6 Best HR Software for Small Business

We know running a small business is all of a challenge. Without consolidated HR staff, managing essential tasks like onboarding new hires, tracking time off, and maintaining compliance with regulations can quickly become a headache. Spreadsheets become unwieldy, paperwork piles up, employee records become inaccessible, and precious time is wasted on administrative tasks when it could be focused on growth and retaining customers.

This is why 50% of small business HR professionals have decided to implement an HR software solution. What’s more, 69% of users said HR software helped their business cut down on payroll processing time, and 25% reported better legal compliance thanks to its adoption.

This guide will help you understand the essential human resources software for small business available, including HR and payroll software. We'll cover all-in-one solutions, dedicated employee management software, time tracking tools, payroll solutions, learning management platforms, and compliance software.

Why HR Software is Critical for Small Business Success

Running a small business is all about maximizing efficiency and staying ahead of the curve. But when it comes to HR tasks, manual processes like paperwork and spreadsheets can quickly become a time-consuming burden. This is where an HR system, like an HR and payroll software, steps in.

Here's why investing in HR software is critical for a small business owner:

Simplified Processes

HR software automates many HR tasks, such as onboarding new hires, tracking time off, and managing payroll. Beyond, freeing up productive time for you and your team to focus on more strategic initiatives like attracting new clients, automating HR tasks can significantly improve the success of these processes. For instance, automating employee onboarding can improve new hire retention by 16%.

Greater Accuracy

Manual HR processes are prone to errors, like typos or misplaced documents. HR management software for small business minimizes these errors by automating tasks and storing all employee information in a central, secure location.

Advanced Compliance

Small business HR software provides features like document management and compliance tracking so that you can make sure your company stays compliant with current employment laws and tax codes. Actually, 36% of HR software users implemented it seeking to improve regulation and compliance.

Data-Driven Decisions

HR software generates reports and provides analytics on your workforce. This data helps you identify trends, make informed decisions about personnel matters, and improve employee engagement.

Higher Employee Engagement

HR software provides employees with self-service tools to access their personal information, benefits, and other HR resources. HR experts claim that giving employees more autonomy makes them feel more engaged and take on more responsibility.

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6 Best HR Software for Small Business

We've established the importance of HR software for small businesses. Now, let's take a look into the best HR software providers to address your specific needs.

From all-encompassing platforms to specialized tools, we'll explore solutions for:

• All-in-one software: These comprehensive platforms manage a variety of HR functions and offer a convenient full-featured solution.
• Employee management software: These options help to manage employee data, track employee performance, and keep up communication with dedicated employee management tools.
• Time off tracking software: This software automates time off requests, approvals, and accrual tracking. It saves time and spares from headaches.
• Payroll management software: These systems help pay employees out. They make expense management easier since they automate calculations, deductions, and tax filings. Also, some payroll software for small businesses allows payroll processing for employees or contractors from outside the US.
• Learning management software: This solution gives your workforce training and development opportunities through dedicated learning management platforms.
• Compliance management software: This system helps you manage compliance tasks, track important documents, and receive automated updates on regulations.

TalentHR for All-In-One Software

TalentHR is a comprehensive, centralized HR software platform that can effectively help small businesses cope with their specific challenges. Operating on a SaaS model, it integrates all essential functionalities and specialized features to manage both routine and special HR tasks that are crucial for modernizing HR operations. Additionally, it offers competitive pricing, with options for businesses to begin using it at no cost.

Here’s what TalentHR can offer your startup:

1. Cost savings and scalability: Recognizing the budget constraints of small businesses, TalentHR offers a freemium approach, providing core HR features such as applicant tracking and benefits management for up to 10 users initially, without charge.
2. Automated processes: The platform automates key HR workflows like onboarding and time off management. It simplifies operations and helps minimize administrative overhead.
3. HR metric with centralized data access: TalentHR consolidates all employee data into a single, accessible location, even via mobile devices.
4. Focus on team building: With its applicant tracking system and onboarding tools, TalentHR simplifies the recruitment and integration of new hires through every stage of the process.
5. An API for integrations: Every solution should have its API, and TalentHR's API is very well-documented. Thanks to Zapier, you can already integrate TalentHR with thousands of apps.

In essence, TalentHR presents an ideal solution for small businesses seeking an affordable, intuitive, and scalable HR tool. By automating tasks, centralizing data management, and offering a comprehensive feature set, TalentHR enables businesses to concentrate on growth and maintaining client and employee satisfaction.

Homebase for Employee Management

Homebase prides itself as an all-in-one solution for employee management, particularly for businesses that rely on shift-based schedules.

It offers a comprehensive toolbox of features, including scheduling, time tracking, payroll (as an add-on), hiring and onboarding tools, team communication, and compliance management. The platform offers a user-friendly interface with a modern design and intuitive functionalities.

For budget-conscious businesses, a free plan provides basic scheduling and time tracking features for up to 20 employees in a single location.

But there are some issues you need to think about when using Homebase. Perhaps the most surprising limitation is that payroll, a crucial feature, is only available at an additional cost, even on the highest tier plan (for the Essential plan, adding payroll almost triples the purchase price). Businesses with unreliable internet access may also be frustrated by the lack of offline functionality for both web and mobile applications. Additionally, users have reported minor issues with the scheduler and team chat.

Zoho People for Time Off Tracking

Zoho People is a user-friendly, cloud-based HR software suitable for businesses of all sizes—including small organizations, as it is an affordable and scalable option.

It speeds up employee scheduling and time tracking by doing satisfactorily something simple-yet-important: It allows time-off requests to be submitted digitally and approved quickly.

While Zoho People excels in user-friendliness and core functionalities, some users may find its integration capabilities less suited for the more complicated software systems.

Gusto for Payroll Management

Gusto is designed as a payroll solution primarily for managing multinational workforces, but it’s also well-suited for smaller local businesses. It’s an HRIS platform that simplifies payroll and benefits administration by automating calculations and tax filings, and it smoothly integrates with existing accounting and timekeeping software.

While Gusto offers multiple pricing plans, not all may be suitable for small businesses with limited HR budgets. Unfortunately, there is no free trial available, and users report that it requires substantial upfront manual data entry.

Asana for Product Management

Asana is very popular for its flexibility and modern design. It's an excellent choice for small businesses seeking efficient project and task management solutions. It stands out with its ability to manage tasks, workflows, and even lightweight project planning that even has budget management.

For small business owners, Asana offers a robust set of features designed to simplify collaboration and increase productivity. Teams can assign tasks, set due dates, and organize work into projects and subtasks, guaranteeing clarity and accountability among team members. The platform facilitates hassle-free communication through comments, file attachments, and @mentions. It has a calendar view that has proved especially useful for marketing, editorial, or content teams.

In terms of pricing, Asana provides several tiers: a free Basic plan suitable for smaller teams, a Premium plan ($13.49 per person per month) that comes with advanced features like timeline views and custom fields, and a Business plan ($30.49 per person per month) targeted towards larger organizations with additional capabilities such as portfolios and workload management. They offer some steep discounts if purchased on an annual subscription.

TalentLMS for Learning and Development

TalentLMS is ideal for small businesses seeking an agile learning management solution. It sets itself apart with its quick setup, and businesses can use it to launch training initiatives promptly and independently. The platform features an easy-to-navigate interface that works with desktops, tablets, and smartphones. Businesses can also make use of TalentLibrary, which offers a diversified selection of ready-made courses covering essential workplace skills.

Administratively, TalentLMS provides extensive customization options, automation capabilities, and easy integrations with other tools. As businesses grow, TalentLMS scales.

On top of that, TalentLMS stands out for its affordability. It offers a forever-free account option that makes it possible for businesses to evaluate its capabilities before making a financial commitment. The free plan covers up to 5 users, unlimited email support, and up to 10 courses.

Bambee for Compliance Management

Bambee is a specialized HR outsourcing solution suited for small businesses lacking dedicated HR departments. It provides a dedicated HR manager to maintain compliance with employment laws and support various HR functions. It's a soothing remedy in a day and age in which we're likely to come across 5-day-old websites that hype automated, AI HR managers that, they might claim, will work even better than a seasoned HR rep.

Bambee's services include authoring legally compliant company handbooks and policies. Bambee also helps address employee EEOC claims. It can also help in conducting HR practice audits for risk assessment, and providing guidance on onboarding, termination, company culture, and performance management.

Client feedback highlights positive experiences with access to HR laws and regulations, though some users have run into issues with the payroll system, such as incorrect payments and deduction errors. There are also concerns about difficulty in promptly reaching customer support. In addition, some people claim that the cost is too high for the service they provide.

Summary

In this guide, we've covered the essentials of HR software for small businesses and highlighted how these tools can help simplify operations like onboarding, time tracking, payroll management, and compliance. When they automate or add a layer of software to these tasks, businesses can save time, minimize errors, and make sure they meet legal requirements.

Choosing the right HR software depends on your business's specific needs and budget. Whether you opt for the comprehensive features of TalentHR, or the specialized compliance management of Bambee, each solution offers specific benefits related to different aspects of HR management.

Choosing the Perfect Fit

When selecting your HR software, consider these key factors:

• Company size and budget: Small businesses can leverage free plans, freemium models, or budget-friendly options.
• Specific needs: Identify the HR functions that require the most support (e.g., payroll, compliance, learning).
• Ease of use: Prioritize user-friendly interfaces and intuitive functionalities for a smooth learning curve.
• Scalability: Make sure the software can adapt and grow alongside your business.

Take Control of Your HR

Complex HR challenges are part of a small business' progress. So it's best to deal with them with specialized solutions. Browse through the recommended cloud-based HR software for small business, take advantage of free plans or trials, and pick the tools that best align with your needs. Remember, even free HR software can significantly improve your HR processes and free up valuable time to focus on the actual business.

TalentHR is one of the most complete and affordable solutions off our list. And it's effortless to try it—it takes seconds. Register now for free and manage HR requirements as soon as possible.

To learn more about HRIS solutions for small businesses, visit TalentHR.