Human resource software helps HR teams at small businesses stay organized with hiring, training, and managing employees. HR systems do this by providing a platform to centralize and even automate these different functions.
The best HR software for small business owners can automate repetitive HR processes and consolidate employee records in one place. It also offloads tasks to employees by offering self-service portals where they can view documents and edit their personal information, enabling your HR team to focus on strategies that support broader company goals.
SEE: 10 Funding Options for Small Businesses (TechRepublic Premium)
My top picks for the best HR and payroll software for small business are:
- BambooHR: Best overall
- Rippling: Best for HR automation
- Gusto: Best for startups new to HR software
- Paycor: Best for growing businesses
- Zoho People: Best for affordability
- Honorable mentions:
- UKG Ready: Best for robust analytics
- RUN Powered by ADP: Best for small business payroll
Featured partners
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
Best for
Free plan
Starting price
Learn more
Gusto
3.50
Best for startups new to HR software
✕
$49 base fee/mo. + $6/employee/mo.
Zoho People
3.25
Best for affordability
For up to 5 employees.
$1.50/employee/mo.
RUN Powered by ADP
3.00
Best for small business payroll
✕
Call for a quote.
*Pricing is based on a quote we received. For companies with more than 25 employees, pricing shifts to a per-employee, per-month model, with a starter monthly fee of $10 per employee.
BambooHR: Best overall HR software for small businesses
Overall score
3.56/5.00
User reviews
4.32/5.00
Pricing
2.75/5.00
Customer support
3.89/5.00
Platform/interface
3.94/5.00
HRIS and reporting
4.04/5.00
Payroll and benefits
3.46/5.00
Workforce management
2.75/5.00
Talent acquisition
3.70/5.00
Pros
- Pre-built workflows for automating repetitive HR tasks
- Basic applicant tracking system (ATS) for occasional hiring needs
- Easy-to-use time-off management to promote consistency and fair practices.
- HR mobile app for on-the-go workforces.
Cons
- Payroll, benefits, and time tracking are paid add-ons.
- Support for payroll and benefits administration is limited to the U.S.
- Lacks native scheduling capabilities for shift workers.
- Performance reviews and centralized communication tools are reserved for higher tiers.
Why I chose BambooHR
BambooHR is a well-balanced online HR software for small business with modules covering most HR operations within the employee lifecycle, from recruitment and onboarding to performance appraisals and termination. Its overall score of 3.56 out of 5 reflects this, as do its user-friendly interface and simple workflows. If you’re looking to centralize your HR data and streamline core HR tasks, BambooHR is a great choice.
BambooHR lost points for limited customer support hours (office hours only) and pricing. It also lacks more complex HR modules, like succession planning and career development.
The good news is that if you require compensation planning tools, the provider plans to launch its salary and HR benchmarks, compensation management, and professional HR services soon. However, as of this writing, BambooHR has not yet shared release dates for these products.
Did you know?
BambooHR continues to upgrade its software and expand its product offerings as it moves toward more advanced HR support. Within the first quarter of 2025 alone, BambooHR added holiday pay settings for payroll, benefits enrollment via its mobile app, and a custom table builder for editing tables on employee profiles.
BambooHR’s commitment to refining the platform ensures it remains intuitive and modern. You can check out how it stacks up against others in other software roundups below:
BambooHR is a human resources management system (HRMS) that markets itself as an HR solution for small and medium business needs. Its simple user interface (UI), extensive integration library, and pre-built HR workflows make BambooHR a clear winner for small business HR.
It’s easy to navigate and has one of the most info-rich homepages. You can customize it with widgets vital to you. For example, managers can use the Who’s Out widget to adjust workloads and expectations based on attendance. Expanding this widget provides more granular information, such as the complete time-off calendar for the month.
Most of BambooHR’s workflows are plug-and-play, so you don’t have to start from scratch. It also includes ready-made fillable forms for critical documents like Form W-4 and Form I-9, plus out-of-the-box reports on salary history and paid time off (PTO).
Employee self-service
Like many of best HR software for small business, BambooHR offers employee self-service features so workers can access their employment information and HR tools online. Using the self-service tool means employees no longer need to contact their manager, HR department, or office administrator to access their data.
This feature particularly stands out for its range of functionality. Workers can use BambooHR’s mobile app to clock in and out of shifts, request time off, sign company paperwork, view W-2s, and check the company directory—all from the app’s homepage. This alone made it one of my top favorite HR apps for mobile.
The relative ease also enables non-tech-savvy employees to find critical information quickly. Details like accrued PTO balances and task lists require zero clicks since they are displayed on the home screen.
Meanwhile, more advanced users with the right access controls have options to customize and organize their homepage widgets to their preferences. They can modify the tab arrangement of their employee profiles and edit fields, like their address, without submitting change request forms to the HR department.
Set-up, implementation, and training
BambooHR is quick to set up, thanks to its user-friendly interface and built-in automations for HR processes and tasks like onboarding, offboarding, job pipelines, approvals, and notifications. It also offers helpful video tutorials and a detailed knowledge base.
If you have fewer than 20 employees, you can use BambooHR’s QuickStart program, which includes videos and training guides. Don’t want to do it all yourself? They also offer a dedicated team to fully implement the system for you within four to six weeks.
Compared to other options, BambooHR gets you up and running fast. For example, Zoho People requires more DIY setup tasks—unless you pay extra for help, you’re left with long video tutorials and a PDF guide to figure things out on your own.nd PDF manual to set up the application, resulting in users contacting third-party consultants for assistance.
Still don’t believe me when I say BambooHR provides you with the tools to manage small business HR? Check out BambooHR’s dedicated YouTube channel for live demos and easy tutorials.
You can choose from two plans: Core and Pro. There is also an Elite plan coming soon, but BambooHR has yet to share the release date as of this writing. These plans cover the basic functions of a human resources information system (HRIS), with additional HR features like performance reviews.
BambooHR pricing depends on the number of employees you have. If you have 25 or fewer employees, you’ll pay a flat monthly rate. For anything above that, pricing shifts to a per-employee, per-month (PEPM) model. However, you need to contact its sales team for a quote.
For an additional fee per module, you can add payroll, benefits administration, and time tracking to your selected plan. Considering that companies with 25 employees or fewer have to pay at least $250 per month for the Core plan—that’s based on the quote I received—and then pay extra for the additional module, BambooHR is a costly investment.
That, plus the lack of upfront pricing info, is why I rated it 2.75 out of 5 in this category. If you’re a small business mainly looking for payroll and benefits tools, platforms like Gusto may give you more bang for your buck, as it includes those features in its entry-level plan.
However, what I like about BambooHR is its automatic volume discounts when you hit 25 employees. No need to call sales—it applies the discount based on your headcount. This saves you time from having to call the provider to check on how to obtain this perk.
BambooHR subscription plans
Core
Pro
Elite*
For up to 25 employees: $250 per month flat rate**
For more than 25 employees: $10 PEPM**
- For up to 25 employees: $425 per month flat rate**
- For more than 25 employees: $17 PEPM**
Call for a quote.
Includes:
- HRIS and reporting.
- Hiring and onboarding.
- Time off and benefits tracking.
- Employee experience surveys and rewards.
- Access to BambooHR’s integration marketplace.
- Chat and email support.
Includes everything in Core, plus:
- Performance management.
- Employee community.
Includes everything in Pro, plus:
- Compensation management.
- HR and salary benchmarks.
- Advanced reporting and insights.
- Premium services like annual business review and new admin training.
Add-ons
- Payroll***
- For up to 25 employees: $190 per month flat rate**
- For more than 25 employees: $7.47 PEPM**
- Benefits administration
- For up to 25 employees: $140 per month flat rate**
- For more than 25 employees: $5.48 PEPM**
- Time tracking
- For up to 25 employees: $3 PEPM**
- For more than 25 employees: $2.97 PEPM**
- Quickstart system implementation
- For the Core plan: $399 one-time fee**
- For the Pro plan: $499 one-time fee**
*Details about the Elite plan are posted on BambooHR’s pricing page, but the release date has yet to be disclosed as of this writing. For plan updates, check the provider’s website.
**Pricing is based on a quote I received. Volume discounts apply after 25 or more employees.***Please note that additional factors, like the number of FEINs or states where you need payroll, can affect this price. Contact BambooHR for specific pricing quotes.
Rippling: Best for HR automation
Overall score
3.51/5.00
User reviews
4.81/5.00
Pricing
2.38/5.00
Customer support
2.75/5.00
Platform/interface
3.80/5.00
HRIS and reporting
3.56/5.00
Payroll and benefit
4.00/5.00
Workforce management
4.19/5.00
Talent acquisition
3.25/5.00
Pros
- Advanced workflow creation features to automate rote HR processes
- IT and finance products available to consolidate business software applications
- Device management capabilities, including an offsite warehouse for inactive device storage
- Employer of record (EOR) services and dynamic employee profiles for over 180 countries
- Compliance 360 for time and paid leave labor law compliance monitoring, both domestically and globally
Cons
- Pricing isn’t all transparent or otherwise difficult to find on its website
- Payroll, benefits administration, and time tracking are paid add-ons.
- Reporting, workflow automations, and notifications can overwhelm small businesses needing plug-and-play solutions.
Why I chose Rippling
Scoring 3.51 out of 5, Rippling’s all-in-one HR, IT, and finance management platform makes it the best option for those looking for integrated tools that streamline and automate processes. It’s also good for those who want to avoid switching HR software providers every few years.
You can create workflows in Rippling with if-then commands, including formulas to calculate totals. This enables you to automate onboarding, review cycles, promotion approvals, and report runs for consistent and streamlined processes by entity, location, or department.
Rippling also leverages its HR, IT, and finance solutions to ensure compliance and better serve your distributed teams. If you lack an IT department, you can provision and deprovision business applications, set up and deploy company-assigned computers to your teams, and ship them as needed.
Other features create a more cohesive experience for your employees as your workforce becomes more diverse. For example, platform localization in over 180 countries ensures that employee profiles are formatted according to regional text, date, and currency standards. This means the platform feels made for them, even if your headquarters are in the U.S.
Despite this, I wouldn’t recommend Rippling if you’re new to HR software. While the software is easy to navigate, Rippling’s customization options create a steep learning curve for newbies. Its reporting module alone is complicated, as its formula language is not a one-to-one comparison to Excel. Creating visualizations also requires a significant amount of trial and error to get them right.
Rippling’s adaptable and customizable platform makes it a forerunner in many of our buyer’s guides. Check out how it ranked in some of our top picks below.
Rippling is a comprehensive HR platform that focuses on streamlining the operational side of HR. Unlike other platforms that use payroll as the source of your HR data, Rippling uses your employees’ personnel records. This means you don’t have to wait to complete a pay cycle for changes like promotions to update across the platform.
Its various modules also interconnect. For example, as your workforce grows, you can use Rippling’s headcount planning to prepare for needed roles and control labor costs. The plan then connects with your recruiting and offboarding modules by automatically creating job requisitions for backfills following staff terminations or new roles based on company needs.
And because your headcount plan has customized approval workflows, this capability reduces the back-and-forth between hiring stakeholders, keeping your team agile. It also decreases the time-to-fill and improves other key recruitment metrics, as hiring managers can post open jobs and engage with top talent more quickly.
Rippling limitations
While you can create custom workflows, Rippling does not have a sandbox feature for testing new HR automation workflows before implementing them company-wide. The quality of customer support is also inconsistent. I had good experiences with its live chat help, but there are times when I had to wait for a while to get someone on chat.
Additionally, pricing can be a concern, particularly if you require numerous features. Its modular platform, with “build-your-own-system” pricing, is great for selecting HR, IT, and finance functionalities that your business needs, but you’re likely to pay more as your needs expand. If you only need core HR features to manage employee data, Zoho People and BambooHR are good options.
Support for global workforces
Support for global workforces
Rippling differentiates itself from other global payroll vendors by providing a native way for you to hire and pay international contractors and employees within the platform. Its EOR services are a result of Rippling-owned entities in the countries it services. By comparison, many U.S.-based competitors rely on partnerships or integrations to accomplish this.
For instance, Gusto’s EOR services result from its partnership with Remote. And ADP’s ability to accommodate payroll in over 140 countries is because it works with outside local entities. This can result in data silos and employee payroll processing delays because of a lack of control over these vendors.
Instead, you can manage your entire international workforce entirely within Rippling. Its Compliance 360 tool even monitors wage and hour violations, including employee misclassifications, reducing the chances of payroll errors and labor law violations in unfamiliar locations.
Housing your domestic and international employee data in one place also allows you to drill down on cross-country data points. You can use your locations as an attribution to monitor labor costs, employee engagement, and sentiment. The data can serve as a means to track the success of your expansion and identify areas for improvement in employee satisfaction across different cultural contexts.
Flexible PEO
Rippling offers professional employer organization (PEO) services for U.S. businesses that want to outsource HR administrative tasks to focus on day-to-day business operations. Although Rippling is not the only HR vendor to provide both HR technology and services, it is one of the most flexible on the market.
Rippling lets you choose when and how often you need its PEO capabilities. For example, as a small business, you may want the extra support of a PEO. Rippling’s PEO can help you establish your leave policies, streamline your payroll, and even provide you with affordable, high-tier benefits and workers’ compensation policies for your employees.
As your organization grows and you hire more HR staff, handling workforce management processes may become more cost-effective to do in-house. With Rippling, you don’t have to worry about giving a cancellation notice and potentially incurring early termination fees. You can disable its PEO service directly within the platform and continue using Rippling’s HR software without interruption.Competitor PEOs, such as Justworks, do not offer the same level of service flexibility. Rippling is the better option if you expect your outsourcing needs to change frequently.
All Rippling customers must purchase its core Rippling Platform before accessing modules in its HR, IT, or Finance clouds. The Rippling Platform also has two plans: Core and Pro. The main differences between these are the number of custom workflows and access to advanced reporting, formula fields, and webhooks in workflows.
Although pricing starts at $8 PEPM, Rippling may also add a monthly base fee, depending on your company’s circumstances. You may also need to pay more based on the Rippling Platform plan, modules, and HR services you select. For an HR management software for small business owners, monthly fees start at $8 per employee plus a $40 base rate, according to Rippling’s small business page.
While Rippling’s modular platform makes it more flexible than the others in this guide, it only scored 2.38 out of 5 for pricing. This is because you still need to contact a Rippling sales representative to discuss your requirements and get a quote. It also doesn’t offer a free trial, like BambooHR and Zoho People, which would have allowed you to check its features and assess ease of use before making a purchasing decision.
And if you only need essential HR functions, like payroll and benefits administration, expect to pay more than alternatives like Gusto. Fluctuating headcounts are also expensive because Rippling charges you based on your highest number of active employees, reimbursing you only for temporary employees who separate within 90 days.
Nevertheless, Rippling may be more cost-effective than switching or integrating with third-party solutions for more advanced options. You can easily add other modules, such as compensation reviews, headcount planning, and salary bands, making it a more capable solution for handling the growing HR needs of your organization.
Rippling Platform plans
Core
Pro
Call for a quote.
Includes:
- Global employee graph
- Workflows and automation
- Role-based permissions
- Auto-localization tool that automatically translates content based on employee location
- Workflow studio for creating workflows
- Custom workflows for onboarding events only
Call for a quote.
Includes everything in Core, plus:
- Formula fields, which can be used in reports and workflows
- Advanced reports
- 10 custom workflows for any event or action in Rippling
- Webhooks in workflows, which lets one app send automated notifications to another app based on specific events or actions
Add ons
- U.S. and global payroll
- Benefits administration
- Time and attendance
- Flex benefits (FSA, HSA, and commuter)
- Recruiting
- Scheduling
- Learning management
- Pulse (employee engagement)
- Headcount planning
- Performance management
- App management
- Device management
- Inventory management
- Corporate cards
- Expense management
Additional services
- ACA and COBRA administration
- HR Help Desk (HR Support)
- PEO services
- EOR
Gusto: Best for startups new to HR software
Overall score
3.50/5.00
User reviews
4.64/5.00
Pricing
3.38/5.00
Customer support
3.88/5.00
Platform/interface
3.10/5.00
HRIS and reporting
3.35/5.00
Payroll and benefit
4.04/5.00
Workforce management
3.33/5.00
Talent acquisition
3.09/5.00
Pros
- User-friendly and intuitive interface
- Transparent pricing
- Offers hiring, job posting, and performance management tools
Cons
- The starter plan has limited HR features
- Advanced HR tools, such as performance reviews, are reserved for higher tiers
- Lacks electronic data interchange (EDI) for benefits data transfers to third-party insurers
Why I chose Gusto
Gusto provides easy, step-by-step instructions and implementation services to help you 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.
Its core platform may consist primarily of payroll tools, but it also has a set of HR data management features for securely storing employee information and onboarding new hires. These functionalities, along with its transparent pricing and intuitive interface, contributed to Gusto’s overall score of 3.50 out of 5.
However, its international payroll features and EOR services aren’t as extensive as Rippling’s. Gusto’s EOR is powered by Remote and limited to 12 countries, as of this writing. Meanwhile, global contractor payments are only available in over 120 countries.
You also need to upgrade to its higher tiers if you require additional HR functions, such as time tracking, scheduling, and paid time off (PTO) management. While you can add time tracking to its starter plan, you have to pay extra for it, which can make it a costly option, depending on the number of employees you have.
Despite these factors, I still recommend Gusto for startups that need a simple-to-use HR platform. Many of its features, like benefits enrollment, are click-and-go processes, and employees can manage many of their own updates through the self-service portal. Additionally, you don’t need to spend a lot of time teaching team members how to utilize its different tools, thanks to its user-friendly platform.
Gusto, originally known as ZenPayroll, was launched in 2012 with the goal of making payroll as easy and automatic as possible for small businesses. Since then, the platform has evolved into an HR system that offers employee onboarding, benefits administration, compliance support, and basic performance management tools.
Its user-friendly interface is one of its best features. You don’t need to be tech-savvy to figure it out. Plus, you don’t get surprise fees. It offers transparent and predictable pricing, allowing you to manage your software budget with ease.
Today, Gusto supports over 400,000 businesses across the U.S. Their ideal users are small to mid-sized companies that want to handle HR themselves without needing a large HR team to manage day-to-day tasks.
Gusto limitations
Gusto’s sweet spot is clear: it’s mostly small companies that want reliable payroll plus basic HR. Once you need to manage more advanced HR tasks, such as handling complicated shift schedules or in-depth performance reviews, you start to feel limited by Gusto’s basic HR toolset.
Its international payroll and EOR solutions aren’t as extensive as Rippling’s global services. And while Gusto offers integrations with apps like QuickBooks and Xero, the custom reporting and deep analytics that larger businesses require are not available.
If you grow beyond 150 employees or expand overseas, you’ll probably outgrow Gusto—or need to stitch on more specialized tools.
New hire onboarding
Gusto makes employee onboarding easy and welcoming for new hires. It lets you send digital offer letters, collect the required documents online, and set up background checks via its partner Checkr directly from its platform. Employees can fill out their W-4s and direct deposit information themselves without needing any manual data inputs from you. This can save you hours when adding new hires to the system.
Gusto also comes with software provisioning and deprovisioning tools, allowing you to set up, manage, and remove company email accounts and business app access with just a few clicks. You can even create custom onboarding checklists for new employees.
Flexible PEO
Rippling offers professional employer organization (PEO) services for U.S. businesses that want to outsource HR administrative tasks to focus on day-to-day business operations. Although Rippling is not the only HR vendor to provide both HR technology and services, it is one of the most flexible on the market.
Rippling lets you choose when and how often you need its PEO capabilities. For example, as a small business, you may want the extra support of a PEO. Rippling’s PEO can help you establish your leave policies, streamline your payroll, and even provide you with affordable, high-tier benefits and workers’ compensation policies for your employees.
As your organization grows and you hire more HR staff, handling workforce management processes may become more cost-effective to do in-house. With Rippling, you don’t have to worry about giving a cancellation notice and potentially incurring early termination fees. You can disable its PEO service directly within the platform and continue using Rippling’s HR software without interruption.Competitor PEOs, such as Justworks, do not offer the same level of service flexibility. Rippling is the better option if you expect your outsourcing needs to change frequently.
Gusto offers three plans: Simple, Plus, and Premium. All plans include basic onboarding tools, employee benefits, and full-service payroll with tax filing and payment services. Advanced features and services, like job postings, performance reviews, multi-state pay runs, and priority support are reserved for higher tiers.
It also offers a contractor-only payroll plan for $35 per month plus $6 per contractor per month. However, this option is ideal for businesses that only need to pay contract workers.Gusto scored 3.38 out of 5 in this criterion, mainly due to its transparent and straightforward pricing structure. It lost several points because, while its starter plan is tailored for small businesses that want dependable payroll with basic HR tools, the costs can escalate if you require additional features to manage your workforce effectively.
Gusto plans
Simple
Plus
Premium
$49/mo. + $6 PEPM
Includes:
- Unlimited single-state full-service payroll
- Auto-run payroll
- Two- and four-day direct deposits
- Basic support
- Employee self-service
- Gusto-brokered health insurance
- Basic hiring and onboarding
- Basic paid time off (PTO) policies
- Custom admin permissions
- Reports for payroll and time off
- Accounting, time tracking, and expense management integration
$80/mo. + $12 PEPM
Includes everything in Simple, plus:
- Unlimited multi-state full-service payroll
- Next-day direct deposits
- Advanced hiring and onboarding
- PTO management
- Time tracking and project tracking
- Time kiosk
- Scheduling
- Reimbursement and expense claim management
- Workforce costing and custom reports
- Employee directory and printable org charts
$180/mo. + $22 PEPM
Includes everything in Plus, with:
- Dedicated customer success manager
- HR templates for handbooks, job descriptions, and policies
- Proactive federal and state labor law compliance alerts
- Access to certified HR experts
- Account setup and payroll data/HRIS migration support
- Health insurance broker integration
- R&D tax credit discount
- Priority support
Gusto contractor-only plan
- Monthly fee: $35 plus $6 per contractor*
- Includes unlimited US contractor payments, four-day direct deposits, 1099-NECs at the end of the year, and new hire reporting, if required in your state
Add-ons
- International contractor payments: Price varies by foreign exchange rate
- State tax registration: Prices vary by state
- R&D tax credits: Pay 15% of identified tax credits
- Gusto Global: $699 PEPM
- Health insurance broker integration: $6 per month per eligible employee
- 401(k) retirement savings: Price varies by 401(k) integration
- Health Savings Accounts (HSAs): $2.50 per month per participant**
- Flexible Spending Accounts (FSAs): $4 per month per participant, with a $20 per month minimum**
- Dependent care FSAs: $4 per month per participant, with a $20 per month minimum**
- Commuter benefits: $4 per month per participant, with a $20 per month minimum**
- Workers’ compensation: Price of premiums only
- Life and disability insurance: Price of premiums only
- Next-day direct deposit: $15/mo. + $3 PEPM***
- Time tracking: $6 PEPM***
- Performance reviews: $3 PEPM***
- HR resources: $50/mo. + $5 PEPM (includes compliance alerts and access to HR experts and HR templates)***
- Priority support and HR resources: $8 PEPM; only available with the Plus plan
- Annually updated labor law posters: $8.99/mo. (onsite posters); $10/mo. for up to five employees, plus $1/mo. for each additional employee (ePoster service for remote employees)
*For new clients, Gusto waives the $35 monthly base fee for the first six months. This could change anytime, so please explore its website for the latest deals.
**Annual $200 service charge covers HSAs, FSAs, dependent care FSAs, and commuter benefits.
***Add-on is only for the Simple plan; it is included for free with the Plus and Premium tiers.
Paycor: Best for growing businesses
Overall score
3.50/5.00
User reviews
4.04/5.00
Pricing
1.88/5.00
Customer support
3.88/5.00
Platform/interface
4.05/5.00
HRIS and reporting
3.75/5.00
Payroll and benefits
4.00/5.00
Workforce management
3.89/5.00
Talent acquisition
3.70/5.00
Pros
- Feature-rich HR platform can support the entire employee lifecycle
- Earned wage access (EWA) options to give employees access to their funds sooner and support financial wellness
- AI-powered advanced analytics
Cons
- Non-transparent pricing
- Several core HR features are reserved for higher plans and add-ons, like onboarding, benefits administration, leave management, and customizable reports.
- Mobile app is fine for employees, clunky for admins.
Why I chose Paycor
With a 3.50 out of 5 score, midsize businesses will like Paycor’s breadth of offerings that support core HR and long-term business objectives. I like that its plans start with core payroll and HR, and you can layer on recruiting and other advanced HR tools as you scale.
I was impressed with its modules that pinpoint employee engagement and retention. For example, its compensation management feature lets you monitor pay equity. Its learning management system (LMS), performance, and feedback tools also facilitate various types of training while giving employees room to develop professionally in areas that interest them.
However, I found Paycor confusing to navigate due to the numerous features it offers. It also requires additional training during the implementation process. You need to dedicate time to onboarding and training users on how to use the platform. Even so, Paycor’s customization and cross-module people analytics make it a worthy choice for more complicated business needs.
Despite the name, Paycor is a full-scale HR platform that offers more than just payroll. Its features range from onboarding to talent acquisition, analytics, and learning and development (L&D). This makes Paycor best suited for midsize businesses needing flexible, tactical HR functions.
Its features are customizable enough to support businesses in various industries. Geolocation, geofencing, and mobile kiosks prevent time theft and buddy punching for field employees. Its scheduling module comes with budget controls and availability rules to support shift workers in retail, hospitality, and manufacturing industries.
I like its benefits advisor feature, which helps employees determine the right insurance plan for them during open enrollment. Paycor also comes with an in-app company newsfeed and recognition modules for cross-company communication and public praise.
Paycor limitations
Paycor’s interface is difficult to navigate. Most of its modules display data in a spreadsheet similar to UKG Ready, making for a dated appearance. As a result, it may take longer to familiarize yourself with the platform, especially if you’re transitioning from more beginner-friendly software, such as BambooHR or Gusto.
And despite its in-app compliance controls and alerts, Paycor cannot support your international teams. Instead, you’ll have to integrate with one of its global payroll partners or choose to manage your international operations through a third party. I’d look to Rippling or UKG Ready instead if your company has global ambitions.
Customizable pay grid
Paycor utilizes an advanced spreadsheet-like interface to run payroll, with pay grids that organize pay attributes in columns arranged by employee name. Columns typically include employee payroll-related data like the regular pay rate plus regular and overtime hours, but you can add columns for other items like bonuses, PTO accruals, or equipment deductions.
Once you modify the pay grid view for your company and integrate it with Paycor’s time and attendance module, you can complete payroll faster than similar software. This is because all payroll adjustments are processed on a single screen, eliminating the need for a multi-step workflow.
Another great feature is the ability to review and edit payrolls in advance. For example, say you plan to issue employee holiday bonuses two months from now. You can add the pay code and amount to that particular pay cycle in advance so you don’t forget.
Manager talent development
Paycor offers several modules that work together to support managers in leadership training and career development. Its Paycor Paths feature allows managers to launch leadership and pulse surveys to their direct reports, enabling them to understand the behaviors that drive engagement and productivity.
You can access coaching tips and resources to help managers make behavioral changes and strengthen their soft skills. Paycor also provides leadership scores that highlight each manager’s strengths and opportunities for improvement.
For example, managers struggling to give effective feedback may want opportunities to improve their communication skills. Paycor will walk them through lessons on feedback and send feedback requests to direct reports. It also tracks and suggests how to set up effective one-on-one meetings and recognize others.
Similar to BambooHR, you must contact Paycor’s sales team to obtain a quote. It has two pricing schemes based on the size of your company. If you have fewer than 50 employees, you can choose from four small-business plans: Basic, Essential, Core, and Complete.
If you have between 50 and 1,000 employees, you can access Paycor’s mid-market plans. Pricing depends on your employee count and the modules you need.Paycor received a rating of only 1.88 out of 5 for pricing. The lack of a free trial and transparent pricing cost it several points. It also charges an implementation fee, although it sometimes waives this as part of a promotion for new clients.
Paycor small business plans
Basic
Essential
Core
Complete
Call for a quote.
Includes:
- Unlimited full-service payroll
- Auto-run payroll
- Client-managed garnishments
- Check stuffing
- On-demand pay
- New hire filing
- Basic reporting
- Work Opportunity Tax Credit (WOTC)
Call for a quote.
Includes everything in Basic, plus:
- Onboarding and time off management
- Paycor-supported basic wage garnishments
- Job costing
- Labor law posters
- 401(k) integrations and EDI processing
- General ledger report and electronic GL
- E-Verify service
- Paycor’s recruiting and hire module
- Report builder
Call for a quote.
Includes everything in Essential, plus:
- Expense management tools
- Paycor’s HR, engage, and COR leadership modules
Call for a quote.
Includes everything in Core, plus:
- Compensation planning
- Career management
- Talent development
- Advanced analytics
Zoho People: Best for affordability
Overall score
3.25/5.00
User reviews
3.71/5.00
Pricing
3.75/5.00
Customer support
2.75/5.00
Platform/interface
3.30/5.00
HRIS and reporting
3.25/5.00
Payroll and benefits
2.18/5.00
Workforce management
3.28/5.00
Talent acquisition
4.13/5.00
Pros
- Has a free tier and a low-cost starter plan
- Easily connects with other Zoho products
- Offers a comprehensive range of HR features, including onboarding, performance reviews, and compensation planning
Cons
- ree plan is limited to five users only
- Payroll, implementation help, and 24/7 support are paid add-ons
- Limited third-party software integrations
Why I chose Zoho People
Zoho People offers various modules to support most of your HR needs, including advanced workflow automations, recruiting, reports, analytics, and an LMS. You can access all of these features at an extremely competitive price. Its highest tier, People Plus, costs $10 PEPM. If you’re on a tight budget and have a very small team, Zoho People offers a free plan.
It earned an overall score of 3.25 out of 5 and is ideal for small businesses seeking an affordable system with a primary focus on HR tools, rather than payroll, unlike Gusto and Paycor. It’s also great for those who want more control and aren’t afraid to tinker.
It’s not ideal for users who require hand-holding or prefer everything to be preconfigured. But for me, the balance between affordability and customization was worth the learning curve.
Zoho People is part of the larger Zoho ecosystem, with a product suite of over 55 cloud-based business apps. Its platform offers core HR features, such as onboarding, PTO tracking, and attendance management. You can also access its advanced HR solutions and services, like learning management and an HR help desk, by upgrading to higher tiers.
It’s built for global use, supports mobile access, and is highly configurable. If you already use Zoho products, such as CRM, Mail, or Books, Zoho People slots in naturally.
Zoho People limitations
Zoho People offers a wide range of functionality at a competitive price, but its platform can be clunky and confusing. System setup requires patience, and you must perform software data migration—unless you opt for its paid implementation services.
It also doesn’t guide you as intuitively as Gusto or BambooHR. I had to spend time clicking around help resources and watching videos to set up things like time off policies.
That said, if you’re comfortable with a little setup and already using other Zoho products, Zoho People provides a flexible HR system. It’s also an all-in-one platform that can grow with your business, without stretching your budget.
Customizable pay grid
HR chatbot
Zia, the AI-powered assistant built into Zoho, has grown into more than just a chatbot. It’s now a hands-on support tool designed to help employees efficiently navigate HR tasks.
It automates routine HR interactions, such as workers inquiring about the PTO policy or their leave balances, freeing up time for you and your HR team to focus on strategic projects. Your employees can even ask Zia for a list of their pending HR tasks, get automated follow-ups for unanswered questions, and escalate issues directly to HR.
It can also handle entire workflows. For example, when an employee asks Zia to raise a time off request, it will collect the start and end dates, reason, and leave type, and then submit it for manager approval.
The others on my list may have a similar tool, but Zoho was among the first to introduce an AI-powered assistant in the HR software space. It launched Zia in 2018 while Gusto, Paycor, BambooHR, and Rippling introduced their AI solutions in 2024.
In-app sandbox
One feature that I find really useful in Zoho People is its sandbox module, which is available in its higher tiers. It’s a mirror environment of the live system, providing you with a risk-free space to test out new workflows or layout changes before rolling them out to the team. This makes it easy to experiment with a new onboarding process or fine-tune time-off requests and approvals without affecting the system’s live data.
I also appreciate that it allows you to collaborate with other users in the test space. Let’s say you have new shift scheduling rules. You can invite key stakeholders to join the test team to preview workflow changes in real-time, identify and fix bugs, and refine the process before it goes live.
This kind of visibility and collaboration is important. Instead of dealing with fixes after launch, key stakeholders have a chance to provide their input and flag concerns in advance, which saves time and reduces errors.
Zoho People scored 3.75 out of 5 in this criterion primarily because you don’t get any pricing surprises. All of its fees are published on its pricing page, and it even offers a 30-day free trial for new users. You can choose from five paid plans: Essential HR, Professional, Premium, Enterprise, and Zoho People Plus.
If you have a small team, Zoho People has a free edition that’s good for up to five users. It’s ideal for those who only need leave management tools and a centralized database to securely store employee information.
However, it didn’t receive a perfect rating for pricing due to its add-on fees for implementation assistance. And while its free plan offers an affordable option for very small businesses, its features are too limited. Even if you get the paid Essential HR tier, its toolset isn’t as extensive as BambooHR’s starter plan, which comes with benefits tracking and employee survey solutions.
Zoho People paid plans*
|
Essential HR |
Professional |
Premium |
Enterprise |
Zoho People Plus |
|
$1.50 PEPM.Includes |
$2.50PEPM. |
$3.50 PEPM |
$5 PEPM. |
Premium: $4.50 PEPM. |
|
Includes everything in Free, plus:
|
Includes everything in Essential HR, plus:
|
Includes everything in Professional, plus:
|
Includes everything in Premium, plus:
|
Includes everything in Enterprise, plus:
|
*Zoho People also offers annual-billed plans, which comes with discounted pricing but requires lump-sum and upfront payment.
Add-ons
- Zoho People Jumpstart: Starts at $1,000 for a 25-hour, 15-day implementation support package
- Premium support: Starts at $114/month or 20% of the recurring license fee, whichever is higher
Zoho Payroll: $6 PEPM + $39 monthly base fee per organization
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.
UKG Ready: Best for robust analytics
When to choose UKG Ready
If you need powerful workforce analytics and compliance tools with your HR system, UKG Ready is the better fit. You can build customizable dashboards with real-time data on turnover, labor costs, attendance trends, and more. These are helpful for making data-driven decisions across multiple teams, departments, and locations.
Additionally, it’s an ideal choice for businesses that want everything from payroll to time tracking and talent management in one platform. The system also scales well as your HR processes become more complex.
Why it didn’t make the list
UKG Ready can be an overkill for small businesses that only want core HR or payroll tools. The depth of features it provides means a longer learning curve. Plus, implementation can take weeks. It’s also not transparent on pricing, unlike Zoho People and Gusto.
And while its platform is feature-rich, the interface can feel dated and clunky compared to Rippling and Gusto. Button line: if you don’t have time to configure workflows or analyze reports, this tool may not be right for you.
Our Rating: 3.19/5
RUN Powered by ADP: Best for small business payroll
When to choose RUN Powered by ADP
If you have a small team and only need payroll, RUN Powered by ADP is your best bet. ADP is one of the most trusted names in payroll for a reason: it has automated pay calculations and tax filings, offers compliance alerts, and lets you run payroll on the go via its mobile app. And unlike Gusto, its starter plan includes multi-state pay runs.
You can also provide employees early access to earned wages through its Wisely debit card. Plus, it includes employee perks like retail discounts and financial wellness tools to support your team, similar to what you’d get with Paycor.
Why it didn’t make the list
RUN Powered by ADP charges per payroll run. This means that software costs can add up fast if you’re on a weekly or semi-monthly pay schedule. That makes it less cost-effective than Gusto and Rippling, which both offer unlimited payroll. While it provides HR tools and services like applicant tracking, ZipRecruiter job postings, and access to HR advisors, these features only available in the higher tiers.
Our Rating: 3.00/5
Why do small businesses need HR software?
Small businesses need HR software to stay organized and save time. Instead of using spreadsheets, HR tools help manage the entire employee lifecycle—from hiring to retiring. Many HR platforms also offer self-service portals, allowing employees to update their information, view pay stubs, and request time off without needing to contact HR.
And as your business grows, HR software becomes even more valuable. It can handle more complex needs like performance tracking, compensation management, and workforce planning. With these tools, you can transition your HR team or department from tackling operational HR tasks 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. The most essential tools include employee data management, payroll, benefits administration, time tracking, recruiting, and performance reviews.
The right combination of functionalities will depend on your size, industry, and HR needs. For example, smaller businesses often can’t afford to purchase a fully integrated HRIS platform that bundles all core HR features together.
However, as you grow, switching to a unified platform becomes more cost-effective and practical. Integrated HR systems not only reduce the risk of errors and duplicate data entry, but they also improve security, user experience, and efficiency. These factors make it easier to scale your HR operations without needing to add more staff or manage different standalone HR tools.
Learn more about the different types of HRIS to make a more effective HR software decision.
How to choose the best HR software for small business owners
The best HR software should help you save time, reduce HR admin headaches, and grow with your business. It should automate routine HR operations, such as pay stub delivery, so that your small or non-existent HR teams can focus on higher-priority tasks. Here are some core features to consider:
- Employee data management with a secure, centralized database
- Onboarding and basic hiring tools, like offer letters that support e-signatures
- Leave management with PTO policies and accrual tracking
- Full-service payroll with automatic pay, deduction, and tax calculations
- Automated tax payment and filing services, including year-end tax reports
- Reporting tools
Scalability also matters, so choose platforms with modular add-ons, like benefits management and performance reviews. Also, don’t overlook pricing, customer support options, compliance alerts, and customizable workflows.
Also read: 14-Must Have HR System Features
Frequently asked questions (FAQs) about HR software
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. If you need a standalone payroll option, check out our list of the best payroll software.
