Hr App for Small Business

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When you’re putting so much of yourself into your small business, it can be easy to think of HR as a line item or fixed cost with few variables—once the HR box has been checked, it’s time to move on to more important things. But as your small business grows into a medium-sized business, great HR can have an enormous positive impact on your bottom line, as long as you can keep up with the exponentially-increasing amount of time, thought, and effort it takes to respond to employees’ HR needs.

When done right, HR leads to a host of long-term benefits, including faster communication between employees, improved employee engagement, and more successful recruiting as your business gains a reputation for professionalism and competence. These benefits far outweigh the cost of moving on from DIY spreadsheet HR.

There comes a point in the growth of every small business when it’s time to stop bootstrapping and invest in a ladder—and the right HR software can provide the boost you need to unlock the benefits of well-managed employees.Learn MoreImage of desk stuff

How do you know when your small business needs an HR software solution?

Your small business might not have 100 employees yet—it may not even have 50. But if your business grows beyond its current state, your employees will need structure and leadership, and you will need people who can support great managers, help define your company values, and maintain the effective, positive culture you value as a small business owner.

In short, you’ll need effective HR to grow—and great HR only happens when HR professionals have the time and the tools to make a difference for the people in your organization. Without assistance, HR can become so blinded by data management, compliance concerns, resumes, tax calculations, and mountains of paperwork that the work of keeping everyone together goes undone. In the end, HR software is not just about saving HR’s time and money by automating routine tasks—more importantly, it enables HR to extend those benefits to the rest of the business so your employees can spend their time and resources on progress instead of administrative tasks.

Best HR Software for Small Business in 2022

REVIEWED BY: Charlette Beasley

Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.

WRITTEN BY: Robie Ann Ferrer

Published December 15, 2021

Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses.

This article is part of a larger series on Payroll Services.

Not every business can afford a full HR staff, and in some cases, an HR software or service can take an employee’s place at a fraction of the price. The best HR software for small business can handle a multitude of tasks such as hiring, payroll, benefits, and performance management. Many providers offer all-in-one systems, while others have stand-alone solutions that you can purchase separately. Some even provide professional employer organization (PEO) services for small businesses needing expert help in handling day-to-day HR.

We compiled a list of nine top small business HR software in this guide.

  • Rippling: Best overall HR software for small businesses
  • Gusto: Best for small businesses needing payroll software with basic HR support
  • Paychex: Best for solopreneurs looking for payroll and business incorporation services
  • Zenefits: Best for companies in highly regulated industries
  • ADP Run: Best for small businesses that plan to grow into large enterprises
  • Paycor: Best for companies that want fully configurable payroll with robust HR tools
  • BambooHR: Best for businesses needing to foster employee loyalty and minimize turnover
  • Zoho People: Best for budget-conscious companies
  • Homebase: Best for employers looking for unlimited time tracking and employee scheduling tools

Top HR Software for Small Business Compared

Free planStarter Monthly PricingApplicant Tracking and Job PostingsOnboarding ToolsTime TrackingPayrollEmployee BenefitsLearning ManagementPerformance ManagementPEO*****
Rippling✕$10 per employee*✓**✓**✓**✓**✓**✓**✕✓
Gusto✕$39 + $6 per employee✕✓✓✓Health plans limited to 39 states✕✕✕
Paychex✕$39 + $5 per employee✓**✓✓**✓✓✓✕✓
Zenefits✕$10 per employee✕✓✓✓**Health plans not available in Hawaii✓✓✕
ADP Run✕Custom-priced✓**✓✓**✓✓✓✕***✓
Paycor✕$99 + $5 per employee✓**✓✓**✓✓✓✓✕
BambooHR✕Custom-priced✓✓✓**✓**✕✕✓**✕
Zoho PeopleLimited to five users$1.50 per employee✓**✓✓✕✕✓✓✕
HomebaseFor one-location businesses$14 per location✓✕✓✓****✕✕✕✕

*Based on a quote we received and only covers monthly fees for Rippling’s core employee management solution

**Paid add-on

***Available in its ADP Workforce Now product

****Available only in 43 states, although Homebase is looking to expand coverage soon

*****PEO services cost extra

Numerous buyer’s guides across our site evaluate these HR software using a 5-star scale, with criteria specific to the type of businesses they cater to and the solutions they offer (such as payroll, HR information management, PEO, and global payroll). We also considered its affordability and ease of use. You can look at any of the featured products below in specific buyers guides that may apply to your business.

Rippling: Best Overall HR Software for Small Business

Rippling Logo

What We Like

  • Offers full-service HR and payroll options
  • Has modular HR, payroll, benefits, and IT solutions
  • Provides international payroll and PEO services
  • Integrates with more than 400 apps

What’s Missing

  • Its employee management solution must be purchased before adding other modules
  • Gets pricey as you add features
  • Phone support from HR experts costs extra
  • PEO service isn’t IRS and ESAC certified

Rippling Pricing*

  • Employee management platform: $10 per employee monthly
  • Full-service payroll: $8 per employee monthly
  • Employee benefits: $6 per employee monthly
  • Flex HSA/FSA and commuter benefits: $6 per employee monthly
  • HR help desk: $100 per month
  • App management: $8 per employee monthly
  • Device management: $8 per employee monthly

*Pricing is based on a quote we received

Rippling is the best overall HR software for small businesses because it offers a range of HR products that you can choose to integrate now, later, or never. Compared to Gusto and Homebase, it is pretty robust in offering more than just basic HR features. Aside from an employee database, you get applicant tracking, payroll, benefits administration and plan options, time tracking, learning management, and onboarding solutions. It even provides PEO and international payroll services.

In addition, Rippling is an excellent choice for tech-heavy companies because its modular system not only handles HR and payroll but IT functions as well. It lets you assign computers and software to new hires as part of the onboarding process and has device and app deprovisioning tools for resigning employees. With more companies going remote and relying on technology to function, having a system that specializes in this area is essential.

Rippling Is Featured in:

Rippling Features

  • Modular solutions: Big providers like Paychex and ADP Run focus on providing more bundled options at less transparent rates. While Rippling’s pricing isn’t all transparent either, what’s great about its system is that you can select the features you want based on the HR needs of your business. However, you have to purchase its core employee management solution before you can add other modules to its software.
  • Hiring tools: Hiring support is a big role for HR teams, and Rippling provides numerous tools to help. Its applicant tracking product makes it easy to find qualified candidates and manage screening processes. Aside from listing job ads on major job posting sites (like Indeed and LinkedIn), sending offer letters and running background checks are done completely online. Plus, you only need to input basic hiring information for incoming employees into its system, and Rippling will guide your new hires through the onboarding process.
  • IT solutions: Rippling is the only HR software we reviewed that provides basic IT solutions for setting up and managing your employees’ computers and business software. You can even order laptops through Rippling, and all of your staff’s system permissions and app accounts will be set up. If you have resigning employees, Rippling can also help with the deprovisioning process and store your computers in its warehouse for safekeeping and reassignment.
  • Robust software integrations: None of the other software in this guide have as robust third-party integration options as Rippling does. It connects with over 400 software applications, making it much more efficient for companies planning to add Rippling to an existing group of software products.
  • Payroll processing: Payroll is an add-on but still a quality system for users that need HR and payroll support. It offers direct deposit payments and tax filing services, plus it can handle payroll for W-2 and 1099 staff, including international employees. Reporting is also intuitive—it has metrics you can evaluate immediately before running payroll to ensure you’re not missing anything.
  • Help desk: Rippling provides customer service, although not over the phone unless you’re willing to pay a flat monthly rate. You can also email and chat with them, and many users say they’re very responsive. However, if you want dedicated support, consider either ADP Run or Paychex.
  • Flexible PEO: Rippling offers PEO services you can turn on when you need to outsource your HR administration; you can also turn it off with the click of a button when you’re back to only needing the software. ADP Run and Paychex may have PEO services, but they lack Rippling’s easy on/off button. In addition, ADP’s PEO (ADP TotalSource) is a completely separate product that runs on a different software than its small business HR and payroll solutions, so toggling back and forth isn’t an option.

Rippling User Reviews

Rippling earned an average score of 4.7 out of 5 on popular user review sites like G2 and Capterra. Users said they love the intuitive interface and easy integrations. Several others also commented that its robust solutions, ease of use, customizability, and good customer service are standout features.

Read Our Full Rippling Review

Gusto: Best for Small Businesses Needing a Payroll Solution

Gusto logo

What We Like

  • Pays federal, state and local payroll taxes
  • Unlimited pay runs
  • Low-cost contractor-only plan

What’s Missing

  • Health insurance is available only in 39 states
  • Doesn’t provide international payroll service
  • Not customizable for large complex businesses

Gusto Pricing

  • Core: $39 per month + $6 per employee monthly
  • Complete: $39 per month + $12 per employee monthly
  • Concierge: $149 per month + $12 per employee monthly
  • Contractor-only plan: $6 per contractor monthly

Gusto is a top-rated small business payroll software because of its affordably priced plans and full-service features. Aside from filing your payroll taxes and W-2/1099 year-end tax reports, it manages paid time off (PTO), administers workers’ compensation, and provides access to several benefits options. You can also run payroll an unlimited number of times and pay employees via direct deposits, checks, and pay cards. Note that many of the providers in this guide don’t offer pay cards or on-demand pay as a payment option, although ADP Run and Paychex do.

Gusto Is Featured in:

Gusto Features

  • Affordable payroll processing: Its affordably priced plans with full-service payroll, payroll tax filings, and unlimited pay runs are just some of the reasons why Gusto is included in and even topped several of our buyer’s guides. With monthly fees that start at $39 plus $6 per employee, it’s optimal for small businesses looking for solid pay processing tools. This is unlike Rippling, Zenefits, BambooHR, and Homebase, which offer payroll as an add-on, and you’re required to purchase their core HR products first. Zoho People also offers payroll as an add-on, but you must be based in India to use it.
  • Robust payment options: You can pay employees by direct deposit and pay card. You can also pay via paper check—if you print on your own (some providers, like ADP Run, offer check signing and stuffing services). In case your employees need to withdraw money between paydays, Gusto has a “Gusto Cashout” option that grants them advanced access to their earned salary.
  • Benefits administration: Gusto offers a wide range of benefits such as health, dental, and vision insurance, commuter benefits, retirement plans, HSA, FSA, and 529 college savings accounts. The kicker is that its health insurance is not available in 11 states (Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, West Virginia, Wyoming) as of this writing. If this is a deal breaker for you, consider Paycor, Paychex, and ADP Run for benefits available across the US. Rippling also has extensive coverage, but its benefits modules are paid add-ons.
  • Basic HR tools: Gusto doesn’t compare to Paychex or ADP Run on the number of HR features and tools available. It doesn’t have applicant tracking and job postings, but it does provide for average small business needs like offer letters, online W-4 and I-9 forms, HR documents, basic time tracking, and a self-onboarding portal.
  • In-house HR expertise: Gusto provides access to certified HR experts—you can direct any compliance and HR questions you have to them. However, you’ll need to subscribe to Gusto’s highest plan to get it.

Gusto User Reviews

Gusto is rated highly on user review sites like Capterra and G2 with an average score of 4.5 out of 5. Employers and employees praise the interface and ease of running payroll. Some reviewers also appreciate how it handles filing of payroll taxes. However, a few complained about having experienced slow load times when accessing its software.

Read Our Full Gusto Review

Paychex: Best for Solopreneurs Wanting Payroll & Business Incorporation Services

Paychex logo

What We Like

  • Flexible payroll and HR plans, even one for solopreneurs
  • Advanced HR tools available with employee benefits options
  • Dedicated payroll specialist
  • 24/7 customer support

What’s Missing

  • Pricing isn’t all transparent
  • Software comes with a learning curve (due to the many features)
  • Payroll tax administration and year-end tax reports cost extra
  • Different contacts for different HR and payroll products

Paychex Pricing

  • Paychex Flex Essentials: $39 per month + $5 per employee monthly
  • Paychex Flex Select: Custom-priced
  • Paychex Flex Pro: Custom-priced

Paychex Plan for Solopreneurs and the Self-Employed

  • Paychex Solo: Custom-priced

Paychex offers HR software and services to businesses of all sizes. It has a Paychex Solo package for solopreneurs and the self-employed that includes payroll, a retirement plan option, and business incorporation services. It also provides Paychex Flex, which solopreneurs can transition to once their business has grown; it comes with full-service payroll, payroll tax administration, employee benefits, new hire onboarding, and a learning management solution. You even get a dedicated payroll specialist and access to HR advisers. Plus, like Rippling and ADP, Paychex offers a complete PEO option with benefits management and HR consulting.

Paychex Is Featured in:

Paychex Features

  • Multiple plan options: Paychex offers multiple plans that target different business sizes. Its Paychex Solo tier even sets this provider apart from the other HR software that we reviewed since none of those offer options specific to solopreneurs. It also has a Paychex Flex product that has three plan options, wherein premium plans come with more compliance support. It even provides a PEO package, a service that other competitors on this list don’t offer (except Rippling and ADP).
  • Robust HR tools: In part, Paychex earned its way into this list because of the numerous HR tools it has. It ranges from onboarding and time tracking to workforce management and training options—although some of these features typically cost extra.
  • Strong hiring support: Paychex’s hiring tools can help you find qualified candidates and ensure they’re the right fit when you’re ready to grow. Applicant tracking, background checks, and employee screening solutions are also available. Its team of HR professionals can even provide recommendations and expert support in case you have recruiting concerns. And to help get your new hires up to speed on the job, Paychex offers online learning sessions, including sexual harassment prevention training.
  • Benefits and insurance options: Paychex is licensed as an insurer, so it offers insurance directly. Unlike Gusto and Zenefits, which have limited health benefit coverage, Paychex’s health insurance covers all 50 states. Also, one unique benefit Paychex provides that the other providers in this list don’t is financial wellness tools—although this is a paid add-on.
  • Payroll processing: Paychex can manage both employee and contractor payroll, but it doesn’t have the low-cost contractor-only plan that Gusto offers. While it can handle tax payments and filings to federal, state, and local agencies, you have to pay extra for some of its payroll administration services.

Paychex User Reviews

Users who left positive Paychex reviews online said that it offers good reporting options, great onboarding functionalities, and an easy-to-learn interface. We also found its platform simple to use because it does not crowd its interface with extraneous features. Overall, its average user rating on G2 and Capterra is 4.15 out of 5.

Read Our Full Paychex Flex Review

Zenefits: Best for Companies in Highly Regulated Industries

Zenefits logo

What We Like

  • Easy to use
  • Affordable plans with multiple options
  • Strong compliance tools with HR advisory services

What’s Missing

  • Payroll and advisory services are paid add-ons
  • Medical, vision, and dental plans not available in Hawaii
  • All plans and add-ons have a minimum five employee requirement

Zenefits Pricing*

  • Essentials: $10 per employee monthly
  • Growth: $18 per employee monthly
  • Zen: $27 per employee monthly

Add-on tools and services*

  • Payroll: $6 per employee monthly
  • Advisory services: $10 per employee monthly
  • Benefits administration using own broker: $5 per employee monthly

*Requires at least five employees.

Annual plans are also available with slightly lower rates.

Zenefits is easy-to-use HR software designed to organize employee data and streamline processes. What makes it optimal for businesses in highly regulated industries is its robust compliance solutions that include overtime safeguards, state-compliant paystubs, and an online “Compliance Assistant” that helps track your compliance status and alerts you of submission deadlines for unique forms critical to your business.

Its core product is HR, but you can add payroll functionalities to its platform. Time and attendance tracking tools are also included in all of its plans—functionalities that the other providers in this list (except Homebase) charge extra for. Gusto, on the other hand, only offers basic time tracking in its premium tiers.

Zenefits Is Featured in:

Zenefits Features

  • Hiring support: The good thing about Zenefits is that its base HR product includes the basic hiring features small businesses need—from online offer letters to self-onboarding and employee information management. Storing new hire forms and other company files (like policies and handbooks) is also made easy with Zenefits’ document management feature. However, it lacks the job postings of Homebase, Rippling, and ADP; the hiring services of Paychex; and the applicant tracking tools of BambooHR, Zoho, and Paycor. Gusto doesn’t have recruiting capabilities, although it has onboarding features.
  • Feature-rich platform: Zenefits’ HR solutions are designed to handle all aspects of the employee lifecycle. In addition to hiring and payroll processing, it has compensation, PTO, and benefits management modules. Monitoring employees’ work performance and engagement levels are possible with its full suite of performance reviews, goals management, and survey tools. It also helps administer your benefits plans, but its medical, vision, and dental insurance options do not cover Hawaii. For health insurance that covers all US states, consider Paycor, ADP Run, or Paychex. Rippling is also a good option but its benefits modules are paid add-ons.
  • Time and scheduling in every plan: In all of Zenefits’ plans, time and scheduling are included—this means no add-on fees. This is a great feature for companies with hourly employees because they won’t have to shop around for time clocks and other systems that integrate.
  • Pay processing: Zenefits can handle both employee and contractor payments, as well as tip reporting and wage garnishments. In addition to payroll tax calculations (federal, state, and local taxes), the provider will remit tax payments and file the applicable tax forms for you. However, unlike Gusto, ADP Run, Paychex, and Paycor, which include payroll in all of their plans, Zenefits charges extra for this.

Zenefits User Reviews

Overall, Zenefits earned an average score of 4.15 out of 5 on G2 and Capterra. Many reviewers said that it is generally affordable and easy to use, although some users wish for more setup support and help dealing with tax issues.

Read Our Full Zenefits Review

ADP Run: Best for Small Businesses Planning to Grow Into Large Enterprises

Run by ADP Logo

What We Like

  • Flexible plan options
  • Offers secure paychecks with advanced fraud protection
  • Wide range of HR and payroll solutions; even has PEO services

What’s Missing

  • Non-transparent pricing
  • W-2/1099 form delivery and filing services cost extra
  • Time tracking, health insurance, and workers’ compensation are paid add-ons

ADP Run Pricing

  • Essential: Custom-priced
  • Enhanced: Custom-priced
  • Complete: Custom-priced
  • HR Pro: Custom-priced

ADP has a range of plan options that serve businesses with up to 1,000+ employees—its ADP Run product is a good entry point for small businesses. It also offers a PEO option that’s great for scaling companies needing support in the initial growth stage but not yet ready for an in-house HR team. ADP differs from Paychex in that its features are much more robust and services versatile, making it easy for you to add solutions as your business grows. Small business competitors like Gusto don’t have products to support companies from hire to retire, and definitely not from startup to enterprise.

ADP Run shows up in many of our buyer’s guides, and when it doesn’t, it’s often because of its price and size—it’s a larger company that can sometimes be difficult to navigate. And while you need to call ADP for pricing, its plans (which have payroll as the base solution) are customizable, so you can include all of the features your business needs.

ADP Is Featured in:

ADP Run Features

  • Flexible plan options: ADP Run is most comparable to Paychex Flex and offers a set of plans for small businesses and enterprises—although ADP doesn’t have a special tier for solopreneurs. You can also upgrade to its PEO service when you feel like you need the work and expertise of an HR manager but aren’t yet ready to hire one full time. However, it isn’t as flexible as Rippling, which lets you easily turn off PEO and switch to using its software again.
  • Robust hiring tools: ADP doesn’t just post to a couple of job sites, but 25,000. It also provides training tools, including prerecorded training courses to help you scale faster. Ultimately, it gives you the solutions to onboard new employees efficiently without taking away unnecessary time from your schedule.
  • Benefits administration: Like Paychex, ADP issues insurance directly from its organization. You can choose from health plans to retirement options and more. ADP even has retail and restaurant discounts that you can offer as a perk to employees. Further, it’s licensed in all 50 states, so you don’t have to worry whether or not your business is covered—Zenefits health plans don’t cover Hawaii; Gusto health insurance is limited to 39 states; and Homebase doesn’t offer benefits plans.
  • Employee payment options: Aside from direct deposits, ADP has a pay card program to give your unbanked employees more payment receipt options. Subscribing to one of ADP Run’s premium plans also grants you access to secure paychecks with check signing and stuffing services. It even delivers the checks to your office so you can distribute them to your employees on pay day. None of the other providers in this guide offer robust paycheck services.

ADP Run User Reviews

Many of the online ADP Run reviews are positive. Users appreciate its user-friendly tools, reporting capabilities, and ease of processing payroll. However, others said that while it has robust HR features, it can be pricey for small businesses. Overall, ADP Run scored an average rating of 4.55 on G2 and Capterra.

Read Our Full ADP Run Review

Paycor: Best for Companies Needing Fully Configurable Payroll & Robust HR Tools

Paycor logo

What We Like

  • Solid payroll features with fully customizable pay grids
  • Wide range of HR solutions (such as scheduling, time tracking, learning management, compensation planning, and engagement surveys)
  • Generally easy to set up and use

What’s Missing

  • Expensive
  • Starter plan only has basic tools
  • Recruiting, time and scheduling, workers’ compensation, and benefits administration are paid add-ons

Paycor Pricing

Small business plans (up to 49 employees)

  • Basic: $99 per month + $5 per employee monthly
  • Essential: $149 per month + $6 per employee monthly
  • Complete: $199 per month + $7 per employee monthly
  • HCM: $199 per month + $12 per employee monthly

Mid-market plans (50+ employees): Custom-priced

Paycor’s core service is payroll, but it also provides solid HR support. Like other HR software in this guide (except Gusto and Homebase), Paycor offers a feature-rich platform for managing a wide range of HR processes, from hiring and time tracking to compensation planning and talent development. It even has pay grids and pay slips that you can customize to fit your business’ complex pay processing needs. However, it’s the most expensive HR software for small business that we reviewed—with a starter Basic plan costing $99 plus $5 per employee monthly.

Paycor Is Featured in:

Paycor Features

  • Payroll processing: Its payroll tools include tax payment and filing services, year-end tax reporting, and proactive alerts in case there are payroll errors. Employees can use its self-service portal to view their pay slips, tax forms, and benefits information online. However, for $99 plus $5 per employee monthly, its starter plan with payroll and HR tools isn’t as reasonably priced as Paychex ($39 plus $5 per employee), or even Rippling and Zenefits, which both offer payroll as an add-on ($18 per employee monthly and $16 per employee monthly, respectively). You can also find other affordable options if payroll is all you need, like Gusto ($39 plus $6 per employee monthly).
  • Advanced HR features: For companies focused on employee management, its training, talent development, and performance management modules are useful. It even provides a compensation solution designed to help you plan and execute salary increases, bonuses, and rewards. Aside from Zenefits, none of the providers in this list offer a solution that streamlines compensation planning. However, Paycor lacks compensation benchmarking capabilities. If you need salary comparison tools, consider ADP’s DataCloud, which provides current market insights to aid you in creating competitive salary packages.
  • Hiring tools to support growth: Companies that need support as they grow will find Paycor’s recruiting and applicant tracking tools helpful as it streamlines essential hiring processes like resume parsing and sending offer letters. You can even create a career page to help boost your employer brand. However, its job postings don’t reach 25,000 job sites like ADP does.
  • Dedicated HR professionals: You can get access to dedicated HR professionals who will help you answer questions about payroll and HR compliance. Their job is to stay abreast of changing regulations, so they’re always able to inform you when you need to make changes (like minimum wage and payroll tax regulation updates).

Paycor User Reviews

Users who rated Paycor on G2 and Capterra gave it an average score of 4.5 out of 5. They say the software is easy to use with efficient time tracking and payroll functionalities. Others commented that while customer service is generally good, the wait times are sometimes long.

Read Our Full Paycor Review

BambooHR: Best for Companies Focused on Building Employee Loyalty

BambooHR Logo

What We Like

  • Ease of use
  • Intuitive interface
  • Robust employee management tools
  • Integrates with over 50 apps

What’s Missing

  • Pricing isn’t transparent
  • Payroll, time tracking, and performance management are paid add-ons
  • Phone support is only available in the highest plan
  • Lacks benefits options

BambooHR Pricing

  • Essentials: Custom-priced
  • Advantage: Custom-priced

BambooHR is a strong competitor for best HR software because it offers a suite of solutions for managing day-to-day HR operations such as tracking applicants, onboarding new employees, and monitoring PTO and hours worked. Unlike Homebase, Zoho People, Gusto, and Rippling, it has performance management features with both manager and employee assessment solutions for identifying your staff’s strengths and highlighting skills for development. This allows you to recognize achievements and reward high-performing workers—which is pivotal to minimizing turnover and building employee loyalty. Plus, its staff satisfaction surveys not only pinpoint areas for improvement but help you know what makes employees feel engaged and valued.

BambooHR Is Featured in:

BambooHR Features

  • Engagement tools: The system allows you to run satisfaction surveys that come with Net Promoter Scores (NPS) for measuring employee loyalty and engagement levels. It helps you gauge how your workers feel about the company so you can identify where to improve. Like survey tools from ADP, Gusto, Zenefits, and Paycor, this functionality is available only in BambooHR’s premium plans. However, it is still better compared to the other four software in this list that don’t have engagement survey capabilities.
  • Employee management: Access and store employee information in one centralized database. All staff data changes you make to the HR database will automatically flow to its other solutions, including third-party integrations—this helps streamline processes and reduce errors due to duplicate data entries. It also comes with permission settings that allow you to control what employees can edit and view in BambooHR’s self-service portal.
  • Learning management: One feature that Gusto, Homebase, and Zenefits don’t offer is training tracking. With BambooHR, you can set up the different training required for each employee (plus optional ones) with deadlines you can use to confirm they completed on time. This helps support your employees’ developmental plans and ensures your staff attend required programs like sexual harassment prevention training.
  • Marketplace and app integrations: BambooHR integrates with many apps (more than 50), which are all available on the Bamboo Marketplace. And if your business is already using software it doesn’t want to let go of, BambooHR’s open API can help share information across the different systems. However, if you’re looking for robust integration options, we recommend Rippling as it connects with 400+ third-party software.
  • Payroll processing: BambooHR can help you pay employees, although it handles payroll through a partner, TRAXPayroll. You also have to pay extra for it, unlike Paycor, Gusto, ADP Run, and Paychex, which have payroll as their base solution.

BambooHR User Reviews

Overall, it earned average user scores of 4.45 out of 5 on third-party sites like Capterra and G2. Users like the intuitive platform, easy setup, implementation support, and the many HR tools that BambooHR offers. However, they’re not a fan of its mobile app because of its limited features.

Read Our Full BambooHR Review

Zoho People: Best for Budget-minded Small Businesses

Zoho People

What We Like

  • Free option
  • Paid plans are affordably priced
  • Syncs with a larger Zoho suite of HR tools like recruiting, payroll, sales and marketing, expense management, and more

What’s Missing

  • Free plan limited to five users; only comes with PTO and employee management tools
  • Payroll isn’t available to US companies (limited to India)
  • Recruiting and learning management are paid add-ons
  • Lacks employee benefits options

Zoho People Pricing*

  • Free plan: For up to five employees only
  • Essential HR: $1.50 per employee
  • Professional: $2.50 per employee
  • Premium: $3.50 per employee
  • Enterprise: $5 per employee
  • People Plus: $10 per employee

Add-on tools and services

  • Learning management: $2 per employee monthly
  • Zoho Recruit (Corporate Enterprise edition): $60 per recruiter monthly
  • Employee profiles (for employees who don’t need login/full system access): 23¢ per employee profile monthly; pricing may change depending on the plan selected

*Annual plans are also available with slightly lower rates.

Zoho People is a good option for budget-conscious small businesses because it offers a free plan, which none of the other providers in this guide have (except Homebase). Its employee database and PTO tracking tools are free to use for businesses with fewer than five employees. With the other providers on our list, you can’t just sign up for an employee database or PTO tracking. Their plans all come with many other features, which means you’ll pay extra if you really only need these two tools.

For those with more than five employees, Zoho People costs anywhere from $1.50 to $10 per employee monthly. Its paid plans cover everything from recruiting, onboarding, and online document management to time tracking, staff scheduling, and performance management. However, it doesn’t have Zenefits’ and Paycor’s compensation planning tools or the PEO services that Rippling, Paychex, and ADP offer.

Zoho People Is Featured in:

Zoho People Features

  • Onboarding support: Zoho People has simple onboarding features that include a self-service portal, so new hires can enter their personal information on their own time. While you can schedule when their company-provided computer should be set up, it lacks Rippling’s robust IT tools that cover the complete device and app provisioning processes.
  • Time and attendance: While Zoho People’s free plan lets you monitor PTO, its time and attendance options grow more robust if you sign up for its premium tiers. It also lets you assign shifts and customize shift rotations if that fits your business model. And since it captures and verifies employee clock-ins/outs through facial recognition, it helps eliminate buddy punching and prevents time theft. However, if you’re looking for free-to-use time tracking and employee scheduling tools, consider Homebase because its free plan (for businesses with one location) includes both functionalities plus job postings and applicant tracking.
  • Employee performance management: Help employees develop their skills and recognize their contributions by giving feedback through Zoho People’s performance management module. Aside from employee evaluation forms, it offers 360-degree feedback and customized performance appraisal methods. Analyzing your employee’s work performance and potential is also made possible through an online 9-box matrix for identifying your top performers, rising stars, and those who need training. None of the other providers offer a similar matrix for assessing employees.
  • Employee query management: Unlike the other providers on this list that offer access to either HR advisers (like Gusto and Paycor), dedicated specialists (such as ADP and Paychex), or an HR help desk (like Rippling), Zoho People provides an HR case management tool that organizes and tracks the status of all of the questions your employees ask. This is a great feature for an HR specialist or manager.

Zoho People User Reviews

Users gave Zoho People an average rating of 4.3 out of 5 on G2 and Capterra. They raved about its wide range of products and the customizations it offers. However, some said there is a steeper-than-usual learning curve mainly because of its many features.

Read Our Full Zoho People Review

Homebase: Best for Time Tracking & Employee Scheduling

Homebase Logo

What We Like

  • Feature-rich free tier; comes with time tracking, scheduling, job postings, and applicant tracking
  • Free plan covers unlimited employees
  • Paid tiers are reasonably priced

What’s Missing

  • Payroll is an add-on; only covers 43 states (as of this writing)
  • Free plan is limited to businesses with one location
  • Basic HR solutions
  • Lacks employee benefits

Homebase Pricing*

  • Basic: Free for businesses with only one location
  • Essentials: $19.95 per location monthly
  • Plus: $49.95 per location monthly
  • All-in-One: $99.95 per location monthly

Add-on tools and services

  • Payroll: $35 plus $5 per employee monthly
  • Job posting boosts: Starts at $79 per job listing
  • HR Pro advisers and resources: each costs $99 monthly; free for All-in-One plan subscribers

*Annual plans are also available with slightly lower rates.

Homebase is ideal for small businesses that need time tracking and staff scheduling because it offers these tools for free, provided you only have one business location. What’s also great about its free option is that it comes with job postings and applicant tracking—features that Rippling and Zoho People offer as paid add-ons. However, its job posting reach doesn’t cover 25,000 job sites like ADP, nor does it have the performance review tools that Paycor, BambooHR, Zenefits, and Zoho People offer. Payroll is also an add-on solution and is available in 43 states only (as of this writing).

Homebase Is Featured in:

Homebase Features

  • Unlimited time tracking and employee scheduling: With Homebase’s free plan, you can track time and create work schedules for unlimited employees. This means that you don’t have to worry about software costs as you hire more employees—provided they are all assigned in the same business location.
  • Feature-rich free tier: Aside from tracking employee attendance and creating staff schedules, Homebase’s free plan comes with hiring, job posting, onboarding, and team messaging solutions. Note that ADP Run, BambooHR, and Paycor charge extra for time tracking; and Gusto and Zoho People offer this in premium plans. Paychex and Gusto also don’t have scheduling tools, while Rippling requires you to purchase two modules if you want to monitor employee attendance and track applicants as they move through the hiring pipeline.
  • Payroll: Available as a paid add-on ($35 plus $5 per employee monthly), Homebase can handle both employee and contractor payroll—but not for businesses located in Alaska, Indiana, Kentucky, Nevada, Pennsylvania, Vermont, and Wyoming (as of this writing). For payroll that covers all US states, we recommend Gusto, ADP Run, Paychex, and Paycor. If you don’t mind paying extra to access low-cost pay processing tools, then consider Rippling and Zenefits, although the latter is more budget-friendly than the former ($16 per employee monthly vs $18 per employee monthly).
  • HR and compliance tools: New hires get their onboarding packets online, which include documents they need to fill out and direct deposit forms they can electronically sign. You can also store and manage basic employee information, as well as track PTO policies and requests. In addition, Homebase can help you stay compliant with regulations that impact overtime, employee breaks, schedules, and payroll. However, you have to pay if you want HR advisory services—a feature that ADP Run, Gusto, and Paycor offer in premium plans.

CONCLUSION

With the recent introduction of Google My Business, you may be considering whether an HR app for small business would be right for your business. I’ve done the research on what to look for and have outlined a few important questions to be asking when it comes to this kind of service, so you can make the best choice for your company. I’ve also listed my top 5 picks along with detailed information on each.

When choosing the best HR software for your business, you need to consider price vs convenience. Many of the software and services on our list have plans that tackle the most basic functions like onboarding and PTO management or provide complete HR services that include payroll, hiring, and training. Some offer access to advisers, while a few provide dedicated specialists to help you handle payroll.

If you want HR software that can take the place of a full-time HR professional, you may opt to get the services of a PEO. This takes away the burden of mundane administrative tasks from your HR manager so they can concentrate on your people. You can also read our buyer’s guides where we compare many of these software’s features and pricing to help you find the right option for your business.

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