The 9 best HR software for small business: Top-rated solutions for growth

Small business owners and HR managers spend hours per week managing their HR manually. Running payroll can lead to errors, which can add up to a lot of frustration if they occur with any degree of frequency. Keeping up with evolving compliance rules and tax deadlines is difficult, involving hours of research. Even onboarding an employee can prove tedious if you have to fill out all of the paperwork yourself.

That's where the best HR software for small businesses comes in. They don't take these responsibilities away, but they do alleviate a lot of the heavy lift associated with them. What's more, they tend to do it at affordable rates and save you lots of money as you cut out inefficiencies. But most importantly, HR platforms for small businesses enable owners and HR managers to spend more time on scaling their business.

In this article, we'll break down the best HR software for small businesses, distinguishing them by key features, pricing, best use cases, and more. We'll also highlight the must-have features you'll need as a small business, outline a step-by-step process for selecting an ideal platform, and note common selection mistakes to help you avoid them.

The 9 best HR software platforms for small businesses

I've carefully reviewed leading tools in the market to curate a list of the best HR software for small businesses.

In my review process, I assessed each company's feature set, combed through hundreds of reviews on sites like G2 and Capterra, noted each platform's pricing, and identified a best-fit case for each. The table below summarizes my findings.

Rippling editorial policy: Rippling puts our customers (and prospective customers!) first. The Rippling team is committed to providing information supported by product data, insights, and customer feedback to inform our content.

1. Rippling

Best for: All-in-one HR, finance, and IT management

Rippling is a unified workforce platform that connects HR, payroll, benefits, and IT in a single system. With Rippling, small businesses can access enterprise-level features without the complexity of an enterprise platform, with solutions that scale as their businesses grow.

The platform is fully modular, letting you save money by paying only for the aspects that you actually need. For instance, you could start with Rippling HCM, then add modules like Rippling Payroll or Rippling IT as needed. Kristen Hayward, Head of People & Ops at Superhuman, took this approach.

"Originally, I was planning to invest in some additional systems alongside Gusto, including mobile device management, onboarding tasks management, and a benefits admin system," she said. "Because Rippling does all of these things, that's money back in our budget."

Rippling AI is embedded throughout the platform, letting you save time by automating workflows, from simple tasks like answering routine questions to complex projects like building a comprehensive report from your data.

Evaluating the Total Economic Impact (TEI) of Rippling led me to only one conclusion: Rippling is the real deal. The ROI for the Rippling investment was calculated at 136%. The time saved is also substantial, cutting 22 hours of work per year for senior managers and four hours per year for all employees.

Use Rippling if you want HR, payroll, benefits, and IT to work from one system instead of four. The ROI on an investment in Rippling is 136%, and it's known to save senior managers 22 hours of work per year. Avoid Rippling if you don't value the potential for an all-in-one system.

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Price:

Custom pricing is available based on your needs. Pricing plans and starting costs aren't available online.

Key features

• Complete employee lifecycle management from hire to retire

• Automated payroll with multi-state capabilities

• Benefits administration with major carrier integrations

• IT management, including device and app provisioning

• Proactive, employee-level compliance tracking for federal and state requirements

• Advanced reporting and analytics

2. Gusto

Best for: Small business payroll with basic HR features

Gusto is a payroll software platform built specifically for small and growing businesses. It also includes additional layers for basic HR functionality, such as time and attendance tracking and hiring.

With Gusto, you can pay both W-2 employees and 1099 contractors at the same time and use a benefits administration solution that covers both health and financial benefits plans. You can save time and headache with the platform's automatic tax filing tools, which file most tax forms at the federal, state, and local levels.

Use Gusto if payroll simplicity is your top priority. Avoid Gusto if you need an advanced, highly customizable platform; other platforms may suit you better.

Price:

Plus and Premium plans include both payroll and HR software, with the Plus plan costing $80 per month plus $12 per month per person when paid annually.

Key features

• Automated payroll processing

• Benefits administration for small businesses

• Time tracking integration

• Basic employee onboarding

• Compliance alerts and forms for basic state-level compliance databases, tax payments and filing, and beneficial ownership (BOI) reporting

3. BambooHR

Best for: Simple HRIS for small businesses

BambooHR focuses on core HR functions with an easy-to-use interface. The platform excels at employee data management and basic HR workflows.

Most notably, it includes an integrated applicant tracking system (ATS) to source new talent, automated onboarding workflows to bring them into the fold, and a comprehensive performance management suite to support their development.

Use BambooHR if easy HR management is your biggest priority; its straightforward interface makes it one of the top HR platforms for that purpose. Avoid BambooHR if you need a broader feature set, such as a native learning management system (LMS) or advanced reporting.

Price:

Custom pricing is available through sales. Pricing plans and starting costs aren't available online.

Key features

• Mobile app for employees and administrators

• Time-off tracking and approval workflows

• Basic performance management

• Recruitment and applicant tracking

• Employee self-service portal

4. Paychex

Best for: Comprehensive, guided HR support

Paychex offers a full suite of HR services, including payroll, benefits, and compliance management. Founded in 1971, the company has a long history of serving the small-business market.

Among its strongest features is its integrated, AI-powered HR compliance suite, which helps small businesses remain adherent to federal and state laws through real-time intelligence and alerts about regulatory changes.

The platform provides strong support for businesses that prefer guided implementation. All plans come with dedicated chat support, but with a higher tier or an add-on, you can access phone support and on-site support.

Use Paychex if you prioritize efficient payroll and tax filing with dedicated, friendly support. Avoid Paychex if ease of use is your top priority. Some find the platform glitchy, reporting that certain features occasionally don't work or don't work as intended.

Price:

Custom pricing is available through sales. Pricing plans and starting costs aren't available online.

Key features

• Full-service payroll processing

• Benefits administration and brokerage

• Time and attendance tracking

• Workers' compensation administration

• Dedicated customer support

5. ADP Run

Best for: Small businesses that prioritize payroll accuracy and compliance over advanced HR features

ADP Run is ADP's platform designed specifically for small businesses with 1-49 employees. It combines traditional ADP's payroll expertise with basic HR management features.

Some of its key strengths include its managed tax-filing and compliance suite and its integrated general ledger interface. In addition, you don't have to worry about switching providers as you scale. Once you grow to over 49 full-time employees, you can transition to its enterprise platform, embedded with features and interfaces that you already know.

Use ADP Run if payroll accuracy and a clear path to ADP's enterprise platform matter the most to you. Avoid ADP Run if you don't have a little bit of technical experience. Even though it's one of the most popular HR platforms, some users experience confusing error troubleshooting requiring lots of support and inflexible reporting.

Price

Custom pricing is available based on the features you want and the number of active users. There are specialized plans that include both payroll and HR features. Once a customer grows past 49 full-time employees, however, ADP will transition them to ADP Workforce Now as Run doesn't offer ACA compliance.

Key features

• Automated payroll processing

• Tax filing and compliance

• Benefits administration

• Time and attendance tracking

• HR support resources

6. Deel

Best for: Businesses operating internationally

Deel is an HR and payroll platform specialized for global businesses. If you're a small business that employs people across borders, this platform provides you with a ton of options to help you manage employees spanning over 150 countries.

For example, you can recruit and hire across different countries with an integrated ATS. Or, if needed, you can tap into Deel's dedicated immigration experts to help your employees immigrate to over 75 different countries, the United States included.

Use Deel if you're a small business that is currently or planning to employ workers across borders. Avoid Deel if you're only operating domestically, and note that the platform still comes with some challenges. For instance, some users report payment issues due to delayed customer support, and others note high fees for key functions.

Price:

Plan pricing varies greatly depending on the capabilities you need, but for Core HR, plans start at $5/employee/month. Higher-tier plans include access to additional features (like the ATS and performance management suite).

Key features

• Unified employee database

• Workforce planning tools

• AI-powered applicant tracking system

• Performance management and engagement suite

• International compliance tools

7. Paylocity

Best for: Mid-market companies and scaling small businesses

Paylocity is a people management platform that works best for mid-market companies and enterprises. It can still accommodate small businesses that are planning to scale rapidly, featuring many of the systems you'll need once you hit a certain growth threshold.

Most notably, Paylocity offers a suite of dedicated employee experience management tools, including employee engagement surveys and a central community hub. It also features an integrated, customizable LMS for compliance training and an advanced reporting and analytics suite.

Use Paylocity if you're scaling fast and want an easy-to-use platform with tools to help you preserve your organization's culture as you grow. Avoid Paylocity if you want a guaranteed good customer service experience, as users share mixed reviews in this regard.

Price:

Custom pricing is available through sales. Pricing plans and starting costs aren't available online.

Key features

• Dedicated employee engagement and culture-building tools

• Customizable learning management system

• Employee self-service platform

• Compliance monitoring dashboard

• Trigger-based workflow automation

8. Zoho People

Best for: Affordable, basic HR functionality

Zoho People provides a basic human resources software platform at budget-friendly prices, with plans starting at a few dollars per month. Unlike any other platform on this list, Zoho People integrates with all other Zoho business applications, making it a natural fit for small businesses already invested in the Zoho ecosystem.

With Zoho People, you can get core HR features (including analytics, onboarding, and a centralized employee database), alongside additional modules for time and attendance management (such as integrated timesheets and leave management tools) and performance management.

Use Zoho People if you're already using other Zoho apps. Avoid Zoho People if you're not already in the Zoho ecosystem, as it may offer limited value. For instance, if you want payroll integrated from the start, you'll also need to connect Zoho People to Zoho Payroll or another third-party tool with its own rates. The same goes for other core functions, like recruiting and expense management.

Price:

Plans start at $3/user/month when billed annually. Higher-tier plans include additional features, but cost slightly more. Still, no plan goes over $10/user/month.

Key features

• Employee database management

• Time and attendance tracking

• Leave management

• Performance appraisals

• Basic reporting

9. TriNet (formerly Zenefits)

Best for: Outsourcing HR processes

TriNet, formerly Zenefits, is a hybrid HR platform and professional employer organization (PEO) service. The PEO option is a strong option for small businesses looking to outsource a massive amount of HR work. TriNet's co-employment model means that you can allocate certain responsibilities (like HR tasks) to them via a service agreement, and remain in control of day-to-day operations.

Another of its selling points is that it enables small businesses to access enterprise-level benefits. With TriNet, you can offer your employees much more than just the mandatory or industry-standard benefits package, including things like employee assistance programs (EAPs), health savings accounts (HSAs), and commuter benefits.

Use TriNet if you want to hand off HR entirely and don't mind a co-employment model. Avoid TriNet if you want to avoid high fees and are looking for a premium customer service experience.

Price:

Custom pricing is available through sales. Pricing plans and starting costs aren't available online.

Key features

• Integrated payroll solution

• Global platform for international payroll, benefits, and compliance

• HR compliance alerts

• Enterprise-level benefits brokerage and administration system

• Integrated dashboards for analysis

Must-have HR software features for small businesses

Core features for HR software platforms include (but are not limited to) a centralized employee database, a payroll processing suite, and compliance management software. Features like these help ensure that you're starting with a strong foundation.

Your platform of choice should also include additional features to support that foundation and enhance scalability, such as an employee self-service portal, reporting, and analytics. Other features, like integrated LMS platforms and API integrations, can also save you a lot of time and hassle, especially if you're already operating at scale.

Rippling is the ideal option for consolidating each of these features. Right from the start, you can get everything you need to manage your employees and accommodate cross-departmental workflows where needed.

Still, we'll break down each of the must-have features below so you can enhance your search for the best small business HR software.

Core features (to address current core needs)

These HR management features form the foundation of any good small business HRMS software:

• Employee database management: Store all employee information in one secure location. Look for systems that track personal details, job history, performance reviews, and compliance documentation automatically.

• Payroll processing: Handle calculations, tax withholdings, and direct deposits. The best systems integrate with your existing accounting software.

• Time and attendance tracking: Capture work hours, overtime, and paid time off. Modern systems offer mobile clock-in options and integrate with scheduling tools. The best time and attendance software includes features like geofencing and automatic break calculations.

• Benefits administration: Manage health insurance, retirement plans, and other benefits. Look for platforms that handle enrollment, life events, and carrier communications.

• Compliance management: Track federal and state requirements, including I-9 verification, W-2 generation, and unemployment reporting. Some HR platforms like Rippling go above and beyond to also track sick leave, minimum wage, required vacation time, and more.

Advanced features (to prepare your business to scale)

These features separate the best HR software for small businesses from just good or acceptable ones (especially if you plan to scale):

• Performance management: Track goals, reviews, and development plans. This helps small businesses retain top talent and identify training needs.

• Recruitment and onboarding: Automate hiring from job posting to first-day paperwork. Look for systems that integrate with job boards and automate background checks. Effective employee onboarding software can reduce time-to-productivity for new hires significantly.

• Employee self-service portal: Give workers access to their information at any time. This reduces administrative burden while improving employee satisfaction.

• Mobile accessibility: Let employees and managers access the system from anywhere.

• Reporting and analytics: Provide insights into HR metrics like turnover, hiring costs, and compensation trends.

Premium features (for those already operating at scale)

These advanced features help small businesses compete with larger companies:

• Learning management: Track employee training and development. This is valuable for businesses in regulated industries or those focused on employee growth.

• Advanced analytics: Use AI to predict turnover, identify high performers, and recommend compensation adjustments. While not essential, these insights can drive significant business value.

• AI-powered insights: Help with everything from resume screening to employee engagement prediction. These features are becoming more common and affordable. For instance, Rippling AI is embedded throughout the platform and can help HR teams offload routine questions, build shareable reports, automate administrative tasks, and more.

• Custom workflows: Automate complex business processes unique to your industry or company culture.

• API integrations: Connect your HRMS with other business systems like accounting software and project management tools.

How to choose the best HR software for your small business

Choosing the best HR software for your small business comes down to first understanding exactly what you need, then evaluating each platform against your specific criteria. This helps avoid expensive mistakes, like buying enterprise software you don't need or choosing tools that don't scale with you.

Below are a few useful steps to follow as you make your selection.

Step 1: Assess your current HR challenges and needs

Start by documenting your biggest HR pain points. Common small business HR challenges include:

• Manual payroll processing errors

• Time tracking and overtime calculations

• Benefits enrollment confusion

• Maintaining 100% compliance with labor & payroll regulations

• Employee data scattered across systems

• Difficulty hiring and recruiting in a competitive market

• Managing compliance risks as tax and labor laws evolve

• Lack of automation leading to time-consuming manual processes across core HR workflows

• Difficulty scaling processes with rapid growth

• Maintaining a strong company culture that supports employee retention

Survey your team to understand what frustrates them most about current HR processes. This input helps prioritize which problems to solve first.

Step 2: Define your budget and ROI expectations

First, lay out your budget, setting a definitive number that serves as a hard limitation. Evaluate platforms within that established budget range.

Then, calculate your expected ROI. Include the most prevalent HR inefficiencies that currently cost your business. These could be:

• Time spent on manual HR tasks

• Errors in payroll or benefits

• Compliance penalties or risks

• Employee turnover from poor experience

Then, evaluate platforms that fall within that budget range and have an adequate set of features to eliminate the costs associated with your existing inefficiencies.

Step 3: Find the features that meet your needs

Create a list based on the features outlined earlier, and separate them into three categories based on your needs: "must have," "must have in the foreseeable future," and "don't need." Focus on platforms that consolidate the most features you need into a single solution.

Step 4: Request demos and trials

After narrowing down your options to three to five vendors, schedule demos that focus on your specific use cases. Ask vendors to show you exactly how their platform would handle your current processes.

Request free trial access whenever possible. Hands-on testing reveals usability issues that don't show up in sales demos. If possible, include your HR team in the evaluation process, since they'll use the system every day and have a keen eye for the platform's strengths and weaknesses.

Step 5: Consider implementation and support

Make sure you understand what's required to get the system running before you make a purchasing decision. Key questions include:

• How long does implementation typically take?

• What data migration support is provided?

• What training or onboarding support is included?

• What ongoing support is available?

• Are there onboarding fees?

Factor implementation time and effort into your decision. The cheapest platform isn't a bargain if it takes months to set up properly or if it comes with expensive onboarding fees.

Common HR software selection mistakes small businesses should avoid

Small business owners often make the same mistakes when choosing HR software systems. These mistakes can cost thousands of dollars and months of lost productivity. You can avoid these common pitfalls to select the right platform that will work for your business long-term.

Choosing based on price alone

Don't bite on the cheapest option just because of the price tag. Sometimes, a platform with lower displayed prices may cost more in the long run due to hidden fees, poor support, or limited functionality. Look at the total cost of ownership over at least three years, since the sticker price rarely reflects what you'll actually pay.

Ignoring scalability needs

Choose HR platforms that can scale with your business. Some platforms may work well for you now, but not in the future once your business is larger, which can mean a stressful and expensive migration is necessary. When making your decision, consider core features, such as a centralized employee data source, and look for capabilities your business may need down the road, such as advanced analytics or workforce planning.

Underestimating implementation complexity

Data migration and integration with existing systems can be complex. Budget a substantial amount of time and resources for proper implementation. You can also assess whether potential vendors offer onboarding support, which may reduce the time or cost on your end.

Lack of employee buy-in

Even the best HR software for small businesses can fail if employees won't use it. To increase adoption:

• Include your team in the selection process.

• Prioritize user-friendly platforms.

• Stress key benefits employees will value.

• Provide company-wide training on how to use the platform with ongoing support after deployment.

• Listen to employee feedback and implement changes to address their pain points.

Insufficient vendor research

Research the vendor's financial stability and customer retention rates. Read customer reviews on popular sites like G2 or Capterra in addition to accessing trials and demos. Small vendors may offer attractive features but lack the resources for ongoing development and support.

Poor data migration planning

Moving employee data from spreadsheets and old systems requires careful planning. Develop a data migration strategy before implementation begins to avoid costly delays and errors.

Transform your small business HR with Rippling

When it comes to the best HR software for small businesses, Rippling delivers unmatched value. The platform combines HR, payroll, benefits, and more into a single unified system designed specifically for growing organizations.

Our HRIS solutions make it easy to manage your entire employee lifecycle from one dashboard, with a single employee database powering everything.

Rippling is AI-native, so you can automate admin tasks, build complex reports with intelligence across all your data, and support a growing number of employees with lower lift. To paint the picture, let's say you hire someone: Rippling automatically creates their employee record, sets up payroll, enrolls them in benefits, orders their laptop, and provisions access to the apps they need.

Ready to see how Rippling can transform your HR operations? Explore our small business solutions or request a demo to see the platform in action.

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