6 Best HR Software for Small Businesses in 2023 (In-Depth Comparison)

The 6 Best HR Software for Small Businessess of 2023

1. Connecteam — Best all-in-one HR software for small businesses
   

   Available on

   • Web
   • iOS
   • Android

   Start for free

   

   Connecteam is the best human resource software for small businesses. It’s an all-in-one platform that provides you with everything you need to manage, communicate with, engage, schedule, and train staff. 

   Connecteam has many powerful features to improve HR tasks, such as the built-in time clock, knowledge base, onboarding hub, training platform, and more.

   Let’s look at how Connecteam can enhance your HR operations.

   Easily manage important HR documents

   Connecteam’s Documents is a feature for managers to store, update, and ensure compliance for employee files. You can gather required documents directly on the platform and contact employees for updates and reminders during the onboarding process with just a click. Documents helps speed up onboarding and getting new hires in the field.

   Plus, Documents is easy to set up and allows you to quickly find any document. You can even set expiration dates and easily check that certifications are up to date to ensure compliance. 

   Enhance staff engagement and company culture

   Connecteam facilitates company-wide updates, shout-outs, and important news. You can limit responses on the company feed to ensure messages remain easy to read. Alternatively, you can let staff react and comment on posts to increase engagement.

   Connecteam makes it easy to collect staff feedback, too. You can measure staff motivation, satisfaction, and connection through surveys that employees can complete on mobile and submit in real-time.

   Also, with Connecteam, it’s easy to provide recognition of achievements and add rewards that enable staff to purchase gift cards. You can show appreciation privately through a message or highlight accomplishments in your company feed.

   Knowledge base keeps everyone informed

   Connecteam’s Knowledge Base acts as a digital library your staff members can use to learn about important business practices, policies, and more. 

   With Connecteam’s mobile app, employees can access the knowledge base anywhere and at any time. The knowledge base replaces regular in-person meetings and eliminates a lot of paperwork. It’s also an engaging way for new hires to become familiar with your company culture and policies.

   Connecteam also provides unlimited storage, so your valuable files remain safe, and you don’t need to pay for any expensive onsite storage. Additionally, you can use the permissions feature to protect information from getting lost or changed. For added security, Connecteam uses end-to-end encryption and runs 256-bit SSL.

   Make onboarding a breeze

   Connecteam makes it easy to onboard employees. You can store and share handbooks, offer letters, and instructional videos that new hires need to get up and running fast. Connecteam also gives HR staff a place to safely store regulatory and personal files. Plus, you can check staff progress in completing onboarding tasks.

   You can also design orientation programs that bring new hires up to speed and create customized quizzes, surveys, and forms that meet your onboarding needs. Additionally, with access via mobile, onboarding becomes more engaging and convenient for employees.

   Keep developing your team’s skills

   With Connecteam, there’s no need to pay for expensive training courses. Instead, you can create training materials from existing documents, PDFs, or media files. You can link these to external sources like DropBox, Google Drive, YouTube, or your website.

   Connecteam’s mobile app lets you split training material into focused sections. This makes it easy to complete courses on a mobile device. Your employees can refer back whenever needed and continue from where they left off during a previous session. 

   Keeping track of training progress is also easy with Connecteam. You’ll be able to quickly check course completion status and send push notifications if necessary. You can even use the Quiz function to check understanding. 

   Time clock app makes tracking working hours easy 

   Connecteam’s Time Clock app offers many powerful HR solutions. It can track work hours and time spent on specific projects. It also features digital timesheets, which help eliminate payroll errors, and helps you time and money by automatically calculating break times, overtime, and absences.

   The time clock app allows staff members to punch in and out from any location—vital when your workforce is spread out at different locations. Its real-time GPS mapping functionality also helps prevent time theft. 

   Read more about the best time-tracking apps for small businesses in our in-depth review.

   Stay connected with chats and an employee directory

   Connecteam’s in-app Chat is easy to use, and staff can send messages to specific people or groups as needed. Seek clarification, ask questions, provide project updates, and more in just a few taps.

   Additionally, the platform’s built-in employee directory makes contacting a group of people effortless—you simply click on everyone you want to contact. You can even track who has read important messages. 

   Connecteam also offers a free for life plan – Join Connecteam!

   Key Features

   • Set expiration dates for critical and compliance documents

   • Provide recognition and rewards

   • One-to-one and team messaging

   • Create training and onboarding programs

   • In-app chat helps keep staff in touch and updated

   Pros

   • Intuitive and easy-to-use interface

   • Supports 11 different languages

   • Full-featured mobile and desktop apps

   • Quick and responsive customer support

   Cons

   • More integrations are on the way

   Pricing

   Free-for-life plan availablePremium plans start at $29/month for 30 users

   14-day free trial, no credit card required

   Start your free trial
2. 

   Rippling — Good for payroll management
   

   Available on

   • Web
   • iOS
   • Android
   • Windows
   • Mac

   

   Rippling is one of the best HR software for small business in the USA. The platform has features for time and attendance monitoring, payroll, and benefits administration.

   It also has an applicant tracking system and tools for onboarding, learning management, employee data management, and compliance reporting.

   Rippling’s per-user charge is relatively high compared to its competitors, making it an expensive option for larger teams.

   Learn more about Rippling

   Key Features

   • Time and attendance tracking
   • Time off management features
   • Track progress of documentation and tasks
   • Can create courses

   Pros

   • Integrates with 400+ apps
   • Easy to use

   Cons

   • Can become expensive for larger companies
   • Lacks advanced functions

   Pricing

   Starts at $8/user/month Trial: Yes Free Plan: No

3. 

   Namely — Good for HR and payroll functions

   Available on

   • Web
   • iOS
   • Android

   

   Namely has several HR features, including analytics, benefits administration, and payroll and time management tools. The platform centralizes HR information, has an automated payment system, and allows you to create reports and export data.

   Namely doesn’t have an applicant tracking system, and you’ll need to contact the provider directly by phone for pricing information.

   Learn more about Namely

   Key Features

   • Automated onboarding functions
   • Unlimited roles and permissions
   • Electronic signature capabilities
   • Tracks applicants during hiring process

   Pros

   • Simple interface
   • Reporting options

   Cons

   • Limited customer support
   • Lacks pricing transparency

   Pricing

   Contact vendor for price Trial: No Free Plan: No

4. 

   Gusto — Good for employee benefits management

   Available on

   • Web
   • iOS
   • Android

   

   Gusto is among the best HR software for small business in the USA. Its payroll and reporting systems cater to this market. For example, Gusto can automatically file taxes with the IRS and provides guidance on compliance requirements.

   With Gusto, you can manage the employee onboarding process and payroll processing, too. The platform can also help provide employee benefits.

   Unfortunately, Gusto lacks staff scheduling options and real-time reporting.

   Learn more about Gusto

   Key Features

   • Payroll processing
   • Direct deposit
   • Vacation leave management
   • Payroll reporting

   Pros

   • Runs payroll for employees and contractors
   • Automatic tax filing and compliance guidance

   Cons

   • Per-person pricing can become costly for a small business HR platform
   • Reports of poor customer service

   Pricing

   Starts at $40/month + $6/person/month Trial: No Free Plan: No

5. 

   Bamboo HR — Good for employee payroll
   

   Available on

   • Web
   • iOS
   • Android

   

   BambooHR stores and manages employee information and tracks deductions, withholdings, and employee benefits.

   You and your employees can also use BambooHR for self-assessments, manager reports, goal-setting, and colleague feedback. Additionally, you can create custom reports that allow managers to better assess staff performance and provide guidance and training for underperformers. 

   Unfortunately, BambooHR doesn’t offer a free plan. Also, you need to contact the company directly for pricing information.

   Learn more about Bamboo HR

   Key Features

   • Direct deposit
   • Candidate profiles
   • Candidate tracking
   • Benefits management capabilities

   Pros

   • Centralized employee database
   • Offers e-signature capability

   Cons

   • Lack of pricing transparency
   • Phone support isn’t available on the basic plan

   Pricing

   Contact vendor for price Trial: Yes Free Plan: No

6. 

   Zoho People — Good for scheduling and compliance
   

   Available on

   • Web
   • iOS
   • Android

   

   Zoho People is last on our list of the 6 best HR systems for small businesses. It allows HR professionals and department managers to schedule work hours and process time off requests. You can also include automatic shift rotations to better accommodate staff needs.

   Zoho People tracks timesheets and provides payroll software, stores scheduling details in a central location, and ensures compliance with regulations concerning time off and breaks. 

   Unfortunately, Zoho People’s scheduling function doesn’t allow staff to trade shifts. The platform also doesn’t have an in-app chat, so it might not be ideal for frontline workers or deskless teams.

   Learn more about Zoho People

   Key Features

   • 360º feedback for performance reviews
   • Automatic shift rotations
   • Recruitment management functions
   • Task management

   Pros

   • Schedules are stored in a centralized location
   • Affordable small business HR platform

   Cons

   • Limited customer support
   • Lacks communication features for staff

   Pricing

   Starts at $1/user/month Trial: Yes Free Plan: Yes