While the definition of a small business varies from region to region, there’s one challenge that’s commonly faced by all, employee management. One great solution to counter this issue is using specified HR tools for small businesses.
Even small businesses with limited teams face multiple HR responsibilities, such as onboarding, performance management, and employee benefits administration. However, budget constraints often prevent small businesses from maintaining a dedicated HR department. This is where HR and payroll software for small business prove invaluable, providing cost-effective solutions to streamline critical HR functions.
As the name suggests, these HR tools are specifically designed for businesses with smaller teams. These tools offer features tailored to the needs of small companies with limited human resources, making them a suitable choice.
Software Finder’s Picks For The best HR Growth Tools
- Eddy HR - Best for small business HR management
- ezClocker - Best for time tracking and scheduling
- Oyster HR – Best for hiring international employees
- BambooHR Payroll – Best for measuring employee satisfaction and engagement
- GoCo – Best for dedicated customer support
- Bambee HR - Best for affordable HR compliance
- Gusto HR - Best for payroll and benefits management
It is a commonly believed myth that small companies do not need a designated human resources (HR) department. However, this isn’t exactly the reality. Where there are people at a company, HR is required to streamline operations.
As soon as you hire your first employee, HR becomes a vital component of your team. While you don't need to hire an HR specialist right away, it's important to have essential HR policies in place. These can be efficiently implemented using HR tools for small businesses.
Let’s delve deeper and look at some compelling reasons why your small business needs an HR solution:
Onboarding
First impressions are crucial, even for businesses, especially when it comes to attracting and retaining top talent. This is why a smooth onboarding process is so important.
A tedious employee onboarding experience can make it challenging for new hires to understand the workplace culture and their responsibilities, often leading to a low employee retention rate.
The use of HR tools can help address this challenge. These tools automate the onboarding process and streamline the training experience, creating a seamless onboarding journey. This ensures new employees feel welcomed and well-equipped from their very first day.
Training And Upskilling
The modern, fast-paced business landscape demands that every team member performs at their best. Certain human resource solutions for small companies can facilitate this by offering a range of courses and certifications, putting training and upskilling at your fingertips. These solutions can help create customized learning paths for employees that align with your business's needs. HR tools can also streamline the onboarding and training process for new hires.
Automation
Small businesses often operate with limited staff and resources, requiring owners to take on multiple responsibilities. This can lead to unintentional delays or mistakes.
With an HR solution in place, many recurring tasks, such as payroll processing, employee record-keeping, and benefits management, can be automated. This saves time and reduces the likelihood of human error, allowing business owners and HR professionals to focus on more strategic activities that drive growth.
Legal Compliance
Businesses operating in specific industries and sectors must navigate the complex landscape of employment and compliance regulations. Failure to adhere to these requirements may result in hefty fines and legal consequences, making it challenging to stay up to date.
By using HR and payroll software designed for small business entities, you can easily track labor laws, tax requirements, and industry-specific regulations. The software can also generate the necessary reports and reminders, ensuring seamless legal compliance.
Enhanced PTO, Absence, And Leave Monitoring
As your business grows, managing paid time off (PTO), leaves, and absences can become increasingly complex. HR tools come equipped with enhanced monitoring capabilities that help small businesses navigate these aspects effectively.
These tools streamline the process, keeping business operations smooth while also demonstrating to employees that their time and well-being are valued, resulting in a happier and more satisfied team.
With numerous HR growth tools available for small businesses, selecting the right one can be challenging. To assist you in this process, we have handpicked some of the best HR apps for small businesses. Continue reading to explore great options!
| Best HR Tools For Growth of Small Businesses | ||||
| Rating | Free Trial | Free Plan | Starting Price | |
| [Eddy HR Logo Header] | 5 ★★★★★ | 7 Days Free Trial | N/A | $4/month |
| [ezClocker Logo Header] | 4.7 ★★★★★ | 30 Days Free Trial | N/A | $12/month |
| [Oyster HR Logo Header] | N/A | 30 Days Free Trial (for contractors) | N/A | $25/month |
| [Bamboo HR Logo Header] | 5 ★★★★★ | 14 Days Free Trial | N/A | N/A |
| [GoCo Logo Banner] | 4 ★★★★★ | N/A | N/A | $5/month |
| [Bambee Logo Banner] | 5 ★★★★★ | 30 Day Trial for $1 | N/A | $99/month |
| [Gusto Logo Banner] | 4.5 ★★★★★ | N/A | N/A | $40/month |
1. Eddy HR
Designed specifically for small businesses, Eddy HR is an all-in-one HR platform that simplifies the hiring and onboarding processes. Its user-friendly interface minimizes the learning curve, allowing businesses to get up and running without extensive delays.
In addition to its core functionalities, Eddy HR is also known for its excellent customer support, ensuring small businesses can quickly resolve any issues that arise. The platform is also scalable, allowing it to grow alongside your business.
Salient Features
- Applicant tracking system
- Employee onboarding
- Document management
- PTO tracking
2. ezClocker
If you're seeking simple and straightforward HR systems for small businesses to streamline time tracking and scheduling tasks, ezClocker is a suitable option. Its intuitive interface allows employees to easily clock in and out, with the added benefit of GPS functionality for location verification.
By automating two fundamental HR tasks – time tracking and scheduling – ezClocker significantly reduces the chances of errors. Additionally, the mobile app provides employees with the flexibility to manage their schedules on-the-go, making it a versatile solution for businesses with field-based, remote, and hybrid teams.
Salient Features
- GPS-enabled time tracking
- Employee scheduling
- Payroll export
- Mobile app access
3. Oyster HR
Oyster HR is a powerful platform that enables companies to hire and manage international employees with ease. Leveraging a feature-rich dashboard, it handles the complexities of global workforce management, while also automating basic payroll tasks, such as payroll and benefits administration.
The software provides localized expertise, helps small businesses comply with local laws and regulations, and reduces administrative burdens, allowing them to focus on growth. This makes Oyster HR an excellent HR software choice for small business entities looking to expand their talent pool internationally.
Salient Features
- Global hiring capabilities
- Compliance management
- Automated payroll
- Benefits administration
4. BambooHR Payroll
Bamboo HR is a well-rounded HR solution that combines payroll processing with insights into employee engagement and satisfaction. Through its performance management features and satisfaction surveys, the software helps companies monitor employee morale, making it a valuable asset for businesses aiming to create a positive workplace culture.
Its seamless integration with its other features creates a unified ecosystem for managing all aspects of HR. One of the standout features of the software is its comprehensive reporting tools, which provide valuable insights into workforce trends, enabling HR professionals and managers to make informed strategic decisions.
Salient Features
- Comprehensive payroll processing
- Employee self-service portal
- Performance management
- Employee satisfaction surveys
5. GoCo
GoCo is an adaptable HR platform that stands out due to its customizable workflows, allowing businesses to tailor the platform to their unique HR requirements.
It is a flexible solution that offers responsive customer support and consolidates multiple HR functions into a single platform. GoCo's robust compliance support helps businesses stay up to date with evolving regulations, making it an attractive option for small businesses.
Salient Features
- Benefits administration
- Flexible HR workflows
- Time tracking
- Compliance support
6. Bambee HR
Bambee HR offers a hands-on approach to navigating complex employment regulations and creating tailored HR policies. Furthermore, it stands out because of its dedicated HR manager that focuses on compliance and personalized support.
This tailored approach ensures that your business will receive personalized advice and solutions suited to your specific requirements. Bambee HR also offers employee training resources that prove vital in upskilling and onboarding.
Salient Features
- Personalized HR manager
- HR policy creation
- Compliance audits
- Employee training
7. Gusto HR
Gusto is an all-in-one platform that specializes in payroll, benefits management, and employee onboarding. It comes equipped with advanced features that automate the entire process, enhancing accuracy and efficiency.
The software provides employees with a self-service portal for a seamless HR experience. Furthermore, Gusto's emphasis on communication and transparency fosters trust and engagement within the team. Small businesses prefer this HR solution due to its intuitive design and competent support.
Salient Features
- Automated payroll processing
- Benefits and insurance management
- Employee onboarding
- Time tracking
Honorable Mentions
Apart from the HR tools mentioned previously, here are some additional best HR software for small business for you to check out:
As demonstrated, each HR tool varies in terms of functionality and features, so not every software may be the right fit for your company. You need to be very tactful when it comes to selecting the appropriate tool. The following handy tips will help guide you in this selection process:
Scalability: Your small business may not always remain small. Ideally, it should grow with the passage of time. So, make a point to pick an HR solution that offers scalability and supports business growth
Features Included: As mentioned above, different HR tools come with different features. And not all of them may be useful for your business. So, make a list of features you want to have in your desired software and base your research on this
Customer Support: Never compromise on customer support when selecting an HR tool. It should be responsive and effective so that problems can be fixed at the earliest
Budget: This one’s self-explanatory. Make a list of HR growth tools for small business entities that fall within your budget bracket and offer you the required functionality, and then make your pick
If you haven’t found the right HR software for your business and want an expert opinion, we have got you covered. Contact us at (661) 384-7070 and talk to our software consultants to get tailored suggestions for your business.