What is HR software?

Human resources (HR) software systems unify administration, recruitment, payroll, training, employee engagement, performance management, and other essential HR functions. This provides a secure database of employee data and a centralized view of a company. It also helps HR teams effectively manage each stage of the employee life cycle.

The right HR software solution can help optimize processes by automating manual tasks, organizing employee records, and building data-driven reports. Moreover, advanced HR software solutions enable better workforce planning, financial forecasting, and strategic decision-making.

I reviewed 13 human resources software solutions and narrowed them down to the best of the best:

  • ADP Workforce Now is the best HR software overall.
  • Deel is the best HR software for startups.
  • BambooHR is the best HR software for small businesses.
  • Rippling is the best HR software for midsize companies.
  • SAP SuccessFactors HCM is the best HR software for large enterprises.
  • Honorable mentions:
    • Paycor is the best for companies with field and frontline workers.
    • Paylocity is the best for workforce management.
    • Gusto is the best for new businesses in the U.S.
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Featured partners

My picks for the best HR software

Overall score

Use case

Starting price

ADP logo.

ADP Workforce Now

3.95

Best overall

$8/employee/mo.*

Deel logo

Deel

3.64

Best for startups

$19/employee/mo.**

BambooHR logo.

BambooHR

3.64

Best for small businesses

$250/mo. for first 25 employees

Rippling logo.

Rippling

4.05

Best for midsized businesses

$40/mo. + $8/employee/mo.

Sap logo.

SAP SuccessFactors HCM

3.81

Best for enterprises

$75.60/user/yr.+

Paycor logo

Paycor

3.83

Best for companies with field and frontline workers

Contact sales.

Paylocity logo.

Paylocity

3.76

Best for workforce management

$99/mo. + $6/employee/mo.

Gusto logo.

Gusto

3.50

Best for new businesses in the U.S.

$40/mo. + $6/employee/mo.

*Based on a quote I received. ADP Workforce Now charges additional fees based on your payroll schedule and add-on services like check printing, signing, and delivery. For a weekly payroll schedule,  ADP quoted me an additional $180 per month.

**Starting price for Deel U.S. Payroll.+Starting price for SAP SuccessFactors HCM’s base module, Employee Central.

You can trust my advice because I picked these choices with your business needs in mind. I can tell you that I have over six years of experience in HR administration. I can also tell you that I’ve spent the last two years at TechnologyAdvice dedicated to HR software research and trends, making me well-versed in each of the products I recommend. And I can tell you that all of my recommendations are mine alone and are not influenced by any partnerships or deals my team has with vendors.

I can tell you these things, but here’s the kicker: all these platforms went through a rigorous 78-point scoring rubric. Generally, platforms I could test myself received more favorable ratings than those that didn’t.

And don’t worry: I continually reevaluate my choices annually and as the market changes, so you always receive the best insights for your purchasing decision.

Wanna see how my recommendations have changed over time? Check out our updates log below. ⬇️

I evaluated the following all-in-one HR platforms to pick my top five recommendations:

  • ADP Workforce Now
  • Rippling
  • SAP SuccessFactors HCM
  • UKG Ready
  • BambooHR
  • Bob
  • Gusto
  • TriNet HR Platform
  • Workday HCM
  • Paycor
  • Paylocity
  • Deel
  • Paychex Flex

Below is a breakdown of the criteria I used to judge each software. Each category also includes my expert score, which considers the effectiveness of that area based on my personal usage.

HRIS and reporting: 15%

This is the bread and butter of any HR software, which covers each system’s core human resources information system (HRIS) and analytics functionality. Encompassing 15% of each platform’s total score, the platforms with an HR database based on a centralized employee record, rather than based on payroll data, received higher scores. I also gave extra points to platforms with customizable reports and dashboards.

Payroll and benefits: 15%

As some of the most criticla functions of HR, the payroll and benefits criterion ties with HRIS and reporting at 15% of each platform’s total score. I examined whether each platform offers native payroll and benefits modules, automated tax services, and benefits self-enrollment features. I also ranked platforms higher based on their compliance support and tools to improve the employee experience, like financial wellness apps.

Pricing: 13%

Pricing accounts for 13% of the weighted score. Software with transparent pricing, scalable tiers, discounts, no long-term contracts, and free trials received the highest scores. I also considered each platform’s “value for money,” which determines whether the number of features in each price tier or module is competitive with other vendors in the space.

Platform and interface: 13%

How easy is the platform to use? Can I create my own automations? Can I control employee access and permissions? And will employees’ data be safe? This category covers each solution’s intrinsic features and offerings, including how well it integrates with your current tech stack. This category represents 13% of the platform’s total score.

Workforce management: 12%

The workforce management criterion evaluates features to control and monitor when, where, and how your staff work. Comprising 12% of their total score, I evaluated whether each platform offered native time-tracking, scheduling modules, and leave management modules. The best platforms also included approval workflows automations, absence policy management, and built-in compliance controls for laws like the FMLA and FLSA.

Talent acquisition: 11%

The talent acqusition criterion evaluates the recruitment capabilities of each HR system, including candidate sourcing, screening, and interview management tools. I also considered additional capabilities like automated resume parsing and ATS pipeline movement. I also gave extra points to platforms with AI and tools to engage candidates. Talent acquisition makes up 11% of the total score.

Employee relations: 11%

At 11% of its overall score, employee relations assesses each software’s performance management, learning management, and employee engagement capabilities. Platforms with native modules for each scored highest, especially those with advanced features like customizable training courses, goal-tracking, and peer-to-peer recognition options. My expert score also considered platforms with unique employee experience tools, like newsfeeds, community forums, and chat functions. 

Support: 5%

New for 2025, the support criterion examines the variety of technical support options available to users, such as live chat, phone, and email. The platforms with comprehensive FAQs and knowledge bases also ranked higher. Finally, I considered whether platforms offer business services, like HR outsourcing, to offload administrative tasks. Support makes up 5% of the total score. 

User reviews: 5%

User reviews from third-party software platforms like Capterra, G2, and TrustRadius accounted for 5% of the software’s overall score. I focused on software that received at least 3.5 out of 5 stars on these sites. Because users have real-world experience with each platform, they played a significant role in narrowing down my list of top products to compare.

  • Jan. 31, 2025: Jessica Dennis evaluated old and new software and revised this page for 2025. Following an updated all-in-one HR evaluation rubric, she replaced Gusto with Deel as the best HR software for startups. She also dropped Workday HCM from her honorable mentions and replaced it with Paycor and Gusto.
  • Beyond this, Jessica also reviewed the copy for accuracy and provided fresh analysis and expert insights to help with your purchasing decision.
  • Oct. 11, 2024: Robie Ann Ferrer updated the pricing details of SAP SuccessFactors’ various modules. She also added information about Gusto’s new AI tool, Gus, in the context of other tools that leverage AI. We will fully evaluate this new feature once it’s launched publicly. Finally, Robie checked the accuracy of the pros and cons for each platform and made updates as needed.
  • Sep. 20, 2024: Robie Ann Ferrer revised the Best For descriptions for our Honorable Mentions list and updated the formatting for that section. She also updated the list of countries where Gusto’s EOR services are available.
  • Sep. 6, 2024: Jessica Dennis revised Gusto and BambooHR’s pricing packages and corrected BambooHR’s pros and cons.
  • Aug. 7, 2024: Jessica Dennis updated some of the scoring, pros, and cons for Rippling, BambooHR, Gusto, and Paylocity in accordance with new research and feature releases. She also made minor copy edits throughout, such as updating Rippling Unity to Rippling Platform following a rebranding change, plus adding logos for Bob and TriNet HR Platform.
  • Jul. 18, 2024: Jessica Dennis updated the scores for all platforms following changes to how we score module inclusions for the learning and development and employee relations criteria. She also adjusted scoring criteria weights, with higher values for benefits administration, talent acquisition, and performance management and a lower value for user reviews. Finally, Jessica reviewed two additional platforms, Paylocity and Deel. As a result, Paylocity and Deel replaced Paycor on her honorable mentions list.
  • Jun. 10, 2024: Jessica Dennis adjusted scores for all platforms following minor changes on how we score module inclusions in the performance management subcriteria. The user reviews criterion now considers the number of reviews each software receives on third-party sites — platforms with more reviews on these sites receive more favorable scores.
  • Finally, Jessica updated the scores for Bob and Rippling following the release of Bob’s Hiring module and Rippling’s Goals and News Feed modules. She also revised the copy to reflect these new feature evaluations.
  • Apr. 30, 2024: Jessica Dennis adjusted each vendor’s scores following minor changes in our rubric for user ratings and how we score module inclusions. Finally, she ensured pricing was accurate for all platforms, including adding new prices for each SAP SuccessFactors module and new promotion details for Gusto.
  • Apr. 8, 2024: Jessica Dennis updated the scoring and rewrote the pricing section on BambooHR to reflect its new subscription plans. She also updated the copy and pricing throughout the article for improved readability and skimmability.
  • Feb. 26, 2024: Jessica Dennis revised the copy in the FAQ section. She also made minor revisions throughout the article copy and added links to relevant pages. Finally, she added a note about the new BambooHR subscription plans.
  • Jan. 31, 2024: Jessica Dennis added gallery images for BambooHR and Rippling plus subcriteria ratings for each product in the top five.
  • Jan. 22, 2024: Jessica Dennis added honorable mentions for Workday HCM and Paycor. She also corrected the overall score for Gusto from 3.14 to 3.11 because further research confirmed it lacks tools in its ATS for managing in-app interview scheduling.
  • Dec. 29, 2023: Jessica Dennis reevaluated our top choices for 2024 with an objective scoring rubric. As a result, Rippling replaced Namely as our pick for midsize companies, and Gusto replaced Bob for startups. Jessica also provided fresh analysis and up-to-date product information and pricing for all vendors.
  • Nov. 14, 2023: Kaiti Norton clarified our recommendation analysis for Namely and SAP.
  • Nov. 8, 2023: Kaiti Norton updated Namely’s pricing information to reflect the company’s new pricing structure.
  • Nov. 6, 2023: Kaiti Norton updated Rippling’s section to clarify that the company supports businesses that are entirely based in the U.S. as well as international companies.
  • Oct. 25, 2023: Kaiti Norton added information about Bob’s pricing.
  • Oct. 16, 2023: Kaiti Norton added information about BambooHR’s pricing and made minor design tweaks to improve the page’s accessibility.
  • Sept. 26, 2023: We performed some technical maintenance to resolve user experience issues.
  • Sept. 19, 2023: We added information about Namely’s pricing. We also added a star rating to each of our editorial recommendations to offer more visual cues for comparison.
  • Sept. 7, 2023: We added information about SAP SuccessFactors’ pricing structure.
  • Aug. 28, 2023: We refined the pros and cons for each vendor.
  • Aug. 24, 2023: We reordered our list of top HR solutions from biggest to smallest. We also added a screenshot gallery for BambooHR and information about Rippling’s one-month free trial offer.
  • Aug. 17, 2023: We added a screenshot gallery for ADP.
  • Aug. 8, 2023: We added advice for getting executive buy-in for HR software.
  • Jun. 12, 2023: We refined the layout of the page and added dynamic design elements to improve the visual flow of information. We also added a screenshot gallery for Rippling and Bob.
  • Jun. 1, 2023: We reviewed our recommendations and revised each vendor’s pros and cons lists to preserve our editorial objectivity. We also simplified the page layout for easier navigation and implemented additional opportunities to connect directly with the software vendors we recommend.
ADP logo.

ADP Workforce Now: Best overall

Overall score

3.95/5.00

HRIS and reporting

4.63/5.00

Payroll and benefits

4.38/5.00

Pricing

2.69/5.00

Platform/interface

3.80/5.00

Workforce management

4.13/5.00

Talent acquisition

4.00/5.00

Employee relations

3.66/5.00

Support

3.88/5.00

User scores

4.40/5.00

Pros

  • Narrative insights to assist with people data analysis.
  • Optional HR advisory services for enhanced compliance.
  • Extensive product line for fast-growing companies.
  • Global payroll support for over 140 countries.

Cons

  • Benefits administration is only available on the Plus plan and higher.
  • Time and labor management is only available in the highest subscription tier.
  • Several features, like recruiting, are powered through acquisitions or third-party partnerships.
  • Users report slow customer service and turnaround times.

Why I chose ADP Workforce Now

ADP Workforce Now’s scalability makes it the king of HR software. It bridges the gap between simple human resources information systems (HRIS) and full-scale human capital management (HCM) platforms. In fact, ADP uses Workforce Now as the software to facilitate many of its optional services, like it’s PEO, TotalSource, and global payroll.

True, Workforce Now lost points for its hard-to-navigate interface and for forcing users to purchase its top plans for access to workforce management and benefits administration modules. Yet, ADP is making moves to make the software less clunky so that it is more accessible for small and large teams alike. For example, the addition of ADP Assist, its AI assistant is a huge improvement for finding information and streamlining HR processes.

Workforce Now’s add-on modules, massive product and services catalog, and open API make it stand out among competitors. Choosing Workforce Now also reduces the likelihood of having to jump to a new solution in the future if you grow or shrink since the platform can accommodate your business shifts.

ADP Workforce Now is an all-in-one human resources management system (HRMS) with a range of features to support the employee life cycle from recruitment to separation. Its business services, customization options, and extensive integration library make it the best HR software overall.

ADP Workforce Now’s 3.95 straddles the line between the needs of both small and large businesses. For example, small businesses can take advantage of its many HR services, including human resources outsourcing (HRO) or professional employer organization (PEO) and employers of record (EOR). Enterprises, meanwhile, will like its workforce analytics to help with strategic initiatives, like reducing turnover.

Be aware though: ADP Workforce Now is a legacy system, meaning that its interface is more old-fashioned than platforms like BambooHR. Setting up a new hire can also be tedious since that number of customization options means jumping through several steps before the new employee can complete the onboarding workflow. But this is more of a minor inconvenience if you have unique process cadences, reporting, or payroll needs.

What’s the right ADP product for me?

ADP Workforce Now is best for small-to-medium-sized businesses (SMBs) with over 50 employees but less than 1,000. Although this makes it an excellent option for most, startups and enterprises might want to look for leaner or more robust alternatives.

ADP’s vast product catalog means there are solutions for all companies, regardless of size or industry, but finding the right product is intimidating. Here’s a breakdown of ADP’s other major products:

Roll by ADP

Best for solopreneurs or small businesses with 2–10 employees. Roll is not a full HR suite, but its simple mobile-only interface is great for maintaining an employee database and processing payroll. And if you’re tech-averse, Roll’s unique AI chat function allows you to run payroll from a simple text conversation.

RUN Powered by ADP

Best for businesses with 2–49 employees. RUN offers basic payroll and tax support. In its higher price tiers, you can also access unemployment insurance management, a basic applicant tracking system (ATS) powered by CareerPlug, handbook creation, and a learning management system (LMS).

ADP Vantage HCM

Best for businesses with over 1,000 employees. ADP Vantage HCM offers advanced HR capabilities, particularly in workforce analytics. Although ADP Vantage has features similar to RUN and Workforce Now, it focuses on using your huge people dataset for more strategic decision-making, like minimizing business costs.

Note: ADP also released its newest cloud-native product, ADP Lyric HCM, in September 2024. I’ll update this as I learn more about how it differs from ADP Vantage HCM.

Breadth of integrations

ADP Workforce Now clients have access to ADP Marketplace. Here, you can find solutions to integrate with ADP Workforce Now and consolidate your data among your entire HR tech stack.

With integrations available for performance management, time tracking, employee engagement, recruiting, learning management, and financial wellness, you do not have to sacrifice the HR platforms you already use to start with ADP.

Robust payroll functionality

ADP is well-known for its advanced payroll features. You can easily create multiple payroll schedules from ADP Workforce Now’s payroll dashboard to cover different employee classifications. Plus, once you finalize payroll, you can click a button and automatically prepare and download a general ledger file to upload into your. accounting system.ADP also accommodates more industry- or company-specific payroll needs. For example, if you’re a federal contractor, ADP can help you run certified payroll. Or, if you’re in a service industry like food or hospitality, ADP can calculate tip credits for your service staff to reduce the likelihood of payroll errors.

Benchmarking

ADP Workforce Now is the only platform on my shortlist with benchmark information for understanding how your business compares to the competition. Using ADP’s U.S. client base of more than 42 million employees, you can see benchmark numbers in your industry and location for:

  • Creating fair and competitive total compensation packages.
  • Comparing turnover rates.
  • Tracking average time to fill in various roles.

Because Workforce Now offers this natively in-app with data that updates in real time, you don’t have to rely on third-party sources for this information—whether through integration or from outdated compensation survey reports. This is also a huge advantage if you’re a small business since access to this information is typically reserved for larger HCM platforms or requires manual input. For comparison, in Rippling, you need to add salary ranges by hand.

ADP Workforce Now offers three subscription tiers to choose from: Select, Plus, and Premium. However, it does not reveal starting prices for any of its plans; you must contact ADP’s sales team for a quote.

In my re-evaluation, Workforce Now’s pricing score dropped from 3.13 to 2.69. This is in part due to the quote that I received, which revealed additional costs for HRIS implementation, your payroll schedule, and annual W2 and 1099s processing. For a business with 50 employees and a weekly pay schedule, ADP quoted me $8 per employee, per month (PEPM) plus $180 per month. There’s also a $500 implementation fee.

This means ADP can be slightly more expensive overall considering the fees for all of its services, such as check signing and delivery. Still, ADP is one of the only platforms to offer such expanded service options, so if this is a priority for you, going with Workforce Now is your best bet.

ADP Workforce Now plans

Select

Plus

Premium

Includes:

  • Payroll and tax.
  • Basic reporting and analytics.
  • Onboarding/offboarding workflows.
  • ADP Assist (AI virtual assistant).
  • Voice of the Employee (employee engagement surveys).
  • Digital recordkeeping and unlimited storage.

Includes everything in Select and:

  • Benefits administration.

Includes everything in Plus and:

  • Time tracking.
  • Leave management.
  • Scheduling.

ADP Workforce Now add-on modules

  • Talent acquisition.
  • Performance management.
  • Compensation management.
  • HR assist (regulatory compliance assistance).
  • Analytics and enhanced insights.
  • Learning management.

Is ADP Workforce Now the right fit?

ADP is one of our favorite HR software vendors, featuring in many of our top product pages and comparisons. For more information on Workforce Now’s capabilities, check out some of our articles below:

Deel logo

Deel: Best for startups

Overall score

3.64/5.00

HRIS and reporting

3.99/5.00

Payroll and benefits

4.31/5.00

Pricing

3.94/5.00

Platform/interface

4.30/5.00

Workforce management

 3.45/5.00

Talent acquisition

0.88/5.00

Employee relations

3.60/5.00

Support

4.38/5.00

User scores

4.06/5.00

Pros

  • Immigration services to hire and relocate talent from across the globe.
  • On-demand payroll support for direct and EOR employees.
  • Light and dark mode functionality for increased accessibility.
  • Diverse account payment options, including cryptocurrency using Coinbase.

Cons

  • Difficult to navigate user interface (UI).
  • Can only pay employees by direct deposit.
  • Does not support weekly payroll schedules.
  • Lacks recruiting features.

Why I chose Deel

Deel replaces my previous pick for the best HR software for startups, Gusto, by a narrow margin. Deel’s 3.64 beats Gusto’s 3.50 because of the former’s global capabilities that allow you to pay and retain employees worldwide. In fact, despite Gusto’s foray into EOR services in early 2024, it currently only supports 12 countries compared to Deel’s more than 150.

Deel’s platform is also better equipped to handle the challenges of fast-growing startups than others in this roundup. Need extra support services for your new business? Deel’s PEO, EOR, and U.S. Payroll services provide 24/7 support, a dedicated customer service manager, and white-glove benefits implementation. Need essential employee management tools? Use Deel HR for free to manage compliance, sign documents, and even get access to a basic employee time tracker.

Need to complete HR operations without interrupting the flow of work? Use Deel’s Slack plugins to control everyday HR tasks, like requesting and approving time off. This is a much simpler solution if your startup has distributed teams working on various schedules.

Although Deel started as an EOR service provider similar to Oyster and Papaya Global, it’s exploded in recent years with the additions of its Deel HR, U.S. Payroll, Deel PEO, and Deel Engage products for more HR functionality. As a result, Deel is one of the top players in the HR system market, including heavy hitters like Rippling (with which it shares a rather entertaining rivalry).

However, because Deel started as an EOR, the core of its software aims to carry out global payroll and contract management in sync with its more than 100 international partners. This makes its platform somewhat confusing to navigate since its original purpose was to pull employee information from your onboarding platform or HRIS to facilitate global payroll. 

Even with Deel HR’s more modern appearance, including a customizable homepage with widgets that mimic BambooHR, expect a bit of a learning curve. That said, its affordability, white-labeling, global capabilities, and workplace communication abilities give Deel a leg up for startups with scrappier HR teams who flow between administrators, employee advocates, and company marketers in the span of one afternoon.

Contractor management

Deel isn’t unique when it comes to system features aimed at contractors. Gusto, for example, supports contractor payments in more than 120 countries. But I find Deel’s capabilities far more expansive and versatile. 

While Deel’s and Gusto’s contractor features are similar—step-by-step onboarding workflows, contract management, and in-app time trackers—Deel’s benefit offerings for contractors are more robust. For example, Deel offers 15 ways to pay contractors, including through its Deel Card. Gusto’s equivalent, the Gusto Wallet Spending account, is limited to direct employees.

And, for a compliance nerd like myself, Deel’s the only vendor in my roundup with the contractor of record services to avoid the risk of worker misclassification. This is incredibly helpful for a startup where the line between contractor and employee is blurry and varies worldwide.

Tools for distributed teams

Deel used to be among my honorable mentions for its global capabilities. Unsurprisingly, these tools come in handy for startups where talent may be located across the globe and don’t work a normal nine-to-five. Some tools include its new time-tracking widget, overnight shift support, and mobile app with expense management.

But Deel’s Slack plugins, such as employee recognition, are my favorite tools for distributed teams. Slack allows for more free-flowing conversations between coworkers so that peer-to-peer recognition (“Kudos”) feels less like a chore and easier to offer in the moment—a critical component of building up company culture in your startup. Even better is that these plugins are free to use if you have Slack; you don’t need a Deel subscription.

You can start using Deel HR at the low price of free. You can also leverage other tools from Deel at no cost, including its Slack plugins (as long as you have a Slack subscription) and global employee cost calculator. This earned Deel a 3.94 in pricing, second only to Gusto’s 4.00. In fact, you can conceivably manage all your employee operations in Deel HR and do payroll yourself for the most cost savings, especially if you have fewer than 10 employees (although I wouldn’t recommend it if you’re new to payroll).

However, if you want to start paying employees through Deel, it becomes expensive once you have more than three U.S.-based employees since you pay $19 PEPM. I’d turn to Gusto or other small business payroll software instead if you just need pay processing. But if you’re looking for global payroll support, either through your own entities or using an EOR, Deel’s pricing is one of the more competitive. Deel also frequently offers discounts if you decide to pay annually.

Deel Hiring and Payroll Products

Deel Contractor

Deel EOR

Deel Payroll

Deel U.S. Payroll

Deel U.S. PEO

Starts at $49/contractor/mo.

Includes:

  • Misclassification support.
  • Local tax agreements.
  • 15 contractor payment options in 120+ currencies.
  • Deel card access.
  • 24/7 support for contractors.

Starts at $599 PEPM.

Includes:

  • Hire and pay international employees.
  • Compliance support.
  • Country-specific benefits packages.
  • Spending, retention, and compensation reporting.
  • Integration marketplace.
  • Local HR and legal expert support.
  • 24/7 support and dedicated CSM.

Starts at $29 PEPM.

Includes:

  • Access to payroll experts.
  • Payslip creation and delivery.
  • Salary and tax payments (including local).
  • Benefits and deductions.
  • Customizable reports.

Starts at $19 PEPM.

Includes:

  • Federal, state, and local tax filing and remittance.
  • W-2, W-4, 1099, and new hire filing support.
  • Payroll compliance support.
  • 24/7 support and dedicated CSM.

Starts at $89 PEPM.

Includes:

  • Federal, state, and local tax filing and remittance.
  • W-2, W-4, 1099, and new hire filing support.
  • Compliance support: training, unemployment, and workers’ comp.
  • Access to Fortune-500 benefits.
  • Access to HR experts, 24/7 support, and a dedicated CSM.

Deel HR Products

Deel IT

Deel Immigration

Starts at $20 PEPM.

Includes:

  • Performance management, including appraisals and goal tracking.
  • Learning management, including custom course creation.
  • Career management.
  • Employee engagement surveys.

Free.

Includes:

  • Employee database and org charts.
  • Country localization.
  • Time off and expenses.
  • Global reports and dashboards.
  • Store and sign documents.
  • Time tracker.
  • Onboarding and offboarding workflows.

Starts at $99/mo.

Includes:

  • Device lifecycle management.
  • App management.
  • IT support.

Contact sales.

Includes:

  • Coverage in 50+ countries.
  • Free eligibility checks.
  • Process timelines and in-app tracker.
  • Dedicated case manager.

Other HR solutions for startups

The case for Bob

I’ve participated in multiple demos of Bob, and I’m always impressed with its focus on customization and employee experience. (Bob’s “clubs” for fostering employee engagement is one of my favorite features.) These qualities make it a great candidate for startups where business processes are in flux and you’re only just building your culture.

Unfortunately, Bob’s lack of transparent pricing and native payroll and benefits modules means it only received a 3.27 out of 5.00 overall in my evaluation. However, its predictive analytics and sandbox feature to test new workflows mean Bob is an excellent option if you expect your processes to evolve.

The BambooHR logo.

BambooHR: Best for small businesses

Overall score

3.64/5.00

HRIS and reporting

4.25/5.00

Payroll and benefits

3.56/5.00

Pricing

2.63/5.00

Platform/interface

4.43/5.00

Workforce management

 3.66/5.00

Talent acquisition

3.38/5.00

Employee relations

3.06/5.00

Support

3.69/5.00

User scores

4.44/5.00

Pros

  • Refreshed new interface for easier navigation.
  • Ability to change platform colors and logos to reflect your brand.
  • Customizable homepage and profile dashboards.
  • Automated wellbeing surveys to track employee happiness over time.

Cons

  • Reports have limited customization settings.
  • No modules for employee training or scheduling.
  • Does not support paying employees outside of the U.S.
  • Requires integration with Cronofy for in-app candidate interview scheduling.

Why I chose BambooHR

With a total score of 3.64 out of 5, BambooHR is my top choice for small businesses because it is by far the easiest platform to use on my shortlist. It strikes a perfect balance between simple pre-built workflows for HR teams looking for no-fuss process implementation and features to support processes from hire to retire. 

In fact, BambooHR is one of the few solutions in my roundup that pays as much attention to the employee experience as system administrators. Besides a modern but user-friendly homepage where employees can see PTO banks, request time off, or clock in for a shift with one click, BambooHR also offers a platform where they can collaborate with peers in Employee Community. This is huge for small businesses where subscribing to standalone employee experience, recognition, and communication platforms can be a costly added expense.

BambooHR is one of the most popular HR software solutions for its simple, effective UI and out-of-the-box workflows and reports. If you only need to centralize your people data and processes but don’t need the granular customization of HR platforms like Rippling or ​​SAP SuccessFactors, then BambooHR may be for you.

BambooHR focuses on creating a platform accessible for your tech-savvy and tech-averse HR teams. It comes with pre-built reports and analytics visualizations that you can use for fundamental insights into your organization, like turnover and time-off usage. System administrators can even customize BambooHR’s homepage with widgets to access this information as soon as they log in.

The one drawback of BambooHR is that its focus on plug-and-play workflows result in you molding your processes to fit BambooHR rather than your daily processes. Training course assignments, for example, are focused around employee start dates, without options to assign courses based on role or other company priorities. This means you may consider training only during the course of onboarding, rather than an ongoing priority essential to employee growth and development.

Digital record-keeping

BambooHR lets you upload, share, and store company and personnel documents directly within the platform. You can also create digital, legally recognized forms from the documents you use daily with eSignature to move away from paper processes and to an entirely digital filing system.

Creating these documents can be time-consuming, but it’s worth it. After you upload your PDF or .docx document to BambooHR, you can drag and drop the fields you want employees to complete into the appropriate areas. You can then send your electronic documents to the necessary employees for signatures and store the completed forms in their electronic personnel files.

Employee self-service

Like most modern HRIS, BambooHR has employee self-service features like preboarding checklists, benefits enrollment, and paystub access. What sets BambooHR apart is that employees can also update their information, request time off, clock in and out of shifts, update professional goals, and track training assignments from the same place.

Plus, if you’re a small business with frontline workers, BambooHR allows employees to access all this information from their mobile device instead of a desktop computer. It even made it into my list of the best HR apps for mobile as a result.

BambooHR offers two subscription plans to choose from: Core and Pro. The Core plan includes basic HRIS functions, like employee recordkeeping and leave management. It also offers onboarding workflows, an ATS, leave management, and employee wellbeing surveys.

But despite BambooHR’s focus on small businesses, it only earned a 2.63 for pricing since it’s quite costly to start. For comparison, if you have fewer than 15 employees, you can purchase Gusto Plus and access everything in BambooHR Core plus payroll, benefits administration, and time-tracking modules and pay less.. This makes BambooHR a better choice for well-established small businesses with limited long-term growth goals.

BambooHR plans*

Core**

Pro**

Price:

  • 1–25 employees: $250 per month.
  • 25+ employees: $10 PEPM.

Includes:

  • HRIS and reporting.
  • Hiring and onboarding.
  • Time off and benefits tracking.
  • Employee experience.
  • Access to integrations marketplace.

Price:

  • 1–25 employees: $425 per month.
  • 25+ employees: $17 PEPM.

Includes everything in Core plus:

  • Performance management.
  • Employee community.

BambooHR add-on modules*

  • Payroll+
    • 1–25 employees: $190 per month.
    • 25+ employees: About $7.47 PEPM.
  • Benefits administration
    • 1–25 employees: $140 per month.
    • 25+ employees: $5.48 PEPM.
  • Time tracking
    • 1–25 employees: $3 PEPM.
      25+ employees: $2.97 PEPM.

* Volume discounts apply to all plans and add-ons after 25 employees. BambooHR also offers a 15% discount when you bundle Payroll and Benefits Administration with the Core or Pro plan.

** There is a one-time implementation fee for the Core and Pro plans. If you have fewer than 25 employees, you can opt for Quickstart implementation for $399 in the Core plan and $499 in the Pro plan.+ Please note that additional factors, like the number of FEINs or states where you need payroll, can affect this price. Please contact BambooHR for specific pricing quotes.

Why is BambooHR so popular?

BambooHR is a versatile HR suite that covers a lot of ground in the world of HR. As a BambooHR aficionado, I frequently include it in my HR software shortlists—check them out:

Rippling logo.

Rippling: Best for midsize businesses

Overall score

4.05/5.00

HRIS and reporting

4.33/5.00

Payroll and benefits

 4.56/5.00

Pricing

2.50/5.00

Platform/interface

4.54/5.00

Workforce management

4.31/5.00

Talent acquisition

4.38/5.00

Employee relations

3.56/5.00

Support

3.44/5.00

User scores

4.78/5.00

Pros

  • Employee profile translation and localization for more than 150 countries.
  • Finance and IT management tools available.
  • EOR, PEO, ASO, COBRA, ACA, and global payroll services available.
  • Ability to use Excel formulas in reports for more detailed insights.

Cons

  • There is no free trial, and it may be too expensive for basic HR needs.
  • Scheduling requires Time and Attendance purchase and lacks automatic schedules.
  • Limited employee engagement and recognition features.
  • API access is now an add-on to Rippling Platform.

Why I chose Rippling

Rippling is one of the most adaptable HR programs I’ve demoed, resulting in an overall score of 4.05. With customizable workflows and approvals, you don’t need advanced IT training to automate most HR administrative processes in the app. This alone makes Rippling appealing to midsize businesses with a larger headcount, where HR automation is a must.

Rippling’s global expense and inventory management also means it supports a growing company’s more varied working cadences. Expense reimbursement, global payroll, and scheduling modules cover the needs of everyone, from frontline workers to remote employees and traveling professionals. Pair this with Rippling’s ability to create custom data fields, and you can get as specific as you need with your HR, finance, and other work policies.

Rippling is the best option if you’re a fast-growing SMB that has outgrown a simple HRIS and needs to unite HR, corporate spending, and IT under one system. It rivals major HCM platforms despite its comparatively small product library.

Ripping allows you to start moving away from the day-to-day operations of HR and to more strategic ones. It offers customizable reports that aggregate and visualize any dataset plus tactical modules like headcount planning. This allows you to create a plan, manage approval workflows, and sync with recruiting and spend modules to help you visualize and control your people costs.

Rippling also has one of the fastest new feature release schedules of any of the competitors in my roundup, which is both a strength and a limitation. Its constant innovation means you get access to new features quickly but at the expense of existing modules. (Yay finally for candidate self-scheduling now in Rippling’s ATS!) Rippling also doesn’t have the same level of enterprise-grade tools of titans like Workday and SAP, noticeably lacking a generative AI assistant, predictive analytics, and benchmarking tools.

Workflow automation

Rippling is the only product on my shortlist with a workflow builder tool to create custom automation from scratch. This is unlike SAP SuccessFactors, which requires IT knowledge to develop cross-module workflows, or BambooHR, which comes with pre-defined workflows for onboarding, offboarding, and approvals.

Instead, with Rippling’s Workflow Studio, you can set a trigger in one module to set off an action in another in its new blueprint-like builder. You can drag and drop actions, collaborate with others, and even add true/false conditional logic and wait times. For example, I used Workflow Studio to assign tasks to appropriate stakeholders in the event of a workplace accident, reducing the need for me to follow up on critical paperwork that could affect the injured employee’s work comp benefit coverage.

Compliance assistance

Rippling comes standard with Compliance 360, which monitors and notifies you of potential federal, state, or local labor law infractions. Although this doesn’t replace training your HR teams on employment laws and taking proactive steps to stay compliant, it is a great backstop as your team grows.

For example, if you’re a midsize business starting to hire employees in a new state, you might be unfamiliar with state labor laws like minimum wage or paid sick leave. Compliance 360 can notify you of these regulations during employee onboarding to ensure compliance. Or, if a law changes during the employee’s tenure with you, Rippling will alert you to the change.

Rippling Platform, Rippling’s base product, starts at $40 per month plus $8 PEPM. You can choose from two subscription plans, Core and Pro, which include basic onboarding, workflow automation, and reporting functions. More advanced processes are relegated to Rippling’s add-on modules, including critical HR software features like payroll and benefits administration.

This lack of transparency around platform and implementation costs dropped Rippling’s pricing score from 2.88 to 2.50. Since you have to pay more for access to functionality that comes standard in platforms like ADP Workforce Now and Gusto, Rippling is not the best choice for your first HR software. But I argue it’s worth the investment if you’re a small to midsize business scaling quickly and want to keep your HR processes in one place.

Rippling Platform plans

Starting at $40/mo. + $8 PEPM

Core

Pro

Rippling Platform add-ons

Includes:

  • Global employee graph.
  • Workflows and automation.
  • Role-based permissions.
  • Compliance management.
  • Leave management.
  • Onboarding and offboarding.
  • Compensation bands.
  • Policy and document management.
  • Auto-localization.
  • Workflow Studio (custom onboarding events only).

Includes everything in Core plus:

  • Workflow Studio (10 custom workflows).
  • Formula fields.
  • Advanced reports.
  • Webhooks in workflows.
  • Unlimited workflows.
  • Custom apps.
  • Rippling API platform.

Rippling add-ons

HCM

IT

Spend

  • US and Global Payroll.
  • Time & Attendance.
  • Benefits Administration.
  • Flex benefits: FSA, HSA & Commuter.
  • ACA & COBRA Administration.
  • Scheduling.
  • Recruiting.
  • Learning Management.
  • Headcount Planning.
  • Performance Management.
  • Surveys.
  • PEO Services.
  • ASO.
  • Global Employer of Record Services.
  • HR Help Desk: HR Support.
  • Identity and access management.
  • Device management.
  • Inventory management.
  • Corporate cards.
  • Expense management.
  • Bill pay.

HR software battle: ADP Workforce Now vs. Rippling

You may be wondering why I picked ADP Workforce Now as the best HR software despite Rippling’s higher score. Very perceptive—let me explain!

If you look strictly at the platforms, Rippling dominates. Rippling has an eye for intuitive platform design, where all modules “talk” to each other without delays or hiccups—this is the advantage Rippling has in building all of its platform capabilities natively.

In contrast, ADP’s long lifespan means many of its products stitch together functionality from acquisitions or partnerships. For example, Workforce Now’s recruiting capabilities are possible through its partnership with ZipRecruiter.

This isn’t necessarily bad, but it can create a disjointed user experience. Think of pop-up windows to enter different modules, feature settings in multiple areas, or a different platform appearance depending on what you’re doing, like payroll or recruiting. The biggest downside can also be possible data silos.

Despite this, Workforce Now reigns supreme when it comes to extensibility, scalability, and service variety. ADP’s decades of business experience also means its Workforce Now add-ons and services fit more business use cases than Rippling. Rippling is definitely catching up, though, and I’m excited to see how it continues to differentiate itself.

Sap logo.

SAP SuccessFactors HCM: Best for large enterprises

Overall score

3.81/5.00

HRIS and reporting

3.98/5.00

Payroll and benefits

 3.88/5.00

Pricing

2.50/5.00

Platform/interface

3.80/5.00

Workforce management

4.31/5.00

Talent acquisition

4.38/5.00

Employee relations

3.96/5.00

Support

3.75/5.00

User scores

3.92/5.00

Pros

  • Intelligent text-based employee sentiment analysis.
  • 24/7 customer support via online chat, phone, or email.
  • Accessibility support, including zoom, high contrast themes, screen reader support, and keyboard navigation.
  • Native integration with SAP’s entire product line.
  • More than 2,000 standardized HR metrics.

Cons

  • Too expensive for small teams.
  • Confusing line of product tiers and integration options.
  • Complex user interface.
  • Few plug-and-play integrations outside of SAP products and partners.

Why I chose SAP SuccessFactors HCM

With a score of 3.81 out of 5, SAP SuccessFactors impressed me with its number of customizable features and extensibility options aimed at enterprises. In fact, by combining its HCM suite with other SAP products, like ERP, supply chain management, financial management, and customer relationship management, you can create an open flow of data across traditionally siloed business functions. This enables you to uncover process inefficiencies and areas of the business that are driving unneeded costs. It also means you can operate virtually all of your business processes in one place.

Understandably, SAP SuccessFactors’ advanced features and complicated interface can be off-putting if you’re new to HR software or want something with a more modern look. If that’s the case, check out Rippling or Workday instead. But, with its advanced workforce planning tools, candidate relationship management (CRM) system, and AI for personalized HR processes, SAP SuccessFactors HCM remains my number one choice for complex, multinational corporations.

SAP SuccessFactors Human Capital Management (HCM) is an enterprise-grade HR platform that centralizes HR administration in one place. SuccessFactors users can access SAP’s entire line of products, including enterprise resource planning (ERP) solutions, to create one unified ecosystem for all business functions.

If you’re a global company, SAP SuccessFactors also supports your international workforce. Although its native payroll only supports around 50 countries, it can localize employee profiles to more than 100 countries, post job openings to over 4,000 global sourcing channels across 80 countries, and facilitate international benefits enrollment.

One thing to note about SAP SuccessFactors is that its vast feature set is primarily the result of its many acquisitions and partnerships—SuccessFactors itself was a company before SAP acquired it in 2012. Features often feel “bolted on” and create a rather disjointed user experience and confusing platform layout. But this also means you get access to innovative features ahead of other HCM solutions that build these functions natively.

Predictive analytics

SAP SuccessFactors uses data from its various modules to inform big-picture business decisions. Besides collecting on lagging indicators, like employee retention and sentiment, SAP SuccessFactors goes one step further by predicting data trends based on past performance.

SAP SuccessFactors uses its machine learning algorithm to forecast trends so you can proactively address business changes in areas like recruitment and retention.For example, SAP can predict your future male-to-female recruitment ratio based on your historical hiring rates. From this data, you can quickly adjust strategies so you have the best chance of success for you recruitment equity goals.

AI capabilities

SAP SuccessFactors leverages AI natural language processing to assist with workforce planning and streamline administrative HR tasks. One of my favorite use cases has been its AI writing assistant, which helps managers craft constructive feedback. If you have managers with several direct reports, this can ensure they complete performance appraisals timely.

SAP SuccessFactors is also the only platform on my shortlist to have a fully integrated generative AI assistant that operates much in the same way as ChatGPT. Its assistant, Joule, learns from the way you work and prior conversations you have to complete transactional, informational, and navigational tasks. For example, you can ask Joule to send requests for feedback, assign tasks, translate text, or confirm your PTO balance.

Considering SAP’s somewhat difficult-to-navigate user interface, Joule is also great for taking you directly to the pages to get you the information you need or complete a process. That way you don’t need to become an SAP expert.

Succession planning

SuccessFactors HCM’s succession planning tools take a skills-based approach to developing employees and filling talent pipelines for critical roles.

Using an organizational chart, ​​SAP SuccessFactors can help you identify skills gaps that have a relatively high impact if they become vacant. The platform then uses data from employee profiles to surface high-potential, top-performing talent to start grooming for crucial roles. Besides preparing for future turnover, it keeps high performers invested in the company and their professional growth.

Like most enterprise HR software, ​​SAP does not disclose pricing for its full SuccessFactors HCM suite so you must contact its sales team for a quote. The overall cost is based on the size of your company, the products you need, and the number of administrative users. This, plus the fact most products require a three-month to one-year minimum contract, resulted in a score of 2.50 for pricing.

However, SAP does reveal starting prices for several standalone products that comprise the HCM suite, which you can view in the chart below. I’ll also note that, since SAP uses a product and module-based pricing system, you typically have negotiating power during sales calls. Be sure to bring quotes from competitors and ask about discounts when bundling any of its products and services.

That said, be aware you’ll likely still be paying hundreds of dollars per year per employee if you decide to go with SAP SuccessFactors’s entire integrated suite.

SAP SuccessFactors HCM products

Core HR and payroll

SAP SuccessFactors Employee Central

$75.60/user/yr.

SAP SuccessFactors Employee Central Payroll

$120/user/yr.

SAP SuccessFactors Time Tracking

$30.84/user/yr.

SAP SuccessFactors Employee Central Service Center

Undisclosed

SAP SuccessFactors Document Management Core by OpenText

Undisclosed

SAP U.S. Benefits Administration by Benefitfocus

Undisclosed

Talent management

SAP SuccessFactors Recruiting

$31.92/user/yr.

SAP SuccessFactors Onboarding

$14.16/user/yr.

SAP SuccessFactors Signature Management by DocuSign

Undisclosed

SAP SuccessFactors Performance and Goals

$44.64/user/yr.

SAP SuccessFactors Compensation

$23.40/user/yr.

SAP SuccessFactors Learning

$22.20/user/yr.

SAP SuccessFactors Succession & Development

$22.92/user/yr.

SAP SuccessFactors Opportunity Marketplace

$22.32/user/yr.

Employee experience management

SAP SuccessFactors Work Zone

$68.64/user/yr.

SAP Candidate Experience by Qualtrics

Undisclosed

SAP Employee Engagement Bundle by Qualtrics

Undisclosed

SAP Employee Lifecycle by Qualtrics

Undisclosed

SAP Employee Technology Experience by Qualtrics

Undisclosed

HR analytics and workforce planning

SAP SuccessFactors Workforce Analytics

$33.48/user/yr.

SAP Analytics Cloud

Undisclosed

Note: SAP SuccessFactors also offers several sales-specific modules, which I did not outline in the chart above. For more information, check out SAP SuccessFactors HCM’s Sales Performance Management.

AI in HR software

SAP is hardly the only HR vendor that offers AI tools. Recruitment platforms, for example, have used AI for years to sort and identify highly qualified candidates from applicant pools. However, with the rise of generative AI, many vendors are announcing plans to integrate more AI capabilities into their products.

Similar to SAP’s Joule, for example, Workday announced its Illuminate AI model to streamline business processes within the “flow of work.” Gusto also recently announced the upcoming release of its own small business AI tool, Gus, to help you get answers to compliance questions and receive personalized insights about your business.

But a word of caution: these tools are still in their infancy, so always double-check the information it provides. AI also shouldn’t replace your professional decision-making or your human efforts to improve the employee experience.

You can learn more by exploring AI in HR: 6 Ways Artificial Intelligence Impacts the Workplace and AI Recruiting: Uses, Advantages, & Disadvantages.

Honorable mentions

HR software is a broad and segmented product category. Below are some runners-up that I think performed well in specific categories and may better suit your business’s needs.

Paycor: Best for companies with field and frontline workers

Alternative for: Rippling and BambooHR

Overall score: 3.83/5.00

When to choose Paycor

Paycor returns to my honorable mentions list in 2025 after I replaced it with Paylocity in 2024. Although both Paycor and Paylocity offer similar features and services, Paycor takes the lead with a slightly more intuitive interface.

I’m fond of Paycor’s mobile and tablet kiosk apps, which provide multiple options for frontline and field workers to keep track of their HR records and work time. Paycor is also the only one in my roundup that allows managers to submit group punches for employees, which is great for deskless employees whose work locations change daily. Pair this with Paycor’s badge, PIN, biometric, or telepunch timeclock hardware for stronger time management processes, especially in industries like restaurants and manufacturing.

Why it didn’t make the list

Paycor is a much more dated-looking platform than competitors like Rippling. Much of its data is still formatted like an Excel spreadsheet, increasing the learning curve for small businesses. For example, its pay grid for payroll processing can significantly speed up payroll processing for advanced users but can be very confusing if you’re unfamiliar with payroll.

In the news

In January 2025, Paychex acquired Paycor for $4.1 billion. My sources shared that Paychex and Paycor will continue to offer their products separately, but they remain coy on whether they have plans to merge their products—similar to Kronos and Ultimate Software of yore. While the Paycor Stadium name will remain unchanged, I’ll keep you updated as I learn more. If you’re curious, Paychex Flex earned a 3.76 out of 5.00 in my evaluation.

Paylocity: Best for workforce management

Alternative for: ADP Workforce Now

Overall score: 3.76/5.00

When to choose Paylocity

Paylocity is an HCM platform best suited for midsized businesses looking to support day-to-day operational and strategic HR needs. In fact, it tied with Rippling and SAP SuccessFactors HCM for the top place in the workforce management criterion since it offers strong time-tracking, scheduling, and leave management features.

Like Paycor, Paylocity offers physical timeclock options plus geolocation and geofencing abilities. However, its AI algorithm’s ability to start labor forecasting after three months of collecting data, plus the recent addition of its headcount planning module, means Paylocity can offer a more holistic view of your current and future staffing needs so you can strategize accordingly.

It’s also the only platform where workers can send private messages to coworkers in-app without needing a third-party communication solution like Slack. As a result, you can leverage Paylocity for workforce planning and process implementation.

Why it didn’t make the list

Paylocity has one of the most confusing interfaces, comparable to my time demoing UKG Ready and Zoho People. It takes multiple clicks to find the data you’re looking for — and don’t be surprised if you need to jump between tabs in Self-Service and HR & Payroll to request time off or confirm your paid time off balance.

Moving between modules can sometimes cause a pop-up window or inexplicably sign you out. This is a pain, especially when doing focus-intensive tasks like performance appraisals, workforce planning, or payroll, where I see the potential for losing your work to be a real issue.

Gusto: Best for new businesses in the U.S.

Alternative for: Deel

Overall score: 3.50/5.00

When to choose Gusto

Gusto is one of the best software for newbie HR professionals in the U.S. Navigating between modules is simple, and processes like payroll, job posting, and onboarding use step-by-step workflows to ensure proper completion. Gusto is a stepping-stone platform: it provides you with a good foundational understanding of HR to prepare you for more advanced capabilities in platforms like Paycor as your business grows.

New businesses in the U.S. will like its state registration services, R&D tax credits, government notice reporting, and state-required anti-harassment training courses. With a 4.00 score, Gusto also beat Deel in pricing since it provides much more affordable subscription tiers for small businesses.

Why it didn’t make the list

Although Gusto is an accessible platform for non-tech-savvy administrators, it quickly becomes unwieldy as you add more employees and develop more complicated work cadences.

For example, Gusto does not have the automation-building capabilities of solutions like Rippling and Deel. Its reporting capabilities are also lackluster, with its payroll trends report the only one with data visualizations. As a result, you’ll need to download your reports as CSVs to manipulate data and uncover meaningful insights for strategic HR planning.

Find your new HR software

How do you choose the best HR software?

“When selecting HR software, consider your business size, budget, day-to-day HR processes, and company goals. It’s crucial to have software that can manage compliance obligations, such as payroll and benefits administration. This software often comes with pre-built safeguards that limit labor law violations and prevent data entry errors, making it a must-have for your business.

That doesn’t mean HR processes like recruitment, retention, and employee performance and development are less important. Your organization should still have procedures to support these key areas. As your business grows, you’ll likely add HR software to cover these functions to improve process efficiency and access data insights that aid in effective workforce planning.”

Expert tip from Lead HR Writer Jessica Dennis

Also read: How to Choose the Right HR Software for your Business

What are the types of HR software?

There are three main categories of HR software: HRIS, HRMS, and HCM. Although they are often used interchangeably, there are several technical differences between them. Some HR software also focuses on specific human resources functions, like recruiting, onboarding, payroll, benefits administration, performance management, employee engagement, and learning management.

Also read: 14 Must-Have HR System Features

Core HR software

Human resources information systems (HRIS) offer a variety of capabilities for HR data management. The goal of these multi-function systems is to maintain individual employee data and handle the company’s regulatory and legal employment requirements.

An HRIS stores key details about an organization’s workforce, including employees’ personal information, employment details, performance metrics, and compensation history. HRIS platforms can also act as a repository for important HR documents like employment contracts, tax forms, and policy guides.

An HRIS can be a standalone product that integrates with other HR applications, or it can serve as a central database in an all-in-one HR software suite. At its core, an HRIS application focuses on optimizing processes associated with HR record-keeping and reporting.

You can further divide HRIS into five types: operational, strategic, tactical, limited-function, and comprehensive HRIS. To learn more, check out Types of Human Resource Information Systems (HRIS).

Human resources management systems (HRMS) focus on process optimization and cost efficiency. This type of software improves how an organization handles its HR processes by automating tasks and centralizing access to critical information.

Many HRMS products extend the functionality of a traditional HRIS by including tools for payroll, benefits administration, recruiting, and performance management. Some HRMS also offer tools for more robust reporting and forecasting purposes, like succession planning and position control.

Human capital management (HCM) software is often regarded as the largest umbrella in the HR software category. Most HCM solutions combine all of the functionalities of HRIS and HRMS platforms, plus additional features for employee engagement, learning management, and business intelligence. HCM software also offers advanced data analysis capabilities for business intelligence and HR process optimization.

HCM software cultivates human capital by streamlining all HR functions and creating a holistic view of the employee lifecycle. This breadth allows companies to maximize the potential of their employees and their contributions to organizational performance. To that end, HCM software adds tactical and strategic HR features to keep employees engaged and motivated to work toward the company’s business goals.

Function-specific HR software

Recruiting software, specifically applicant tracking systems (ATS), help hiring teams optimize the hiring process. It manages the entire recruitment process from beginning to end, from sourcing and screening candidates to extending job offers and onboarding new employees.

ATS platforms manage information related to different candidates, allowing hiring managers to compare candidates against each other and choose the best one for the job. Many recruiting software suites include applicant tracking features in addition to candidate relationship management and workforce planning capabilities.

Onboarding software facilitates the process of introducing new hires to a company. It typically includes capabilities such as electronic signatures, pre-boarding checklists, and employee questionnaires.

Effective onboarding platforms also include tools to help onboard onsite and remote employees, such as mobile and desktop support and customizable task assignments by role. That way, all necessary stakeholders timely complete their responsibilities to ensure a smooth employee onboarding experience.

Payroll software lets organizations track expenses, taxes, payouts, and schedules accurately. It also helps HR teams maintain compliance with labor and payroll regulations and analyze payroll data for discrepancies or inefficiencies. Organizations use payroll software to calculate, process, and record employee pay on time.

Payroll software can also come in different sizes and shapes depending on worker classification, company industry, and where employees live and work. For example, you may choose a contractor payroll solution if you only employ contractors. If you employ workers internationally, you’ll want to research global payroll systems to handle competing pay laws by country.

Performance management software enables organizations to assess employee skills, track goals, and monitor performance over time. Companies often use performance management software to coach employees and evaluate performance during formal reviews or through weekly pulse updates. It gives managers a clear view of employees’ growth and development in their roles.

Employee engagement software helps companies understand employee sentiment over time and identify areas where the employee experience can improve. These systems offer survey tools, follow-up workflows, gamification, and analytics to understand how employees feel about their work. Employee feedback data is then consolidated and analyzed to produce actionable insights that can improve retention.

Learning management systems (LMS), or eLearning systems, help HR teams design, organize, and deliver employee training programs. These systems can evaluate employee skills, track active certifications, and identify opportunities for professional development.

By incorporating this tool, HR can onboard new employees and keep tenured employees up to date with current industry knowledge standards. Moreover, LMS can optimize job and compliance training and learning and development.

What are the benefits of HR software?

HR software solutions offer businesses a number of advantages, including increased efficiency, consistent compliance, and deeper reporting capabilities.

Efficiency

Many HR software solutions include automation capabilities that drive the efficiency of different HR processes. When HR staff can spend less time on repetitive, manual tasks, they are able to focus on more valuable priorities. Additionally, HR software provides employees with direct access to the services employees need most so they can complete tasks like direct deposit updates or benefits enrollment independently.

Compliance

Compliance with HR-related laws and regulations is usually non-negotiable because of the costly penalties associated with violations. HR software helps organizations stay in compliance with current local, state, federal, and international laws, as well as industry-specific regulations. Typically, this manifests as built-in time and pay compliance warnings, legally mandated paperwork tracking, news on laws affecting your workforce, and access to HR best practices documents.

Reporting

Robust HR software reporting features help organizations make informed decisions with accurate data. Many HR platforms offer report generation templates to help users find the information they need quickly, and others offer advanced AI tools to support deeper data insights like predictive analytics and natural language processing.

How much does HR software cost?

Human resources software costs depend on multiple factors, including HR feature needs, deployment requirements, and employee headcount. The type of HR software is also a key factor, with all-in-one software typically more expensive than standalone options.

Most cloud-based HR software vendors use a per employee per month (PEPM) pricing model. For more information on HR software costs, explore the resources below:

How to get HR software buy-in from key executives

Of course, you already know the benefits of HR software: how it streamlines administrative tasks, simplifies the hiring process, and creates one central location for all your workforce data. But to get approval for such a significant investment, you’ll need to connect the dots for other decision-makers.

As such, a well-rounded proposal will cover how individual departments will benefit from new HR tech, whether by reducing costs, avoiding risks, or propelling strategic, long-term goals.

For new HR software, your CIO is concerned with integration complexities and loss of control over data and systems. They want to choose an agile system that will scale with the company’s growth projections and minimize the need for additional infrastructure. They will also want to know about potential hardware requirements, security controls, and implementation options.

When proposing your technology investment to a CFO, put the software’s cost-benefit analysis front and center. Establish a realistic budget before evaluating individual software options, then craft your proposal with facts and figures that show how HR initiatives maintain profit margins (or reduce costs), combat healthcare prices, and improve employee morale and productivity.

CEOs make high-level decisions about policy and strategy, so their buy-in is arguably the most important. To speak to your CEO’s top concerns, focus on how HR software will help your organization sustain a competitive workforce. Tools that support rich analytics, recruitment, performance management, and employee development are essential to hire, engage, and retain the top talent.