The Best HR Software for Small Businesses: Top 5 Picks in 2025

Starting and running a small business is an exciting journey, but managing HR tasks can quickly become overwhelming. Disorganized records, payroll errors, and complex compliance rules can impede productivity and negatively impact employee satisfaction. Thus, having reliable HR software is essential. It automates paperwork, simplifies hiring processes, streamlines onboarding, manages employee shifts, and tracks attendance.

Modern HR tools also help small businesses save time and money, stay organized, and remain compliant without needing a large HR department. With so many options available, selecting the best HR software can be daunting. Worry not, as we’re here to help. Let’s explore the top HR software options that are easy to use, affordable, and packed with powerful features.

The Best HR Software for Small Businesses

BambooHR

BambooHR is a comprehensive HR software that’s easy to use and perfect for small business owners who juggle multiple tasks. With fewer employees to manage, BambooHR simplifies onboarding, benefits management, and time-off requests. It automates these tasks and offers a centralized hub for employee payroll and records. The employee self-service dashboard allows team members to check their PTO balance, upload documents, and access pay slips. Automated HR workflows streamline processes like approving requests or alerting employees during performance reviews.

BambooHR’s standout features include hiring and applicant tracking tools, facilitating easy communication with candidates from the hiring dashboard. The software seamlessly transitions new hires from the hiring phase to onboarding, enabling them to complete tax forms and contracts before their first day.

Homebase

Homebase is designed for small businesses with hourly teams. Its schedule and time clock can be accessed via a mobile app, making it convenient for employees to clock in and out. Homebase supports onboarding, hiring, and payroll processing, and includes a built-in messaging tool for effective team communication.

Homebase provides detailed tracking of employee activities through the Time Card View, accessible from point-of-sale devices, desktops, and mobiles. It ensures compliance with labor laws, alerting employees about schedule changes or missed breaks. The software automatically generates timesheets for each payroll period and can pay employees automatically with a payroll add-on. Integration with over 500 apps enhances its functionality.

Deel

Deel is a robust HR platform handling employee management, payroll, time tracking, and attendance. Its unique features include automated onboarding, employee surveys, training courses, and performance reviews. Deel integrates with accounting and productivity software, offering a visual representation of team dynamics through org charts. It supports international hiring from over 150 countries, ensuring compliance with labor laws.

Deel’s automation of tax filings with accurate currency conversions makes it ideal for small businesses with global growth strategies, although it can be pricey for international hiring.

Zoho People

Zoho People is one of the most affordable employee management apps, starting at $1.50 per user per month for the essential HR plan. A free plan offers time-off management and basic employee data for up to five users. While it offers fewer features than BambooHR, it includes time-off, onboarding, reports, and document management.

Zoho’s AI assistant, Zia, helps manage time-off requests and employee queries. Automation of tasks like leave tracking and performance reviews reduces administrative workload, benefiting small businesses. Zoho integrates with Zoho Payroll and Zoho Recruit, though these apps require separate subscriptions.

Gusto

Originally a payroll system, Gusto now includes attendance and time-off management, onboarding, hiring, and performance tracking. Primarily a payroll app, Gusto requires an upgrade to access extended employee management tools. Its straightforward plan offers automated tax filings and unlimited payroll services for a single state.

Gusto’s self-service portal gives employees access to health insurance and pay slip administration. For PTO requests and onboarding, additional features are available through add-ons or plan upgrades. Gusto’s payroll system saves HR managers time by automatically processing state, federal, and local filings.

Conclusion

HR software for small businesses automates administrative tasks, freeing up HR managers to focus on more critical responsibilities. From payroll processing and automated tax calculations to hiring, onboarding, and timesheet management, these tools enhance efficiency. While numerous HR software platforms exist, we’ve highlighted the top five—BambooHR, Homebase, Gusto, Zoho People, and Deel—to help you find the best fit for your business needs.

Consider exploring internal resources or guides to get the most out of your chosen HR software, ensuring it aligns perfectly with your business operations.