Best HRMS For Small Companies

To help you make a better choice, our team tested the highest-rated Human Resources (HR) systems, consulted hundreds of small business owners, and sifted through hundreds of reviews, to find the most functional and user-friendly solutions.

Human Resource Management Systems (HRMS) tools have become essential for small businesses aiming to streamline HR operations such as onboarding, payroll, and employee benefits administration. Choosing the right platform, however, can be challenging, especially for companies that need efficiency, affordability, and ease of use in one package. This guide focuses on HRIS solutions that help simplify employee management, improve compliance, and foster a productive workplace culture, without the complexities linked to an enterprise-level system.

1. Rippling (Editor’s Choice) 

Rippling automates critical, tedious HR tasks like payroll and labor compliance with built-in, localized apps, which reduces the need for third-party solutions. The platform comes with an integrated Professional Employer Organization (PEO), and a user interface that excels at managing tasks related to information Technology (IT) and finance. Rippling cuts payroll time down with swift live chat response times for support, offering dedicated solutions to the repetitive aspects of managing employees. 

Rippling Pros And Cons 

Best For: 

The platform’s diverse feature set makes it suitable for small businesses in the construction, financial services, and healthcare industries. 

Key Features 

• Global Workforce Management 
• Policy Management 
• Custom Workflows 
• Access And Approval Management 
• Workforce Analytics 

Pricing 

The platform offers a starting price of $8/user/month plus a $40 base fee and builds on it with modular pricing across four service categories, including Platform, HCM, IT, and Spend. Users can pick and choose from modules across these categories for the ideal HRMS experience. 

Why We Like It 

Rippling stands out as a unified HRMS platform that merges HR, IT, and finance-related workflows into a single, easily manageable system. The platform diminishes the need for separate tools for individual tasks, providing a streamlined, centralized hub where HR teams can perform all tasks. 

For small companies with limited administrative teams, this level of automation for tasks like payroll, benefits enrollment, and app provisioning serves as a massive time-saving component. Its intuitive, user-friendly experience and automated onboarding capabilities make it easy for new employees to get started, which reduces the implementation time of the software. It also allows administrators the space to manage a growing workforce without scalability concerns.  

Rippling's strength also lies in its ability to automate compliance and payroll systems, freeing up time and resources for small HR teams to focus on their people and not repetitive paperwork. 

User Rating 

4.8/5. Some users have praised the platform’s ease of use and user interface, while others have complained about delays in implementation time for some modules. 

2. BambooHR 

BambooHR offers a unified data model, embedded AI, and native apps to simplify essential HR tasks such as onboarding, hiring, payroll, time tracking, and benefits administration. The platform also offers employee engagement tools, performance management systems, and reporting capabilities that are ideal for smaller teams. 

BambooHR Pros And Cons 

Best For 

The software is best for small businesses in the education, non-profit, construction, healthcare, technology, and manufacturing industries due to flexible payroll options and compliance support. 

Key Features 

• Recruiting And Onboarding 
• Employee Records 
• Time Tracking 
• Payroll Processing 
• Performance Management 
• Benefits Administration 

Pricing 

BambooHR offers tiered pricing in three unique plans. Pricing for HR features starts at just $10/employee/month, with plans including Core, Pro, and Elite. Various add-on solutions are also available. 

Disclaimer: The pricing is subject to change. 

Why We Like It 

BambooHR excels as a user-friendly and people-focused HRMS that's purpose-built for the needs of small and growing businesses. Its winning feature is a centralized employee database that serves as a single source of truth for records, time-off tracking, and performance notes.  

The platform is a solid HRMS software option due to its emphasis on employee experience, offering an intuitive self-service portal that empowers staff to manage their own information. The system is designed to scale gracefully, meaning small startups can grow into mid-sized companies without needing to switch platforms.  

User Rating 

4.3/5. While some users praise the platform for its versatility with documentation, others have expressed issues with the lack of customizable fields in standard tables. 

3. Deel 

Deel helps small and growing companies hire, pay, and manage employees and contractors across more than 150 countries. This software transforms how growing organizations attract and retain talent, allowing them to function with ease, anywhere in the world. The platform automates tasks like onboarding and payment, saving much-needed time and resources for smaller teams. 

Deel Pros And Cons 

Best For 

Deel is best for small businesses in the fintech, crypto, talent management, and insurance sectors, due to its powerful EOR services. 

Key Features 

• Global People Platform 
• Self-Serve Onboarding 
• Document Management 
• Learning And Development 
• Performance Reviews 

Pricing 

Deel offers a modular and scalable pricing structure that allows companies to choose the plan that best suits their needs. The modules include: 

• Deel Payroll: Starting at $0 for Deel PEO 
• Deel HR: Starting at $5/employee/month for Deel HRIS 
• Deel IT: Starting at $45/employee/month for the Starter Bundle 
• Deel Services: Custom pricing 

Disclaimer: The pricing is subject to change. 

Why We Like It 

Deel ranks among the top choices for small businesses due to its specialization in dealing with remote and part-time workforces. The platform offers dedicated features for companies that hire independent contractors or employees in other countries for contract-based work 

Its solution is specifically engineered to handle the complexities of diversified payroll, compliance, and localized contract generation. For a small company, navigating global employment law is nearly impossible without specialized help, and Deel provides that peace of mind by automating everything from tax filing to payment processing 

It also allows small teams to hire the best talent, regardless of location, without the overwhelming weight of administrative burden. 

User Rating 

4.8/5. While some users seem to love the platform for its guided onboarding workflows, others seem to have issues with the complex pricing structure. 

4. HiBob 

HiBob stands out for its comprehensive HR functionality, managing HR processes, and centralizing tasks for operational efficiency and compliance. With its user-friendly interface and diverse analytics, HiBob is designed to meet the modern needs of businesses, making it a preferred choice for organizations seeking an efficient hiring solution. 

HiBob Pros And Cons 

Best For 

HiBob caters to small businesses across multiple industries and sectors, such as education, manufacturing, and finance, due to its powerful workforce analytics and compensation management features. 

Key Features 

• Onboarding 
• Time And Attendance 
• Compensation Management 
• Payroll Processing 
• Workforce Analytics 
• Performance Management 

Pricing 

HiBob offers a completely customized pricing structure, with plans tailored to client needs. 

Why We Like It 

HiBob (Bob) is a preferred HRMS for small businesses, due to its focus on fostering a modern, engaging, and collaborative company culture. It unifies core HR functions by offering features that specifically drive employee engagement, performance, and well-being for smaller workforces.  

Its user interface is designed to be highly social and intuitive, encouraging employees and managers to connect and collaborate. For small, high-growth companies, the platform's flexible, modular structure adapts easily to evolving needs. Its real-time people analytics provide immediate, actionable insights, helping leaders make data-driven decisions about their most important asset: the people. 

User Rating 

5/5. While the platform’s employee appreciation and feedback features have been praised, users also have issues with possible errors in time management and reporting. 

5. Paylocity 

Paylocity unifies payroll management, benefits administration, time and attendance tracking, and talent management into a single system. It allows businesses to streamline their talent acquisition and development processes, ensuring they attract and retain top talent. The platform comes with automated payroll calculation features that save smaller companies from added accounting and calculation hassles. 

Paylocity Pros And Cons 

Best For 

Paylocity HR is best for non-profit, retail, and transportation industries due to its powerful international payment features and currency support. 

Key Features 

• Benefits Administration 
• Time And Attendance 
• Payroll Processes 
• Automated Workflows 
• Employee Self-Service 

Pricing 

Paylocity offers modular pricing, with varying degrees of service. Modules include: 

• Payroll 
• Human Resources 
• Talent Management 
• Benefits Management 
• Workforce Management 
• Employee Experience Platform 
• Marketplace Integrations 
• Beyond Traditional HRIS 

Why We Like It 

Paylocity is a great choice for small businesses as it prioritizes a seamless and accurate payroll system, with an integrated tax compliance experience and modern HR functionalities. The system also provides a strong, all-in-one solution for all core HRMS needs and expertly handles the complexities of employee benefits and local tax filing, which is often a major compliance risk area for smaller firms.  

We recommend it for its focus on a great employee self-service mobile app that allows staff to easily access pay stubs, benefits, and time-off information while on the move. This level of automation and accessibility significantly cuts down on administrative delays and ensures peace of mind for smaller HR teams. 

User Rating 

4.3. While some users love the platform for its intuitive interface and payroll accuracy, its marginal support service has been criticized. 

6. Zenefits 

Zenefits, now known as TriNet, intelligently handles payroll processing, benefits administration, and other HR functions through an intuitive interface. It aims to simplify complex compliance requirements and people analytics for its users. The platform also offers a strong network of integrations, giving smaller companies access to a powerful HR ecosystem. 

Zenefits Pros And Cons 

Best For 

Zenefits is best for small industries in the education, commerce, and consulting industries due to its emphasis on powerful time and attendance tracking features. 

Key Features 

• Employee Management 
• Payroll Processing 
• Benefits Administration 
• Time And Attendance Tracking 
• HR Compliance 

Pricing 

Zenefits offers customized pricing plans that can be molded to the specific, unique requirements of its clients. 

Why We Like It 

Zenefits stands out as it streamlines core administrative functions for small businesses that need a unified system without excessive complications. Its primary strength lies in its integrated benefits administration and automated compliance features, which are critical for companies managing employee health and retirement plans.  

The platform simplifies everything from onboarding to offboarding, and open enrollment. We also favor Zenefits for its transparent, value-driven pricing structure and user-friendly design, which consolidates essential HR tasks into one easy-to-manage location, making it a highly practical and affordable choice. 

User Rating 

4.6. While the platform is praised for its employee tree structure and company hierarchy layouts, platform navigation has been cited as an issue by some users. 

7. Workday HCM 

Workday HCM comes with powerful tools for talent management and in-depth workforce analytics. This helps small businesses streamline operations, enhance employee engagement, and adapt to evolving market demands by turning real-time data into actionable strategic insights. 

Workday Pros And Cons 

Best For 

The platform is best for small businesses in financial services, healthcare, and hospitality due to a powerful set of workforce management features. 

Key Features 

• Human Resource Management 
• Workforce Management 
• Talent Management 
• Time Tracking 
• Employee Experience 

Pricing 

Workday offers customized pricing plans that are designed to fit specific services needed by the client.

Why We Like It 

While often associated with large enterprises, we recommend Workday HCM for small businesses that estimate high growth and need to build a future-proof, strong HR foundation early on. It offers an integrated system where HR, finance, and planning data exist in one place, providing detailed reporting and people analytics.  

For a small company anticipating rapid scale, Workday’s powerful configurability and advanced talent management tools, like goal setting, ensure the HR system won't become a bottleneck. It's a strategic investment for a determined small team demanding deep data and flexibility. 

User Rating 

4.1/5. While some users have praised the platform’s powerful document management features, others have criticized the mobile app for being too cluttered. 

8. Breathe

Breathe is an HR system designed specifically for small businesses, featuring holiday and sickness tracking, document management, and performance monitoring. The platform helps small business owners and office managers save significant administrative time, ensure General Data Protection Regulation (GDPR) compliance, and focus more on their people instead of paperwork.

Breathe Pros And Cons 

Best For 

The platform is best for small businesses in the education, NGO, and music industries due to powerful personalization tools and document management capabilities. 

Key Features 

• Absence Management Software 
• Performance Management 
• Document Management 
• Employee Onboarding 
• Staff Rota Scheduling 

Pricing 

Breath offers company-size-based pricing plans, with prices depending on how many employees need HR services. The plans begin from $22/month for companies with 1-10 employees and go as high as $525/month for companies with 150-200 employees. 

Disclaimer: The pricing is subject to change. 

Why We Like It  

Breathe is explicitly built and marketed as a system for the needs of UK-based small and medium-sized businesses (SMEs), making it a perfect fit for our list. We recommend the system for its simplicity and focus on essential HR admin, such as holiday tracking, absence management, and secure document storage, saving small business owners significant time.  

The platform’s primary strength is its straightforward interface and cost-effectiveness, as its pricing is structured to specifically suit smaller teams. Breathe stands out as an ideal solution that helps businesses maintain legal compliance in the UK and move away from spreadsheets without adopting an overly complex, expensive system 

User Rating

3.8/5. Although some users have praised the visibility that the system allows them into time-off details, others have expressed issues with delays in time-off approvals. 

9. Zoho People

Zoho People supports every major aspect of HR management, from hiring and onboarding and time tracking to performance reviews and employee record management. It brings all HR processes for small companies into one intuitive and customizable system. The platform also helps organizations stay agile and responsive to the needs of a smaller and scattered workforce through its mobile app and self-service features.

Zoho People Pros And Cons

Best For

The platform is best for small businesses in the tech, retail, and professional service industries due to a powerful self-service portal and role-based access controls.

Key Features

• Employee Database
• Core HR
• Performance Management
• Corporate LMS
• Self-Service Portal
• Document Management

Pricing

Zoho People offers the following pricing plans

• Free
• Essential HR - $1.50/user/month
• Professional - $2.50/user/month
• Premium - $3.50/user/month
• Enterprise - $5/user/month

Disclaimer: The pricing is subject to change.

Why We Like It

Zoho People stands out for small businesses that need an HRMS tool with potential for scalability. Its strength lies in its seamless integration with Zoho's CRM, finance, and project management tools, creating a highly cohesive and affordable ecosystem. It offers Small-To-Medium Sized Businesses (SMBs) a modular set of tools, from employee management and time tracking to performance appraisals, all highly customizable to fit specific needs.

Its easy implementation and simple, mobile-accessible interface make it perfect for budget-conscious small teams seeking a powerful, comprehensive HR system that grows with them.

User Rating

4.3/5. While many users praise the platform’s time management system, others have criticized the lack of powerful backend integrations.

Settling on the ideal HRMS for your small business needs a strategic focus on simplicity, compliance, and scalability according to your unique needs. Start by prioritizing a system that offers an integrated set of core HR features, payroll, benefits, and time tracking. This will minimize administrative time, reduce costly data errors, and save you from the hassle of shifting between tools.

Look for solutions with a user-friendly, preferably mobile-optimized experience for both employees and managers. This gives your employees higher adoption and less reliance on the HR team. Evaluate the provider’s support model and implementation structure. Cloud-based solutions are generally preferred for quick setup and low IT overhead.

Most importantly, ensure that the platform provides detailed compliance assistance for labor laws and secure data management. A successful HRMS for a small company is one that not only manages administrative work, but also actively supports your growth without becoming overly complex or restrictively expensive as your team expands.

What Not To Overlook

• Hidden payroll, tax filing, and implementation fees
• Integration with accounting software and other core business software tools
• Mobile usability for on-the-go HRMS support
• Good customer support accessibility for unexpected issues or recurring problems
• Complexity and potential cost of data migration