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The Best HR Software for Small Business: What to Look For + Recs from an Agency That Has Launched 17+ Startups
Small business owners and entrepreneurs have to wear a lot of different hats to keep their company running – but despite going hand in hand, managing a business and managing people are two very different skill sets. Whether you’re feeling a little out of your depth when it comes to HR tasks or you’re simply looking for ways to streamline repetitive aspects of business management so you can focus more on strategic decisions, there are many reasons HR software is a key ingredient in the recipe for success for many small businesses.
Aiken House has successfully launched 17+ startups and counting, and we’ll take you through everything you actually need to know about choosing an HR software for your business, including:
- Factors you should consider, from scalability to absolutely essential features
- Human resources software solutions that have been vetted by experts
- How Aiken House helps turn your ideas into a small business success story
The Small Business Owner’s Checklist for Choosing the Right HR Software
Running a small business means juggling a hundred different things at once—HR tasks included. But managing people is a whole different ballgame from managing a business, and if you’re feeling out of your depth (or just tired of drowning in payroll paperwork), the right HR software can make a world of difference. In fact, research shows that 70% of small business owners spend at least a full day each month on HR-related tasks, while over half say hiring and employee retention are some of their biggest challenges. That’s time and energy you could be putting toward growth, strategy, and, let’s be real, something way more exciting than compliance documents.
So, what should you look for in HR software that actually works for a small business (not a corporate giant with a massive HR department)? Here’s what matters most:
- Ease of Use – No one has time for a clunky, overcomplicated system
- Scalability – Grows with your business without hidden fees
- Payroll & Benefits Integration – Makes payday and compliance stress-free
- Hiring & Onboarding Tools – Helps you find and welcome new team members smoothly
- Compliance Management – Keeps you on the right side of labor laws
- Employee Self-Service – Lets your team handle time-off requests and benefits without extra admin work
- Affordable Pricing – Designed for small business budgets, not Fortune 500 expense accounts
- Customer Support – Responsive help when you actually need it
By focusing on these must-haves, you’ll set yourself up with an HR solution that saves you time, keeps things running smoothly, and lets you focus on what you do best—growing your business.
The Best HR Software for Small Business, Tested and Reviewed
Choosing the right HR software can feel like navigating a maze, especially when you're running a small business. You need a solution that's affordable, scalable, and packed with features that make your life easier—not more complicated. To help you out, we've compiled a list of top HR software options tailored specifically for small businesses. Each of these platforms offers unique strengths to meet your HR needs without the enterprise-level bloat.
1. BambooHR
BambooHR is known for its user-friendly interface, making it an excellent choice for small businesses that need a simple but powerful HR solution. It offers comprehensive employee management features, covering everything from tracking employee information to managing benefits and performance. One of its biggest strengths is scalability—whether you have five employees or fifty, BambooHR grows with you. Plus, it comes with tailored pricing plans, so you’re not paying for features you don’t need.
2. Gusto
Gusto is a favorite among small business owners because it integrates payroll, benefits, and HR tools into one streamlined platform. It simplifies payroll processing and benefits administration, reducing the time and effort needed for these tasks. The software also provides an employee self-service portal, allowing employees to access pay stubs, tax documents, and benefits details without constantly pinging HR. Another major advantage is its built-in compliance assistance, ensuring that your business stays up to date with tax laws and labor regulations. Plus, its transparent pricing makes it easy to find a plan that fits your budget.
Personally, we love Gusto… and we love to share the love, too. So when you sign up for Gusto using our link, you’ll save $100 on your first payroll. 😎
3. Zoho People
Zoho People is a highly flexible HR solution, offering a modular system that allows small businesses to pay only for the features they need. It includes essential HR tools such as time and attendance tracking, performance management, and leave management. The software is designed to integrate seamlessly with other Zoho products and third-party applications, making it an excellent choice for businesses already using Zoho’s ecosystem. Its affordability and adaptability make it a strong contender for growing companies.
4. Paycom
Paycom offers an all-in-one HR management solution that includes talent acquisition, time tracking, payroll, and benefits administration. One of its standout features is employee-driven payroll, where employees can manage their own payroll details, reducing errors and administrative workload. The software is scalable, meaning it can grow alongside your business, and it also provides dedicated support to help small business owners navigate implementation and ongoing use.
5. GoCo
GoCo is designed for small businesses looking for customizable HR workflows. It allows you to tailor HR processes to match your company’s specific needs, whether that’s onboarding, time tracking, or compliance management. It also simplifies benefits administration, ensuring that employees have an easy time enrolling and managing their benefits. With an employee self-service portal, staff can update their information, request time off, and manage documents without HR intervention. Its pricing structure is competitive, making it a great choice for budget-conscious businesses.
6. Workable
If hiring is a major priority for your small business, Workable is one of the best HR software solutions available. It excels in applicant tracking and recruitment, helping businesses find and manage job candidates with ease. Its collaborative hiring features allow team members to evaluate applicants together, making hiring decisions more efficient. Workable also includes onboarding tools to help new hires integrate quickly. With flexible pricing plans, it’s an excellent option for businesses that are growing their teams.
7. Paycor
Paycor is a well-rounded HR platform that combines payroll, time tracking, and benefits management into one easy-to-use system. Designed with small businesses in mind, it offers an intuitive interface that minimizes the learning curve for owners and employees alike. Compliance management tools help businesses stay on top of changing labor laws, reducing the risk of legal issues. Since Paycor offers scalable solutions, it’s a great choice for businesses planning for long-term growth.
8. Homebase
Homebase is an excellent choice for small businesses that need help with scheduling, time tracking, and team communication. It simplifies shift scheduling, allowing employees to check their schedules in real-time and request changes. The software also includes time-tracking tools that make payroll processing smoother. One of its best features is its team messaging function, which helps employees and managers stay connected. Homebase even offers a free basic plan, making it a budget-friendly option for small businesses.
9. Deel
For small businesses with remote or international teams, Deel is a top choice. It specializes in global payroll and compliance, ensuring that businesses can pay employees and contractors in different countries without legal headaches. Deel also simplifies contractor management, handling onboarding and payments while ensuring compliance with local labor laws. Its scalability makes it ideal for businesses looking to expand their global workforce without worrying about administrative burdens.
10. Rippling
Rippling is a highly automated HR software that combines payroll, benefits, and IT management into one platform. It’s particularly beneficial for small businesses that need to manage HR tasks efficiently without a large team. The software automates onboarding, benefits administration, and payroll processing, reducing manual work and saving time. Another unique feature is its ability to manage employee devices and app access, making it a great choice for tech-forward businesses. Its scalability ensures that as your business grows, Rippling can continue to meet your needs.
Each of these HR software solutions offers unique benefits, but they all share a common goal: making small business management easier. Whether you’re looking for an all-in-one HR platform, a payroll-focused solution, or a hiring tool, there’s an option here that will fit your needs and budget.
Aiken House is Your Trusted Resource for Small Business Success
Got other questions about getting your business off the ground or streamlining your day-to-day work? Aiken House specializes in helping entrepreneurs make it happen. Whether you need to overhaul your website, adapt to AI in your industry, get the word out, or hack your company’s growth, or need some friendly advice on what you need to do first, we can do that.
Hit us up today with your questions, and we’ll get a consult scheduled asap.
But in the meantime, we hope these HR Software solutions stop some management headaches before they start.
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