5 Best HRIS Software for Small Business Owners (2024)

HRIS software is one of the best ways small businesses can solve and automate their HR needs so they can instead focus on bringing in customers, retaining them, or keeping them satisfied.

Greater functionality (26%), increased efficiency (20%), growth support (17%), and consolidating systems (15%) are the most common reasons for implementing HRIS, according to a survey. Beyond the listed reasons, HRIS can significantly simplify HR processes for you, help organize employee data, help drive employee engagement, deal with employee management, automate tasks, and keep you compliant with regulations.

In this guide, we’ll tell you all you need to know regarding HRIS software for small businesses, why it’s important, essential features you should consider, key factors to consider before deciding, and the five best HR software for small companies.

Why is HRIS Software Important for Small Businesses?

As a small business owner, you take on too many responsibilities. You may be the leader, the marketer, or the product lead, and on top of it all, you might also have to manage your staff.

HR tasks like recruiting, onboarding, payroll, and performance reviews can quickly become time-consuming. But HR software solutions can help you with that. Here's why HR tools for small businesses can be a turning point for your company.

Find the Perfect Fit, Faster

Stop wasting time sifting through resumes. HRIS simplifies the recruitment process by allowing you to post jobs, manage applications, and screen candidates—all from a central hub. This means you can focus on interviewing the most qualified applicants and make the right hiring decisions quickly while the software automates the tedious part of the hiring process.

Goodbye Paperwork, Hello Efficiency

A study shows that HR professionals lose an average of 14 hours per week because of a lack of automation. HRIS automates all those time-consuming tasks that eat away at your day. This kind of human resources software takes care of everything from onboarding new employees to managing leave requests and payroll.

Stay Organized and Compliant

Keeping track of employee records, benefits, and regulations can also be a nightmare—especially for small businesses that may not have a specialized professional team to deal with these tasks. HRIS offers to keep all your HR data organized in one secure location, guaranteeing everything complies with local employment laws. If the information is organized correctly, there's no need to scramble for documents or worry about audits.

Give Control to Your Employees

HRIS gives your team easy access to their information and benefits. These software solutions usually come with self-service portals enabling employees to manage their time off, track their performance, and stay informed about company policies. HR professionals say that giving employees more autonomy makes them feel more engaged and take on more responsibility, which explains how HRIS and employee management software help keep engagement up.

Essential Features of an HRIS for Small Businesses

An HRIS can be a highly effective tool, but not all features are equal for small businesses. Here's what to look for to ensure that your chosen HR software perfectly complements your needs.

Recruitment and Onboarding

Look for a system that simplifies the hiring process. This should include features for posting jobs, managing applications, and screening resumes. A hassle-free onboarding experience should always let you to easily welcome new hires and get them up to speed quickly. If the tool is complete, it should allow certain customization of the Careers page and, ideally, an AI assistant for writing the job ads.

Payroll and Time Management

Choose an HRIS that integrates easily with your existing payroll system or offers built-in payroll functionality. Time-off tracking features are also important. They should enable the workforce to request time off or PTO independently.

Performance Management

Regular performance reviews are key if you want your employees to grow and develop like your small business. An HRIS should provide tools for setting goals, tracking progress, and conducting performance reviews.

Benefits Administration

A survey from a staffing firm found that 42% of employees were considering leaving their current jobs because their employee benefits packages were not good enough. 55% of respondents said they had left jobs in the past because they got better benefits or perks elsewhere. Offering competitive benefits is essential for attracting and retaining talent. Look for an HRIS that helps manage benefits administration, including enrollment, communication, and tracking.

Budget-Friendly Scalability

As your small business grows, your HR needs will evolve. Choose an HRIS that can scale with you, offering features and functionality to keep up with a growing team while offering suitable pricing for your limited budget.

Remember: Don't get overwhelmed by a massive list of features. Focus on the essentials that will improve your HR processes and make your life easier.

Key Factors To Consider Before Choosing an HRIS for Your Small Business

HRIS software for small businesses can be a key upgrade for you, but not all options offer the same advantages. It’s essential to pick the right one for your specific needs. Here are some key factors to consider before making your decision:

1. Company Size and Needs

  • Focus on scalability: Remember, your business may grow. Choose an HRIS that can scale with you and won't require migrating from hardware to hardware.
  • Features relevant to your stage: Look for a system that offers solutions for your current stage but still has the capacity to expand as your needs become more complex. For example, a basic applicant tracking system (ATS) might handle the job initially, but you might need onboarding automation or performance management tools later.

2. Budget

  • Be realistic: HR software solutions come at various price points. Set up your budget upfront and choose a system that offers the key features you need at a reasonable cost. Ideally, a good HRIS solution should have a free trial.
  • Beware of hidden costs: Look beyond the headline price. Some vendors might charge additional fees for implementation, training, or ongoing maintenance.

3. Ease of Use

Simplicity: Choose an HRIS that's intuitive and requires minimal training. Look for a clean interface, straightforward navigation, and readily available help resources.

4. Integrations

  • Quick integrations: Make sure the HRIS integrates easily with your existing business tools, such as payroll providers, accounting software, or project management platforms. Some platforms can integrate with thousands of applications with a no-code model.
  • Check for the API: The best way to ensure smooth integration is to confirm whether the HRIS offers a well-documented API (Application Programming Interface).

5. Additional Considerations

  • Evaluate your needs: Before diving in, take a step back and identify the specific HR tasks you want the software to address. Do you need help with payroll, benefits administration, time tracking, or performance management?
  • Read reviews: See what other small business owners say about different HRIS solutions through online reviews.
  • Customer support: Look for a vendor that offers technical support and training resources and has a history in the HR sector.

5 Best HRIS Software for Small Business in 2024

In this final section, we’ll introduce you to the five best small business hr software sonow that you know what features to look for and what factors to consider, you can make an informed decision for your businessyou can make an informed decision for your business’ upgrades.

  1. TalentHR

TalentHR is a comprehensive, centralized HR process automation platform that can truly help small businesses deal with their particular challenges. As a SaaS, its all-in-one functionality and specialized features allow small company owners to keep up with the typical and not-so-typical HR tasks that make a difference in their HR experience. What’s more, it offers very affordable prices, and businesses can start for free.

This is what TalentHR can do for your startup:

  • Reduced costs and scalability: As small businesses do not often count on extensive budgets and resources, TalentHR offers a freemium model, allowing you to access core HR functionalities like applicant tracking and benefits management at no initial cost for up to 10 users.
  • Simplified processes: It automates core HR processes like automated onboarding and time-off management, simplifying workflows and alleviating administrative workloads.
  • Centralized data and easy access: TalentHR provides a centralized location for all your employee data, available even from your mobile phone, so that small business owners can easily access their employee information.
  • Focus on building your team: Its applicant tracking system and onboarding tools make recruiting and welcoming new hires easier.  The recruitment process under TalentHR includes all of these phases.

In simple terms, TalentHR is an excellent option for small businesses looking for an affordable, user-friendly, and scalable HR solution. By automating tasks, centralizing data, and offering a comprehensive suite of features, TalentHR allows you to focus on scaling up your business and keeping your clients (and employees) happy.

  1. Gusto

Gusto is a payroll solution designed to manage a multi-country workforce—but it can also work well for small local companies. This HRIS platform simplifies payroll and employee benefits administration by automating payroll calculations and tax filings. It can also integrate with existing accounting or timekeeping software.

Gusto offers a range of pricing plans, but some may not suit your company's needs and size, particularly if you are a small business with a limited budget for HR functions. It doesn’t even offer a free trial. Also, users claim that it requires a lot of upfront manual data entry.

  1. Zoho People

Zoho People is a user-friendly, cloud-based HRIS designed for businesses of all sizes,—including small organizations. It simplifies tasks like recruitment, onboarding, payroll, and performance management.

Some users point out that its integration capabilities are not as robust as those needed by a company with a complex stack.

  1. Workable

HR teams use Workable’s HRIS software to manage employee information, including contact details and job titles, organize company documents, review organizational structure, and manage paid time off.

Despite its good reputation and advantages, this software can be a costly option for small businesses and some users claim it is less flexible than they require.

  1. Trinet

Beyond offering solutions for HR software needs, Trinet provides strategic HR planning and compliance support. Specializing in employee benefits administration, Trinet can help small companies offer competitive benefits packages to their employees, promoting retention and satisfaction within the workforce. Small companies have an excellent opportunity to become competitive by offering benefits.

Among its cons, users found less flexibility in customizing software tools and said it might not be suitable for businesses preferring a self-managed HR system.

Use HRIS Software for Small Businesses with All-In-One Tools.

HRIS software will do plenty of things, which will ultimately make HR tasks easier so businesses can focus on their revenue goals. Out of all the tools, TalentHR, which is provided as a SaaS, is a simple way to manage your employees, keep track of their information, and efficiently hire new employees.

Register now for free and manage HR requirements as soon as possible.

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

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