Best HR Software for Small Businesses in 2025: Top 20 Solutions Compared

When you're managing a small business or running an HR team, you’re juggling everything from payroll and compliance to recruiting and employee engagement. Investing in the best HR software can transform the way you manage these tasks—freeing up your time and reducing manual work. 

But with so many HR software solutions on the market, how do you choose the right one?

The good news? The right HR software tools take the headache out of managing people. They handle the boring, time-consuming tasks—like tracking time off, running payroll, and keeping employee records organized—so you don’t have to. 

Whether you need an all-in-one HR system to do it all or just a simple tool to take some work off your plate, knowing what’s out there (and what actually works) will help you pick the best fit for your business.

In this guide, we’ve compiled a HR software comparison of 20 top HR systems to help you find the perfect fit for your business. Whether you need a simple HR management tool for employee records or a full HR solution software with payroll, benefits, and compliance features, you’ll find the best options here.

Let’s dive into the best HR software for small businesses in 2025 and find the perfect system for your team!

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What is HR software, and why does it matter?

What is HR software?

HR software is like your personal assistant for managing your team. It helps with employee data management, hiring, tracking hours, running payroll, and keeping everything organized in one place. 

Instead of bouncing between spreadsheets, emails, and paperwork, you get a simple system that takes care of the details—so you don’t have to.

Who needs HR software?

If you run a small business or manage a growing team, HR software solutions can save you hours of admin work. Whether you’re an HR manager trying to streamline processes or a business owner handling HR yourself, the best HR management software helps you stay on top of employee records, compliance, and payroll without the stress.

Why does HR software matter?

• Saves time: Endless paperwork? No thanks. HR software tools handle the busywork—like onboarding new hires, running payroll, and keeping track of time off—so you can focus on growing your business.
• Helps you stay compliant and out of trouble: Staying on top of rules and regulations can be a headache. The right HR system helps you keep everything in check, from tracking employee hours properly to making sure payroll and taxes are done right.
• Improves employee experience: Self-service portals boost employee satisfaction by  allowing your team to  check pay stubs, request time off, and update their info without back-and-forth emails.
• Reduces costs: Prevents payroll errors, cuts down on paperwork, and helps manage budgets by tracking labor costs more accurately.

Best HR software for small businesses

1. Homebase – Best all-in-one HR solution for hourly teams

Designed for retail, hospitality, healthcare, and service-based businesses, Homebase combines employee scheduling, payroll, hiring, and team communication into one easy-to-use platform. 

Key features:

• Free scheduling & time tracking: Manage shifts, track hours, and handle time-off requests seamlessly.
• Built-in payroll: Pay your team automatically, handle taxes, and stay compliant.
• Hiring & onboarding: Post jobs, track applicants, and send digital offer letters.
• Team messaging & HR support: Keep everyone connected and get expert HR help when needed.

Pricing:

• Free plan available for businesses with one location.
• Paid plans start at $20/month per location, with payroll as an add-on.

Pros:

• Free scheduling & time tracking make it a budget-friendly option.
• Great for managing hourly teams with shift-based work.
• HR and payroll integration makes hiring and paying employees seamless.

Cons:

• Payroll costs extra (but it’s still affordable compared to many competitors).
• More suited for hourly teams—if you have salaried employees, other options may work better.

2. Gusto – Best HR and payroll software for small businesses

If you want a simple HR and payroll software that takes care of taxes, benefits, and direct deposits, Gusto is a top choice. It's built for small businesses that need an easy, automated way to manage payroll without the hassle.

Key features:

• Full-service payroll: Automates direct deposits, tax filing, and W-2s/1099s.
• Employee benefits: Offer health, dental, vision, and 401(k) plans.
• Hiring & onboarding: Paperless offer letters, e-signatures, and compliance support.
• Time tracking: Syncs seamlessly with payroll for accurate paychecks.

 Pricing:

• Starts at $40/month + $6 per employee for the basic plan.

Pros:

• User-friendly and great for payroll—perfect for first-time business owners.
• Excellent tax compliance—automates federal, state, and local tax filings.
• Employee benefits integration—easily offer health insurance and retirement plans.

Cons:

• More expensive than some competitors, especially for small teams.
• Limited scheduling features—you may need an additional tool for shift management.

3. BambooHR – Best HR software for growing teams

BambooHR is a great choice for small businesses that want to focus on hiring, employee management, and performance tracking rather than just payroll. It’s built for companies that are expanding and need a centralized HR system to manage their growing team.

Key features:

• Applicant tracking system (ATS): Streamline hiring with job postings and candidate tracking.
• Employee records & self-service: Store everything in one place, with employees able to update their info.
• Performance management: Conduct reviews and track goals.
• Time-off tracking & approvals: Employees can request PTO, and managers can approve it with one click.

Pricing:

• Custom pricing—varies based on company size and features.

Pros:

• Excellent for hiring and employee management—great for growing businesses.
• User-friendly interface makes HR tasks easy.
• Includes performance management—a rare feature for small business HR software.

Cons:

• No built-in payroll—you’ll need a separate payroll provider.
• Pricing isn’t transparent, so you’ll need to request a quote.

4. Paychex Flex – Best HR software for payroll & compliance

Paychex Flex is a powerful payroll and HR system designed for small businesses that need compliance support, payroll automation, and benefits management. It’s a solid choice if you want expert guidance to ensure your business follows labor laws and tax regulations.

Key features:

• Full-service payroll:  Automates direct deposits, tax filings, and paycheck processing.
• HR compliance support:  Helps businesses stay compliant with employment laws.
• Employee benefits management:  Handle 401(k) plans, health insurance, and workers' comp.
• Mobile app & self-service:  Employees can check pay stubs, request time off, and update info on the go.

Pricing:

• Custom pricing—starts around $39/month + $5 per employee.

Pros:

• Excellent for payroll and compliance—ideal for businesses with complex tax needs.
• HR compliance support helps with legal issues. 
• Flexible plans allow businesses to scale as they grow.

Cons:

• Pricing can get expensive, especially for small teams.
• Not as user-friendly as newer HR software options.

5. Rippling – Best all-in-one HR, payroll, and IT solution

Rippling goes beyond just HR—it’s a complete business management system that handles HR, payroll, and IT in one platform. If you need to onboard employees, manage devices, and run payroll seamlessly, Rippling is a top contender.

Key features:

• HR & payroll automation: Run payroll in 90 seconds, manage benefits, and track time off.
• IT management: Issue laptops, manage employee devices, and set up software access.
• Global workforce support: Hire and pay employees anywhere in the world.
• Integrations with 500+ apps: Connect with tools like Slack, QuickBooks, and more.

Pricing:

• Starts at $8 per employee per month, with additional features priced separately.

Pros:

• Great for companies with remote teams or global hires.
• Combines HR, payroll, and IT—no need for multiple systems.
• Highly customizable with powerful automation.

Cons:

• Pricing can add up quickly, depending on the features you need.
• More complex than simpler HR software—not the best choice for very small businesses.

6. ADP Workforce Now – Best for businesses that need robust payroll and HR support

ADP Workforce Now is a comprehensive HR and payroll platform built for small and mid-sized businesses that need scalable HR management solutions. It’s best for companies looking for full-service payroll, compliance tools, and HR support from a well-established provider.

Key features:

• Full-service payroll with automatic tax filing and compliance assistance.
• Employee benefits administration, including health insurance and 401(k) management.
• Time and attendance tracking with scheduling and PTO management.
• HR support, including background checks, compliance tools, and employee onboarding.

Pricing:

• Custom pricing based on business size and needs.

Pros:

• Well-established company with strong customer support.
• Scalable solutions that grow with your business.
• Excellent payroll and compliance features.

Cons:

• Pricing isn’t transparent, requiring a custom quote.
• Can be more complex than smaller businesses need.

7. Zoho People – Best affordable HR software for small teams

Zoho People is a budget-friendly HR solution that works well for small businesses needing a simple, cloud-based HR tool. It focuses on employee management, time tracking, and performance reviews, making it a solid choice for startups and lean teams.

Key features:

• Employee database with self-service access.
• Time tracking and attendance management.
• Performance management tools, including goal setting and reviews.
• Customizable workflows and HR automation.

Pricing:

• Free plan for up to 5 employees.
• Paid plans start at $1 per employee per month.

Pros:

• Affordable and great for small teams.
• Simple, easy-to-use interface.
• Customizable automation and workflows.

Cons:

• No built-in payroll—requires integration with other payroll providers.
• Limited reporting and analytics compared to larger HR platforms.

8. Workday – Best for growing businesses with advanced HR needs

Workday is an enterprise-grade HR solution that’s designed for fast-growing small businesses or companies planning to scale. It offers advanced analytics, talent management, and financial planning tools, making it ideal for businesses that need more than just basic HR software.

Key features:

• Payroll, benefits administration, and compliance support.
• Talent management, including recruiting and succession planning.
• Advanced analytics and workforce planning.
• Integrations with accounting, finance, and business operations tools.

Pricing:

• Custom pricing based on business size and features.

Pros:

• Strong analytics and reporting for data-driven decision-making.
• Scalable for businesses planning to grow.
• Comprehensive talent management features.

Cons:

• Expensive for smaller businesses.
• More complex than some businesses need.

9. UKG Ready – Best for businesses that need strong workforce management

UKG Ready (formerly Kronos Workforce Ready) is a powerful HR and workforce management solution that’s best for businesses with complex scheduling, compliance, and payroll needs. It’s particularly useful for industries like retail, healthcare, and manufacturing.

Key features:

• Advanced scheduling and time tracking tools.
• Full-service payroll with tax compliance.
• HR management with employee self-service options.
• Performance and talent management features.

Pricing:

• Custom pricing based on business needs.

Pros:

• Excellent for businesses with shift-based employees.
• Robust workforce management tools.
• Scalable for mid-sized and growing companies.

Cons:

• Can be overwhelming for very small businesses.
• Pricing requires a custom quote.

10. TriNet – Best for small businesses needing full-service HR outsourcing

TriNet is a Professional Employer Organization (PEO) that provides HR outsourcing services for small and mid-sized businesses. If you don’t have a dedicated HR team, TriNet can handle payroll, benefits, compliance, and risk management for you.

Key features:

• Full-service HR outsourcing, including payroll, compliance, and benefits.
• Access to Fortune 500-level employee benefits.
• HR consulting services for compliance, risk management, and performance management.
• Automated payroll with tax filing and reporting.

Pricing:

• Custom pricing based on business size and industry.

Pros:

• Ideal for small businesses that want an outsourced HR team.
• Offers high-quality employee benefits at competitive rates.
• Handles compliance, reducing legal risks.

Cons:

• More expensive than DIY HR software solutions.
• Less control over HR processes since it’s a PEO model.

11. QuickBooks Workforce – Best for businesses already using QuickBooks

If you already use QuickBooks for accounting, QuickBooks Workforce is a simple, built-in HR and payroll solution that integrates seamlessly with your existing system. It’s best for small businesses that need basic payroll and employee management tools without extra complexity.

Key features:

• Payroll processing with automatic tax calculations.
• Employee self-service portal for pay stubs and tax forms.
• Direct deposit and automated tax filing.
• Integration with QuickBooks accounting software.

Pricing:

• Starts at $45/month + $5 per employee.

Pros:

• Seamless integration with QuickBooks accounting.
• Easy payroll setup for small businesses.
• Simple, user-friendly interface.

Cons:

• Limited HR features compared to other solutions.
• Not ideal for businesses that need advanced HR management.

12. Namely – Best for mid-sized businesses looking for a customizable HR solution

Namely is a modern HR platform that offers payroll, benefits, talent management, and compliance tools in one package. It’s best for growing businesses that need an all-in-one HR system with customizable features.

Key features:

• HR database for employee records and self-service.
• Payroll and tax automation.
• Employee benefits administration.
• Performance management and goal tracking.
• Custom workflows and reporting.

Pricing:

• Custom pricing based on business needs.

Pros:

• Flexible and customizable for mid-sized businesses.
• Includes performance management tools.
• Strong compliance and benefits management.

Cons:

• Not as intuitive for small businesses without an HR team.
• Pricing is not transparent.

13. Justworks – Best PEO solution for small businesses

Justworks is a user-friendly PEO that offers payroll, benefits, and compliance support for small businesses. It’s a great option for companies that want full HR support without hiring an in-house HR team.

Key features:

• Full-service payroll and tax filing.
• Access to large-group employee benefits.
• Compliance support, including workers’ comp and employer taxes.
• Automated onboarding and HR tools.

Pricing:

• Starts at $59 per employee per month for basic PEO services.

Pros:

• Easy-to-use platform with transparent pricing.
• Strong compliance support.
• Great for businesses that want to outsource HR.

Cons:

• More expensive than non-PEO HR software.
• Less flexibility since Justworks acts as a co-employer.

14. Deel – Best for hiring and paying global remote teams

Deel is a global payroll and compliance solution built for companies that hire internationally. If you need to pay employees or contractors across different countries, Deel makes it easy with built-in compliance, tax support, and contract management.

Key features:

• International payroll for employees in 150+ countries.
• Contractor management and automated invoicing.
• Compliance support for local labor laws.
• Employee benefits and tax handling.

Pricing:

• Starts at $49 per contractor per month.
• Custom pricing for employee payroll.

Pros:

• Ideal for remote and international teams.
• Handles compliance for hiring in different countries.
• Easy-to-use platform with automated payments.

Cons:

• Not necessary for businesses with only local employees.
• Pricing can add up for larger teams.

15. Breezy HR – Best for small businesses focused on hiring

Breezy HR is a recruiting and applicant tracking system (ATS) designed to streamline hiring for small and growing businesses. If you’re looking for an easy way to post jobs, manage candidates, and collaborate with your team, Breezy HR is a top choice.

Key features:

• Drag-and-drop pipeline for tracking candidates.
• Automated job posting to 50+ job boards.
• Video interviewing and scheduling tools.
• Customizable hiring workflows with team collaboration.

Pricing:

• Free plan available for one position at a time.
• Paid plans start at $189/month.

Pros:

• Great for small businesses that hire frequently.
• Easy-to-use interface with automation tools.
• Free plan available for startups.

Cons:

• No payroll or broader HR features—strictly for hiring.
• Higher pricing compared to some other ATS tools.

16. Freshteam – Best for startups and small teams needing an affordable ATS

Freshteam by Freshworks is an all-in-one applicant tracking system and HR software designed for startups and small businesses. It’s ideal for businesses that need hiring, employee records, and time-off tracking in one tool without breaking the budget.

Key features:

• Applicant tracking with job postings and candidate management.
• Employee database and self-service portal.
• Time-off and leave management.
• Onboarding automation with document storage.

Pricing:

• Free plan for businesses with up to 50 employees.
• Paid plans start at $1 per employee per month.

Pros:

• Very affordable, with a free plan for small teams.
• Covers both hiring and basic HR needs.
• Simple, easy-to-use interface.

Cons:

• No payroll or benefits administration.
• Limited reporting and analytics.

17. Factorial – Best all-in-one HR software for small businesses

Factorial is a full-service HR platform built for small businesses that need payroll, time tracking, and performance management all in one place. It’s a great choice for companies looking for an easy, affordable HR solution without the complexity of enterprise software.

Key features:

• Payroll, benefits, and compliance management.
• Time tracking and attendance tools.
• Document storage and digital signatures.
• Employee engagement and performance tracking.

Pricing:

• Starts at $6 per employee per month.

Pros:

• Affordable, full-service HR solution.
• Includes performance management and engagement tools.
• Simple interface for small teams.

Cons:

• Limited third-party integrations.
• Some features require add-ons.

18. Hibob (Bob) – Best HR software for company culture and engagement

Hibob, also known as Bob, is an HR management tool designed to enhance employee engagement and company culture. It’s best for modern small businesses that prioritize a positive workplace culture, collaboration, and performance tracking.

Key features:

• Employee engagement surveys and pulse checks.
• Performance tracking with goal setting and feedback.
• Customizable HR workflows and automation.
• People analytics and workforce planning.

Pricing:

• Custom pricing based on company size.

Pros:

• Focuses on engagement and culture-building.
• Strong analytics and reporting tools.
• Customizable workflows for different business needs.

Cons:

• More expensive than some small-business-focused HR tools.
• No built-in payroll or tax filing features.

19. Lattice – Best for performance management and employee development

Lattice is a performance management and employee growth platform that’s best for businesses that want to prioritize career development, goal setting, and continuous feedback. If your business is focused on retaining top talent through structured growth, Lattice is a great choice.

Key features:

• Goal setting and OKRs tracking.
• 1:1 meeting tracking and real-time feedback.
• Performance reviews and peer evaluations.
• Employee engagement surveys.

Pricing:

• Starts at $11 per employee per month.

Pros:

• Excellent for performance tracking and employee development.
• Helps improve company culture and retention.
• Customizable feedback and goal-setting tools.

Cons:

• No payroll or HR management features.
• Can be overkill for very small teams that don’t need structured performance tracking.

20. Connecteam – Best for deskless and mobile teams

Connecteam is a great choice if you're looking to access all your HR tools under one roof. It's designed to be used on mobile, which makes it ideal for deskless teams who spend a lot of time on their feet. If your business needs a pocket-sized HR solution that packs a big punch when it comes to usability, customization, and support, then Connecteam might be the app for you.

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Key features:

• Guides new employees through onboarding step by step.
• Clock in and clock out on your phone.
• Mobile-friendly task management.
• Real-time communication with messaging and announcements.

Pricing:

• Free for up to 10 users, and then $29 per month for its most basic package.

Pros:

• An easy interface designed for employees new to using apps.
• Customizable features that are simple to adapt for different industries.
• Excellent customer support, which is especially helpful if you're new to HR software

Cons:

• Limited payroll integration.
• Not a great fit for teams that spend more time at their desks.

How to choose the best HR software for your business

There’s no shortage of HR software solutions out there, but not all of them will be the right fit for your business. The trick is knowing what you actually need before you start comparing features and price tags. 

Follow these five steps to find HR software that works for you—not the other way around.

Step 1: Figure out what you need.

Before you dive into demos and price comparisons, get clear on what you need HR software to do for you. Are you struggling with payroll headaches? Spending too much time monitoring employee productivity and tracking time-off requests? Or maybe you need help hiring and onboarding new employees?

Here’s a quick breakdown of the main types of HR software solutions:

• HRIS (Human Resource Information System): Great for keeping all your employee records, compliance docs, and HR tasks in one place.
• HRMS (Human Resource Management System): Think HRIS, but with payroll, benefits, and workforce management built in.
• ATS (Applicant Tracking System): Designed to help with hiring, job postings, and keeping track of candidates.
• Performance Management Software: Focused on employee growth, feedback, and goal setting.

Step 2: Compare pricing (without getting tricked).

Some HR software packages seem affordable—until you realize you need to pay extra for payroll, tax filing, or customer support. Before you commit, make sure you know:

• What’s actually included in the base price? Some features might cost extra.
• Are there sneaky fees? Watch out for charges for extra users, support, or upgrades.
• Will the cost skyrocket as your business grows? Some pricing models get expensive fast.

Step 3: Make sure it plays nice with your other tools.

The last thing you need is another system that doesn’t sync with the software you already use. A good HR management tool should integrate with:

• Payroll & accounting software – Homebase (for payroll), QuickBooks, Xero, Gusto
• Time tracking & scheduling – Homebase, TSheets, Deputy
• Collaboration tools – Slack, Microsoft Teams, Google Workspace
• Performance & engagement software – Lattice, 15Five

Step 4: Test their customer support (before you actually need it).

HR software is supposed to save you time, but when something goes wrong, you don’t want to be stuck waiting for an email response. Before you buy, test their customer support:

• Can you actually talk to a real person? Or are you stuck with bots?
• Are they available when you need them? 24/7 support is ideal.
• Do they offer onboarding and training? If you’re new to HR software, you’ll want a solid support system.

A good HR management solution should come with responsive, no-BS support—especially when it comes to payroll, compliance, and employee records.

Step 5: Try before you buy.

Most HR software providers offer a free trial or demo, and you should absolutely take advantage of it. A trial is your chance to:

• See if it’s actually easy to use. If it feels clunky now, it won’t magically get better later.
• Make sure it has the features you need. Test payroll, scheduling, or hiring tools.
• Get feedback from your team. If they hate using it, they won’t.

Bottom line: The right HR software should fit your business, not force you to change how you work. Follow these steps, and you’ll land on a system that actually makes running your business easier.

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Frequently asked questions about the best HR software

What is the best HR software for small businesses?

The best HR software for small businesses depends on what you need most. If you’re managing an hourly workforce, Homebase is a top pick for all-in-one HR software with scheduling, payroll, and hiring tools. For businesses that want easy payroll and benefits, Gusto is a strong option. If you need HR planning software focused on employee records and performance, BambooHR is a great choice.

Ultimately, the best HR software solutions should be affordable, easy to use, and scalable as your business grows. To find the right fit, scroll up to learn more about our HR software comparison of the top HR software providers in 2025.

What are the three top HRIS systems?

An HRIS (Human Resource Information System) helps businesses manage employee records, compliance, and HR processes in one platform. The best HRIS systems for small businesses in 2025 are:

1. BambooHR – A user-friendly HR solution software with employee self-service, onboarding, and performance tracking.
2. Rippling – A top HR platform that combines HR management tools with IT and payroll for businesses that need everything in one place.
3. ADP Workforce Now – One of the top HR systems with enterprise-level HR software solutions for payroll, compliance, and benefits administration.

These top HR software solutions help small businesses streamline HR tasks without getting overwhelmed by complexity.

How much does HR software cost?

Pricing for HR software tools varies based on features, business size, and the HR software provider you choose. Here’s a general breakdown:

• Free or basic plans – Some popular HR systems like Homebase and Zoho People offer free plans with limited features.
• Small business plans – Many top HR software companies charge around $6–$15 per employee per month for core HR management solutions.
• Full-service HR software packages – If you need payroll, benefits, and compliance tools, expect to pay $40–$100 per month, plus per-employee fees.

The best way to compare HR software providers is to request demos and pricing quotes from HR software vendors that match your needs.

Does HR software handle payroll?

Yes, but not all HR software solutions include payroll. If you need HR software tools that handle payroll and HR tasks, look for an all-in-one HR software like:

• Homebase – A great choice for small businesses with hourly teams, offering built-in payroll, time tracking, and scheduling in one platform.
• Gusto – One of the best HR and payroll software options for small businesses.
• Rippling – A top HR management software that combines payroll, HR, and IT management.
• Paychex Flex – A strong HR solution software that focuses on payroll, compliance, and benefits.

If an HR management tool doesn’t include payroll, it should at least integrate with your preferred HR software provider for smooth payroll processing.

What’s the best free HR software?

If you’re looking for free HR software, there are a few solid options, depending on what you need:

• Homebase – Best free HR software solution for small businesses that need scheduling, time tracking, and team communication.
• Zoho People – A great free HR management tool for businesses with under five employees.
• Freshteam – A top human resource software option for startups that need free applicant tracking and onboarding tools.

While free HR software solutions can be useful for small teams, most popular HR software platforms charge for features like payroll, benefits, and performance tracking.

Can HR software help with compliance?

Absolutely. The right HR software provider can help your business stay compliant with labor laws, payroll regulations, and tax filing requirements. Here’s how:

• Payroll compliance – Many top HR software solutions automatically calculate and file payroll taxes.
• Labor law tracking – Some HR software tools provide compliance alerts for changing laws and workplace regulations.
• Document storage – A top HR platform keeps employee records, contracts, and tax forms organized for audits.

For businesses that need compliance support, Paychex Flex, ADP Workforce Now, and Justworks are among the best HR systems for keeping your business legally protected.