Best HR software for small businesses
Discover the best HR software for small businesses. Compare BuddiesHR, Deel, and Zoho People to find affordable, all-in-one HR tools for your business needs.
With so many excellent HR tools in the market, one wonders why small businesses are still trying to manage HR processes manually. Part of the reason is the perceived cost of high-end cloud-based HR software. The other is the time it takes to create the right HR stack, creating pressure that HR professionals want to avoid. [1]
In this article, we take a look at three HR management software solutions that completely overcome these objections, opening up the way for small businesses to benefit from high-quality software without using multiple systems to do it. Interested? Then let’s dive in.
Quick Overview
The best small business HR software should allow SBOs to automate onboarding, leave requests, performance reviews, surveys, and employee engagement using one platform. Strong contenders include BuddiesHR, Deel, and Zoho People, providing the very best features for small businesses to support their HR processes with technology.
Table of Contents
Snapshot: Best HR software for small businesses
BuddiesHR: #1 Slack companion
BuddiesHR stands out because: Leading the pack with their Slack-first design, BuddiesHR offers the full suite of employee engagement apps, but in modular form. This means you only use what you need, with the ability to add apps at a later stage.
What’s in it for you? In a word - loads! BuddiesHR brings your HR operations into an existing platform where you spend all your time. From Slack, you can:
- Manage employees remotely, in any location across the globe, and keep everyone on the same page.
- Collect employee data such as start dates, anniversaries, birthdays, and job titles.
- Automate HR tasks such as virtual coffee chats, onboarding, employee surveys, and daily check-ins.
- Submit and approve a time off request, with an automatic update to vacation balances.
- Roll polls or surveys and get back real-time data that tells you how your employees are doing, and how they really feel about company initiatives.
- Run performance reviews easily by automating 360-degree reviews and receiving AI-driven feedback for productivity improvement.
- Keep an updated org structure without using a cumbersome spreadsheet format.
- Allow employees to provide peer-to-peer recognition, which entrenches company culture and improves employee engagement.
Does BuddiesHR solve the cost and multiple software problems?
Yes! If you live in Slack, BuddiesHR solves both those problems as follows:
- BuddiesHR will cost you $2 per user/pm, compared with the nearest competitors, which cost around $14.35 a month, and it's FREE for under 10 users.
- You won’t need multiple Slack integrations to achieve the same thing - complete employee management.
Does anyone else like this platform? Oh yes, we see. You need to know if other HRs have used it and what they think. Good call.
👉 Read customer reviews
👉 Browse case studies
👉 Rated 4.8/5 on G2.
👉 Top user features: Analytics, drop-and-drag functionality, dashboard, automation, integrations, reports, and entertainment value (it’s fun to use).
BuddieHR won't be for you if:
- You want to manage payroll and workforce planning within the same platform as employee engagement and performance reviews.
With all that out of the way, you may be ready to take the leap. If so, get started with BuddiesHR right away, and have it running in minutes.
Deel: #1 Global payroll & HR management
Deel stands out because: Rapidly growing businesses (like startups) will find Deel helpful for managing talent acquisition, payroll, and workforce management.
What’s in it for you? In two words - solid support. Deel has what you need to manage your global workforce in one place. Use Deel if you need the following:
- The ability to hire international employees without having to navigate through a maze of internal employment laws.
- An onboarding process that can be completed within minutes, using an employee dashboard and online contract signing.
- The ability to track attendance for workers across the globe (including contractors).
- The automatic collection of tax forms, permits, and contracts in multiple locations.
- Pay employees from one platform and track employee benefits enrollment.
- Keep top talent engaged with clear career paths and training courses.
- Comprehensive 360-degree reviews, with AI performance input.
- Proactively visualize headcount scenarios and future org charts.
- Create structured review cycles linked to compensation.
- Automation of repetitive tasks during your pay period and for onboarding tasks.
Does Deel solve the cost and multiple software problems?
Yes! Deel provides a transparent pricing model, and for startups and growing businesses, you don’t need another platform.
- Deel’s HR, compensation, workforce planning, and HRIs modules will cost you $58 per worker/pm. This price will give you all the benefits we’ve described above, and each module can also be purchased as a standalone.
- Deel’s integrations make it possible to customize the platform to your HR workflows without managing different platforms that don’t communicate with one another.
Does anyone else like this platform? Yes. Small businesses and growing start-ups across the globe enjoy using Deel.
👉 Read customer reviews
👉 Browse case studies
👉 Rated 4.8/5 on G2.
👉 Top user features: Organization management, compliance, expense management, dashboard, compensation history
Deel won't be for you if:
- You like a simple, user-friendly platform that helps you manage core HR processes (like BuddiesHR)
- You’re looking for a low-cost platform that helps you engage your employees, but you already have a well-run payroll platform.
Zoho People: #1 Complete HR management
Zoho People stands out because It’s the full package from hiring and onboarding to employee engagement and analytics.
What’s in it for you? In three words - complete HR management. Even as a small but growing business, Zoho People holds the potential to automate and manage all your HR processes. Look forward to doing the following with Zoho:
- Identify and track the best candidates in the market, manage applications and track interviews in one place.
- Successfully integrate new hires from day one with customized onboarding workflows.
- Access and administer employee information across multiple departments or teams.
- Create customized PTO policies and automate vacation requests for quick approval by decision makers.
- Record time sheets and manage projects, metrics, and clients in one place.
- Set clear performance benchmarks and provide AI-driven insight for better productivity.
- Build in-house training workshops and ensure e-learning is completed within specified timeframes.
- Run single-question or multi-question employee surveys, and receive real-time analytics to make informed decisions.
- Minimize human intervention by automating manual tasks to speed up HR processes.
- Mobile app time tracking and leave requests.
Does Zoho solve the cost and multiple software problems?
Yes! Zoho is highly affordable with multiple integrations compared with other software that offers the same features.
- Zoho offers a FREE version for up to 5 users, and thereafter, between $1-3 per user/pm (billed annually), depending on the subscription you take.
- Zoho offers a number of integrations in the categories of recruitment, payroll, rewards, and document signing that help you keep your HR together on one platform.
Does anyone else like this platform? Yes. Rapidly growing small businesses and mid-size companies have given Zoho People the thumbs up.
👉 Read customer reviews
👉 Browse case studies
👉 Rated 4.4/5 on G2.
👉 Top user features: Attendance tracking, leave management, time tracking, HR management
Zoho won't be for you if:
- You’re just starting out and want a fun and creative way to engage your employees, and get valuable insights to help your business grow (try BuddiesHR for this)
- Need international payroll and workforce management capabilities (try Deel for this)
Final Thoughts
In this article, we examined three excellent HR software programs for small businesses. This software solves the problem of overpaying for software that delivers mediocre results, and the problem of multiple systems that don’t talk to one another (which makes life difficult for everyone).
Ranging between $2 and $58 in cost, the three options offer a range of features that will help any small business, start-up, or even mid-sized business automate HR processes and cut down the number of people you need to manage HR processes.
- For small businesses and startups that love Slack: Choose BuddiesHR
- For rapidly growing startups with international payroll needs: Choose Deel
- For small expanding businesses that want a comprehensive HR management platform: Choose Zoho People.
The list may be short, but it delivers!
Frequently Asked Questions
1. Is there a minimum number of employees needed to sign up for HR software?
This is generally not the case, but there are some exceptions. Large enterprise ERPs usually have a minimum number of employees or a base fee due to the complexity of the software. However, simpler HR software that is driven by AI technology often allows for smaller numbers.
2. What is the difference between modular and full suite HR software?
Modular software provides users with access to different features without paying for a full suite platform. This allows businesses to ‘mix-and-match’ modules to create customized workflows that suit their business needs, with the option of adding more modules. A full suite HR software offers a complete solution for HR management at one cost. Users have access to all features from the start.
3. Is it possible to import existing employee information into new HR software?
In most cases, the software provider has a method for importing existing employee information that makes the ‘change-over’ process smoother, without losing information. Contact the customer support team of the software you are interested in before purchase, and ensure you know exactly what it will take to get your information carried over safely.
4. What is the most used HR software worldwide?
There is no single ‘most used’ HR software worldwide; however, Workday and SAP SuccessFactors are widely used by large enterprises, while Rippling, Bamboo HR, and Gusto are popular choices in the overall HR software industry.
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