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Best HR Software for Small Business

Jul 29, 2022
Best HR Software for Small Business
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Every entrepreneur needs to have proper business management software to enable them to manage their businesses. HR management software makes it easy to manage all your business-related activities.

But as you’ll come to find, it’s not easy trying to find an efficient HR software solution. You must evaluate the software features present in every solution before choosing one that meets your business needs.

In this article, you’ll find a comparative analysis of some of the leading HR management systems in the market today. Use it to evaluate which one best meets your business needs. Read on for more.

Criteria Used in Selecting the Best Vendors

The following is a summary of the factors to consider when choosing HR management software:

  • Value for Money Spent: Small businesses don’t have large budgets to splurge on HR software. The solutions recommended below are affordable or available at no cost.

    User Interface (UI): User experience plays a critical role in all programs. An ideal tool should have a clean interface that is easily navigable using smartphones or PCs.

    Integrations: Integrations with other business tools assists in task automation. For example, you can have an integration that links your payroll solution to your onboarding software.

    Usability: Any HR tool being considered should be user-friendly. It should have good customer support and be accompanied by proper documentation.

Overview of the Best HR Software for Small Business 2022

The following is a brief description of every available HR management software to showcase its noteworthy features and best use cases. Many of these tools use the SaaS business model, meaning you must pay a monthly fee to use them.

1. HR Cloud

HR Cloud provides human resource teams with an advantage over past practices. You can use it to onboard new hires more efficiently, automate manual processes, and drive engagement, collaboration, and communication to new heights.

It allows your business to perform to its potential by providing it with the tools it needs to perform its most critical goals. HR Cloud provides your business with a competitive advantage while helping it simplify performance management.

With it, you get to:

  • Have a centralized source of feedback.

• Manage performance together

• Customize your questions

• Allow your employees to be heard and have their issues addressed

Request a FREE Demo today and join the over 500,000 small businesses already using HR Cloud. You don’t need to provide credit card information for the Demo, which comes with unlimited customer support.

2. Gusto

Gusto is the HR partner your business needs to grow and continue nurturing its team. It’s ideal for all businesses, regardless of whether you’re a startup or have started scaling fast. With it, you get modern human resource features such as:

  • Management resources

    • Payroll

    • Hiring

    • Benefits

All these features are located in one place. Since its launch, the system has attracted more than 200,000 users across the United States. It provides small businesses with a single system containing expert guidance to empower employees and competitive compensation tools.

Pricing: $45 per month.


It provides great value for small businesses as it can assist in streamlining different types of data collection processes depending on what the business needs. comes with more than 200 pre-built templates.

It’s straightforward and makes it easy to transfer your business data to its system. It has an inbuilt functionality that can allow you to upload information from existing Excel spreadsheets. Apart from fast data upload, you can also use different visual formats to look at your data.

Some of these visual formats include:

  • Gantt charts

    • Pie charts

    • Bar and line graphs

Pricing: offers a 14-day trial period.

4. RUN Powered by ADP

RUN Powered by ADP HR solution assists in making your payroll easy and quick. It’s backed by a robust technology offering a streamlined process, which ensures that your small business gets to complete its payroll in no time.

With RUN, you can choose from basic payroll to a complete suite having all the HR tools and services needed to run a business. With its payroll features, your small business gets to:

  • Process payroll from the office or on the move

    • Calculate, pay and deduct taxes automatically

    • Receive automated quarterly and annual reports

    • Remain ahead of state and federal taxes

    • Keep ahead of human resource regulations with automatic updates for all the 50 states

    • Enjoy peace of mind with round the clock customer support

    • Integrate time tracking with payroll

Pricing: This information is not publicly available.

5. Open HRMS

Open HRMS is an open-source human resource software with tons of valuable features for startups and other small businesses. Its inbuilt features will assist you in managing appraisals, attendance, payroll, transfers, and vacation time.

You’ll like the fact that its creators have organized this tool in modules allowing you to customize the solution according to your business needs. It ensures that you won’t get bogged down with unnecessary functions.

The best part about Open HRMS is that you can add new features as they become necessary. As an open-source tool, you’re at liberty to download it, install it in the company services, and use it for free.

Pricing: Free

6. BambooHR

BambooHR is a renowned Software-as-a-Service company that provides online human resource systems for use by both small and medium-sized enterprises. It’s ideal for businesses that have surpassed or outgrown spreadsheets.

The Cloud-based solution provides an affordable way for growing businesses to keep track of and manage employee data in a customized HR system. With BambooHR, your HR managers will have more time on their hands to execute the more meaningful tasks.

Pricing: It offers a limited trial period.

7. Bitrix24


Bitrix 24 is a free web-based human resource system intended for use by small businesses. The solution packs lots of features ideal for companies that don’t have a large in-house team to manage their needs.

Its top features include:
• Document management
• Time and work attendance features
• Employee directory

The self-service portal is one of the features you’ll easily fall in love with, as employees can use it to access various human resource functions. What’s more, they can do so without physically contacting the HR team.

For example, you can use it to set up different workflows for business trip permissions and vacation requests. Its core features are available for free, and they may be all that your small business needs to function.

Companies that require dedicated human resource features may need to update their accounts. Please note that all plans come with unlimited users. Bitrix24 provides a small bonus for SMBs using their portal.

Pricing: Free and paid versions start at $159 per month.

8. Start building up their relationship with you.

Even though it's just a small thing, being nice is always a good idea. However, as you are helping them get started, make sure to focus on building up their relationship with you. It's important for them to feel like they can trust you and turn to you if they need anything. If they feel comfortable talking to you and know that they can always ask for help, then your first week will be all about getting them acclimated.

9. Put them in touch with other coworkers if needed.

A new employee needs to get acquainted with their team as soon as possible. A great way to do that is through an effectively onboard buddy. If you have a large group, you can ask one of your established workers to act as a guide and help them learn how your office operates by teaching them tricks of their trade—and getting them acclimated in turn. So, if you want two employees who work well together to hit it off, they need to spend time together.

Discuss more personal details, like their background

It can be helpful to start a conversation with a new employee by addressing any questions they may have about their role, job description, and department. If you're leaving room for them to ask questions, try out a question like What are some things you want to learn more about? Be sure to make yourself available when it comes time for meetings and projects. Being accessible will set them up for success in other areas of their workday.


Every small business needs to have a form of human resource. While you don’t need to employ a dedicated team, you’ll need someone who can find and onboard new personnel, process payroll, and manage your employees.

Human resource solutions can significantly simplify all these activities. As seen above, there are many tools to choose from; all you need to do is find a tool that meets your business requirements. The right tool will guide you on employment law and compliance. 



About Author: Greg Tuohy is the Managing Director of Docutec, a business printer (mostly multifunction printers) and office automation software provider. Greg was appointed Managing Director in June 2011 and is the driving force behind the team at the Cantec Group. Immediately after completing a science degree at UCC in 1995, Greg joined the family copier/printer business.

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