HR Software for Small Business

Top Ranked Products

Calamari
  47 ratings 91/100
Human Resources (HR)
CakeHR by Sage
  39 ratings 89/100
Human Resources (HR)
Zoho People
  17 ratings 88/100
Human Resources (HR)
BambooHR
  161 ratings 87/100
Human Resources (HR)
JazzHR
  60 ratings 86/100
Applicant Tracking (ATS)

Human Resources Software for Small Businesses

Human resource software solutions for small businesses are integrated systems designed to assist with everyday HR-related administrative tasks as well as employee recruitment and onboarding. When it comes to small businesses, shifting from spreadsheets to a fully-fledged HR system is an indicator of the growth of the organization, particularly in terms of the number of employees. Most traditional human resource management systems are well suited for mid-sized and larger markets. However, lately, a range of HR software products have become available for small businesses.

These solutions, in general, are focused on helping small businesses collect and organize all of their employee data. They often include several features to help in hiring, onboarding, preparing compensation and building company culture.

For small businesses thriving on growth, you need to keep track of many processes. Through having an efficient HR system, tasks such as providing labor compliance and handling performance issues become easier to manage. Furthermore, an effective human resource software solution helps centralize staff information and automates streamlined processes.


Expert Pick

BambooHR

BambooHR 87

161 ratings

BambooHR is the No.1 HR software for small & medium businesses. Visit us to see a demo or start a free trial. View Listing...

BambooHR is a fully-fledged HR software that specifically caters towards small businesses. The solution collects and organizes information from the entire employee life cycle. This data can then be used to streamline hiring, onboarding, time tracking, benefits management, and culture management.


How is human resource software used for small businesses?

Small businesses in need of HR software often make use of spreadsheets and filing cabinets with paperwork before coming across an alternative solution. Using these methods results in manual labor-based errors and inefficient, time-consuming processes. With this in mind, HR solutions help in improving the organization and administration of the entire business.

Human resource solutions can provide a variety of different core functions suited to small businesses. They commonly feature the ability to track and monitor employee data to better streamline HR processes and communicate across various channels. Furthermore, these solutions can provide organized employee profiles, online document storage and employee trend reports. Through implementing HR software, small businesses can focus more on reaching business goals and reduce the time spent on HR tasks.

Several key features of HR software are catered to a variety of responsibilities the HR department faces every day in their jobs. They are not just in charge of hiring, training or tracking employees—they are also in charge of payroll, certifications, schedules and disputes. As such, an effective HR software solution can keep the small business running from the back-end of the company.

For example, BambooHR, a cloud-based human resource software, provides small businesses with a range of HRIS (human resource information system) tools. This includes features that deal with People Data and Analytics, Hiring, Onboarding, Compensation, Culture and Packaging. Through this package deal, the HR solution helps small businesses focus on more important matters—their people.

In light of this, a fully-featured HR software solution provides the following functionalities:

Applicant tracking

One of the main functions of an HR system is to handle employee applications. It’s in a company’s best interest to find the well-suited candidate for any job opening. The applicant tracking system (ATS) feature serves the purpose of tracking candidates from the very start of their application process to the day they get terminated from the company. What an ATS also provides is the ability to easily post newly created positions across various job websites once the availability comes through.

An ATS also helps in providing a central location and database for a company’s recruitment efforts. Additionally, it aids in detecting and aligning what the applicant offers in their resumes to what the opening job requires. This lessens the time in manually going over dozens of applications and increases the chances of hiring the most qualified person.

Benefits administration

Benefits administration refers to the creating, updating and managing of benefits for the workforce of an organization. Software solutions with implemented benefits administration involve the creation and management of enrolment profiles for every employee record. These include details such as the date they were hired, their marital status, their number of dependents, the total hours they’ve worked and their attendance logs.

Furthermore, benefits administration capabilities help in making it easier for HR administrators to plan events. They also can provide automated access for employees to enroll in benefits such as medical, dental, life insurance and more. As such, this is a useful tool to have for small businesses expanding their benefits to meet the demands of a growing workforce.

Performance management

One of the most associated software features for human resource management, performance management, entails managing and evaluating the performance of each employee. It helps the HR department to provide compensation and bonuses to deserving workers based on their employee record. Additionally, it helps in giving proper credit where it is due, especially in areas such as for certifications and skill advancement.

Performance management features also have the ability to let users create and define their own custom workflow for the performance review process. They also eliminate the need for manual and redundant tasks, such as performance appraisals and employee evaluation. The system itself entirely accomplishes it for you. With the help of a number of subsequent approvals and evaluations, you can ensure all of your employees are well compensated for their efforts.

Scheduling and shift planning

HR solutions can also provide scheduling and shift planning features in their suites, especially for businesses relying heavily on managing multiple shifts of employees such as those in the retail or hospitality industries. Through these features, it becomes easier to integrate an employee’s schedule with their attendance and payroll. This eliminates the need for spreadsheet-based shift planning that most small businesses traditionally use.

The feature automatically works alongside your business planning to schedule shifts based on an employee’s availability. Many HR solutions featuring scheduling and shift planning can also provide mobile access, making it easier for the employees to view their shifts from their smartphones through web-based or mobile applications. This facilitates easy communication between employees and their managers, making it much simpler swap or change shifts. For small businesses, this is a key feature to have as it helps in managing the needs of the business while also being mindful of the employee’s availability.

Online training and onboarding

HR software solutions may have implemented training and development in their applications. Most of these modules are customized to the specific needs of the employee’s position, rather than acting as a more fully-fledged learning management system (LMS). For small businesses growing in number, this can be a useful tool to have to maintain an efficient standard throughout the training process.

Online training and onboarding features, therefore, help to make certain that training is formalized and tracked properly by the HR department. They enable users to schedule, deliver and evaluate the progress of employees by training them through an integrated software solution. The result is an efficient tool that prioritizes an employee’s development into the workforce.

What are the benefits of human resource software for small businesses?

Small businesses, regardless of their small number of staff, should have an efficient HR software solution to keep track of their workforce and to easily regulate the benefits entitled to the employees. Without an HR system in hand, a small business might place too much focus on manual administrative tasks. This takes up the necessary time and effort one should reserve for making their business grow in profit and sales, which is especially important in small businesses where employees are often required to wear multiple hats.

Overall, HR software for small businesses improves the company’s ability to streamline work on HR tasks by providing an integrated and automated system that not only makes it easier to keep track of employees but allows them to access their company privileges as well.


All Software Products

Calamari 91

47 ratings

Calamari is a agile, modern and innovative people management tool for small and medium businesses. Calamari helps companies increasing their efficiency of people management. View Listing...

91%
6 Award(s)
Product Leader

CakeHR by Sage 89

39 ratings

CakeHR by Sage is an award winning, SaaS based Human Resource management solution that relies on the self-service model to simplify HR. View Listing...

89%
6 Award(s)
Product Leader

Zoho People 88

17 ratings

Zoho People is a simple and flexible HR platform that covers all your employee management operations, from time & attendance, records, and leave. View Listing...

88%
3 Award(s)
Champion

BambooHR 87

161 ratings

BambooHR is the No.1 HR software for small & medium businesses. Visit us to see a demo or start a free trial. View Listing...

87%
5 Award(s)
Champion

JazzHR 86

60 ratings

JazzHR is a recruiting platform purpose-built to help growing companies source, screen, and hire the right talent, fast. Post unlimited jobs, recruit unlimited candidates and make hiring a team sport with un... View Listing...

86%
2 Award(s)

Zenefits 85

99 ratings

All your HR. One platform. Benefits, payroll, onboarding, time off, and more. View Listing...

85%
6 Award(s)
Champion

WebHR 83

5 ratings

WebHR is a Global Leader in cloud-based social HR software that manages a company’s most important asset - its human resource. Trusted by 12,000 companies in 186 countries. View Listing...

83%
4 Award(s)
Product Leader

Homebase 83

0 ratings

Homebase makes managing hourly work easier for 60,000+ businesses. With free employee scheduling, time tracking, team communication, and managers spend less time on paperwork. View Listing...

83%
3 Award(s)

Gusto 82

161 ratings

Gusto delivers intuitive payroll, benefits, and HR solution, mainly intended for use in small businesses (10-50 employees). With this powerful platform that combines payroll, benefits administration, and cor... View Listing...

82%
1 Award(s)

HR Cloud 79

0 ratings

HR Cloud is the new standard in compliant, paperless new hire onboarding that takes care of your entire team, all in one place. View Listing...

79%
Product Leader

EmployeeConnect 79

2 ratings

EmployeeConnect is a powerful cloud-based HR software that seamlessly integrates all major HR functions in a single platform. Go paperless and focus on strategy. View Listing...

79%
1 Award(s)
Product Leader

Appogee HR 78

0 ratings

Online HR and Leave management system for small & medium businesses. Simple and easy to use, with configurable roles, access, and employee self-service. View Listing...

78%
2 Award(s)
Product Leader

Namely 78

80 ratings

Namely is the HR, Payroll, and Benefits management platform. View Listing...

78%
1 Award(s)
Market Leader

PeoplesHR 77

0 ratings

PeoplesHR is a cloud based HR solution that will engage and empower employees to build competitive organizations that are constantly achieving desired goals. View Listing...

77%
Product Leader

PeopleForce 76

2 ratings

PeopleForce is the first all-in-one Recruiting and HR solution for small and medium-size IT services and software companies. View Listing...

76%
Product Leader

Staff Squared 75

0 ratings

Staff Squared makes it easy to manage onboarding, employee data and files, and time off in a web based platform. View Listing...

75%
Product Leader

BerniePortal 73

0 ratings

BerniePortal is an all-in-one HR platform that helps small & medium-sized employers handle applicant tracking, onboarding, PTO, time tracking, compliance, benefits, & COBRA. View Listing...

73%
Product Leader

SutiHR 73

1 ratings

SutiHR is an online HR platform that acts as an end to end solution for all your HRM needs. The robust platform is flexible and customizable to suit all your unique needs. View Listing...

73%
Product Leader

kiwiHR 68

2 ratings

kiwiHR streamlines your HR management. Digital employee files, attendance and absence management, HR reports, onboarding, and an integrated DMS digitise your HR admin. View Listing...

68%
Product Leader

Tap My Back 57

0 ratings

Tap My Back is the simplest tool for employee recognition and 360º feedback. View Listing...

57%
Challenger
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