Best HR Software for Small Business in 2025: Reviews, Pricing & Buyer's Guide

Managing HR as a small business owner means you're tracking time-off requests on scraps of paper, scrambling to calculate payroll every two weeks, and hoping you don't mess up labor law compliance.

Finding the best HR software for small business can transform this chaos into streamlined workflows that actually save you time. The right tools handle everything from scheduling and time tracking to payroll and compliance.

But here's the thing: Not every HR tool is built for small teams. Some are too complex, others are too expensive, and many miss the mark on what small businesses actually need.

This guide breaks down the top HR software options for 2025. We've looked at the leading platforms and highlighted what matters most: ease of use, value for money, and tools that solve your day-to-day headaches.

Ready to ditch the sticky notes? Let's find your perfect HR solution.

TL;DR: Best HR Software for Small Business

Don't have time to read the full guide? Here are our top picks for the best HR software for small business in 2025.

The best HR software for small business cuts through the chaos without emptying your wallet. Here are the ones that actually solve your day-to-day headaches.

• Homebase — ⭐ Best overall ⭐ All-in-one hourly team management starting free (paid from $24/month) 
• BambooHR — Growing teams with frequent hiring (custom pricing per employee) 
• Gusto — Payroll and benefits focus starting at $54/month + $7/employee 
• Paylocity — Complex payroll setups (custom pricing per employee) 
• Deel — Global and remote teams starting at $29/employee/month

Ready to see what easy HR looks like? Gary Kibbe, Owner of SLO Dryer Vent Cleaning, says: "The HR team at Homebase are great with quick answers to my many questions. They are a phone call or email away. I would recommend Homebase HR Pro without hesitation."

Try Homebase free and see how it can simplify your HR processes.

What is HR Software + Why Small Businesses Need It

HR software handles everything that comes with managing a team—without the spreadsheets, sticky notes, or late-night admin catchup. Think of it as your digital assistant for hiring, scheduling, payroll, and keeping your business compliant with labor laws.

Core functions include:

• Hiring and onboarding - Post jobs, track applicants, and get new hires set up digitally
• Scheduling and time tracking - Build schedules, track hours, and manage time-off requests
• Payroll processing - Calculate wages, handle taxes, and send direct deposits automatically
• Compliance monitoring - Track breaks, overtime, and labor law requirements

Why Small Businesses Need HR Software

Stop the admin chaos. Instead of juggling multiple spreadsheets and chasing down missing timesheets, everything lives in one place. You'll spend less time on paperwork and more time growing your business.

Stay compliant without the stress. Labor laws change constantly, and manual tracking is a recipe for costly mistakes. HR software monitors compliance automatically and alerts you when something needs attention.

Give your team what they want. Employees can check their schedules, request time off, and swap shifts without bothering you. Self-service tools mean fewer interruptions and happier team members.

Scale without breaking. As you grow, manual processes become impossible. HR software grows with you, handling more employees and locations without multiplying your workload.

HRIS vs HRMS - What's the Difference?

HRIS (Human Resource Information System) stores employee data and handles basic functions like payroll and time tracking. Think of it as your digital filing cabinet with some automation.

HRMS (Human Resource Management System) goes deeper with recruiting, performance management, and analytics. It's more comprehensive but often overkill for small businesses.

Most small business HR software falls somewhere in between - offering essential features without the complexity. The key is finding tools that solve your actual problems without paying for features you'll never use.

Bottom line: The right HR software transforms time-consuming tasks into automated workflows, so you can focus on what matters most - running your business and taking care of your team.

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Best HR Software for Small Businesses: Our Top Picks

We looked at the top HR platforms based on ease of use, value for money, and features that solve real small business problems.

1. Homebase (best all-in-one solution)

Best for: All-in-one HR solution for hourly teams
Pricing: Free (paid plans from $24/month)

Key features:

• Scheduling, time tracking, payroll, and team communication in one app
• Built-in compliance tracking and labor law alerts
• Self-service tools for shift swaps and time-off requests

Pros: Free plan covers essentials, designed specifically for hourly teams
Cons: Limited advanced performance management features

Why we picked it: Homebase solves the biggest pain points for small businesses with hourly workers—scheduling chaos, payroll headaches, and compliance stress—all in one simple app.

2. BambooHR

Best for: Growing teams with frequent hiring needs
Pricing: Custom pricing per employee/month (contact for quote)

Key features:

• Applicant tracking system with mobile hiring app
• Customizable onboarding templates and digital document signing
• Performance management tools and employee satisfaction surveys

Pros: Intuitive interface, excellent for hiring and onboarding
Cons: Pricing isn't transparent, add-ons can get expensive

Why we picked it: When you're hiring regularly, BambooHR's streamlined recruitment and onboarding tools save hours of admin work.

3. Paylocity

Best for: Complex payroll setups and multi-state operations
Pricing: Custom pricing per employee/month (contact for quote)

Key features:

• Advanced payroll with garnishment and multi-state tax handling
• Time and attendance tracking with mobile access
• Benefits administration and compliance reporting

Pros: Handles complex payroll scenarios, good for scaling businesses
Cons: Can be overwhelming for simple payroll needs, customer support issues

Why we picked it: When your payroll gets complicated—multiple states, garnishments, or complex wage structures—Paylocity handles what simpler tools can't.

4. Gusto

Best for: Payroll-focused small businesses
Pricing: Simple plan $54/month + $7/employee

Key features:

• Automated payroll with tax filing and direct deposits
• Benefits administration and compliance tools
• Employee self-service portal for pay stubs and tax documents

Pros: Excellent payroll automation, handles benefits well
Cons: Limited scheduling features, customer support can be slow

Why we picked it: If payroll is your biggest headache, Gusto's automated tax filing and compliance features deliver serious peace of mind.

5. PurelyHR

Best for: Complex payroll setups and multi-state operations
Pricing: Custom pricing per employee/month (contact for quote)

Key features:

• Advanced payroll with garnishment and multi-state tax handling
• Time and attendance tracking with mobile access
• Benefits administration and compliance reporting

Pros: Handles complex payroll scenarios, good for scaling businesses
Cons: Can be overwhelming for simple payroll needs, customer support issues

Why we picked it: When your payroll gets complicated—multiple states, garnishments, or complex wage structures—Paylocity handles what simpler tools can't.

6. Rippling

Best for: Complex teams with advanced IT and global needs
Pricing: $40/month base fee + $8/employee/month

Key features:

• Global payroll and device management integration
• Advanced workflow automation and role-based access
• IT onboarding with equipment and software provisioning

Pros: Powerful automation, combines HR and IT management
Cons: Complex setup, pricing increases with added features

Why we picked it: For tech-savvy teams that need both HR and IT management, Rippling's automation capabilities are unmatched.

7. Connecteam

Best for: Mobile, field-based, and off-site workers
Pricing: Free up to 10 users (paid from $29/month for up to 30 users)

Key features:

• Mobile-first time tracking with GPS verification
• Real-time scheduling and shift updates
• Built-in messaging and task management

Pros: Excellent mobile experience, great for field workers
Cons: Limited time-off management, can get expensive with multiple features

Why we picked it: When your team works off-site or in the field, Connecteam's mobile-first approach keeps everyone connected and accountable.

8. Deel

Best for: Global and remote teams
Pricing: Global payroll starting at $29 per employee/month

Key features:

• Global payroll and contractor management in 150+ countries
• Visa and equipment support for international employees
• Compliance management for different countries' labor laws

Pros: Comprehensive global solution, free core HR features
Cons: Overkill for domestic-only teams, no built-in scheduling

Why we picked it: When you're hiring internationally or managing remote contractors, Deel handles the complex compliance and payment logistics.

Essential HR Software Features for Small Businesses

Not every HR tool is built for small teams. Skip the enterprise bloat and focus on features that actually solve your day-to-day headaches. Here are the five must-haves that separate useful tools from expensive mistakes.

Mobile Scheduling and Time Tracking 

Your team lives on their phones, so your HR software should too. Look for drag-and-drop scheduling that works from anywhere, plus mobile time clocks that let employees clock in with a tap. Bonus points if it includes GPS tracking to verify location—no more "forgot to clock out" excuses.

Self-Service Employee Portals 

Stop being the middleman for every schedule question and time-off request. The best employee management software for small business lets your team handle their own availability, shift swaps, and PTO requests. You get fewer interruptions, they get more control—everyone wins.

Automated Payroll Integration 

Manual payroll is where mistakes happen and stress lives. Your HR software should pull hours automatically, calculate wages and taxes, then send direct deposits without you touching a calculator. Look for tools that handle multiple pay rates and overtime rules so you're not doing math at midnight.

Built-In Compliance Tracking 

Labor law violations can sink a small business fast. Smart HR software tracks breaks, monitors overtime thresholds, and alerts you to potential issues before they become expensive problems. It should know your local laws and update automatically when regulations change.

Team Communication Tools 

Scattered conversations across texts, emails, and phone calls create chaos. The right platform includes messaging that keeps work talk separate from personal phones. Look for features like shift notifications, group messaging, and read receipts so you know important info actually reached your team.

Psst...Here's What Makes Homebase Different

While most HR software focuses on one thing well, we built an all-in-one solution specifically for hourly teams. You get scheduling, time tracking, payroll, team messaging, and compliance monitoring in one app—no jumping between different tools or paying for multiple subscriptions. Try Homebase for free right now.

Red Flags to Avoid 

Complicated interfaces that require training, hidden fees for "premium" features that should be standard, and tools that don't offer mobile access. If it takes more than a few minutes to figure out, it's probably not right for a small business.

The best HR software features feel invisible—they solve problems without creating new ones.

How to Choose the Best HR Software for Your Small Business

Choosing HR software shouldn't feel like solving a puzzle. Focus on what actually matters for your business instead of getting lost in feature lists and sales pitches.

Five Key HR Software Decisions

Match your team structure. Hourly workers need scheduling and time tracking. Salaried teams need performance management and benefits administration. Remote teams need mobile access and communication tools. Pick software built for how your people actually work.

Start with your biggest pain point. Drowning in scheduling chaos? Prioritize tools with drag-and-drop scheduling and shift swaps. Payroll keeping you up at night? Focus on automated tax filing and direct deposits. Solve your worst problem first.

Test the mobile experience. Your team will use this on their phones more than computers. If the mobile app sucks or doesn't exist, find something else. A good mobile experience means higher adoption and fewer headaches for everyone.

Calculate true cost. That $10/month price tag often becomes $50/month after you add essential features. Factor in setup fees, training time, and per-employee costs. Free trials are your friend—use them to test with real data, not demo accounts.

Check integration requirements. Your HR software needs to play nice with your existing tools. If you love your current payroll provider or POS system, make sure your new HR platform connects seamlessly. Forcing manual data entry defeats the whole purpose.

Quick Decision Framework

• For scheduling-heavy businesses: Choose tools with mobile scheduling, shift swaps, and team messaging. Homebase, Connecteam, or When I Work fit this need.

• For payroll-focused teams: Prioritize automated tax filing, direct deposits, and compliance tracking. Gusto and Paylocity excel here.

• For hiring-heavy companies: Look for applicant tracking, onboarding workflows, and performance management. BambooHR leads this category.

• For all-in-one simplicity: Find platforms that handle scheduling, time tracking, payroll, and team communication without jumping between tools. Homebase delivers this complete package.

Bottom line: The best HR software is the one your team actually uses. Fancy features mean nothing if the interface is confusing or the mobile app is terrible. Test it with real scenarios, not perfect demo data.

HR Software Pricing: What to Expect

HR software pricing doesn't have to be a mystery. Most tools follow predictable patterns, so here's what you'll actually pay and how to dodge surprise costs.

Pricing Models Explained

• Per-user pricing is the most common setup—you pay monthly for each team member. For small businesses, HR software typically runs $2 to $8 per user per month, covering core stuff like employee records, time tracking, payroll, and time-off management.
• Comprehensive solutions and SaaS HR software with advanced features and integrations often fall between $8 and $30 per user per month.
• Flat-rate pricing gives you all features for one monthly cost, no matter how big your team gets.

Hidden Costs That'll Bite You

• Setup fees and training costs
• "Premium" support charges
• Add-on pricing for stuff that should be standard—like mobile access or payroll processing

Always get the total cost with everything you need.

ROI reality check: Good HR software saves 5-10 hours per week on admin headaches. If you're burning 8 hours monthly on scheduling and payroll chaos, a $200/month tool pays for itself.

Free vs. paid: Free plans work for tiny teams but usually ditch payroll, advanced scheduling, or real customer support. Most businesses outgrow free options within 6-12 months.

Want to see what transparent pricing looks like? Start with the Homebase free plan and only pay for what you need as you grow.

Run Your Small Business All from Homebase

Most HR software treats your team like corporate office workers. Homebase gets it—you're running a business with hourly teams who need scheduling, time tracking, payroll, and team communication all working together.

Built for How Hourly Teams Actually Work

We're not just HR software—we're the everything app for team management. While other tools make you juggle multiple subscriptions, Homebase handles scheduling chaos, payroll headaches, and compliance stress in one simple app.

What makes us different:

• All-in-one solution built specifically for hourly teams
• Mobile-first experience your team actually wants to use
• Automated compliance tracking and labor law alerts
• Free plan that covers essential scheduling and time tracking

Your team gets the mobile-first experience they want. Clock in from their phones, swap shifts without calling you, and access their schedules anywhere. You get the peace of mind that comes with automated compliance tracking and one-click payroll.

Join 100,000+ small businesses who've ditched the spreadsheets and sticky notes for something better. 

As Todd Hayward, Owner of WRTS Franklin Park, explains: "Homebase has made it very easy for my employees to pick up shifts and take charge of their own schedules. It's reduced a lot of scheduling overhead for us so we can spend our time more wisely."

Ready to see what all-in-one team management looks like? Start your free Homebase account today—no credit card required. Your team (and your sanity) will thank you.

Try Homebase free and discover why we're the top-rated team management app for small businesses.

Best HR Software for Small Business FAQs

What's the best HR software for small business? 

The best HR software for small business depends on your team's needs. Homebase leads for all-in-one hourly team management with free scheduling and time tracking. BambooHR excels for hiring-focused businesses, while Gusto works well for payroll-first companies.

What's the difference between HR software and HR management systems? 

HR software typically handles basic functions like payroll, time tracking, and employee records. HR management systems (HRMS) go deeper with recruiting, performance management, and analytics. Most small businesses need HR software, not complex HRMS platforms.

How much does HR software cost for small businesses? 

Small business HR software typically costs $7 to $29 per employee per month for basic features, with comprehensive solutions running $29 to $50+ per employee monthly. Many tools offer free plans for very small teams.

Do I need HR software if I have fewer than 10 employees? 

Yes, even small teams benefit from HR software. Manual scheduling, time tracking, and payroll become time-consuming quickly. Free tools like Homebase can handle basic needs, then scale as you grow.

What HR software do most small businesses use? 

Popular choices include Homebase for hourly teams, Gusto for payroll-focused businesses, and BambooHR for hiring. The best choice depends on whether you need scheduling, payroll, or recruiting as your primary focus.

Can HR software help with compliance? 

Good HR software helps with labor law compliance by tracking breaks, monitoring overtime, and storing required records. However, no software guarantees compliance—you're still responsible for following local labor laws properly.

What's the easiest HR software to use? 

Look for mobile-friendly interfaces with simple setup. Homebase, Gusto, and BambooHR are known for user-friendly designs that don't require extensive training.

Should I choose per-user or per-location pricing? 

Per-user pricing works for most small businesses, especially with under 25 employees. Per-location pricing can be better for larger teams at single locations. Compare total costs based on your actual team size.