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Best HR Software for Small Businesses

By Payrun Team

Last updated13 Nov 2025

Published on13 Nov 2025

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If you're a small business owner, then you understand how much of a struggle it is to handle your business operations while also managing your employees. This can even be more tasking as your business grows and the HR needs increase.

As a small business owner, you need to streamline your HR processes, including payroll, recruitment, employee leave, time tracking, job compliance, and a long list of others. However, the resources are not readily available. You also can't employ a large HR team like major businesses do. So, what are your options?

This is where Human resource management Software for Small Business comes in.

List of Best 5 HR Software for Small Businesses

  1. Hibob
  2. Gusto
  3. Payrun
  4. Rippling
  5. TalentHr 

Let's Break Down The List of Best 5 HR Software for Small Businesses

To make your search for the best hr software easier, we have put together 5 best hr software for small business and their features.

1. Hibob

Key Features of HiBob

Hibob is an all-inclusive HRM software tailored to meet the needs of small businesses. Its features include hiring and onboarding, employee management, payroll management, performance tracking, compensation, analytics, and time tracking.

This HR platform integrates with several third-party applications and tools for full-level HR performance and compliance.

Hibob is ideal for growing businesses that want to prioritize employee engagement and scalability.

Pros

  • Global compliance with laws and regulations
  • Customizable features
  • Intuitive interface
  • Strong employee engagement features

Cons

  • More expensive pricing range for small businesses with below 50 staff
  • Third-party integrations are limited

2. Gusto

Key Features of Gusto

Gusto is an online software designed for small, medium, startups, and contract businesses. This software provides features like payroll and benefits management, hiring, wages, and tax payments. It also has HR compliance features and self-service features for employees.

Gusto is ideal for small businesses who want a platform is easy to use and tax compliant for payroll management.

Pros

  • Great payment processing and tax filing features
  • Easy and interactive interface
  • Competitive range of plan prices

Cons

  • Pricing becomes more expensive as the business grows
  • Growing businesses have fewer advanced features

3. Payrun

payrun Dashboad

Key Features of Payrun

Payrun is Perfect HR Software for Small Businesses that need an easy-to-use interface without technical expertise. Companies with a lean budget can enjoy the free monthly plan, or the very affordable pricing for its paid plan.

Payrun is perfect for small businesses that need an easy-to-use interface without technical expertise. Companies with a lean budget can enjoy the free monthly plan, or the very affordable pricing for its paid plan. Its scalability is also a major plus, making it able to grow with your business as it grows.

Pros

  • Affordable Price
  • Simple User Interface
  • Free Plan and trial
  • Easy to use
  • Tax compliance

Cons

  • Payroll features unavailable (tagged as an upcoming feature)
  • Few integrations with third-party apps

4. Rippling

Key Features of Rippling

This HR platform also has additional IT management tools for small businesses that want to manage HR and IT simultaneously.This HR platform also has additional IT management tools for small businesses that want to manage HR and IT simultaneously.

Rippling is perfect for businesses seeking a unified HR and IT management platform. It is customizable and scalable for businesses anticipating growth.

Pros

  • High-level customizability
  • Scalable for growing businesses
  • Comprehensive benefits management tool

Cons

  • It can be complex for smaller businesses to navigate
  • Expensive compared to similar hr software.

5. TalentHr

Key Features of TalentHr

This software us ideal for businesses that need simple and affordable HR solution that can be accessed on a mobile device. However, it is limited in the aspect of scalability. This software us ideal for businesses that need simple and affordable HR solution that can be accessed on a mobile device. However, it is limited in the aspect of scalability.

Pros

  • Easy to use
  • Has a mobile app
  • AI-powered features and integrations

Cons

  • Fewer features for larger businesses.
  • No advanced payroll features

Importance of a HR Software for a Business

HR software is no longer a luxury for small businesses, but a necessity. By leveraging the right HR software, small businesses can automate HR tasks such as off-time and leave tracking, payroll processing, and employee onboarding. This automation saves time, eliminates human error, and improves overall HR operations.

The best hr management software also ensures that all your processes are compliant with labor laws and regulations. It also helps you to streamline your operations by removing administrative challenges that can hinder productivity.

For instance, with HR software, staff members can self-manage their operations, thereby allowing HR personnel to focus on other complex taxes.

In addition, great HR software for startups has analytics tools that provide you with data to track staff performance, embrace opportunities, and scale up effectively.

Key Features to find the Best HR Software for your Small Businesses

There are so many HR software out there, but it is important to ensure that the software you choose has the most essential features to meet your business needs. The key features to look in an hr onboarding software or management software include:

  • Applicant Tracking: This feature makes the hiring process more streamlined by managing the process from job posting to application, candidate tracking, and employment decision-making.
  • Onboarding Management: This ensures that newly hired staff have all the necessary information, resources, and training needed to get situated in their new role.
  • Payroll Management: Payroll processing should be automated, and should be set up in compliance with local, state, and federal laws and regulations.
  • Employee management: Software should offer features for employee employment, onboarding, promotion, and job terminations, as well as a database for employee record tracking.
  • Attendance and Time Tracking: The best HR software should have a system that monitors employee attendance, and tracks time spent working, off-times, and leaves.
  • Administrative Benefit Management: This feature ensures that employee benefits like bonuses and perks, health benefits, and retirement plans are managed.
  • Employee Self-Service feature: Allowing employees to update work and personal information, request leaves and time off, and manage their work processes.
  • Analytics: Data and analytics report on important HR metrics to rate and improve employee performance and management.

How To Choose a Human Resource Software for any Small Businesses

When it is time to choose an HR software for your small business, you need to consider the following factors:

  • Budget: How much does the software plan cost, and how much are you willing to spend? Many software providers have different tiers of pricing, depending in your business needs and employee number. You should choose affordable payment options and leverage the discount that comes with monthly, quarterly, or annual billing.
  • Business size and Scalability: Choose software that accommodates your current business size and is also scalable as your business grows. HR software that is scalable will enable you to handle more complex HR responsibilities such as benefits and Payroll administration, or team collaboration when your team needs it.
  • Customer Support: The best HR software provider needs to offer good quality customer support to help handle issues that are likely to arise. Choose a provider who is responsive to your needs and offers 24/7 support via phone, email, or chat.
  • Free Trial vs. Paid Plans: It's best to begin with hr solutions that offer a free trial before requesting that you commit to a paid plan. The free trial period will allow you to try the features of the software without pressure before making an informed decision about a paid plan.

Final Thoughts

As a small business owner, choosing the best HR software for small businesses is imperative for a successful business. It allows you to streamline your business operations, improve employee job satisfaction, boost productivity, and support growth.

We recommend Payrun as a budget-friendly, simple, and powerful cloud hr software for your small business hr needs now, and even as your company grows.