Top 5 Free HR Software for Small Businesses in 2024

Managing HR tasks can be a significant challenge for organizations of all sizes—not to talk about small businesses, whose budget is particularly limited and where many tasks fall on a few people. Plus, as your team grows, handling recruitment, employee records, and performance tracking manually can become even more time-consuming and more susceptible to oversights or typos. That's why more and more companies—some surveys claim that up to 80% of U.S. small businesses already do it—are implementing HR software to automate tasks and make HR processes less time-consuming.

Luckily, while premium HR solutions can be costly, there are free options available that offer essential HR tools to help startups and small businesses stay on top of their HR goals without overspending. In this guide, we'll talk highlight some of the best free HR software tools available today and provide examples of how these tools can help optimize your HR processes.

What to Look for in Free HR Software for Small Businesses

When selecting free HR software for small business, it’s important to prioritize features that will truly support your business. The right software can speed up your operations and make HR management easier and more efficient.

Here are some key elements to consider when searching for a solution that fits your needs:

Budget-Friendly Model

Considering we're talking about free software, this point might look like just being too careful. But considering some software suites offer seemingly free models that abruptly charge a hefty sum when you need to scale up, companies should always be keenly aware of the provider's fee structure. A budget-friendly model is either totally free or has a very easy-to-follow freemium model that starts for free and then becomes paid when the plan requires it.

User-Friendly Interface

In small businesses, HR tasks are often handled by employees who may not have formal HR training, so a simple, intuitive interface is a must. The software should be easy to navigate, with clear labels and straightforward processes. And both recruiters and employees will be using the software, so it should be friendly for both groups. For instance, if an employee needs to request time off, they should be able to do so without hunting through multiple menus. The easier the platform is to use, the less time your team will spend on training or figuring out the system.

Core HR Functions

At a minimum, the software should handle basic HR tasks like employee data management, recruitment, onboarding, and time off tracking. If your company is onboarding a new employee, the ideal HR software would allow you to first run a job ad. When the person gets hired, the same software should allow you to create an onboarding checklist, handle the document management, and automatically send welcome notes to the new hire. Additionally, employee data should be stored securely in one central location, in an employee database, so that it makes it easy to update roles, add performance reviews, or track time-off balances without needing separate systems for each task.

Scalability

Your software should grow as your business expands. Let’s say you start with 10 employees but anticipate increasing to 30 over the next two years. The software you choose should allow you to add users or seats and handle more complex HR procedures like performance evaluations or benefits tracking as your business matures. This means you won’t need to switch to a new platform in the future.

Customer Support

Even if you’re using free software, having access to support is necessary. When your human resources operation becomes more complex, you'll inevitably have to learn how to configure your tool. Having access to a resource like a help center, forums, or a support team can prevent delays and keep your processes running smoothly. Without this, you might waste countless hours troubleshooting on your own.

Integration Capabilities

Your HR software will likely need to work in tandem with other tools, like payroll systems or communication platforms. For instance, if your payroll system and HR software are integrated, time tracking can automatically sync with payroll, and reduce the need for manual data entry and prevent errors.

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Top 5 Free HR Software for Small Businesses in 2024

Finding the right HR software for your small business can be challenging, especially if you're working within a limited budget. Fortunately, there are several free options available that offer key features to support your HR needs without the cost. Below are some of the best free HR software solutions for small businesses in 2024:

1. TalentHR: Best for All Core HR Needs

TalentHR is a versatile and all-in-one comprehensive platform that addresses the fundamental HR challenges small businesses and startups face. Its free version offers a significant range of features for up to 10 users, making it ideal for organizations looking for a scalable solution.

Key features:

• Free and cost-effective: The free version includes core HR functionalities like time off management, applicant tracking, employee onboarding, and reporting. For a small business with budget concerns, this can help cover the essential HR needs without additional costs.
• Automation and cost reduction: TalentHR automates tedious HR processes, such as time off management and onboarding. For example, instead of manually tracking new hires' documents, the platform sends automatic reminders and updates that help teams stay organized and save time.
• Centralized data access with mobile access: Whether you're in the office or working remotely, TalentHR's mobile app allows you to access all employee data and manage HR tasks on the go.
• Customizable Careers page: Businesses can create their own branded Careers page to draw in top talent.
• AI-driven job descriptions: TalentHR’s built-in AI writer generates job descriptions that make sure you create compelling and precise postings that stand out to potential candidates.
• Seamless integrations: TalentHR connects with essential tools like Slack, Zapier, Google Calendar, TalentLMS, and WordPress, plus offers custom API access—bringing your HR processes together in one place for effortless workflows and streamlined team management.
• Free unlimited support with every plan: All TalentHR plans include free, unlimited email support with a response guarantee of one business day.
• It takes seconds to sign up—and it scales up: TalentHR is a SaaS solution, and it requires no deployment. Companies can get started in seconds. And when the time comes, companies can let it scale up.

Small Businesses: Bring on HR Wins for Free with TalentHR →

2. Frappe HR: Best Open-Source Solution

Frappe HR is an open-source HR platform that is highly customizable and allows unlimited employees as users. While not explicitly marketed as free, Frappe HR has a free tier that makes it accessible to small businesses.

Key features:

• Customizations: Frappe HR’s open-source nature allows businesses to tweak and personalize the system based on their needs. For example, you can customize the attendance tracking system to reflect your company's specific working hours or leave policies.
• Employee management & leave tracking: Essential functions like employee records, attendance, and leave management are all built into the system.

Since it’s open-source, Frappe HR is virtually free but may require a bit more technical setup than a SaaS solution. However, if your team has some technical expertise, this can be a highly cost-effective way to manage HR operations.

3. OrangeHRM: Best for User-Friendly Features

While not entirely free, OrangeHRM offers a free trial plan for 30 days packed with some core HR functionalities.

Key features:

• Employee self-service portal: Employees can update their information, request time off, and view their own records, reducing the administrative load on HR teams.
• Time and attendance tracking: The system tracks working hours and, this way, help small businesses manage payroll more efficiently.
• Performance management: Managers can use the built-in tools to assess employee performance, keeping track of goals and progress throughout the year.

Still, some users have reported that OrangeHRM can be tricky to set up, and the system may experience occasional instability, such as crashes. Generating reports, especially those involving accounting software, can also be cumbersome, which might slow down day-to-day operations.

4. Deel: Best for Managing Global Teams

Deel is a popular choice for small businesses looking to manage remote and international teams. Its free plan offers essential features for small businesses operating across borders.

Key features:

• Global payroll: Deel helps manage payroll for remote workers in a way that maintains compliance with local labor laws. For example, if you hire freelancers or employees in different countries, Deel helps you handle international payroll.
• Remote work-friendly features: Deel’s focus on remote workforce management has made it easy for small businesses to onboard, pay, and manage international talent.

5. TimeTrex: Best Free Payroll Software with Basic HR Tools

TimeTrex is a payroll solution with a free trial that also offers a basic HR tool.

Key Features:

• Payroll processing: TimeTrex provides scheduling, time tracking, PTO management, and basic payroll functions.
• Integration capabilities: TimeTrex integrates with popular payroll services like QuickBooks, ADP, and Paychex.

TimeTrex has a free trial… but getting started is not a click away. You must first get in touch with their Sales team. Also, their paid plans can't even compete with a free version: Their initial plan, for 10 users—comparable to TalentHR—starts at $50 per month, much pricier than other advanced tiers on this list.

The free version doesn’t handle payroll tax filings directly, but it does create tax forms for manual submission. More advanced features, such as applicant tracking and invoicing, are only available in higher-tier plans. Additionally, the interface may feel outdated compared to other solutions on this list.

How to Choose the Right Free HR Software for Your Small Business

When selecting free HR management software, start by assessing your current HR processes and asking yourself what specific functionalities you need, such as recruitment, onboarding, or payroll management. Consider the number of employees who will use the software and whether it can scale as your team grows. Reflect on user experience as well; is the interface intuitive enough for your team to navigate easily?

Also, think about future needs. How quickly do you anticipate your team expanding, and will you require more advanced features down the line? Customer support is another critical factor. What resources are available for troubleshooting, and how quickly can you expect assistance if issues arise?

Finally, consider the possibility of upgrading. If you might need additional features later, what options are available for transitioning to a paid plan?

Start for Free and Scale Up with HR Software

In this guide, we've reviewed the top free HR software options available for small businesses in 2024, including TalentHR, Frappe HR, OrangeHRM, Deel, and TimeTrex. Each of these tools offers key features to help you manage your HR processes effectively while keeping costs low.

Considering most plans on this list are for free, you should ask yourself something else: When my company needs to grow, which solution, paid for or free, will be able to keep up with the expansion of the business?

Starting with free HR software is a smart move for small businesses looking to modernize their operations. These platforms assist with daily HR tasks and also provide the flexibility to scale as your business grows. If you invest time in selecting the right software, you can lay a strong foundation for your HR management.

Start by creating your free account with TalentHR now—it takes seconds.