As the head of the human resources department in your organization, you have many responsibilities to manage simultaneously. Utilizing one of the highest-rated HR software options can streamline your work and personal life. 

If you’re evaluating HR software options and still need to decide which one to choose, it’s crucial to consider the potential cost and time savings the software can provide for your organization. Look for comprehensive software that can easily handle routine tasks like payroll calculations and sending onboarding emails. 

Understanding the Need for HR Software in Small Businesses 

Before we can look at each software, we need to evaluate an important question: why do small businesses need HR software? Primarily, HR software helps eliminate repetitive tasks and procedures, eliminates repetitive HR procedures, and helps the company comply with labor laws and regulations on time. HR software aims to enhance efficiency and assist businesses in saving time by prioritizing strategic tasks.

Top HR Software Solutions for Small Businesses: 

Bamboo HR this HR software is an all-inclusive solution designed to care for all the needs of medium and small-sized businesses. It provides a comprehensive HR functionality, an intuitive interface, and advanced reporting capabilities that help in saving time.  


  • Applicant Tracking System (ATS): This system streamlines the recruiting process by tracking applicants and automating job postings. Job postings are timely, and the system can track the number of applicants expressing interest and their qualifications. 
  • Onboarding Tools: The tools ensure the uninterrupted transition for new employees, improving their initial experience  
  • Time-off Management: This function helps track employee leave, reducing human errors. 
  • Performance management: The solution provides a platform for performance evaluations and consistent employee feedback 


  • Assists in enhancing the quality and efficiency of employee recruitment. 
  • Enhance the experience of onboarding new employees. 
  • Simplifies performance appraisal and leave management processes 

Zenefits is a cloud-based solution. The software provides centralized HR processes. Besides, the solution offers a robust HR platform that caters to the different needs of small businesses.  


  • Payroll Management: The software offers automatic salary calculations, tax deductions, and benefits, reducing the chances of human error  
  • Benefits Administration: Also, the software aligns the process of managing each employee’s benefits, such as their health insurance and retirement plans 
  • Time and Attendance: Also, tracks employee working schedules and overtime hours, ensuring payroll accuracy 
  • Compliance: The software helps businesses stay compliant with labor laws and regulations 


  • Helps in streamlining the issuance of benefits and payroll administration 
  • The software is accurate in tracking attendance  
  • Ensures regulatory compliance, reducing the chances of legal issues 

 Gusto is primarily designed to assist small businesses. The software has user-friendly hiring, payroll platforms, and benefits administration tools that are effective and efficient.  


  • Full-service Payroll: The software automates payroll calculations, filings, and tax payments 
  • Health Benefits: It offers some health benefit options and manages enrollment processes 
  • Hiring and Onboarding: Provides practical tools for job postings, background checks, and digital onboarding 


  • The software simplifies payroll operations and ensures tax compliance 
  • It provides flexible benefits options to attract and retain talent 
  • It streamlines the hiring and onboarding process, improving new employees’ experience 

Workday has robust and comprehensive HR functions that cover time tracking, payroll, and talent management. The software also provides unified applications developed for human capital and strategic financial management.


  • Talent Management: This great feature helps businesses to recruit, onboard, and retain top talent effectively, creating succession plans and developing leadership within the organization. The feature also saves the time and resources required for repetitive recruitment processes. 
  • Human Capital Management (HCM): With Workday’s HCM solution, businesses can effectively manage the entire employee lifecycle, from hiring and onboarding to compensation, benefits, and performance management 
  • Payroll and Time Tracking: Workday’s payroll system handles complex and specific payroll calculations. Its time-tracking feature accurately tracks employees’ working hours and other related records. 
  • Workforce planning and Analytics: This feature offers insights and predictions that help businesses make sound data-driven decisions about their workforce 


  • The software offers streamlined recruitment, onboarding, and talent retention processes, enhancing employee quality and reducing turnover. 
  • It improves management of the entire employee lifecycle, fostering an engaged and motivated workforce. 
  • It provides an automated payroll and time-tracking function that reduces errors and ensures proper employee compensation. 
  • It provides insights and predictions from workforce planning and analytics, which aid strategic decision-making and future planning. 

SAP SuccessFactors is among the most trusted and leading HR software that offers several services that cover the entire employee lifecycle. The software is known for its comprehensive applications that best fit small businesses.


  • Employee Experience Management: This software allows businesses to collect timely employee feedback, analyze it, and make sound decisions from those insights
  • Performance and Goals: This feature helps match employee activities with organizational goals. Besides, it aids in continuous performance management.
  • Recruiting and Onboarding: SAP SuccessFactors’ recruiting feature simplifies the hiring process. In addition, its onboarding tool makes the transition process for new employees seamless.
  • Learning and Development: This feature offers learning management systems, collaboration tools, and skill-building programs to help employee growth and development


  • SAP SuccessFactors provides an enhanced understanding of the employee experience, leading to improved engagement and productivity 
  • The software supports the alignment of performance with organizational goals, ensuring everyone is working towards the same vision. 
  • The solution provides streamlined recruitment and onboarding processes that improve the quality of employees and the initial experience of new employees. 
  • The software fosters continuous learning and development, promoting a skilled and adaptable workforce ready for future challenges.

Selecting the Right HR Software 

When considering HR software for your business, it’s important to take into account various factors before making a decision. Your budget, specific business needs, and plans for long-term growth should all be carefully considered.

Implementing HR software for your business comes with several benefits. The solution helps enhance HR efficiency, contributes to strategic decision-making processes, creates an engaged workforce, and creates sustainable business growth. If you’re considering implementing HR software, it’s a worthwhile investment for your small business. It can give you a competitive edge in the market and help you maintain efficiency and effectiveness in the business environment. Don’t hesitate to move forward with it. 

Article Sources

A Complete Guide to Small Business HR Software: Features, Benefits, and Best Options ‣ Crocodile® HR Software

7 HR software tools ideal for small business – Small Business UK