# 10 Best Human Resources Software for Small Businesses 2026 | Capterra

> Find and compare the 2026 best Human Resources software for small businesses, using our interactive tool to quickly narrow your choices based on businesses like yours.

Source: https://www.capterra.com/human-resource-software/s/small-businesses

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# Human Resources Software for Small Businesses in 2025

Last updated on August 4, 2025

Written by [Brian Westfall](https://www.capterra.com/resources/author/bwestfall/)

Writer

Edited by [Caroline Rousseau](https://www.capterra.com/resources/author/caroline-rousseau/)

Editor

Every small business has to perform human resources tasks like onboarding employees, tracking attendance, and running payroll—often with little or no dedicated HR personnel for support. [Human resources (HR) software](https://www.capterra.com/human-resource-software/) helps by giving small businesses the tools to automate common HR tasks in order to manage and grow their workforce.

To help you find the right HR software for your small business, we'll share the top-ranked systems, the features users rate most important, and specific benefits—all backed by our research, advisors, and insights from over 18,000 recent user reviews from small businesses.

## 10 best human resources software for small businesses

[

Deel

](#48b63356-01f5-4f14-94f0-dc4cf62940b4)

Highest rated

4.8 (4265)

[

Rippling

](#598e6747-cf05-4b9f-9fb7-a8770071ba2f)

Highly rated for Value for Money

4.9 (4645)

[

BambooHR

](#8974fda0-96cf-44b9-a1c9-a6d200b2d5bd)

Highly rated for Ease of Use

4.6 (3108)

[

Paycor

](#f483b5ac-9eb8-4be9-9ea2-a6d200b5a51b)

Highly rated for Applicant Tracking

4.3 (3033)

[

Paycom

](#33a55443-15ee-465a-a3b7-a6d200b5a51b)

Highly rated for Customer Support

4.4 (1211)

[

Gusto

](#42ee393d-0695-4c41-b194-a6d200b44a29)

Highly rated for Self-Service Portal

4.6 (4193)

[

ADP TotalSource

](#ad0718b3-07e2-473d-bef9-a6d200b29cac)

Highly rated for Reporting/Analytics

4.2 (456)

[

ADP Workforce Now

](#5d819c1c-d923-43b7-86eb-a6d200b29cac)

Highly rated for Functionality

4.4 (7177)

[

isolved

](#ad307a92-d866-4a04-bda4-1519eab226bd)

Highly rated for Employee Management

3.9 (645)

[

Paychex Flex

](#8e6823ad-dfd1-457e-b4e0-a6d200b5a51b)

Highly rated for Payroll Management

4.2 (1788)

[Explore our full Human Resources solutions](https://www.capterra.com/human-resource-software/)

### How we picked the software on this list

All the tools listed below are featured in the [2024 Capterra Shortlist for Human Resources](https://www.capterra.com/human-resource-software/shortlist/). The listed tools have received at least 20 reviews in the past two years from small and midsize businesses, with ratings of 4 and above. Our analysis of thousands of user reviews highlights key insights about user experiences with these platforms, offering valuable feedback on functionality, ease of use, customer support, and value for money.

* * *

[4.8 (4265)](https://www.capterra.com/p/205015/Deel/reviews/)

Highest rated

Highest rated

Starting Price:

$5.00

Per User,

Per Month

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 142 reviews

User rating:

MV

88% of reviewers rated it 5 stars

Deel is a comprehensive HR management platform that covers everything from hiring and payroll to reporting and compliance. Based on more than 1,950 reviews on Capterra and an average rating of 4.8/5, Deel had the highest overall rating within the past two years in the category of human resources apps for SMBs. Small HR teams can save time with Deel by automating payroll, tax filings, contractor payments, and other common tasks.

Features

Features reviewers most value

**Employee onboarding**

Reviewers appreciate Deel's employee onboarding capabilities, giving this feature a rating of 4.7 out of 5. They highlight the ease and simplicity of the process, noting that it is user-friendly and intuitive. Users report that the step-by-step instructions and professional representatives make the experience smooth and efficient. They find the document upload process, including ID verification, straightforward. Reviewers also mention the clear communication via email and the timely, scheduled payments as valuable aspects of Deel's onboarding process.

**Alerts and notifications**

Users find Deel's alerts and notifications capabilities very helpful; they rate this feature 4.9 out of 5. They report that the notifications are timely and relevant, providing updates on payments, contract changes, and important events. Reviewers appreciate that Deel only sends notifications when necessary. They indicate that real-time alerts help them stay informed about their account status and financial movements. Users also mention the convenience of receiving notifications via email and phone, which helps with deadlines.

**Activity dashboard**

Reviewers highlight the usefulness of Deel's activity dashboard, rating this feature 4.6 out of 5. They find it easy to navigate and appreciate that it provides all the necessary information at a glance. They mention that it is well-organized, transparent, and user-friendly. Reviewers also value the detailed information provided, which gives them confidence in managing their work. They indicate that the dashboard is essential for efficient task management and staying updated on their activities.

Pros & Cons

KP

Kanishk P.

Computer & Network Security, 1-10 employees

Used the software for: Less than 6 months

"It offers an easy onboarding process, efficient contract management, seamless payment tracking, and, best of all, multiple convenient withdrawal options."

TR

Theodora Monan R.

Retail, 1,001-5,000 employees

Used the software for: Less than 6 months

"Additionally, the virtual card feature is a fantastic addition; it allows for hassle-free online transactions and provides an extra layer of security when shopping or making payments."

RM

Rishi M.

Information Technology and Services, 11-50 employees

Used the software for: Less than 6 months

"It's functional for quick questions about contracts or payments but lacks threading, file sharing capabilities, and search functionality that modern chat platforms offer."

AZ

Adilet Z.

Law Enforcement, 11-50 employees

Used the software for: Less than 6 months

"What I liked least about Deel was that sometimes the user interface felt a bit cluttered and unintuitive, making certain tasks like editing contracts or managing multiple payments more time-consuming than necessary, which could be frustrating for users who need to move quickly."

Pricing

Deel offers businesses a free demo, and pricing starts at $19 per employee per month for basic U.S. payroll services. For American companies that also need to run international payrolls, the price is $29 per employee per month. PEO providers can get Deel for $89 per employee per month, and the global EOR package costs a flat $599 per month.

[Learn more about Deel pricing plans](https://www.capterra.com/p/205015/Deel/pricing/)

Integrations

**Popular Integrations**

-   **PayPal** is an online payment platform that integrates with Deel so contractors can receive payments in their PayPal accounts.
    
-   **Xero** is a cloud-based accounting platform that can sync invoices, payments, and other expenses with Deel.
    
-   **BambooHR** is an HR management platform that integrates with Deel to sync employee records and other HR data between the apps.
    

[Learn more about Deel](https://www.capterra.com/p/205015/Deel/)

* * *

[4.9 (4645)](https://www.capterra.com/p/172127/Rippling/reviews/)

Highly rated for Value for Money

Highly rated for Value for Money

Starting Price:

$8.00

Per User,

Per Month

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 589 reviews

User rating:

AV

90% of reviewers rated it 5 stars

Rippling is a cloud-based HR and IT management platform aimed at small to midsize businesses seeking a unified corporate services system. It can automate common HR tasks like time tracking, payroll, and benefits administration. Employees can update their own records, easing the burden on smaller HR teams. With more than 3,300 reviews on Capterra, Rippling has an overall 4.9/5 rating. Among the most popular HR tools for SMBs, Rippling is the highest rated for value for the money, with a 4.8/5 rating.

Features

Features reviewers most value

**Employee profiles**

Reviewers give this feature a rating of 4.6 out of 5. They appreciate Rippling's employee profiles for their ease of navigation and the ability to quickly find essential job role data and contact information. They find it helpful for onboarding and keeping track of employees. Users report that the profiles are well-organized and the interface is clean and straightforward. They indicate that updating profiles is easy and having all relevant information in one place is valuable. 

**Online time tracking** 

Reviewers give this feature a 4.6 out of 5 rating. They find Rippling's online time tracking convenient and easy to use, allowing them to manage their time and breaks efficiently. They find it helpful for tracking multiple types of pay periods, and appreciate the variety of options for inputting time. Reviewers indicate that it helps streamline the time-tracking process and reduce errors. They say it is reliable, though some mention occasional bugs. Users appreciate the ability to track time remotely and the ease of requesting time off.

**Onboarding**

Reviewers give this feature a rating of 4.6 out of 5. They highlight Rippling's onboarding capabilities as intuitive and user-friendly, making the process quick and easy. They find it valuable for organizing and completing onboarding documents, with clear reminders for time-sensitive items. Users report that it simplifies hiring new employees by grouping important documents and providing step-by-step guidance. They appreciate the automated experience and the ease of navigating the app and website. Some users mention that the support team is responsive and helpful.

Pros & Cons

SV

Stefan V.

Mental Health Care, 201-500 employees

Used the software for: 6-12 months

"The payroll interface is my favorite part because it's clear, updates in a timely manner, can download paystubs, and can look up all the information related to my paty."

Jagadeesh T.

Information Technology and Services, 501-1,000 employees

Used the software for: 1-2 years

"Employee Management: The self-service portal gives me complete visibility into my leave history, pending requests, and available balance across different leave categories (casual, sick, earned)."

RN

Ronald N.

Furniture, 51-200 employees

Used the software for: Less than 6 months

"This made it harder to create detailed, customized views of our device inventory and track certain metrics the way I needed to."

PF

Pedro F.

Retail, 51-200 employees

Used the software for: Less than 6 months

"The mobile app keeps expiring my authentication leading me to only be able to do any meaningful action on the desktop version of the platform."

Pricing

Rippling does not publicly list pricing details. Businesses should contact Rippling for a customized quote.

[Learn more about Rippling pricing plans](https://www.capterra.com/p/172127/Rippling/pricing/)

Integrations

**Popular Integrations**

-   **Google Docs** is an online word processing and document management app that integrates with Rippling to provide single sign-on (SSO) functionality.
    
-   **WordPress** is a blogging and website creation tool that integrates with Rippling’s SSO features so employees can authenticate with their Rippling username and password.
    
-   **Gmail** is a web-based email application that integrates with Rippling so HR teams can view data like employee job titles directly in Gmail threads.
    

[Learn more about Rippling](https://www.capterra.com/p/172127/Rippling/)

* * *

[4.6 (3108)](https://www.capterra.com/p/110968/BambooHR/reviews/)

Highly rated for Ease of Use

Highly rated for Ease of Use

Starting Price:

$10.00

Per User,

Per Month

Free Trial

Free Version

Top rated feature:

Time Off Management

Based on 240 reviews

User rating:

KW

65% of reviewers rated it 5 stars

BambooHR is a cloud-based HR management suite designed for businesses of all sizes. Its consolidated user interface covers applicant tracking, onboarding, benefits administration, and more HR tasks. BambooHR also offers robust reporting features that provide HR teams with data-driven insights. With more than 2,900 reviews on Capterra, BambooHR has an overall rating of 4.6/5. Out of the most popular HR tools for SMBs, it is the highest rated for ease of use.

Features

Features reviewers most value

**Application management**

Reviewers appreciate BambooHR's application management capabilities; rating the feature 4.8 out of 5. They find it streamlines the recruitment process, enhances collaboration, and ensures compliance. Users report it improves candidate experience and allows for easy tracking of candidates through various stages. They highlight the integration with other applications lfor video interviews and value the ability to customize application questions. They say it keeps all applicant information in one place, making it accessible to multiple managers.

**Candidate tracking**

Reviewers give this feature a rating of 4.6 out of 5. They appreciate BambooHR's candidate tracking capabilities that centralize candidate data. They mention the improved communication and data-driven insights it provides. Users report it enables collaborative hiring, with features like assigning tasks and scheduling interviews. They find it beneficial for sending automated communications and generating reports. They highlight the ability to track candidates' progress and share notes among team members, which enhances the overall efficiency of HR operations.

**Time off requesting**

Users report BambooHR's time off requests capabilities are easy to use and manage, giving the feature a rating of 4.5 out of 5. They appreciate the ability to request and approve time off through both desktop and mobile apps. Reviewers highlight the centralized location for managing approvals and planning. They find the interface user-friendly and value the real-time balance tracking. They say it simplifies the process for both employees and managers, making it a valuable tool for tracking and managing leave.

Pros & Cons

Timothy C.

Marketing and Advertising, 1-10 employees

Used the software for: 1-2 years

"It has allowed us to scale our onboarding—sending out digital offer letters and new hire packets in minutes rather than hours—while keeping our employee data clean and compliant. While no software is perfect—the reporting engine can feel a bit rigid when you need hyper-specific, cross-tabular data—the trade-off for such an intuitive user interface is well worth it."

Chris C.

Sports, 201-500 employees

Used the software for: 2+ years

"I have applied for many other jobs on different websites and the user interface and ability to add the necessary pieces of a job applications are most easily done on Bamboo."

Nicole D.

Real Estate, 11-50 employees

Used the software for: 6-12 months

"I find it difficult to add mileage using the app and there is no way to even access the tab for 1:1s with my supervisor in the app."

RV

Rakhi V.

Information Technology and Services, 51-200 employees

Used the software for: 2+ years

"Some areas feel a bit limited once you need more detail—like- reporting or pulling specific insights can require extra steps or doesn’t always give the exact view you want without workarounds."

Pricing

BambooHR offers a free demo. For full pricing details, businesses should request a quote.

[Learn more about BambooHR pricing plans](https://www.capterra.com/p/110968/BambooHR/pricing/)

Integrations

**Popular Integrations**

-   **Google Calendar** is an online tool that can sync calendars from BambooHR, like those that show employee absences or new hire dates.
    
-   **NetSuite** is a cloud-based ERP platform that can integrate data from BambooHR employee records.
    
-   **Deputy** is a workforce scheduling and time-tracking app that can sync employee data with BambooHR.
    

[Learn more about BambooHR](https://www.capterra.com/p/110968/BambooHR/)

* * *

[4.4 (1211)](https://www.capterra.com/p/130949/Paycom/reviews/)

Highly rated for Customer Support

Highly rated for Customer Support

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 144 reviews

User rating:

JR

61% of reviewers rated it 5 stars

Paycom is a comprehensive HR management platform that streamlines the employee lifecycle, from onboarding to payroll and benefits. It also offers more advanced features like compliance management and labor cost tracking. With more than 980 verified reviews, Paycom is the highest rated for customer support among the most popular HR tools for SMBs, with an overall rating of 4.4/5.

Features

Features reviewers most value

**Direct deposit**

Reviewers appreciate Paycom's direct deposit capabilities, rating the feature 4.7 out of 5. Users report timely and efficient processing, with funds often available early. They find it easy to set up and modify deposit information, even for multiple accounts. Some users mention the added security and environmental benefits. However, a few note issues with initial setup and additional fees for small businesses.

**Mobile access**

Users report that Paycom's mobile access is highly valuable; they give this feature a 4.7 out of 5 rating. Reviewers indicate that the mobile app mirrors the functionality of the desktop version, making it easy to clock in/out remotely. They find the app user-friendly and convenient for on-the-go management. Managers and employees alike benefit from the flexibility and accessibility provided by the mobile app.

**Employee database**

Reviewers highlight the comprehensive and centralized nature of Paycom's employee database, rating the feature 4.6 out of 5. They find it easy to navigate, search, and filter employee information, which aids in accurate payroll processing, tax reporting, and compliance. Users appreciate the ability to quickly access and manage employee data. Some mention the convenience of having all pertinent information in one place, though a few have experienced initial inaccuracies in data entry.

Pros & Cons

LB

Lindsey B.

Hospital & Health Care, 201-500 employees

Used the software for: 2+ years

"Customizable onboarding lists, ability to upload our company documents for ESS visibility, time off requests are simple, learning platform is nice."

NT

Nijah T.

Individual & Family Services, 11-50 employees

Used the software for: 1-2 years

"It allowed me to learn more about how to electronically submit my work hours, requests for sick days and vacation time in a timely manner."

TC

Tiffany C.

Construction, 201-500 employees

Used the software for: 1-2 years

"Also, when reviewing documents (like PAFs and other documents), you can’t easily go back to where you left off, you have to restart from the employee profile and find your place again, which can be frustrating and time-consuming."

AE

Ashley E.

Civic & Social Organization, 51-200 employees

Used the software for: 6-12 months

"Good because they can keep track of how much people are working and slightly annoying when I clock 39.99 hours instead of 40 (not that the reporting really changes my pay, just a personal pet peeve)."

Pricing

Paycom does not provide pricing information, so businesses should request a quote.

[Learn more about Paycom pricing plans](https://www.capterra.com/p/130949/Paycom/pricing/)

Integrations

**Popular Integrations**

Paycom does not officially support integrations.

[Learn more about Paycom](https://www.capterra.com/p/130949/Paycom/)

* * *

[### ADP Workforce Now](https://www.capterra.com/p/155895/WorkforceNow/)

[4.4 (7177)](https://www.capterra.com/p/155895/WorkforceNow/reviews/)

Highly rated for Functionality

Highly rated for Functionality

[View Profile](https://www.capterra.com/p/155895/WorkforceNow/)

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 163 reviews

User rating:

58% of reviewers rated it 5 stars

ADP Workforce Now is a full-featured HCM platform designed to scale for businesses of all sizes. For small to midsize businesses, it provides a centralized interface for all HR functions, including time and attendance tracking, PTO requests, payroll, tax withholdings, benefits, and talent management. ADP Workforce Now has more than 6,800 verified user reviews with an overall 4.4/5 rating. Out of the most popular HR tools for SMBs on Capterra, it is the highest rated for functionality.

Features

Features reviewers most value

**Direct deposit**

Reviewers appreciate ADP Workforce Now's direct deposit capabilities; they give this feature a 4.6 out of 5 rating. They find it convenient to make instant changes without HR involvement and value the ability to split deposits across multiple accounts. Users report timely deposits, easy access to funds, and seamless integration with the ADP mobile app. They highlight the system's accuracy in verifying bank accounts and the detailed breakdown of pay, deductions, and taxes. They say it saves time and reduces the need for paper checks, making payroll management more efficient.

**Access controls/permissions**

Users report that ADP Workforce Now's access controls and permissions are highly effective, giving them a 4.5 out of 5 feature rating. They appreciate the ability to assign and revoke permissions based on employee roles, ensuring only authorized access. Reviewers indicate that the system is user-friendly, allowing easy setup of different profiles and control over various functions. They find it helpful for maintaining security and efficiency, with features like face ID support for mobile access. They say it simplifies management tasks and reduces the risk of unauthorized changes.

**W-2 preparation**

Reviewers highlight ADP Workforce Now's W-2 preparation capabilities as very helpful; they rate this feature 4.4 out of 5. They appreciate the timely availability of W-2 forms, both online and for printing. Users report that the system automates W-2 processing, and find it convenient to access past and current W-2s through the app. They also value the notifications and support provided for tax preparation, saying it ensures accuracy and ease during tax season, benefiting both employees and administrators.

Pros & Cons

HD

Haley D.

Medical Practice, 501-1,000 employees

Used the software for: Less than 6 months

"ADP Workforce Now offers a comprehensive all-in-one solution for payroll, HR, benefits, and time tracking which has been highly efficient for managing workforce operations in one centralized platform."

SQ

Samantha Q.

Food & Beverages, 1,001-5,000 employees

Used the software for: 2+ years

"ADP Workforce Now offers a comprehensive range of HR and payroll features in one platform. When everything works correctly, it’s convenient to have payroll, benefits, and employee data integrated in one system."

NM

N'dea M.

Education Management, 11-50 employees

Used the software for: 1-2 years

"There have been time where the system has gone down and employees were not able to put there hours in only in a timely manner which caused delays in payroll or for manual entry after a payroll cycle has closed."

DY

Diana Y.

Marketing and Advertising, 51-200 employees

Used the software for: 2+ years

"Their customer service was good when you could get them on the phone! Since most issues required fast resolution, it was often times irritating to have to wait for a call-back. And sometimes, the call-backs would tell you that You needed to be re-directed to a different area for resolution so that only increased frustration and delay."

Pricing

Businesses must request a custom quote for ADP Workforce Now.

[Learn more about ADP Workforce Now pricing plans](https://www.capterra.com/p/155895/WorkforceNow/pricing/)

Integrations

**Popular Integrations**

-   **QuickBooks Enterprise** is an accounting and finance management application that can sync payroll and other expenses with ADP Workforce Now.
    
-   **Xero** is a cloud-based accounting platform that can integrate ADP Workforce Now’s payroll data.
    
-   **SAP Concur** is an enterprise-grade spending management system that can integrate with ADP Workforce Now to manage expense reimbursements and other costs.
    

[Learn more about ADP Workforce Now](https://www.capterra.com/p/155895/WorkforceNow/)

* * *

[4.6 (4193)](https://www.capterra.com/p/131882/Gusto/reviews/)

Highly rated for Self-Service Portal

Highly rated for Self-Service Portal

Starting Price:

$49.00

Other,

Per Month

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 105 reviews

User rating:

73% of reviewers rated it 5 stars

Gusto is a comprehensive HR management and payroll application for small and growing businesses. Its unified interface streamlines everyday HR tasks like payroll processing, tax preparation, time-off management, and more. Based on more than 4,000 reviews and an overall rating of 4.6/5, Gusto was selected as the best employee self-service portal among HR apps for SMBs.

Features

Features reviewers most value

**Employee profiles**

Reviewers appreciate Gusto's employee profiles capability, rating the feature 4.8 out of 5. They find it quick and easy to create and edit profiles. Users report that having all employee information in one place, including payrolls, tax documentation, and benefits, is very helpful. They highlight the security and ease of access to employee documents. Reviewers also mention that Gusto's employee profiles feature simplifies background checks and provides detailed reports and analytics on employees.

**Direct deposit**

Users report that Gusto's direct deposit capability is reliable and efficient; they give this feature a rating of 4.6 out of 5. They appreciate the ability to split payments among multiple bank accounts and make changes easily. Reviewers indicate that direct deposit ensures timely payroll processing and provides notifications for payroll scheduling. They find it convenient for both employees and employers, eliminating the need for paper checks. Some users mention occasional issues with late payments, but overall, they value the automation and ease of use.

**Employee database**

Reviewers highlight the efficiency of Gusto's employee database, giving it a feature rating of 4.5 out of 5. They find it centralizes essential information and streamlines HR tasks. Users appreciate the secure storage of employee documents and the automatic creation of profiles during onboarding. They report that the database makes it easy to access and manage employee information, such as contact details and payroll activities. Some users note that the search function could be improved, but overall, they find it a valuable tool for keeping track of employees.

Pros & Cons

Ryan P.

Design, 1-10 employees

Used the software for: 1-2 years

"As an employee with the employer implementing Gusto as our way to clock hours and bill labor, I found it pretty simple and straightforward, with full transparency as far as being able to view accrued hours, break time etc."

DH

David H.

Law Practice, 1-10 employees

Used the software for: 2+ years

"It suits my personal needs as well, since the information I access is required for non-business needs, including loan and other financial matters."

Hallye N.

Mechanical or Industrial Engineering, 11-50 employees

Used the software for: I used a free trial

"Slow support, rising per-employee costs, limited customization, weaker mobile app, and advanced features locked behind higher-tier plans."

Sofia L.

Accounting, 1-10 employees

Used the software for: 1-2 years

"Gusto can get pricey depending upon the number of employees being serviced, and some employees have found it difficult to customize their withholdings."

Pricing

Gusto’s Simple tier is meant for smaller businesses and costs $40 per company with an additional $6 per employee per month. The Plus plan is aimed at companies with more complex needs, such as multi-state payroll, and is priced at $80 per company plus $12 per employee per month.

[Learn more about Gusto pricing plans](https://www.capterra.com/p/131882/Gusto/pricing/)

Integrations

**Popular Integrations**

-   **QuickBooks Enterprise** is a cloud-based accounting platform that syncs payroll and other HR expenses with Gusto.
    
-   **QuickBooks Online** is accounting software aimed at small to midsize businesses, and it can also sync HR expense data with Gusto.
    
-   **Vagaro** is a practice management solution designed for medical spas that integrates with Gusto for payroll management.
    

[Learn more about Gusto](https://www.capterra.com/p/131882/Gusto/)

* * *

[### isolved](https://www.capterra.com/p/164417/iSolved/)

[3.9 (645)](https://www.capterra.com/p/164417/iSolved/reviews/)

Highly rated for Employee Management

Highly rated for Employee Management

[View Profile](https://www.capterra.com/p/164417/iSolved/)

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 71 reviews

User rating:

NM

42% of reviewers rated it 5 stars

isolved is an HRIS platform designed to be a single source of truth for all aspects of people management, from hiring and onboarding to payroll and compliance management. With more than 560 verified reviews on Capterra and a 3.9/5 overall rating, isolved was selected as the best for employee management among the most popular HR apps for SMBs. For companies with a remote or hybrid workforce, isolved has a full-featured mobile app that supports PTO requests and employee profile management.

Features

Features reviewers most value

**Direct deposit**

Reviewers appreciate isolved's direct deposit capabilities for their ease of use and reliability; they rate this feature 4.5 out of 5. They report that employees can manage and update their own deposit information, which simplifies payroll processes. Users indicate that it helps ensure timely and accurate payments, reducing the risk of lost or stolen checks. They also mention the ability to deposit into multiple accounts. However, some users find the options confusing and suggest improvements for user-friendliness.

**Payroll management**

Reviewers give this feature a rating of 4.3 out of 5. They highlight isolved's payroll management for its seamless and efficient payroll processing. They find it easy to set up, navigate, and make adjustments. Users appreciate the integration with timekeeping and the ability to handle garnishments electronically. They also value the customer support and the system's reliability in ensuring timely payments. However, some mention occasional glitches and difficulties in navigating between employee records.

**W-2 preparation**

Reviewers appreciate isolved's W-2 preparation for its accuracy and ease of use, giving the feature a rating of 4.3 out of 5. They report that the process is straightforward, with isolved handling most of the work and providing timely delivery of W-2 forms. Users indicate that employees can access their W-2s electronically, print duplicates, and even file taxes through a link in isolved. They find this capability saves time and ensures compliance with legal requirements. However, some users wish for quicker availability of W-2s and 1095s.

Pros & Cons

JP

Jennifer P.

Financial Services, 51-200 employees

Used the software for: 2+ years

"Overall, isolved has a broad range of features from hire-to-retire, and with some upgrades and individual customer customizations, this platform could elevate my experience even more."

LC

Lisa C.

Hospital & Health Care, 51-200 employees

Used the software for: 2+ years

"It has streamlined our yearly insurance open enrollment. And has made it easy for with the People Cloud for out staff to access their own information. "

SB

Sara B.

Law Practice, 51-200 employees

Used the software for: 2+ years

"There are delayed responses or sometimes inconsistencies in responses from customer service."

AF

Ally F.

Construction, 1-10 employees

Used the software for: 1-2 years

"We were overcharged dramatically compared to what was discussed and agreed upon. When we asked for a breakdown — repeatedly, for months — we were given the runaround, bounced from one department to another, and told “that’s not my responsibility” more times than I can count."

Pricing

isolved does not publicly list pricing and requires businesses to request a quote.

Integrations

**Popular Integrations**

-   **TurboTax Business** is a tax solution for SMBs that can seamlessly import W-2 data from isolved.
    
-   **Employee Navigator** is an HCM platform that can integrate with isolved to provide benefits management features.
    
-   **CareerPlug** is a hiring management system that can integrate with isolved’s onboarding functionality.
    

[Learn more about isolved](https://www.capterra.com/p/164417/iSolved/)

* * *

[4.3 (3033)](https://www.capterra.com/p/133745/Paycor-Perform/reviews/)

Highly rated for Applicant Tracking

Highly rated for Applicant Tracking

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 170 reviews

User rating:

JG

53% of reviewers rated it 5 stars

Paycor is a comprehensive HR management platform with a focus on hiring and people management. Paycor has more than 2,900 verified user reviews on Capterra with a 4.4/5 overall rating, and it was selected as the best tool for applicant tracking among the top HR tools for SMBs. Some of Paycor’s advanced applicant tracking features include a resume analyzer to ensure accurate candidate records and AI-generated digital offer letters.

Features

Features reviewers most value

**Direct deposit**

Reviewers give this feature a rating of 4.5 out of 5. They appreciate Paycor's direct deposit capability for its convenience, reliability, and security. Users report that it reduces administrative tasks and the risk of lost or stolen checks. They also highlight the ease of setting up direct deposits and the ability for employees to access their funds on payday. However, some users mention occasional issues with direct deposits showing up as deductions.

**Payroll management**

Reviewers rate this feature 4 out of 5. They indicate that Paycor's payroll management capabilities are highly valuable for organizing and processing payroll efficiently. They find it easy to track employee hours, deductions, and compliance (with payroll regulations), and appreciate the automated calculations for taxes and deductions. Users. They also highlight the helpful reporting options and customer support. However, some users report difficulties with tracking deductions and handling shift differentials.

**Employee database**

Users report that Paycor's employee database is essential for storing and managing employee information securely; they give it a feature rating of 4 out of 5. They find it helpful for tracking personal, contact, and employment details, as well as for payroll and tax purposes. Reviewers appreciate the ability to access and update information easily, and the comprehensive filters and reporting options. However, some users mention limitations in reporting and difficulties in navigating the system or accessing certain information.

Pros & Cons

AD

Ashley Erin D.

Leisure, Travel & Tourism, 501-1,000 employees

Used the software for: 2+ years

"The customer support team and tools available have been awesome and the app is easy for our employees to use for requesting time off, availability, direct deposit and seeing their employee file and work related documents."

OT

Olga T.

Non-Profit Organization Management, 51-200 employees

Used the software for: I used a free trial

"In addition to payroll, their platform offers excellent features for workforce management, including clock-in and clock-out tracking, access control, and leave management."

JF

Jennifer F.

Warehousing, 51-200 employees

Used the software for: 2+ years

"We process payroll weekly. When trying to get the documents from our employee files, that was a process that could not be understood."

PM

Preston M.

Semiconductors, 201-500 employees

Used the software for: 2+ years

"Their reporting functions frequently bring back back information and I get no help when trying to get Paycor to fix the issues I find."

Pricing

Paycor does not provide public pricing. Businesses can fill out a form on the Paycor website to schedule a free demo and receive a quote.

[Learn more about Paycor pricing plans](https://www.capterra.com/p/133745/Paycor-Perform/pricing/)

Integrations

**Popular Integrations**

-   **Ease** is a platform for insurance brokers that can integrate with Paycor to sync employee records and benefits deductions.
    
-   **Blackbaud Financial Edge NXT** is an investment fund management system for nonprofits, government entities, and educational institutions that integrates with Paycor to help manage employee retirement plans.
    
-   **AssureHire** is an automated background screening tool that can integrate with Paycor’s hiring and onboarding functionality.
    

[Learn more about Paycor](https://www.capterra.com/p/133745/Paycor-Perform/)

* * *

[### Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/)

[4.2 (1788)](https://www.capterra.com/p/119841/Paychex-Flex/reviews/)

Highly rated for Payroll Management

Highly rated for Payroll Management

[View Profile](https://www.capterra.com/p/119841/Paychex-Flex/)

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 73 reviews

User rating:

TB

49% of reviewers rated it 5 stars

Paychex Flex is a payroll and HR management solution aimed at small to midsize businesses. It features time and attendance tracking, benefits administration, retirement planning, and other comprehensive payroll features. Paychex Flex has more than 1,650 verified user reviews on Capterra with an overall rating of 4.2/5 and was selected as the best for payroll management among the most popular HR tools for SMBs.

Features

Features reviewers most value

**Direct deposit**

Reviewers appreciate Paychex Flex's direct deposit capabilities for their convenience and reliability, giving it a 4.5 out of 5 rating. Users report timely and accurate deposits, often arriving early, especially around holidays. They find it easy to add, remove, and manage multiple accounts without contacting payroll administrators. Reviewers indicate that this aspect is particularly valuable for remote employees. They also highlight the system's efficiency in tracking pay cycles and ensuring secure transactions.

**Timesheet management**

Users report that Paychex Flex's timesheet management is straightforward and user-friendly; they rate this feature 4.3 out of 5. They appreciate the ability to view, adjust, and approve timesheets easily, which helps in ensuring accurate payroll. Reviewers find the dashboard helpful for making necessary changes before submission and for keeping all relevant information organized. They also mention that the system corrects inadvertent errors and facilitates quick editing, making the process efficient and reliable.

**W-2 preparation**

Reviewers highlight the ease and automation of W-2 preparation with Paychex Flex, giving it a 4.2 out of 5 feature rating. They appreciate that employees can access and print their W-2s online, reducing the need for manual distribution. Users report timely and accurate delivery of tax documents. They find it convenient that Paychex Flex handles updates to employee information and integrates with certain tax services. Some reviewers note occasional delays, but overall, they value the time-saving and organizational benefits.

Pros & Cons

Nicholas D.

Construction, 11-50 employees

Used the software for: 2+ years

"It's great for users as well, as it allows us, as users, to manage retirement (401k), manage direct deposit, and even manage taxes, right from the employee login."

Mai M.

Hospitality, 11-50 employees

Used the software for: 6-12 months

"It's become the perfect option for our small businesses by automating tax data, self-service access via desktop or mobile app, and all the additional workforce management tasks."

Nicholas D.

Construction, 11-50 employees

Used the software for: 2+ years

"We don't use time clocks, as we're all salaried, so no tracking needed, but the communication features are somewhat lacking, and we do not use any to communicate with employees, rather doing so via phone calls or in-person."

JL

Jill L.

Construction, 51-200 employees

Used the software for: 1-2 years

"We will be using time tracking through Paylocity and Paycheck does not offer this feature. Once you are no longer a member, you need to contact them to have paycheck stubs, W2's and any additional information printed."

Pricing

Paychex Flex offers businesses a free demo. Customized pricing is available by requesting a quote.

[Learn more about Paychex Flex pricing plans](https://www.capterra.com/p/119841/Paychex-Flex/pricing/)

Integrations

**Popular Integrations**

-   **QuickBooks Online** is a cloud-based accounting system that can integrate employee and payroll data from Paychex Flex.
    
-   **Xero** is a cloud accounting platform that syncs payroll data and other expenses with Paychex Flex.
    
-   **BambooHR** is a full-featured HR management platform that can integrate with Paychex Flex for payroll processing.
    

[Learn more about Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/)

* * *

[### ADP TotalSource](https://www.capterra.com/p/113109/ADP-TotalSource/)

[4.2 (456)](https://www.capterra.com/p/113109/ADP-TotalSource/reviews/)

Highly rated for Reporting/Analytics

Highly rated for Reporting/Analytics

[View Profile](https://www.capterra.com/p/113109/ADP-TotalSource/)

Starting Price:

Not provided by vendor

Free Trial

Free Version

Top rated feature:

Payroll Management

Based on 80 reviews

User rating:

TK

51% of reviewers rated it 5 stars

ADP TotalSource is a comprehensive HR management solution that consolidates payroll, benefits, compliance, and more into a streamlined platform. With its customizable dashboards, ADP TotalSource offers HR teams real-time insights into workforce analytics, such as performance metrics and benefits utilization. ADP TotalSource was selected as the best for reporting and analytics among HR tools for SMBs and has a 4.2/5 overall rating on Capterra based on more than 380 user reviews.

Features

Features reviewers most value

**Benefits management**

Reviewers give this feature a rating of 3.7 out of 5. They indicate that ADP TotalSource's benefits management makes it easy for employees to access and elect benefits during open enrollment. They appreciate the self-service options, which reduce the workload for administrators. Users report that the platform offers a good selection of benefits and streamlines the enrollment process. However, some mention that the actual benefits can be expensive and not competitive. They also note poor communication regarding life-changing events and that health insurance management is handled by Aetna, not ADP TotalSource.

**Payroll management**

Users report that ADP TotalSource's payroll management is straightforward and easy to use; they rate this feature 3.6 out of 5. They appreciate the automatic handling of payroll for salaried employees and the ease of adjusting time cards. Reviewers highlight the excellent support for payroll issues and compliance with tax-related matters. They find the online platform convenient for accessing payroll information anytime. However, some users mention initial confusion with the updated website and note issues with garnishments. Overall, they value the reliability and efficiency of payroll processing.

Pros & Cons

DP

Deborah P.

Law Practice, 1-10 employees

Used the software for: 2+ years

"Family law firms work with clients who are experiencing a challenge, it is our job in HR to make sure the staff are met with support from their payroll services and benefits teams and ADP TotalSource has been consistent with their positive support."

Harshul S.

Information Technology and Services, 5,001-10,000 employees

Used the software for: 2+ years

"It does reduces manual work and keeps all processes consistent, but it also does require little patience to learn. but Once the everything is set up, it work smoothly and supports operations well."

EF

Elizabeth F.

Mechanical or Industrial Engineering, 11-50 employees

Used the software for: 1-2 years

"The only challenge I’ve experienced with ADP TotalSource is navigating the reporting section, as the wide variety of reports can make it difficult to quickly locate the specific report I’m looking for, which can occasionally result in wasted time."

RZ

Rowie Z.

Industrial Automation, 51-200 employees

Used the software for: 2+ years

"he primary drawback of ADP TotalSource is the response time from representatives. When urgent issues arise, it can feel as though they are not treated with the same level of urgency by the support team."

Pricing

Businesses must request a quote for ADP TotalSource pricing.

Integrations

**Popular Integrations**

ADP sells access to its APIs that allow developers to build custom integrations.

[Learn more about ADP TotalSource](https://www.capterra.com/p/113109/ADP-TotalSource/)

* * *

## Top human resources software for small businesses at a glance

Vendor

Highly rated

Starting Price

[Deel](https://www.capterra.com/p/205015/Deel/)[4.8 (4265)](https://www.capterra.com/p/205015/Deel/reviews/)

Rated

$5.00

Per Month

[Rippling](https://www.capterra.com/p/172127/Rippling/)[4.9 (4645)](https://www.capterra.com/p/172127/Rippling/reviews/)

Value for Money

$8.00

Per Month

[BambooHR](https://www.capterra.com/p/110968/BambooHR/)[4.6 (3108)](https://www.capterra.com/p/110968/BambooHR/reviews/)

Ease of Use

$10.00

Per Month

[Paycor](https://www.capterra.com/p/133745/Paycor-Perform/)[4.3 (3033)](https://www.capterra.com/p/133745/Paycor-Perform/reviews/)

Applicant Tracking

Not provided by vendor

[Paycom](https://www.capterra.com/p/130949/Paycom/)[4.4 (1211)](https://www.capterra.com/p/130949/Paycom/reviews/)

Customer Support

Not provided by vendor

[Gusto](https://www.capterra.com/p/131882/Gusto/)[4.6 (4193)](https://www.capterra.com/p/131882/Gusto/reviews/)

Self-Service Portal

$49.00

Per Month

[ADP TotalSource](https://www.capterra.com/p/113109/ADP-TotalSource/)[4.2 (456)](https://www.capterra.com/p/113109/ADP-TotalSource/reviews/)

Reporting/Analytics

Not provided by vendor

[Learn More](https://www.capterra.com/p/113109/ADP-TotalSource/)

[ADP Workforce Now](https://www.capterra.com/p/155895/WorkforceNow/)[4.4 (7177)](https://www.capterra.com/p/155895/WorkforceNow/reviews/)

Functionality

Not provided by vendor

[Learn More](https://www.capterra.com/p/155895/WorkforceNow/)

[isolved](https://www.capterra.com/p/164417/iSolved/)[3.9 (645)](https://www.capterra.com/p/164417/iSolved/reviews/)

Employee Management

Not provided by vendor

[Learn More](https://www.capterra.com/p/164417/iSolved/)

[Paychex Flex](https://www.capterra.com/p/119841/Paychex-Flex/)[4.2 (1788)](https://www.capterra.com/p/119841/Paychex-Flex/reviews/)

Payroll Management

Not provided by vendor

[Learn More](https://www.capterra.com/p/119841/Paychex-Flex/)

Explore our 1,385 Human Resources solutions[Browse Directory](https://www.capterra.com/human-resource-software/)

## Our methodology

To be considered for this list, products had to:

-   Appear in the [2024 Capterra Shortlist for Human Resources](https://www.capterra.com/human-resource-software/shortlist/).
    
-   Meet our market definition for Human Resources.
    
-   Have more than 20 reviews from small and midsized businesses (SMBs) within two years of the evaluation period.
    

We took the highest rated products in each of the listed parameters unless that product already appeared on our list, in which case we featured the next highest rated. 

For each featured product, we included the following details based on verified reviews.

**Most valued features selection:** Our research team analyzed verified project management software reviews on Capterra to identify each product’s highest rated features (minimum 5 reviews). We then summarized user sentiment using real reviews for each feature. 

**Review excerpts selection:** Review excerpts are passages extracted from longer reviews written by verified reviewers. We obtain these excerpts by applying an algorithm that considers factors including, but not limited to, length, sentiment, topic coverage, and thematic relevance. Excerpts represent user opinion and do not represent the views of, nor constitute, an endorsement by Capterra or its affiliates. Excerpts are not edited for clarity or grammar.

**Popular integrations selection:** We identified integrations from our internal database and selected products considered as “most popular” based on how often they were cited by users as integrating with products in the category.

## What is human resources software?

HR software is a category of software that helps small businesses manage, automate, and optimize various human resources processes.

Alongside a database to store important employee information, HR software systems can have various applications to help with recruiting and onboarding employees, running payroll, tracking attendance, administering benefits, conducting performance reviews, and more.

In addition, most HR software platforms have analytics and reporting capabilities to help small businesses gain insight from their employee data over time.

## Importance of human resources software for small businesses

Every business has to recruit, onboard, and manage employees. The difference for small businesses is they often have to do so without dedicated HR personnel or expertise. HR responsibilities often fall on owners or managers who have a lot of other priorities on their plate.

It’s no wonder then that our advisors hear more about buying HR software from small business owners than anyone else.[\[1\]](#footnotes) With HR software, small business owners get digital support to help them with important HR tasks—saving them time and reducing errors.

Other key reasons HR software is important for small businesses are:

-   **It automates the tedious stuff:** Small business owners don’t have time to calculate payroll, create shift schedules, and fill out new hire paperwork. HR software can automate these tasks and then some on your behalf, allowing you to focus on other needs.
    
-   **It keeps employee data organized and secure**: Unlike paper files or spreadsheets, HR software offers a tool to store sensitive employee information in a way that’s easy to find and hard to steal.
    
-   **It helps with maintaining compliance**: Even HR managers don’t necessarily know all the ever-changing employment laws off the top of their head. HR software systems offer the employment resources and vendor support small businesses need to stay compliant.
    
-   **It supports business growth**: Growing a workforce is no easy task, especially without a full HR department. HR software gives you the tools to ensure you hire the right people, give them the support they need to be productive, and scale your business.
    

## Key features to look for in human resources software for small businesses

All human resources software systems have the same core features, like a centralized employee database, HR management features, and reporting and analytics capabilities. But what if your small business is looking for something else? 

To help, we asked users to rate different HR software features based on how important they are to their business.[\[2\]](#footnotes) The common features listed below are those that the highest percentage of small business reviewers rate as “highly important” or “critical.”

-   **Self-service portal**: A self-service portal allows employees to access HR software and do some HR tasks on their own, such as updating their contact information or banking details. 82% of small business reviewers consider a self-service portal to be highly important or critical.
    
-   **Employee management**: This feature allows administrators to add, remove, or change the details of the employees in their HR software database. 80% of small business reviewers consider employee management to be highly important or critical.
    
-   **Applicant tracking**: This feature allows users to keep track of job applicants as they move through the different stages in their recruiting and hiring workflow. 79% of small business reviewers consider applicant tracking to be highly important or critical.
    
-   **Payroll management**: This feature allows small businesses to automate the process of calculating, running, depositing, and running payroll reports. 76% of small business reviewers consider payroll management to be highly important or critical.
    
-   **Time and attendance**: This feature allows managers to track employee attendance and allows the workers themselves to see their shift schedules, request PTO, and log their work hours. 71% of small business reviewers consider time and attendance to be highly important or critical.
    
-   **Onboarding**: This feature automates processes related to turning a new hire into a legally compliant employee, including filling out necessary paperwork. 68% of small business reviewers consider onboarding to be highly important or critical.
    

## How to choose the right human resources software for your small business

Human resources software is one of the largest software categories on Capterra, with nearly 2,000 products. Wading through all those options to find the best HR software for your business can be a daunting task.

To help, here are three factors we think small businesses should prioritize in their search the most.

### 1\. Features

Buying software without the right features can be a bad misstep, but so can buying more expensive software with too many features that go unused. Knowing what your employee priorities are, and the HR software features that support them, can help you and your team hone in on your feature needs.

### 2\. Costs

HR software costs often scale based on how many employees you have, so it’s important that you budget for not only how big your business is today, but how big you expect it to be in the near future. You also need to consider that the software license itself isn’t the only cost. Talk to vendors and ask if they charge additional costs for things like setup, customization, data migration, user training, or customer support.

### 3\. Integrations

Unless you’re buying a [talent management software suite](https://www.capterra.com/talent-management-software/) that has all the HR functionality you need in one system, you’re likely integrating a few different HR software systems together. Because of this, you need to talk to vendors and ensure that their product will be compatible with your existing HR software stack.

## Tips for implementing human resources software at your small business

Getting the implementation right is important to ensure you get the most out of your new HR software purchase. Here are our tips for planning a successful HR software implementation at your small business:

### 1\. Use all the training resources at your disposal

Employees can use self-service portals in HR software to do a lot of HR-related tasks themselves, like requesting PTO, downloading pay stubs, or updating their contact information. This saves a ton of time for managers and other HR personnel, which is why it’s important that employees are trained on your new HR system early.

Talk to your vendor about the types of training support they offer, how often they provide that support, and any additional cost associated with it.

### 2\. Get vendor help with data migration

Whether you’re entering all your employee data in your new system manually, or porting it over from an existing software system, there are bound to be errors if you do it alone. Even simple formatting mistakes can lead to important employee data being uploaded incorrectly in your new HR software, so work closely with your vendor to ensure that the data migration process is seamless.

### 3\. Know what success looks like with numbers

The goal of any new HR software purchase should be to improve an HR process or KPI by a measurable amount. As you get setup and ramp up usage, be sure to track whatever metric you’re trying to improve. If you don’t see the improvement you were looking for after the system has reached full productivity at your business, it could be an indicator that you need different software.

## The future of human resources for small businesses

### AI helps (and potentially harms) HR processes

Artificial intelligence (AI) is [making its way into more and more HR software systems](https://www.capterra.com/resources/impact-of-ai-in-hr/) to boost productivity and efficiency. AI can help source job candidates, automate performance reviews, [answer employee questions](https://www.capterra.com/human-resource-software/hr-chatbot-research/), and more. 

At the same time, job seekers are also using AI to lie and gain [an advantage in landing a job](https://www.capterra.com/resources/how-to-stop-job-application-ai-cheating/). We found that nearly half of all job seekers are using AI to cheat in interviews and skills assessments, which small businesses need to look out for.

### Return-to-office (RTO) mandates require careful planning and communication

In a post-COVID world, companies are still navigating the balance between bringing employees together in an office or other workplace for tighter collaboration and giving them the flexibility to work from home. Higher inflation [raising the costs to commute to work](https://www.capterra.com/resources/return-to-office-strategy/) has only made this issue more divisive.

That being said, with the right RTO policies and best practices, [you can easily get your employees to embrace the office](https://www.capterra.com/resources/rto-plans/).

## What does human resources software for small business cost?

The cost of human resources software is usually a monthly subscription fee that scales based on the number of employees you have and the amount of functionality you can access. For an entry-level system used by up to 100 employees, you can expect to spend an average of $313 a month.[\[3\]](#footnotes) For a high-end system used by 250+ employees, you’ll likely spend $2,000 a month or more.

There are free HR software systems out there, though you should be aware that these usually have some limitations regarding storage space, features, or the number of employees you can have.

## What is the difference between human resources for small and large businesses?

Large businesses not only have the benefit of having a dedicated HR department, but they also have HR employees dedicated to specific HR responsibilities like compliance, compensation, and recruiting.

Small businesses, on the other hand, may have a single HR manager or no HR employees at all. Necessary HR tasks often fall on managers or owners, who not only have other responsibilities to prioritize but often lack HR expertise.

This makes having the right HR software even more critical if you’re a small business, to automate important HR processes and keep your employee data secure and organized.

## Common human resources pitfalls small businesses need to avoid

In a fast-paced, growing small business, it can be easy for important HR tasks to fall through the cracks. Here are some of the most common human resources pitfalls you should avoid.

### Not staying on top of compliance

Employment laws are always changing, meaning you can be compliant one day, and not compliant the next. Staying on top of new guidelines and ordinances can be difficult and time-consuming, but HR software makes it easy. Vendors can provide compliance help in your state or country of business, and the software can include compliance checks to ensure you’re not making mistakes.

### Not having proper processes in place

If you’re waiting for something to happen, like offboarding an employee, before creating a formal process for it, you’re already behind. Informal or nonexistent processes lead to errors and potential legal action, so it’s important to lean on your HR software and vendor to formalize important HR processes early on.

### Ignoring recruiting

Your employees are your most valuable resource. Unfortunately, the stresses of running a small business often mean that recruiting the right people becomes an afterthought. With the right HR software though, you can automate time-consuming tasks like posting job openings and scheduling interviews so you can give recruiting the attention it deserves.

How much does HRIS cost for a small business?

According to our pricing research, an entry-level human resource information system, or HRIS, costs an average of $313 a month for a small business with 100 employees or fewer.

How to implement HR in a small business?

Implementing HR from scratch in a small business can be daunting, which is why many small businesses hire HR service providers to handle HR for them. There are professional employer organizations (PEOs) that can handle all HR tasks, for example, or payroll service providers that handle compensating employees.

Does a small business need HR software?

In most cases, yes. Even if you have only one employee, that employee needs to be paid accurately and on time and receive the required benefits. HR software is very affordable and makes these tasks easier.

How do I choose an HRIS system?

Does a startup need HR?

Yes, even startups need to comply with employment laws and manage the needs of their employees. If you don’t have the budget to have a dedicated employee for HR, and don’t want to handle HR responsibilities yourself, you can hire an HR service provider to handle your startup’s HR needs for you.

**Sources**

1.  **Capterra advisor call notes**: Findings are based on data from telephonic conversations that Capterra’s advisor team had with small-to-midsize businesses seeking HR tools. For this report, we analyzed phone interactions from the past year of the research. Research was conducted in November 2024. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology).
    
2.  **Capterra reviews data**: Capterra reviews are collected from verified users for individual software products. For this report, we analyzed reviews from the past two years as of the research. Research was conducted in November 2024.  [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology).
    
3.  **Capterra software pricing data**: Only products with publicly available pricing information and qualified software products within the category, as of the research date, are included in the pricing analysis. [Read the complete methodology](https://www.capterra.com/resources/proprietary-data-research/#software-buyers-guides-methodology).
    

[Brian Westfall](https://www.capterra.com/resources/author/bwestfall/)

Associate Principal HR Analyst Experience I worked at Capterra for over a decade, becoming a trusted thought leader on all aspects of the HR technology market. I have a passion for helping organizations cultivate a great place to work, and I draw on my eye for detail, curious nature, and ability to distill information in engaging formats to help them do so. Prior to joining Capterra, I honed my writing skills doing journalism for various newspapers, creating social media content for businesses,...

[Caroline Rousseau](https://www.capterra.com/resources/author/caroline-rousseau/)

Caroline Rousseau is a content editor at Capterra. A former content analyst, Caroline has, for the past five years, built, written, and edited research reports about technological trends, opportunities, and challenges with a small and midsize business audience in mind. Her content has been featured in French tier 1 media including Le Monde, L’Express, and Le Figaro, among other publications. Her previous experience as a graphic designer, translator, and LQA specialist in various industries...

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