What’s the Best HR Software for Small Business? A Comprehensive Guide

It’s all too easy to let human resources slip to the sidelines. What many entrepreneurs may not realize, however, is that even in small-scale operations, HR tasks play a pivotal role. These responsibilities, if not managed efficiently with HR software for SMEs, can quickly devour your precious time.

Enter HR software — a game-changing ally for small business owners. These digital tools offer an effective solution to streamline HR processes and automate essential tasks, allowing you to regain control of your schedule.

Beyond just saving time, they bring a wealth of benefits, including enhanced productivity, valuable workforce insights, and an enriched employee experience.

Why Small and Medium Businesses Need HR Software?

HR software, often referred to as HR management systems, serves as a critical asset for businesses across the spectrum. While these terms may vary, the core functions they offer remain consistent.

Small and medium-sized businesses, just like their larger counterparts, require fundamental HR capabilities such as payroll management, employee scheduling, and time tracking.

This includes using time clock apps to keep track of employee hours efficiently. However, when it comes to selecting an HR system for a smaller business, key considerations include the monthly cost and the level of customer support provided by each vendor.

It’s also essential to opt for a user-friendly system, equipped with extensive training materials and integrated with payroll software, which ensures that even with a lean team, your business can navigate complex HR tasks with ease, saving time and reducing the likelihood of errors.

Benefits of Using HR Software

Make Data-Driven Decisions

Beyond routine tasks, it offers insights and analytics that allow you to make data-driven decisions. This, in turn, enhances workforce and business process management, enabling you to optimize staffing levels, conduct regular performance reviews, identify training needs, and foster a productive work environment.

Unlocking Global Talent Pools

HR software empowers small and medium-sized businesses to access a global talent pool effortlessly. By streamlining the recruitment process with all-in-one hiring and onboarding software and broadening the horizons, your company can tap into diverse skill sets and perspectives, fostering innovation and adaptability.

Streamlining Operations and Cost Savings

HR software isn’t just about recruitment and management. It’s a cost-effective solution that delivers significant savings to small and medium businesses.

HR software automates critical tasks, including payroll management, employee onboarding, and compliance tracking, which helps manage overtime costs and facilitate smooth transitions in employment relationships.

By optimizing these operations, HR software empowers companies to allocate resources more efficiently, enabling a sharper focus on strategic growth initiatives.

HR software is definitely a versatile and indispensable asset for smaller businesses, facilitating the enhancement of workforce management, the expansion of talent networks, and the optimization of operational efficiency with flexible work arrangements.

Supporting Employee Growth and Culture

Fostering a supportive work environment is key to promoting both employee development and well-being, which are at the heart of positive company culture. By prioritizing professional development, organizations not only enhance the skills of their workforce but also contribute to a positive work environment where employee achievements are celebrated.

This focus on the development of employees nurtures positive cultures where individuals feel valued and motivated to contribute to the organization’s success. Through this, businesses can create a thriving ecosystem that supports growth and cultivates a sense of belonging among all team members.

4 Best HR Software for Small and Medium Businesses

1. Sloneek

This modern HR management tool stands out as a reliable companion for smaller businesses, promising to streamline HR tasks, save valuable time, and optimize cost management.

Whether you’re overseeing employees or collaborating with freelancers, Sloneek offers a versatile platform to achieve your HR objectives.

Features

The platform supports effective HR practices, making it an invaluable tool for both a human resources team and businesses without a dedicated HR team. Here’s a glimpse of some key functionalities:

• Records of workers
• Absence management
• Activities
• Integrations
• Work assets
• Skills and performance
• Task lists
• Engagement
• Documents and signing
• ATS
• Mobile applications
• Reporting
• Attendance system

Pricing

For a customized quote, you need to contact Sloneek directly.
Although the current price list is not publicly listed on the website, Sloneek is considered one of the most affordable HR solutions with a transparent pricing policy without hidden fees.

Customer Support

Another crucial factor in selecting HR software is customer support. You don’t want to spend excessive time on tool implementation or waiting for responses when encountering technical issues.

Sloneek definitely has the most responsive chat support, along with a comprehensive hub of technical documentation and blogs.

PROS	CONS
✅Affordable prices with live demo and 2-week trial	❌Solely HR-related features
✅Entire recruitment covered in one system	❌Room for improvement
✅Great support
✅Fast deployment process

2. Rippling

Rippling has a versatile portfolio, segmented into HR Cloud, IT Cloud, and Finance Cloud. Their HR software should be fairly customizable, which is a nice argument for small and medium businesses.

Features

The amount of HR features can be overwhelming to startups, but Rippling is a considerable option for small and medium businesses.

Some of the key features are:

• US Payroll
• Recruiting
• Global Payroll
• Headcount Planning & Comp Bands
• Time & Attendance
• Learning Management
• Benefits Administration
• Pulse
• PEO Services

Pricing

Rippling’s pricing starts at $8 / per user / per month. However, keep in mind that Rippling’s pricing is based on custom quotes and specific requirements.

It’s also important to note that certain add-ons may impact the final price.

Customer Support

Rippling offers customer support to registered users, providing a valuable resource for addressing technical issues and implementation guidance.

While the level of support may vary, having access to their assistance ensures you have a dedicated source of help when navigating your HR software journey.

PROS	CONS
✅Customizable platform	❌US-centric features
✅Complexity

3. Deel

Deel is a prominent player in the world of HR software, enabling you to hire in over 150 countries.

Our third competitor might be of interest mainly to specific small and medium businesses, but it deserves a spot on our list nonetheless.

Features

Even though we already looked at Deel and his competitors in more detail, here’s a list of the features included:

• Task and Project Management
• Workflow Automation
• Collaborative Workspaces
• Customizable Templates
• Time Tracking
• File Sharing and Storage
• Integration with Popular Apps
• Reporting and Analytics
• Mobile Accessibility

and a hiring feature tailored to enhance business recruitment strategies.

Pricing

Deel offers a range of global solutions with varying pricing structures.

For example, if you need a tool that will assist you with global hiring in other countries, this add-on will cost you $599 / per month.

If you need just the Contractors platform from Deel, this starts at $49 / per contractor / per month.

Other prices are available upon request.

PROS	CONS
✅Good for contractors	❌Not EU GDPR compliant
✅Pricing

4. BambooHR

BambooHR is a well-regarded HR software for small and medium business solutions renowned for its user-friendly interface.

Features

BambooHR offers a suite of features designed to streamline HR processes and enhance the employee experience, fostering positive employee relations through effective communication:

• Employee Data Management
• Onboarding
• Payroll
• Time & Benefits Management
• Employee Experience
• Performance Tracking

These features are thoughtfully categorized into two distinct paid plans, with the option to include add-ons, which can significantly influence both the capabilities and cost of this tool.

Pricing

While BambooHR is recognized for its cost-effectiveness, it’s important to note that its pricing model has evolved.

Currently, you must contact BambooHR for a custom quote, potentially indicating variations from the prices previously specified.

Until that, the BambooHR pricing was presented at $6 / per user / per month, which can increase significantly when incorporating the four mentioned add-ons.

Customer Support

BambooHR offers satisfactory customer support, although it operates during working days and hours in the GMT-6 time zone.

PROS	CONS
✅User-friendly experience	❌Lack of features
✅Pricing	❌Customer support oriented towards the US
✅Hidden costs with ad-ons

Final Thoughts

Choosing the right HR software for your small or medium business can significantly affect your future.

We hope this guide includes all the important facts to help you decide. But if you’re still not sure, let us know and we’ll be happy to quickly discuss all options!

HR Software and Team Success

In the dynamic landscape of modern business, HR software has become a pivotal tool for fostering successful teams by seamlessly integrating team culture with strategic objectives. Business leaders are increasingly utilizing these platforms to deliver targeted messages to team members, ensuring alignment with company goals.

By catering to the unique needs of hourly teams and current employees alike, HR software transforms challenges into opportunities, streamlining communication and engagement. This tech-driven approach empowers organizations to cultivate a cohesive environment that not only supports immediate objectives but also nurtures long-term success.

To summarize our guide to the best HR software for small and medium businesses:

The best cost-effective and user-friendly HR solution – Sloneek.

A solid HR alternative for small and medium-sized businesses – Rippling.

Complex solution for global contractors – Deel.

Provides a customizable HR and payroll solution – BambooHR.