HR BasicsHuman Resources

5 Top Rated Human Resources Software for Small Businesses

Preksha Buttan profile picture
By Preksha Buttan

Published
8 min read

Simplify your small business’s HR processes with human resources software.

Picture this: you’re an HR manager at a small business responsible for employee hiring and onboarding. Your daily routine involves sending out offer letters, collecting multiple documents, and updating the employee portal. Carrying out such tasks daily can make you tired and burdened with paperwork. 

Fortunately, there are plenty of human resources software solutions available on the market that you can benefit from. An HR tool allows you to digitize all the paperwork and automate tasks such as sending out company policies, training reminders, among other communications. Using this tool, you can improve your HR operations as the tool generates multiple reports that give actionable insights about your HR processes.

This article highlights, in alphabetical order, the five top rated human resources software for small businesses based on user reviews. For each product, we include overall user ratings along with the highest-rated parameter, review excerpts from industry professionals, and product pricing. Read more.

1. BambooHR

Trial/Free Version

  • Free Trial
  • Free Version

Highest-rated parameter

Ease of use - 4.69

Commonly used by

Small businesses

Starting price

Available upon request from vendor

Device compatibility

Screenshots

BambooHR

Job listings in BambooHR (Source)

* Analysis accurate as of February 2023

Here are some review excerpts from small business HR professionals who have used BambooHR for human resources operations:

"Wonderful experience.Customer service is always responsive and positive, the system is very intuitive for admins, managers, and users.It ticks off all the major HR needs including reporting, time tracking, performance, payroll, employee access, as well as a fantastic dashboard that portrays employee data like turnover, which executives love.It has great customizable features but keeps things simple when they really should be."

"It's great to have all employee information in one spot.I also adore being able to run reports, organize performance reviews, and distribute notifications to the entire group.The hiring and onboarding processes are excellent, and so is the customer service.Without a doubt, BambooHR is the best HR software to use going forward."

"BambooHR has greatly assisted our team with the many built-in HR and administrative solutions and features, such as an online Time Clock, Timesheet and  Time Tracking features, Hiring and Onboarding solutions, and general ease of deployment and ease of use for the average employee.We would absolutely recommend BambooHR to any organization looking to streamline and simplify their overall HR, Admin, and Employee Experience workflows and features."

Read all BambooHR reviews here.

2. OnPay

Trial/Free Version

  • Free Trial
  • Free Version

Highest-rated parameter

Value for money - 4.86

Commonly used by

Small businesses

Starting price

$40 per month

Device compatibility

Screenshots

Screenshot of self-onboarding in OnPay

Self-onboarding in OnPay (Source)

* Analysis accurate as of February 2023

Here are some review excerpts from small business HR professionals who have used OnPay for human resources operations:

"OnPay was a game changer for our company and has made the payroll process simple and pain free.The best part is that their customer service ROCKS and is full of helpful people.Very happy and plan to stay for a long time.Thanks!"

"The best part about Onpay for us, is not only the ease of use, but the ability to set up Onpay so it maps to Quickbooks Online, so we don't have to make any adjustments later.Also, we are super thankful for Onpay's support as they are always super friendly and make sure any payroll challenges we have are resolved.Also, we really like the liabilities always balance."

"The OnPay customer service has been excellent since the first call I had with them.The help transferring our information from a big, clunky payroll platform to getting it to the streamlined & easy to use OnPay platform was seamless.The communication, information, help & kindness shown throughout the process has been a real change from our last experience.The response time is super quick too!"

Read all OnPay reviews here.

3. Rippling

Trial/Free Version

  • Free Trial
  • Free Version

Highest-rated parameter

Ease of use - 4.85

Commonly used by

Small and midsize businesses

Device compatibility

Screenshots

Rippling

Payroll in Rippling (Source)

* Analysis accurate as of February 2023

Here are some review excerpts from small business HR professionals who have used Rippling for human resources operations:

"We're still working through our implementation, but I'm already impressed with how user friendly the system is, how easy it is to do simple processes that were manual for us before (benefits administration/PTO management/hiring/offboarding/org chart/company directory).And it already seems easy to integrate a lot of amazing apps into Rippling!Excited to see what other features we'll be able to incorporate in the future."

"It has a very clean interface that is easy to use.Of all the HR/Payroll/Benefits/Company Directory software I have used in my career, this is my favorite.All relevant information is extremely easy to access and use.Benefits enrollment is also very easy and straightforward."

"Overall, Rippling has been a total game-changer!We've been able to change our onboarding from a very manual process to a wonderfully automated experience, our payroll no longer feels clunky and unreliable, time-off tracking is 10x easier, employee profiles make it easy to remember birthdays and work anniversaries...at the end of the day, you want software that's great across the board - Rippling delivers!"

Read all Rippling reviews here.

4. SentricHR

Trial/Free Version

  • Free Trial
  • Free Version

Highest-rated parameter

Customer support - 4.89

Commonly used by

Small businesses

Starting price

Available upon request from vendor

Device compatibility

Screenshots

SentricHR

Manage benefits in SentricHR (Source)

* Analysis accurate as of February 2023

Here are some review excerpts from small business HR professionals who have used SentricHR for human resources operations:

"The whole team from start to finish was STELLAR!They were friendly, helpful, and really took the time to make sure I understood how to set up different areas of the system.The training offered is great - I can watch a video on my own time, or schedule something one on one, or sign up for a live webinar."

"This software is extremely easy to use, not only for the adminstrators, but also for the individual employee.The app is GREAT!Works extremely well and can do almost everything you can do from the web version.Build team was fantastic to work with.I have a very complicated report that they were able to create in the Time platform so that this could be automated.The Performance Management platform is extremely customizable to multiple job positions."

"SentricHR has allowed us to have the same HRIS capabilities as large companies have.It has transformed our on-boarding process from a time consuming manual, paper-driven process into a faster and more efficient electronic process.This has been especially great during Covid remote work.We haven't missed a beat these past two years in large part due to Sentric HR."

Read all SentricHR reviews here.

5. ZenHR

Trial/Free Version

  • Free Trial
  • Free Version

Highest-rated parameter

Ease of use - 4.85

Commonly used by

Small and midsize businesses

Starting price

Available upon request from vendor

Device compatibility

Screenshots

ZenHR

Employee profile in ZenHR (Source)

* Analysis accurate as of February 2023

Here are some review excerpts from small business HR professionals who have used ZenHR for human resources operations:

"Time sheet management to the team leader is very amazing, the ability to track the team's expenses as well.I won't forget how at first I thought it wasn't much needed as a software but after a while of usage I've discovered that it made my life easier career-wise."

"ZenHR is a very nice application for human resources management.It allows employees to submit a wide range of requests, and employers to approve/deny them.It is very easy to use and has a lot of nice features."

"As a user, this software is so user-friendly, I didn't need a training or help on how to use it.Login feature is very helpful, where I have many ways to login.The connection with the email is great.Very Very useful software to be used."

Read all ZenHR reviews here.

What features do human resources tools offer?

Human resources tools offer the following core HR features:

  • Employee database: Store employee information, such as contact, job title, manager, and salary details, and other relevant information in a centralized database.

  • Employee profiles: Create and view employee profiles to keep track of important employee information.

  • Reporting and analytics: View and track pertinent HR metrics such as employee turnover, hiring cost, and more.

All products listed in this report include the features mentioned above. Besides these core features, human resources tools also commonly tend to offer:

  • 360-degree feedback

  • Application programming interface (API)

  • Activity dashboard

  • Applicant tracking

  • Compensation management

  • Customizable reports

  • Data import/export

  • Employee management

  • Employee onboarding

  • HR management

  • Onboarding

  • Payroll management

  • Self-service portal

  • Third-party integrations

  • Time and attendance

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

Here are some factors that you should consider while looking for a human resources tool for your small business:

  • Assess the number of users the software supports. If you have a large HR team and there will be multiple users of the human resources management system, you need to check the number of users an HR tool can support. The tool should be able to add more users in case your team grows.

  • Analyze payroll integrations. If you have a separate payroll software to handle all the payroll-related tasks, you must check whether the HR platform you are considering can integrate with that payroll tool. Since a lot of data that payroll software requires, such as employee time off and work hours, come from the HRM software, both tools should integrate smoothly for easy data transfer.

  • Explore reporting and visualization features. Reporting features create multiple reports that help understand the HR team’s performance. Some reports the tool can generate include absenteeism rate, recruitment spending, headcount, and more. The tool also visualizes these reports by converting them into charts and graphs for easy understanding. These features in your HR management software will help you better analyze your HR processes.

Common questions to ask software vendors before purchasing human resources software 

These are some common questions you can ask vendors when assessing HR management software for small businesses:

Does the platform offer performance management capabilities?

Performance management capabilities in human resources software help HR managers save time spent on administrative tasks, drive employee engagement, and improve workforce productivity. Before you consider HRM software for your small business needs, make sure that the tool allows you to define expectations, assess performance, and give feedback to employees. Several tools also offer performance evaluation templates that can help save time and effort for HR professionals. Ask your vendor about all such features beforehand.

Does the software offer an employee self-service portal?

An employee self-service portal provides your employees access to business policies and their financial data. These self-service options help lift the load from HR managers with respect to handling employee queries and are especially useful for small businesses that have a relatively small HR department. Therefore, ask your vendor if their human resources information system (HRIS) offers this functionality.

What are the reporting capabilities offered by the tool?

To understand their HR operations better, small business owners often have to look at key metrics, such as the overall headcount, talent acquisition, absenteeism rate, and overtime expenses, among others. Inquire whether or not your shortlisted HRIS system can generate reports using these metrics or not.


Methodology

To be considered for this list, products had to:

  • Have at least 20 unique product reviews from human resources software users in the small business, published on Capterra between February 2021-23. We selected the five products with the highest ratings to feature in this article.

  • Offer the following core human resources features: employee database, employee profiles, and reporting and analytics.

To determine which size businesses each product is “commonly used by,” we check if at least 20% of reviewers come from a particular business size and only then classify the product as having customers from that business size.

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, topic coverage, and thematic relevance. Excerpts are evaluated for positive or negative sentiment and receive a sentiment score.

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.

Read more about our editorial independence

Looking for Human Resources software? Check out Capterra's list of the best Human Resources software solutions.

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About the Author

Preksha Buttan profile picture

Preksha Buttan is a Writer at Capterra. She provides expert insights and helps small businesses identify the right software for their needs by analyzing user reviews for the highest rated products in relevant software categories. She has previously written and published content for the medical and automotive industries. Her interest lies in marketing and branding. When she’s not working, she can be found watching a thriller.

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