My top picks for the best human resources (HR) software for small and medium businesses are:
- BambooHR is the best HR software for small businesses.
- TriNet HR Platform is best for core HR.
- Rippling is best for rapidly growing businesses.
- Paycor is the best HR software for midsize businesses.
- UKG Ready is best for robust analytics.
- Honorable mentions:
- Gusto is best for small businesses new to HR software.
- RUN Powered by ADP is best for small business payroll.
- Zoho People is best for affordability.
Featured partners
1 Rippling
Rippling is the first way for businesses to manage all of their HR, IT, and Finance — payroll, benefits, computers, apps, corporate cards, expenses, and more — in one unified workforce platform. By connecting every business system to one source of truth for employee data, businesses can automate all of the manual work they normally need to do to make employee changes.
2 Bob
Meet Bob, the modern HR platform for modern business. With Bob, HR teams get everything they need to operate efficiently and engage employees in one HRIS. Use automation and workflows to save hours on HR admin time. Connect employees from anywhere with a social media-like homepage that drives culture with communications, kudos, and recognition. Centralize all people data in one place for a holistic view. Share accurate reports for stronger insights and better decision-making.
3 TalentHR
TalentHR is a fresh take on HRIS, an all-in-one tool built for HR success. It’s fully customizable and features time-off tracking, custom fields, employee onboarding, performance reviews, and job applicant tracking (ATS) that’ll alleviate all your HR analytics worries. Leave complex HR tools behind and focus on what matters most, your people. No IT skills required, all at a reasonable price. TalentHR is a product of Epignosis, the company that 11,000+ businesses trust for their HR and L&D needs.
4 ADP HR
ADP HR services that empower. Hiring. Onboarding. Managing HR compliance. Whether you've got urgent questions or need ongoing support, with ADP, you can get the HR services you need.
In this article...
What is the best HR software for small and medium businesses?
Small and medium-sized businesses (SMBs) need HR software to automate repetitive HR tasks, consolidate employee records in one place, and support broader company goals. My roundup focuses on versatile all-in-one HR solutions to satisfy your tactical needs, plus features to support your increasingly strategic people operations as you grow.
Overall score | Starting price* | Ideal employee count** | ||
BambooHR | 3.67 out of 5 | $108/mo. for first 20 employees | 1–300 | Visit BambooHR |
TriNet HR Platform | 3.66 out of 5 | $8/employee/mo. | 5–300 | Visit TriNet |
Rippling | 4.01 out of 5 | $8/user/mo. | 2–2000 | Visit Rippling |
Paycor | 3.70 out of 5 | $99/mo. + $5/employee/mo. | 1–1,000+ | Visit Paycor |
UKG Ready | 3.98 out of 5 | Contact sales. | 2–1,000+ | Visit UKG |
*Starting prices based on discounted annual billing, if applicable.
**These are estimates based on the vendor’s breadth of features and capabilities.
BambooHR: Best for small businesses
Pros
Cons
Our Rating: 3.67/5
TriNet HR Platform: Best for core HR
Pros
Cons
Our Rating: 3.66/5
Rippling: Best for rapidly growing businesses
Pros
Cons
Our Rating: 4.01/5
Paycor: Best for midsize businesses
Pros
Cons
Our Rating: 3.7/5
UKG Ready: Best for robust analytics
Pros
Cons
Our Rating: 3.98/5
Honorable mentions
Many platforms I reviewed have great features that might better appeal to your particular needs. If the above platforms don’t quite fit, check out my runners-up.
Gusto: Best for small businesses new to HR software
Alternative for: BambooHR and TriNet HR Platform
When to choose Gusto: Gusto provides easy step-by-step instructions and implementation services to set up your business and HR workflows for the first time. Gusto-brokered benefits, tax notice investigations, and state tax registration services are particularly noteworthy if you’re a startup with an administrative team of one and need support developing compliant business and people operations.
Why it didn’t make the list: Gusto’s bare-bones system is excellent if you’re a small business, but its reporting module lacks tools to craft custom visualizations for more detailed data insights. Gusto’s training is also limited to state-mandated anti-harassment courses, while onboarding workflows are not much more than to-do lists sent to various stakeholders. This means more manual data entry than competitors like BambooHR and TriNet HR Platform.
Our Rating: 3.57/5
Did you know?
Gusto is slowly expanding its international payroll capabilities through its partnership with Remote. It only offers EOR services in Canada but expects to roll out to more countries soon. This is welcome news if you want to transition your international contractors into full-time employees.
RUN Powered by ADP: Best for small business payroll
Alternative for: BambooHR
When to choose ADP Run: If you have fewer than 50 employees and only need payroll, then ADP Run is your best bet. Besides multi-state payroll support on all tiers, your accounting or payroll specialists can run payroll on the go using the ADP Run mobile app. You can also offer your employees on-demand pay through its Wisely debit card and financial wellness tools similar to Paycor.
Why it didn’t make the list: ADP Run becomes costly if you have multiple pay schedules since it charges per payroll. While it offers an ATS, basic HR forms, a handbook creation wizard, and HR support in its higher plans, they’re lackluster compared to BambooHR. It also requires running processes like performance reviews and engagement surveys off the platform, preventing you from moving your people operations to a wholly digital environment.
Our Rating: 3.54/5
Zoho People: Best for affordability
Alternative for: Rippling
When to choose Zoho People: Zoho People offers various modules to support most of your HR needs, including advanced workflow automations, recruiting, reports, analytics, and a learning management system (LMS). You can access all of these features at an extremely competitive price. For example, its highest tier, People Plus, costs $9 PEPM, only one dollar more expensive than Rippling’s least expensive Rippling Unity Core plan. And, if you’re really on a budget, Zoho People also has a free plan.
Why it didn’t make the list: Zoho People includes a lot of functionality at a great price, but its platform is clunky and confusing. Users report that customer service is unhelpful, and you have to perform software data migration and implementation yourself. Plus, Zoho People only offers payroll support in 12 states and requires you to file payroll taxes yourself.
Our Rating: 3.39/5
Why do small businesses need HR software?
Human resource software helps HR teams at small businesses stay organized with hiring, training, and managing employees. HR software solutions do this by providing a central interface to manage and even automate these different functions.
HR software also offloads tasks from HR staff to employees by offering self-service portals. There, employees can view and edit their personal information, make changes to their benefits, or connect with coworkers.
Why do medium-sized businesses need HR software?
Medium-sized businesses require HR software that can accommodate their growing workforces and handle more complex automations. As a result, most medium-sized HR software solutions offer enhanced reporting features, internal ATS or recruitment support, and robust workforce management tools, including performance management.
These tools aid organizations in transitioning from purely operational HR processes to more strategic ones to keep the business growing.
Also read: HRIS vs. HRMS vs. HCM: What Is the Difference?
Types of HR software and tools SMBs need
Human resource software allows HR teams at SMBs to manage and automate core and strategic HR functions, including:
Also read: 14-Must Have HR System Features
The right combination of functionalities will depend on your size, industry, and needs. For example, smaller businesses often can’t afford to purchase a fully integrated human resources information system (HRIS) platform that bundles all core HR features together.
However, as you grow, comprehensive HR platforms become more cost-effective, secure, and user-friendly than stitching together disparate apps.
Check out our shortlist of recommendations for Top HRIS Solutions that bundle together core HR functions.
How to choose the best HR software for small and medium businesses
Small and medium businesses need HR software to automate rote HR operations, like paystub delivery, so their small or non-existent HR teams can focus on higher-priority work. They also need solutions that provide the flexibility to quickly add or remove features as their needs evolve.
Our picks below help you with the above, plus emphasize particular focus areas to satisfy your needs:
If you’re still unsure what the best solution is for your company, explore our HR Software Guide for a list of options that fit your needs.
Featured HR software partners
1 Rippling
Rippling is the first way for businesses to manage all of their HR, IT, and Finance — payroll, benefits, computers, apps, corporate cards, expenses, and more — in one unified workforce platform. By connecting every business system to one source of truth for employee data, businesses can automate all of the manual work they normally need to do to make employee changes.
2 Bob
Meet Bob, the modern HR platform for modern business. With Bob, HR teams get everything they need to operate efficiently and engage employees in one HRIS. Use automation and workflows to save hours on HR admin time. Connect employees from anywhere with a social media-like homepage that drives culture with communications, kudos, and recognition. Centralize all people data in one place for a holistic view. Share accurate reports for stronger insights and better decision-making.
3 TalentHR
TalentHR is a fresh take on HRIS, an all-in-one tool built for HR success. It’s fully customizable and features time-off tracking, custom fields, employee onboarding, performance reviews, and job applicant tracking (ATS) that’ll alleviate all your HR analytics worries. Leave complex HR tools behind and focus on what matters most, your people. No IT skills required, all at a reasonable price. TalentHR is a product of Epignosis, the company that 11,000+ businesses trust for their HR and L&D needs.