It’s easy to overlook human resources as a small businessman. It’s not as interesting as company activities that focus on revenue or growth, and having an HR department isn’t required by law.
Even organizations with a limited number of employees, however, have HR responsibilities. And if you don’t do things efficiently, they can suck up a lot of your time.
HR software is quite beneficial. These solutions help you develop HR processes and automating important functions for a minimal monthly charge. You’ll spend a lot less effort on them and a lot more time on the work you actually want to do.
The instruments are also effective. In a 2020 survey conducted by PWC, 74% of employers said they want to boost expenditure on HR technology. The most significant advantages they provide are increased productivity, workforce insights, and improved employee experience.
This post will cover ten of the most effective HR tools for smaller firms. I’ll also go over why you could need one or what to look for while making your decision.
Small Business HR Software at Its Finest
The greatest small business HR solutions that I’ll explore in this article are listed below. Each tool includes everything you’ll need to get going.
I’ve included a lot of free solutions for tiny businesses that only need the essentials. Paid products, on the other hand, provide wider support, a cleaner interface, and much more complex functionality.
Criteria for evaluating HR software for small businesses
What criteria do I use to choose the best HR systems for small businesses? The following is a list of my evaluation:
User Interface (UI): In any software, the user experience is critical. The finest tools feature a simple user interface that is easy to use on both mobile and desktop.
Usability: Small business HR systems must be user-friendly so that anyone may utilize them. Documentation and excellent customer service might also be beneficial.
Integrations: Using other technologies to automate chores is a great way to save time. When you establish an employee record, you might set up an interface that immediately adds users to a Slack channel. Alternatively, one that connects your payroll and accounting applications.
Small organizations typically do not have large funds for HR technology solutions. The tools on the this list either are inexpensive or completely free.
Key Features of HR Software for Small Businesses
A complete set of complex human resources functionality isn’t required for small businesses. Consider your business needs when selecting HR software, and select a product that thrives in these areas. This allows you to acquire the workforce management capabilities you require without paying too much.
Payroll automation is the one Complex work that every company must deal with. Payroll automation tools allow you to create procedures that collect information about worked hours and then make payments with a single click.
Self-service: Self-service allows your staff to do simple HR activities on their own. They can, for example, produce pay stubs without addressing anyone at your company. This allows your team members to rapidly obtain what they require, while you save time on these activities.
Attendance monitoring system: These capabilities allow you to keep track of who is working and when they are working. It can be linked to payroll tools to automate payment and provides visibility into future staffing concerns.
Hiring management: If the small business is rapidly expanding, hiring management tools are essential. These allow you to post job adverts on job boards and social networking sites, collect submissions, and manage candidates.
Onboarding and offboarding: Setting up automatic employee boarding and offboarding processes is another useful tool for small but developing businesses. Simply make a list of everything employees need to accomplish before they begin, offer them a hyperlink to your application, and they can do the tasks on their own.
Overviews Of The 10 Best HR Software for Small Businesses
Here’s a quick rundown of each SMB HR software, including its greatest use case, notable features, and screenshots of the user interface.
The majority of the products operate on a SaaS model, meaning means you have to pay a monthly fee to access them. There are some free and identity choices available.
1. Open HRMS – Most advanced open source HR management software
Forever Support options start at $499 per month.
The best open source hrm software is Open HMRS.
Small businesses require all of the HR tools that Open HRMS has to offer, including payroll.
Open HRMS is an open source human resources management system with a lot of useful features for small organisations. You’ll find tools to assist you handle things like punctuality, vacation, transfers, payroll, and appraisals.
I like how the product is split into components so you may tailor it to your own needs. This keeps you from being overburdened with features that aren’t necessary for your company’s size. Small firms have distinct HR needs than larger businesses, so organising the tools this way makes a lot of sense. You could always add new features later on if you require them.
The programme is free and open source. This implies you can use it for free to download, install, and manage it with your own server.
4. SnapHRM – Cloud HR Management Solution
Starting at $8 per month
SnapHRM is the best free HR management software for firms with fewer than five employees.
Using task boards that make sense to your team, such as Kanban or lists, manage the entire recruiting process from within SnapHRM.
SnapHRM is a cloud-based human resource management system that includes all of the essential HR features you’ll need to handle your workers. You can manage wage bill, track participation, handle vacation, and more by creating an employee database.
The recruiting management system is a fantastic feature. It enables you to create job posts that you can then post on third-party platforms in order to stimulate interest in your position. Then, by creating selection processes and scheduling interviews, you can keep moving applicants through the recruiting process. If your company is tiny but growing, this is a fantastic tool to have.
For organisations with fewer than five employees, SnapHRM is entirely free. This plan gives you full access to all features but no live support. Pricing for businesses with more than 50 employees is still reasonable, beginning at $8 per month.
2. Bitrix24
From $159/month
Bitrix24 is the best free internet solution available.
Bitrix keeps track of absences so you’re never short-staffed.
Bitrix24 is a browser-based human resources management system for small organisations. The software has a lot of capabilities that are handy for businesses who don’t have a huge HR department. An worker directory, attendance management functions, and document management are also included.
The self-service HR site is one of my favourite features. Employees can utilise it to access basic HR functions without having to speak with an HR representative. Workflows for holiday requests and business travel permits, for example, are set up.
Bitrix24’s essential capabilities are free to use, that may be all that small enterprises require. Pricing ranges from $0 to $159 per month if you require dedicated HR features. All options allow for an infinite number of users (also a bonus for SMBs).
Pricing is available upon request.
3. HR.my
HRMy – HR software that is absolutely free.
HR.MY gives you the option of creating a free account with an HR administrator or a self-service employee portal.
Because it is absolutely free, mine stands apart. You get limitless space, access to all services, and the ability to add as many employees as you want without paying a price. Because it’s a cloud-based application, you can use it from anywhere and don’t have to bother about upkeep or setup.
The catch is that the free edition is sponsored by advertisements. Although the commercials have no effect on functionality, they can be annoying. If you’d rather turn them off, you may do so by making a monthly $5 donation to the tool’s Kickstarter campaign. When users make this donation, you’ll also get an extra 3500 MB of file storage.
HR features are included in the software. You receive payroll, which keeps track of pay and bonuses and generates payslips; a serve as starting and attendance system, which keeps track of when workers work; leave management, which ensures you’re never short-staffed; and expense reporting, which keeps track of how employees spend company money.
Many of the capabilities allow you to construct automated approval workflows to save time. When someone files an expense, for example, the software will alert you so that you can accept or reject it.
You can register a free account with an HR administrator or a self-service employee portal on HR.MY.
Because it is absolutely free, mine stands apart. You get unlimited storage, access to everyone services, and the ability to add as many employees as you want without paying a price. Because it’s a cloud-based application, you can use it from anywhere and don’t have to bother about upkeep or setup.
The drawback would be that the free edition is sponsored by advertisements. Although the ads have no effect on functionality, they can be annoying. If you’d rather turn the advertisements off, you may do so by making a monthly $5 donation to the tool’s Kickstarter campaign. When you submit this donation, you’ll also get an extra 3500 MB of file storage.
HR features are included in the software. You receive payroll, which keeps track of salary and wages and generates payslips; a serve as starting & attendance system, which keeps track of when workers work; leave management, which ensures you’re never short-staffed; and expense reporting, which keeps track of how employees spend company money.
Many of the capabilities allow you to construct automated approval workflows to save time. When someone files an expense, for example, the software will alert you so that you can accept or reject it.
5. Fingercheck – All-in-One HR Platform
With such a $39 subscription fee, employees can pay as little as $8 per month.
Best for HR management is Fingercheck.
Fingercheck provides reporting options that are simple to understand.
Fingercheck is an HR solution with a robust feature set that includes software for recruiting, payroll management, planning, onboarding, and expenditure management.
Onboarding is critical to employee success, as any HR professional will tell you, and Fingercheck excels in this area. It allows you to construct onboarding sequences for new workers to follow when they start working for your organisation.
You can upload appropriate paperwork and the tool will generate all of the papers you need for compliance. The mobile app can be used to complete the entire onboarding process, includes signing forms. You may also use the dashboard as a manager to keep track of progress.
Fingercheck works with QuickBooks and Gusto, two third-party accounting programmes. This ensures that your financial and human resources departments are on same page. The monthly cost is $8 per employee, plus a $39 subscription charge.
6. Bright HR – HR Software For SMEs
Bright HR is the best vacation planning and PTO tracker on the market.
All employees’ profiles can be seen at the Bright HR worker hub.
Bright HR is a user-friendly human resource management system. It includes solutions tailored to the markets of the United Kingdom, Ireland, Canada, New Zealand, & Australia.
A list of such your employees can be found on the employee hub. It’s simple to establish new member profiles and assign them to the appropriate team. Each employee profile includes all relevant information, such as salary, role, yearly leave, and absences.
There’s also a useful calendar feature. You’ll be able to check whom have upcoming leave in this section, allowing you to plan ahead. You may also make rotas for each person to see who is working at what time. It’s simple to make the rota public, and the tool will notify relevant staff when you do so.
There’s also detailed reporting, a free software that tracks and approves costs, and a free app that constantly records when employees clock in and out. The basic package for BrightHR starts at $4.08 (£3) per worker each month.
7. Sapling– HR Onboarding Software
Sapling is an HR platform that is ideal for small but rapidly growing businesses. It can work with a variety of different tools, including Google Drive, Slack, Asana, as well as Xero. This implies that if your need to switch systems as your business grows, Sapling is likely to be able to accommodate it.
There are elements in the tool that allow you to construct procedures and workflows for many HR functions. You can, for example, develop an orientation workflow for new employees to follow. Simply give them proper link, and they’ll be able to complete the entire procedure online without needing to contact HR. It saves time for your team and guarantees that employees complete duties on schedule.
Sapling also provides tools for tracking time off, payroll, employee administration, and offboarding. It doesn’t list prices, but you may get an estimate by contacting the company.
Sapling’s onboarding module prices from $4.92/user/month, while the whole core HRIS service starts at $6.99/user/month made from 100 users.
8. Gusto – All-In-One People Platform for Payroll, Benefits, HR
Starting at $6 per employee per month
Gusto is the best option for self-employed payroll accountants.
Gusto makes managing employee benefits simple.
Gusto is a user-friendly HR management system. It includes all of the necessary tools. You can use time tracking software to monitor paid and unpaid absences, or you can set up payment to rapidly arrange and authorise payments. Meanwhile, the benefits administration tools assist you in establishing staff savings, health, & pension plans.
The concierge service is a fantastic tool for organisations without specialised HR expertise. This gives you phone or email access to a team of HR specialists. The plan also includes notifications and tips to assist you in remaining compliant with applicable rules.
Asana, Zoho, Bonusly, & Quickbooks are just a few of the HR, accounting, and basic apps that the tool interfaces with. Gusto has a monthly fee of $6 per employee plus a base price of $39 per month. The edition with the concierge is $12 per person each month on average a $149 base charge.
9. Paylocity – More Than Just Payroll Services
Pricing is available upon request.
Paylocity is the best option for self-service for employees.
Employees can take care of some HR responsibilities on their own using the Paylocity self-service portal.
Paylocity is a payroll and HR software suite. Small firms will benefit from the solution because it focuses on making Hr functions as simple as practicable.
For instance, the self-service application provides employees with everything they need to independently solve simple HR questions. They get self-service access to pay stubs, PTO balances, and bank deposit information. This can significantly decrease the amount of period you and your squad spend on human resources.
There are additional payroll automation solutions available that will help you save time on this chore. HR managers can track attendance automatically, ensuring that paychecks have always been on time and in the correct amount.
With over 300 integrations, Paylocity has a large app marketplace. The website does not disclose cost information up front, and you can politely request a demo.
10. Bamboo HR
Bamboo HR is the most effective tool for gauging employee happiness.
Bamboo HR is a well-known small-business HR management system. Employment data is collected all through the employee experience and stored in the tool’s secure databases. Employee management is made easier with this access to records.
Several HR functions are covered by the tool. The hiring feature set enhances the overall employment procedure. Everything from job postings to candidate tracking and administration is covered. You can also handle payroll and design complex onboarding sequences with the tool.
Building corporate culture is one of the most intriguing elements. To understand what people think about work, you can design anonymous employee satisfaction surveys. You may then monitor it over time to evaluate how successful your staff engagement activities are.
Other aspects facilitate employee performance reviews. This enables you to go from annual to more frequent reviews.
Essentials and advantage are the two options offered by Bamboo HR. For a quote, contact the firm.
Other HR Solutions for Small Businesses
It’s none of the tools listed above a great fit for your company? Then there are a few possibilities that didn’t make our top ten but could be a terrific fit for the right company. For additional information, see our post on the top HR tools in general.
CuteHR is the best option for remote teams.
GoCo provides the best customer service.
TriNet is the best option for HR outsourcing.
Heartland – The best HR solution
Do Small Businesses Need Human Resources?
HR is necessary for small enterprises. Someone at your firm needs to organize payroll, hire and integrate new staff, and manage the personnel, even if you don’t have a dedicated team.
All of these procedures can be made easier using HR software. Many tools will also help you through the complexities of compliance and employment legislation, which can be difficult if you aren’t an expert. Coming up with a solution with the functionality they require without needing to pay for superfluous extras is critical for small businesses.
What Can You Do If Your Business Doesn’t Have a Human Resources Department?
A specialised HR department is unlikely to exist in many small enterprises. This isn’t a problem because having one isn’t required by law.
However, you will have to educate yourself on HR functions or delegate responsibility to someone else on your team. If administering HR is taking up much more of your time, consider using software or hiring additional support.
What are your thoughts on these tools?
Have you tried any of these HR tools for small businesses? Then let us know in the comments in the comments section. Sign up for the People Managing People email if you want to learn further about HR and people management in your small business.