual)
• Pros: Deep integrations, scalable.
• Cons: Learning curve, adds up with modules.

4. Homebase

• Best for: Hourly teams (retail, food, service)
• Features: Scheduling, time tracking, team chat, hiring, payroll.
• Pricing: Free tier; $30/month base for paid plans.
• Pros: Excellent scheduling and shift tools.
• Cons: Limited features for salaried or remote teams.

5. Deel

• Best for: Hiring contractors and remote teams globally
• Features: Global payroll, EOR services, compliance, benefits.
• Pricing: Starts at $29/month
• Pros: Easy international hiring.
• Cons: Not ideal for local-only teams.

6. Sage HR

• Best for: Small teams in the UK/EU
• Features: Leave management, timesheets, performance tracking, reporting.
• Pricing: From £4.60/employee/month
• Pros: Flexible, modular pricing.
• Cons: Basic interface; some modules extra.

7. Breathe HR

• Best for: UK-based micro-businesses
• Features: Absence tracking, document storage, reviews.
• Pricing: Flat £22/month (up to 10 users)
• Pros: Easy to use, affordable.
• Cons: Lacks payroll.

8. BrightHR

• Best for: HR with legal and health & safety advice
• Features: Time tracking, holiday planning, 24/7 legal helpline.
• Pricing: From £2.20/employee/month
• Pros: Strong support; H&S focus.
• Cons: Fewer hiring features.

9. Stribe

• Best for: Measuring employee morale
• Features: Pulse surveys, anonymous feedback, dashboards.
• Pricing: Custom pricing
• Pros: Excellent for engagement.
• Cons: Not a full HR suite.

10. OrangeHRM

• Best for: Open-source customization
• Features: Personnel management, time-off, performance, recruitment.
• Pricing: Free starter; paid enterprise version
• Pros: Customizable, cost-effective.
• Cons: Requires tech setup.

11. ERPNext

• Best for: Businesses needing ERP + HR
• Features: HR, accounting, CRM, projects, and more.
• Pricing: Free self-hosted; paid hosting available
• Pros: All-in-one; very flexible.
• Cons: Steeper learning curve.

12. Keka HR

• Best for: Payroll + HR in Asia
• Features: Payroll, attendance, recruitment, OKRs.
• Pricing: ~$10/employee/month (varies by region)
• Pros: Full-stack HR; affordable.
• Cons: Best for Indian/Asian markets.

13. Personio

• Best for: European SMBs
• Features: Onboarding, absence tracking, payroll, recruitment.
• Pricing: Custom pricing
• Pros: Europe-ready compliance.
• Cons: Steeper cost tiers.

14. Recruitee

• Best for: Hiring and team collaboration
• Features: Drag-and-drop ATS, recruitment campaigns.
• Pricing: Tiered plans; SMB friendly
• Pros: Great for recruiters.
• Cons: No payroll or time tools.

15. Paychex Flex

• Best for: U.S. businesses needing payroll + compliance
• Features: Payroll, taxes, time tracking, HR services.
• Pricing: Starts ~$40/month + PEPM
• Pros: Reliable, proven service.
• Cons: Add-ons can increase cost.

16. ADP Run

• Best for: Established payroll users
• Features: Payroll, W-2s, benefits, HR tools.
• Pricing: Custom; higher end
• Pros: Trusted provider.
• Cons: Complex pricing.

17. Workday (SMB plan)

• Best for: Growing companies needing enterprise power
• Features: HR, finance, performance, analytics.
• Pricing: Enterprise-level; expensive
• Pros: Scalable; AI-powered.
• Cons: Too advanced for very small teams.

18. Employment Hero

• Best for: AI-powered HR & payroll
• Features: Contracts, onboarding, performance, payroll.
• Pricing: Tiered plans; affordable entry
• Pros: Modern UI; automation.
• Cons: Young platform.

19. Paylocity

• Best for: Mid-sized companies scaling up
• Features: HRIS, payroll, learning, engagement tools.
• Pricing: Custom quotes
• Pros: All-in-one system.
• Cons: May be overkill for micro businesses.

20. Zenefits

• Best for: Benefits and HR combo
• Features: HR, benefits admin, onboarding, time tracking.
• Pricing: $8–21/user/month
• Pros: Intuitive; good for startups.
• Cons: Payroll is extra.

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🧰 HR Software Comparison Table

Software	Best For	Features	Starting Price
Gusto	All-in-one payroll + HR	Payroll, tax, onboarding, benefits	$49/mo + $6–8 PEPM
BambooHR	HR suite with ATS	ATS, time-off, performance, reports	Est. $5–20 PEPM + base fee
Rippling	HR + IT integration	Payroll, onboarding, device management	$8/user/mo
Homebase	Hourly staff scheduling	Scheduling, time tracking, payroll	Free; paid $30/mo+
Deel	Global contractors & EOR	Global payroll, compliance	$29/mo
Sage HR	Small EU teams	Leave mgmt, performance, analytics	£4.60/employee/mo
Breathe HR	UK micro-businesses	PTO, docs, performance	£22/mo
BrightHR	Legal & H&S HR	Time, holidays, legal support	£2.20/employee/mo
Stribe	Employee engagement	Surveys, feedback, dashboards	Custom
OrangeHRM	Open-source HR	Core HR, recruitment, performance	Free / Quote
ERPNext	ERP + HR	HR, payroll, accounting, CRM	Free / Paid SaaS
Keka HR	HR/payroll in Asia	Payroll, attendance, OKRs	Custom (~$10 PEPM)
Personio	European SMBs	Payroll, onboarding, recruitment	Quote
Recruitee	Hiring pipeline/ATS	ATS, branding, pipelines	Tiered plans
Paychex Flex	Payroll + compliance (US)	Payroll, taxes, HR services	~$40+/mo + PEPM
ADP Run	Payroll-first needs	Payroll, benefits, compliance	Custom
Workday	Enterprise HR at scale	HR, finance, performance, analytics	Enterprise pricing
Employment Hero	AI-driven payroll/HR	Onboarding, performance, AI tools	Tiered
Paylocity	Mid-size scaling companies	Payroll, performance, learning	Quote
Zenefits	Benefits-focused HR	Benefits, onboarding, time tracking	$8–21/user/mo

🛠️ How to Choose the Right HR Software

Step 1: Prioritize Features You Need

• Payroll + tax filing → Gusto, Rippling, Paychex
• Hiring & ATS → BambooHR, Recruitee
• Time tracking/scheduling → Homebase, BrightHR
• Global workforce → Deel, Employment Hero
• Open-source flexibility → ERPNext, OrangeHRM

Step 2: Set Your Budget

• Free or low-cost tools: Homebase, OrangeHRM, Breathe HR
• All-in-one tools: Gusto ($49 + PEPM), Rippling ($8/user)
• High-end options: ADP, Workday

Step 3: Look for Integrations

Do you need the software to talk to your accounting system (QuickBooks, Xero), Slack, or email?

• Best integrations: Rippling, Gusto, Paylocity

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✅ Final Recommendations

Top 3 for Most Small Businesses:

1. Gusto – Easiest all-in-one HR + payroll.
2. Homebase – Best for hourly and shift-based work.
3. BambooHR – Best for growing teams that want ATS + HR.

Top 3 for Specialized Needs:

1. Deel – Global contractor hiring and compliance.
2. Rippling – Best for scaling up and IT + HR integration.
3. ERPNext – Open-source ERP for businesses that want everything in one place.

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🔚 FINAL WORDS

Choosing HR software isn’t just about checking boxes—it’s about unlocking time, saving money, and setting your team up to thrive. For small businesses, the right tool balances features with affordability and scales with your needs.

Here’s how to move forward:

• Start small. Try a freemium or trial plan to see how it fits your workflow.
• Prioritize what matters: payroll? scheduling? recruiting? compliance?
• Scale intentionally. Pick a system you won’t outgrow in 6 months.

If you’re tight on budget, tools like Homebase, Breathe HR, and OrangeHRM punch well above their price. For fast-growing teams, Gusto, Rippling, and BambooHR offer more robust options without overwhelming complexity.

You don’t need to be an HR expert—you just need the right system. Let your software do the heavy lifting so you can focus on building your business and supporting your team.

Want help making the final decision? Just drop your business size, industry, and must-have features—and I’ll match you with the top 2–3 perfect fits.