Best HR Software for Small Business

What is Small Business HR Software?

Small business HR software is a computerized program that organizes and manages Human Resource processes in small businesses. For example, many small business HR software programs manage payrolls, attendance, employee records, and performance evaluations.

A Human Resource Management Software or HRM software system is a type of Information System that manages an organization’s computerized Human Resource processes including but not limited to: payroll, attendance management, employee record management, and performance evaluation.

A firm can decide to implement a stand-alone human resource software for small businesses or integrate it with its Enterprise Resource Planning or ERP System. Most organizations choose to connect and integrate their small business HR software with other processes such as time tracking, accounts, and admin.

For a large-sized enterprise, the utility of HR Management software is obvious. Large enterprises have an entirely separate department dedicated just to Human Resources, owing to their large workforce and the complexity of issues that arise from the same. But is the investment in a small business HR Software for small business justifiable?

The fact remains that medium & small business HR Management software will definitely make the work of any HR Manager easier and allow them to spend more time on core and strategic HR functions, rather than wasting their time on routine activities that can easily be automated.

In a small/medium enterprise with 10-50 employees, a number of people, including the HR Manager would be performing multiple roles because of the lack of people at the disposal of the company. It is very likely that an HR Manager would be handling bookkeeping or administrative duties along with her core HR responsibilities.

So using HR software for SMEs actually makes a lot of sense despite the costs. It would reduce the workload of the HR Manager and would also decrease the likelihood of errors. Due to the differences between large enterprises and SMEs in the level of resources available, the scope of operations, and overall goals, the types of HR Software for small businesses would also differ from the ones used in big enterprises.

SMEs might want an HRMS with specific functionalities only as their scope of operations might not warrant a full-fledged HRMS with features that they might never even have to use. Therefore, smaller enterprises will be more selective in their choice of HR Management software.

Features of HR Management Software for Small Businesses

A small business HR Software must be equipped with the following modules:

1. Recruitment Module

A comprehensive recruitment management module in an HR Management system is vital to find the right person for the right job, and also to reducing the time taken to fill a vacancy. It will screen hundreds of applications in order to find the right fit for the company.

2. Time and Attendance + Absence and Leave Management

These are all highly interrelated functions within a small business HRMS. They are normally all interlinked within the HR management system. The time and attendance management module will keep track of the hours worked, late days, and billable hours. Similarly, the absence and leave management module is used for requesting and approval of leaves. This will help in workforce management.

3. Performance Management System

A key feature of any Human Resource software, the performance management system module is what allows managers to track the efficiency of their employees. The progress and the growth of individual employees are ascertained by monitoring KPIs and KRAs through this module. This can be a game changer for small enterprises with productivity problems.

4. Training Module

For new as well as old employees, learning is constant. HRMS should have a training module to help employees broaden their knowledge about multiple subjects and to aid their personal development.

Benefits of HR Software for Small and Medium Businesses

It is a myth that small and medium enterprises do not need an HRMS. There are reasons small business software exists. Installing human resource management software would confer a multitude of advantages to a small business, some of which are:

1. Training

A common misgiving among employees of smaller firms is that they do not receive proper/good-quality training. HR Management software would solve this problem. It can help SMEs to plan curriculums, track attendance, and evaluate progress for all the batches of employees in training.

2. Transparency

Human Resource Management Software would ensure that transparency is maintained by the small business HR professional in every aspect. Employees can contact senior employees through a professional channel. Employers can track the progress of their employees without having to oversee each employee personally.

3. Talent Acquisition and Retention

For SMEs, employee turnover might be a huge issue. With the help of human resource software, small firms can actually recruit the right kind of employees who would be less likely to leave. With certain small business HRM systems such as HRM Recruitment software and application tracking systems, small companies can undergo recruitment in an efficient and successful manner. It would help them retain employees more suited to their firm.

4. Time and Attendance

This is an obvious one. Most small business HR software either come with these features or can be easily integrated with employee time and attendance management software. This obviously helps a great deal in keeping track of employees and also in calculating hours worked for each employee.

5. Payroll and Compensation

HR software for small businesses will make payroll and compensation easier and more efficient. The employers will have complete visibility into what proportion of their resources are going to which employees. The HRM software saves the administration precious time, especially when integrated with accounts, payroll, and compensation become seamless.

6. Employee Development

Like training, this is another facet where small enterprises suffer. SMEs should address their employee development needs also in order to improve their retention. HR Management software makes it easier for both the employees and the employers to participate in the process of development.

7. Evaluation and Analysis of Metrics

The data gathered through an HRMS is evaluated using various analytics tools. It is capable of providing useful insight into employee costs, turnover rates, and engagement. Such information can be utilized for the improvement of business practices and processes, and for the development of better business strategies.

How to choose the Right HR Software for Small Businesses?

Let’s take a look at some of the things that you must keep in mind to land up with the best HR solution for your business:

Know Your Business

The most crucial step in selecting the right HR software for your business is to know your business well. You must have a thorough knowledge of what are the existing issues in your business, what are its plans for growth in the next few years, and so on. 

You will then need to work with your HR department and create a comprehensive list of requirements. As you explore various options for HR software solutions, you will get a clearer picture, and your specifications will become more detailed.

Evaluate Software Compatibility and Features

You do not want to invest time and money in buying a new HR software, only to find out at a later stage, that the new software is not compatible with your existing technology stack. Worse, you surely don’t want to find out that some features that are critical for your business are missing. 

So, before you buy any HR software, check whether it has all the features you need. Ensure that all current systems and those you plan to use in the future, such as your CRM, project management, ERP, payroll software, etc. will integrate seamlessly with the HR software. 

Don’t Just Buy Any Software!

Information is easy to come by in these times. To ensure proper service, support, and training, customers must do their homework about the human resource software and the vendor. Find out which companies are currently using the HR software and what has been their experience with it. 

Get references. Ask for feedback from existing users. Refer to ratings, testimonials, and reviews on multiple platforms to make a reliable decision. Find out the commonly reported issues with the software and assess whether they could be deal-breakers for you.

Proper training and adequate technical support are vital. Find out how many hours of training the vendor is willing to provide. Understand the full extent of the technical support that you can expect. Ensure that you will have adequate training and customer support from the vendor.

Try the Software

Most HR system providers offer a free trial. Practical, hands-on experience with the HR system will help you determine whether it is easy to use and how much training will be needed to be able to use it comfortably. 

It will also help you figure out whether the system simplifies data entry, or whether it can work well in tandem with your existing systems. It will also help you evaluate the quality of the reports and the analyses provided by the HR software.

Know the Bug Fix Policy

It’s common for solutions to have a few bugs occasionally. They’re unavoidable. However, you must find out how the vendor responds to bug reports. Every vendor has its own policies.

However, you must ask the following questions:

• Are there any patches available? 
• Will you have to wait for the next release? 
• How long will it take to get resolved? 
• How much will it cost? 

Hidden Cost

Last but not least, read the fine print. HR solutions are available at various price points. Pricing plans and structures may vary from vendor to vendor. It is essential to know all the cost exclusions and inclusions to avoid any unpleasant surprises later.

The last thing you want is to get on board with an HRM software solution and pay bills that you were not prepared to pay. Find out if there are any implementation costs, hardware/software upgrade costs, ongoing maintenance costs, additional training costs, etc. 

Top 20 HR Systems for Small Businesses

When we talk about HRMS (or Human Management Resource Management System) Software, the most well-known software available is often unjustified for all, except large organizations. Small organizations still struggle to find the most compatible software for their HR functions.

Fortunately for small companies, a stack of software is available that is economical and versatile. The primary decision such organizations need to make is between an in-house human resource management system and web- or- cloud-based software.

For those looking for the most attuned HRMS, here’s a list of the top 20 HRMS systems for small businesses.

1. sumHR

sumHR is a web-based human resource management system with effective communication and collaboration tools. It’s a perfect application for developing organizations with the need to streamline HRIS software processes, such as leave tracking, data sharing, and much more.

It empowers employee engagement within the organization and enables them to work together in groups by promoting easy collaboration. Some of the top companies using sumHR are Toyota, Cashkaro, etc.

You can set up a 360-degree performance review system to keep productivity in check.

Features

• OKRs and goal settings
• Payroll management
• HR & IT asset management
• Expense management
• Workflow management

Pros

• Compatible with mobile devices
• Self-service portal

Cons

• UI design is a bit clunky

Pricing

• Starting at ?75 per month

2. GreytHR

GreytHR, formerly known as Greytip, is a leading cloud human resource management system that comes equipped with a vast set of functionalities. It streamlines and automates various HR processes, including performance tracking, attendance management, and more.

Its self-service platform allows employees to track their own records and carry out actions like placing requests for leave directly. More than 9000 organizations use greytHR to manage their payroll and HR activities.

GreyHR has a total of 25 years of experience in the industry, processing ten lakhs of employees’ records daily.

Features

• Training and Performance tracking
• Employee information management
• Leave and attendance management
• Tax statutory compliance
• Benefits management

Pros

• Easy and hassle-free implementation
• Detailed guides and other resources

Cons

• User experience can be improved

Pricing

• Quote on request

3. ZingHR

ZingHR is an effective HRMS solution that leverages 18+ years of domain expertise into its system.

It offers a wide range of functionalities, including payroll management, time and attendance management, tax management, and more. With its real-time dashboard, you get clear visibility into various HR processes, allowing you to make informed and smart decisions.

Not only that, but it also ensures compliance to help avoid hefty fines. It handles more than a million employee records daily.

Features

• Reimbursement management
• Asset management
• Performance management
• Employee self-service portal
• Reports and analytics

Pros

• Seamless integration
• Best-in-class security

Cons

• Lacks knowledge management

Pricing

• Quote on request

4. HRStop

HRStop is one of the best human resource management systems specially designed to cater to the needs of small- to medium-sized businesses. It streamlines the entire employee lifecycle process — from hiring to training and retirement.

Trusted by more than 10,000 brands, companies like Springboard, Scripbox, and more, uses stop. It makes sure that you stay compliant with your employee KYC.

Furthermore, its extensive reports provide you with deep insights into every aspect of your company — enabling you to use resources effectively.

Features

• People management
• Recruitment
• Learning and development
• Employee engagement
• Grievance management

Pros

• Real-time attendance synchronization
• Easy to use

Cons

• Biometric integration is missing

Pricing

• Starting at ?2500 per month

5. PeopleWorks

PeopleWorks is a powerful and robust tool that offers an end-to-end human resource solution, right from hire to retirement. It is best suited for organizations with a large workforce as it is capable of centralizing and streamlining all HR-related processes and data on a global scale.

It enables geo-based attendance tracking and provides users with an integrated modular approach. It covers all aspects of human capital management on a single platform.

An award-winning HRM system, it is trusted by some top companies like GAP, Novotel, and more.

Features

• 360-degree feedback
• Applicant tracking
• Payroll management
• Compensation management
• Employee Database

Pros

• Active and reliable customer service
• Customization

Cons

• Few bugs reports

Pricing

• Quote on request

6. Beehive

Beehive is a modern, modular human resource management system that offers an AI-powered chatbox. It aims to simplify your HR-related tasks with strategic tools that enhance your organizational processes. The system acts as a centralized database for all employee-related information.

What’s more, it aids you in conducting the 360-degree performance appraisal process. It enables in-depth goal settings and custom reviews. The best part is that it offers a separate dashboard for the employee, manager, and management.

It serves many big companies, including Faber-Castell, Nippon Express, Bharat Serum and Vaccines, etc.

Features

• Attendance management
• Leave management
• Payroll management
• Performance management
• Travel and expense management

Pros

• Flexible, scalable, and secure
• Intelligent alerts and notifications

Cons

• The recruitment module can be made simpler

Pricing

• Quote on request

7. MyHR Suite

MyHR Suite is an integrated employee management system that offers a comprehensive HRM system. It maintains a complete database of employees’ lifecycle — right from hire to their retirement.

It is well known for its flexibility, allowing SMEs to adopt the system and streamline their processes easily.

Features

• Time and attendance management
• Employee self-service portal
• Performance management
• Training management
• Workflow administration

Pros

• Easy integration
• User-friendly

Pricing

• Starting at ?999 for 30 employees per month

8. Webpay  

Webpay, now known as Spine HRMS, is an all-in-one integrated HR software that is trusted by many small, medium, and large businesses across diversified domains.

It includes every aspect of HR, such as payroll, workforce talent management, and much more. With Webpay, you don’t have to worry about any disruption caused due to a delay in human resource management system software upgradation. This scalable system caters to the change in the working dynamics of the HR department.

Features

• Employee engagement
• Employee lifecycle
• Time and attendance management
• Travel desk
• Recruitment management

Pros

• High accuracy
• Reliable service

Cons

• The mobile app version is missing

Pricing

• Quote on request

9. Zeta HRMS

Zeta HRMS is a cloud-based HRIS system that offers a comprehensive human resources system for workforce management. Founded in 1998, it has over 2000 customers across 20 countries.

One of the best human resource management systems, it offers the best–in–class service and support, creating the ultimate HRMS system user experience. Furthermore, it provides employees with direct access to view and manage their own information.

Using the system, an HR manager can easily set up loan availability rules for employees, payroll structure, and much more.

Features

• Asset management
• Learning and development
• Performance management
• Compensation management
• Recruitment management

Pros

• User-friendly and intuitive interface
• Active customer support

Cons

• Limited bugs reported

Pricing

• Quote on request

10.  Paybooks

Paybooks is an all-in-one human resource management system that has over 15,000+ users in India alone. It takes care of every aspect of HR tasks — from managing employee information to payroll processing and tax compliance.

Considered as one of the top HRMS systems, it helps you manage everything from employee onboarding to exit in one place from anywhere. Besides, it is well known for its seamless integration with other third-party powerful apps, such as Zoho, QuickBooks, Oracle, Securax, etc. It becomes easy to expand its functionalities without any operational disruption.

Features

• Direct salary payment
• Leave management
• Inbuilt compliance
• Payslips and reports
• Income tax planner

Pros

• Mobile app for attendance
• Integrated biometric device

Cons

• The real-time update isn’t always available

Pricing

• Starting at ? 1800 per month

11. EmployWise

EmployWise is an award-winning, end-to-end employee management software that is quite easy to implement. With its plug-and-play module, you can start with whatever functions you need and keep adding more as your business starts growing.

It’s modular and requires no special skills to operate and make the most of the human resource management system. The best part is that you can easily import all your data from your previous system and get it running in no time.

EmployWise is considered one of the most cost and time-effective HRM solutions.

Features

• Compensation and benefits policies
• Time and attendance management
• Employee self-service portal
• Payroll management
• Employee database management

Pros

• Rich interface
• Highly flexible

Cons

• Design is a bit outdated

Pricing

• Starting at ?125 per month

12. Wallet HR

Wallet HR is one of the best HRMS system that provides an end-to-end solution right from employee recruitment to their retirement. In other words, it helps manage the entire employee lifecycle.

This human resource management system solution aims at streamlining different HR functions so the business can focus on increasing its productivity and revenue. It can be implemented across various industries, including retail, manufacturing, service industry, hospital, hospitality, and more.

It has more than 20 modules, serving more than 400+ clients till now.

Features

• Employee database
• Reporting
• Payroll and recruitment management
• Time and attendance management
• Travel and leave management

Pros

• Automated interview schedules
• High-level security

Cons

• Attendance data is not incorporated in the payroll

Pricing

• Quotes on request

13. Officenet

Officenet offers a robust HRM system that is best suited for mid and large-sized businesses. Using the system, you can easily check the complete lifecycle of an employee.

It can be deployed both as cloud and on-premise. Officenet brings ten years of expertise in the HR industry into their product. What’s more, its mobile application enables you to track movement with location, attendance punching, sharing information, and training.

It can be quite useful for companies with a large pool of field service workers.

Features

• Recruitment and onboarding
• Performance appraisal
• Payroll solution
• Learning and development
• Travel management

Pros

• Active and reliable customer support
• Intuitive interface

Pricing

Quote on request

14. Qandle

Qandle is an award-winning HRIS system that offers more than 22 modules that can be tailored to your business needs. It provides a single integrated platform to cover every HR-related activity in an employee’s lifecycle.

It is well known for its powerful reporting system that comes with an intuitive visual dashboard for easy understanding. You can have every single employee's complete information at your fingertips.

Companies like Tjori, Chanel, Supr Daily, and more use Qandle to manage their HR processes.

Features

• Records database
• Employee self-service
• Reports and analytics
• Compliance updates
• Asset management

Pros

• Fully configurable
• Bank-grade security

Pricing

• Quote on request

15. BreatheHR

BreatheHR is an ideal human resource management system for growing businesses as it eliminates the need to be bothered about mass HR administration and pay attention to the needs of their new business. It is a simple-to-use system that offers a robust set of functionalities, including HR task management, performance management, and much more.

The HR reporting module helps uncover insights that help make informed decisions, thereby increasing efficiency at work. Furthermore, it enables easy importing of data from your previous system, getting you started in no time.

Features

• Employee database
• Absence management
• Document management
• Recruitment tracking
• Staff holiday planner

Pros

• Rich HR dashboard
• Handy API integration

Cons

• Inefficient performance management

Pricing

• Starting at £per month per business

16. CavinHR

CavinHR is a uniquely designed human resources system that is suitable for businesses of all kinds. It is a web-based human resource management system that aims to streamline HR operations with its rich functionalities. CavinHR automates various HR processes, allowing employers to focus more on their people strategy.

Using the system, you can easily check in and check out to clock your presence from multiple devices. Besides, you can create custom time-off rules and build a comprehensive HR Leave Policy.

It can be accessed from various devices — desktop, laptop, mobile, and tablet.

Features

• Attendance and time tracking
• Leave calendar
• Employee self-service
• Travel management
• Employee database

Pros

• Robust reporting tool
• Value for money

Cons

• Lacks app support

Pricing

• Starting at $0.99 per user per month (billed annually)

17. SageHR (Formerly known as CakeHR)

If building your business is your prime focus, invest in SageHR — rated among the top human resource management system solutions. It checks the money and time that is spent on solving employees’ issues such as leave requests, attendance, performance, etc.

In just a few clicks, you can upload your employee database to your new online staff directory. It automates and streamlines your HR processes, keeping track of random time-off, and shift change requests.

Companies like Deloitte, Twino, Paperless Post, etc., are using SageHR.

Features

• Leave management
• Timesheets
• Shift scheduling
• Onboarding
• Self-service portal

Pros

• Seamless integration with third-party apps
• User-friendly interface

Cons

• Lack of good customer support

Pricing

• Starting at $5.5 per user per month

18. PeopleBookHR

An easy to use and flexible HRMS system that handles some of the most vital statistics of HR, that’s PeopleBookHR for you! It is a web-based solution perfectly suited for organizations that want to incorporate modern HR operations in their business.

Its automated functionality can bring about centralized management in any organization, thus, making the performance of the business much more efficient.

What sets it apart is that it allows you to create customized reports as per your requirements. It also provides free training for easy accessibility.

Features

• Employee information management
• Leave management
• Payroll
• Disciplinary tracking
• Asset management

Pros

• Flexible and easy-to-use
• Excellent customer service

Cons

• The menu option is not easily visible

Pricing

• Quote on request

19. Zenefits

One of the best HRMS systems, Zenefits, has been specially designed to efficiently and cost-effectively fulfill all HR-related requirements of a business. The system comes with an excellent user interface, making it easy to use and navigate.

The best part is that it can easily integrate with various third-party applications, such as payroll, employee benefits, and onboarding. It is highly suitable for small businesses looking to simplify their operations.

Some of their top clients are Lens rentals, Fireclay Tile, Impact, and more.

Features

• Onboarding
• Compensation
• Time and scheduling
• Performance management
• Tax and filling

Pros

• Reporting
• Tax compliance

Cons

• Lacks good insurance integration

Pricing

• Starting at $21 per month per employee

20. SigmaHR

An award-winning human resource management system, SigmaHR, is an ideal choice for enterprises that are medium to large sizes. It aims to streamline HR functions, such as training, recruiting, skills management, performance evaluation, etc.

Apart from HR solutions, SigmaHR also offers solutions in Occupational Safety and Health (OSHA) and Time management. It helps manage all aspects of labor relations: digitization and management of the BDES, production of the Single Staff Register and CSR reports, control of the CSE, and management of strikes and elections.

Features

• Talent management
• Time and leave management
• HR shared service center
• Social relations
• Expense management

Pros

• Report generation
• Active customer support

Cons

• Lacks ease of use for newbie employees

Pricing

• Quote on request

HR software solutions simplify payroll management and ensure statutory compliance. They make recruitment quick and easy. The best HRMS solutions can automate manual processes extensively, save businesses vast amounts of time and money, and improve overall efficiency.

It can, however, have the opposite effect if you do not choose the right human resource software solution for your business from so many of those available today. If your human resource system does not solve critical issues with your existing processes or is too difficult to use, all your investment will go down the drain.