Running a small business isn’t easy.
You’ve got to manage your team, keep up with regulations, and make sure everyone gets paid on time.
That’s where a good HRIS (Human Resources Information System) comes in.
The right HRIS can take a huge load off your shoulders, helping you manage your HR tasks more efficiently.
But with so many options out there, how do you choose the best one?
In this guide, we’ll share our top 7 picks for the best HRIS for small business in 2024, along with tips to choose the best software.
By the end of this guide, you’ll know exactly which system is the right fit for your business.
Let’s dive in.
Why Trust Our Reviews?
At hrtech, we specialize in helping HR professionals and top leaders of the organization implement the rights systems.
We follow a rigorous testing and review system, along with a custom scoring criteria to find the best software for your unique needs. Plus, our team has years of experience in the HR field. So you can count on us! Visit hrtech to learn more.
Our Selection Process For Finding The Best Small Business HRIS
When evaluating different HRIS options, we used a set of crucial criteria that are important particularly for small businesses. Here’s a quick overview:
| Criteria: | Weight: |
| User Interface & Ease of Use | 25% |
| Scalability | 20% |
| Integration Capabilities | 15% |
| Customization Options | 15% |
| Pricing & Value for Money | 15% |
| Compliance & Security Features | 10% |
How We Picked Each Software In Our List:
1. User Interface And Ease of Use (25%):
We prioritized systems that are intuitive and easy to navigate. For small businesses, time is money, and a complicated interface can waste valuable time. We gave more weight to HRIS platforms with clean dashboards, simple navigation, and minimal learning curves.
2. Scalability (20%):
A small business today could be a medium-sized business tomorrow. We selected HRIS systems that can scale with the business, offering more features and handling more users as the company grows.
3. Integration Capabilities (15%):
We focused on HRIS systems that seamlessly integrate with other essential business tools like payroll, accounting software, and communication platforms. Integration reduces manual data entry and ensures that all your business systems work together efficiently.
4. Customization Options (15%):
We chose HRIS platforms that offer a high degree of customization, allowing businesses to tailor the system to their specific needs. Whether it’s custom reports, fields, or workflows, customization helps ensure the HRIS fits perfectly with the unique requirements of each business.
5. Pricing & Value for Money (15%):
While cost is always a factor, we looked at value for money—how much you’re getting for what you’re paying. We favored systems that offer a robust set of features at competitive prices, with bonus points for those offering free trials or free versions.
6. Compliance & Security Features (10%):
Compliance and security are critical when handling sensitive HR data. We selected HRIS systems that prioritize data protection, offer regular updates, and help businesses stay compliant with regulations.
Now, let’s explore the top small business HRIS in detail.
Top 7 HRIS For Small Business In 2024
| Software: | Best For: | Standout Feature: | Pricing: |
| BambooHR | Startups and growing teams | Strong onboarding tools | 7-day free trial, Custom pricing (typically $8-$10 per employee/month) |
| HiBob | Creative agencies and remote teams | Advanced customization and engagement features | Demo available, Custom pricing upon request |
| Keka | Tech startups and small manufacturing firms | Integrated payroll and compliance management | 7-day free trial, Pricing starts at $9 per employee/month |
| Gusto | Small businesses needing payroll and HR | Full-service payroll with benefits administration | Free account setup and demo available, Paid plans start at $40/month and $6/person |
| Paycor | Businesses with a strong focus on compliance | Compliance management with learning tools | Custom pricing upon request |
| Paylocity | Mid-sized growing companies | Advanced analytics and mobile access | Custom pricing upon request |
| Paychex | Businesses with complex payroll needs | Complete payroll and HR support | Demo available, Custom pricing (usually starts at $39/month with $5/employee/month) |
1. BambooHR – Best Overall Pick
Our Score: 4.9/5 (Excellent)
Pricing: Offers a 7-day free trial. Custom pricing (but usually in the range of $8-$10 per employee per month.
Key Features:
- User-Friendly Dashboard – BambooHR is known for its clean and intuitive interface. You can easily find what you need without getting lost in a sea of options.
- Employee Self-Service – Employees can update their information, request time off, and view their pay stubs without needing to go through HR.
- Onboarding Tools – BambooHR offers robust onboarding features that make it easy to bring new hires up to speed.
Why We Picked It?
BambooHR is our top pick for small businesses due to its user-friendly interface and strong feature set.
We particularly liked its strong onboarding tools, which simplifies the process of bringing new hires into the company.
The software stands out with its customizable workflows and performance management features, making it easier for small businesses to manage their teams effectively.
BambooHR is best for startups and growing small businesses that need a complete HR solution with strong onboarding and employee management features.
While it lacks an integrated strong payroll or advanced reporting features. If you need more advanced payroll or reporting features, consider Paychex.
But BambooHR really stands out in user experience and support.
Integrations: QuickBooks, Slack, Microsoft 365, Google Workspace
Pros:
- Simple to use, even for those who aren’t tech-savvy.
- Excellent customer support.
- Strong onboarding tools.
Cons:
- Limited payroll capabilities—you’ll need to integrate with a separate payroll system.
- Pricing can be on the higher side for small businesses.
Best For: Startups and growing teams that need a simple, easy-to-use HRIS
2. HiBob – Best Customizable Solution
Our Score: 4.8/5 (Excellent)
Pricing: Demo and custom pricing upon request
Key Features:
- Customizable Dashboards – HiBob allows you to customize your dashboard to see the information that’s most important to you.
- Advanced Reporting – Get detailed insights into your workforce with advanced reporting features.
- Employee Engagement Tools – HiBob includes features to help you keep your team engaged, like surveys and recognition programs.
Why We Picked It?
HiBob made it to our list because of its powerful customization and engagement features.
We were impressed by its ability to personalize dashboards and reports, allowing small businesses to focus on what matters most to them.
The software also excels in employee engagement, offering tools that keep teams motivated and aligned with company goals.
HiBob is ideal for creative agencies and remote teams that value flexibility and employee engagement.
It’s particularly useful for companies that need in-depth analytics and reporting. However, if you require built-in payroll, Gusto might be a better choice.
Despite its complexity, HiBob is a powerful tool for those willing to invest time in customization.
Integrations: Slack, Microsoft Teams, G Suite, Greenhouse, Workable
Pros:
- Highly customizable.
- Strong focus on employee engagement.
- Comprehensive reporting tools.
Cons:
- Can be overwhelming with so many customization options.
- Integration with some tools requires additional setup.
Best For: Creative agencies and remote teams that value customization and employee engagement.
3. Keka – Best Easy-To-Scale HRIS
Our Score: 4.7/5 (Very Good)
Pricing: 7-day free trial. Starts at $9 per employee per month.
Key Features:
- Payroll Integration – Keka offers strong payroll integration, making it a great option if you need an all-in-one solution.
- Performance Management – Track employee performance with built-in tools for reviews, feedback, and goal setting.
- Leave Management – Easily manage time-off requests and track employee leave balances.
Why We Picked It?
Keka is a great all-in-one HRIS for small businesses, especially those looking for a strong payroll integration.
We chose Keka for its seamless payroll and compliance features, which are essential for small businesses that want to stay compliant with minimal hassle.
Its performance management tools are also a standout, making it easier to track employee progress and performance.
Keka is best for tech startups and small manufacturing firms needing an affordable, all-in-one HRIS with integrated payroll.
It’s particularly strong in compliance and performance management. However, if you need more advanced customization, HiBob or BambooHR may be better options.
Keka is a great, cost-effective choice for businesses focused on payroll and compliance.
Integrations: QuickBooks, Xero, Zoho, Slack, Microsoft Teams, Azure
Pros:
- All-in-one solution with payroll integration.
- Strong performance management tools.
- Affordable pricing for small businesses.
Cons:
- User interface could be more intuitive.
- Limited third-party integrations.
Best For: Tech startups and small manufacturing firms that need a comprehensive HRIS with payroll integration.
4. Gusto – Best HRIS And Payroll
Our Score: 4.6/5 (Very Good)
Pricing: Free account setup and demo available. Paid plans starting at $40 per month plus $6 per person per month.
Key Features:
- Full-Service Payroll – Gusto offers full-service payroll, handling everything from calculations to tax filings.
- Benefits Administration – Manage employee benefits like health insurance and retirement plans directly through the platform.
- Time Tracking – Employees can clock in and out, and hours are automatically synced with payroll.
Why We Picked It?
Gusto stands out for its full-service payroll and benefits administration, making it an excellent choice for small businesses that want to simplify payroll and HR in one place.
We picked Gusto because of its simplicity and effectiveness in managing payroll, benefits, and compliance all within an easy-to-use platform.
Gusto is ideal for small businesses that prioritize payroll and benefits management, especially those in industries like retail and services.
While it lacks advanced HR features, it’s perfect for companies that want a reliable payroll system.
If you need more HR capabilities, Paycor or Paychex might be a better option, but Gusto stands out in payroll simplicity and efficiency.
Integrations: QuickBooks, Xero, FreshBooks, TSheets, Deputy
Pros:
- Excellent payroll and benefits administration.
- Easy to use.
- Great for businesses that need payroll and HR in one place.
Cons:
- Limited HR features compared to other systems.
- Higher cost for full-service payroll.
Best For: Small businesses that need a strong payroll system with integrated HR features.
5. Paycor – Best For Compliance
Our Score: 4.5/5 (Good)
Pricing: Custom pricing upon request.
Key Features:
- Compliance Tools – Paycor helps you stay compliant with labor laws and regulations.
- Time and Attendance – Track employee hours with built-in time and attendance tools.
- Learning Management – Offer training and development opportunities through Paycor’s learning management system.
Why We Picked It?
Paycor is a strong choice for small businesses that need advanced compliance tools and employee development features.
We particularly like Paycor for its focus on helping businesses stay compliant and develop their workforce through learning management.
Its advanced reporting and performance management features also make it one of the top HRIS in our list.
Paycor is best for small businesses that need strong compliance tools and employee development features, especially in regulated industries like healthcare.
If you’re looking for more user-friendly and easy software, BambooHR might be a better fit. But Paycor stands out in compliance and workforce development.
Integrations: QuickBooks, Xero, Microsoft Dynamics, Kronos, ADP
Pros:
- Strong compliance features.
- Comprehensive time and attendance tools.
- Learning management for employee development.
Cons:
- Steeper learning curve for new users.
- Customer support can be slow.
Best For: Businesses with a strong focus on compliance and employee development.
6. Paylocity – Best For Strong Analytics And Reporting
Our Score: 4.4/5 (Good)
Pricing: Custom pricing upon request.
Key Features:
- Advanced Analytics – Get detailed insights into your workforce with Paylocity’s analytics tools.
- Employee Surveys – Gather feedback from your team with customizable surveys.
- Mobile App – Manage HR tasks on the go with Paylocity’s mobile app.
Why We Picked It?
Paylocity is a great option for growing businesses that need advanced analytics and strong mobile capabilities.
We chose Paylocity for its robust analytics tools and mobile-first approach, which are ideal for businesses that need insights into their workforce and flexibility in managing HR tasks.
Paylocity is best for growing small businesses or mid-sized businesses that need advanced analytics and a mobile-friendly HRIS.
It’s particularly useful for companies with remote teams or those needing detailed workforce insights.
If cost is a concern, Keka might be a more affordable option, but Paylocity excels in analytics and mobile accessibility, making it a great choice for growing businesses.
Integrations: QuickBooks, Xero, Microsoft 365, Salesforce, ADP
Pros:
- Strong analytics and reporting tools.
- Mobile-friendly.
- Employee engagement features like surveys.
Cons:
- More expensive than some other options.
- Limited payroll features without add-ons.
Best For: Mid-sized growing companies that need strong analytics and mobile access.
7. Paychex – Best For Complex Payroll
Our Score: 4.2/5 (Good)
Pricing: Demo available. Custom pricing (but usually starts at $39 per month plus $5 per employee per month)
Key Features:
- Comprehensive Payroll – Paychex is known for its strong payroll capabilities, handling everything from processing to tax filings.
- HR Support – Get access to HR experts who can help with compliance and other HR issues.
- Retirement Services – Manage employee retirement plans directly through Paychex.
Why We Picked It?
Paychex made it to our list because of its strong payroll and HR support features.
We picked Paychex for its comprehensive payroll capabilities and access to HR experts, making it a great choice for businesses with complex payroll needs.
Its compliance and benefits administration features also standout.
Paychex is best for businesses with complex payroll needs and those that require HR support, particularly in industries with strict compliance requirements.
If you’re looking for more user-friendly software, consider Gusto or BambooHR, but Paychex stands out in payroll and compliance support, making it a reliable choice for businesses with more demanding HR needs.
Integrations: QuickBooks, Xero, Sage, ADP, Microsoft 365
Pros:
- Strong payroll and HR support.
- Access to HR experts.
- Comprehensive retirement services.
Cons:
- Higher cost, especially for smaller businesses.
- The interface can be less intuitive compared to other systems.
Best For: Businesses with complex payroll needs and those that require HR support.
Want to explore more HR software? Check out our marketplace to explore a wide range of software solutions to make your HR processes a lot more easier and efficient.
What To Look For In A Good HRIS For Small Business?
1. User-Friendly Interface And Ease of Use
Your HRIS should make your life easier, not harder.
A user-friendly interface is a must. You don’t have time to wrestle with complicated software. Look for systems that are intuitive and easy to navigate.
For example, if your HRIS has a clean dashboard that shows you everything at a glance—like upcoming employee reviews or time-off requests—you’ve picked the right software.
Similarly, a system with drag-and-drop features or simple forms can save you time and headaches.
2. Scalability
Your business might be small now, but what about in a year?
Or five years?
You need an HRIS that can grow with you. Scalability means the system can handle more employees, more data, and more complexity as your business expands.
Let’s say you start with 10 employees and grow to 50. A scalable HRIS should still work smoothly without slowing down.
Check if the system offers different plans or add-ons that you can upgrade to as your needs change.
3. Integration Capabilities
You’re probably using other tools for payroll, accounting, or project management.
Your HRIS should integrate seamlessly with these tools.
Integration capabilities mean you don’t have to input the same data in multiple places, which saves time and reduces errors.
For instance, if you use QuickBooks for payroll, your HRIS should sync with it so employee hours automatically flow into payroll. This kind of integration keeps everything in sync and cuts down on manual work.
4. Customization Options
Every business is unique. Your HRIS should let you customize it to fit your specific needs.
Whether it’s custom fields for employee data or personalized reports, having these options ensures the system works the way you want.
Imagine needing to track certifications for employees in a specific field. A good HRIS would let you add custom fields to keep track of this information easily.
Customization is key to making the HRIS work for your business.
5. Compliance and Security Features
HR data is also quite sensitive. You’ve got to make sure it’s secure and that you’re staying compliant with local labor laws.
The right HRIS will help you keep your data safe and make sure you’re following the rules.
Look for features like data encryption, role-based access, and regular updates to the system.
These will help protect against data breaches and ensure you’re always in compliance with the latest regulations.
How To Choose The Best HRIS For Small Business?
Choosing the right HRIS can feel overwhelming, but it doesn’t have to be. Here’s how to make the best decision for your business:
Assess Your Business Needs
Start by evaluating what you need from an HRIS.
Do you need strong payroll integration?
Or maybe you’re looking for something that can handle performance management and employee engagement?
Make a list of your must-have features before you start shopping.
For example, if you’re a small business with 20 employees, and your primary need is payroll, Gusto might be a great fit. But if you’re looking for more robust HR features, BambooHR could be a better choice.
Compare Costs And ROI
An HRIS is an investment, so it’s important to consider both the upfront cost and the long-term return on investment (ROI).
Look at the pricing structure for each HRIS and compare it to the features offered. Don’t just go for the cheapest option—consider what you’re getting for your money.
Let’s say BambooHR is costing you a total of $99 per month, but you’re saving hours each week on HR tasks.
That time savings could be worth much more than the cost of the software.
Free Trials And Demos
Most HRIS providers offer free trials or demos.
Take advantage of these to test the system before committing.
Use the trial period to explore the features, see how easy it is to use, and make sure it meets your needs.
During your trial, pay attention to things like how easy it is to navigate the system, how quickly you can find what you need, and whether it integrates smoothly with your existing tools.
Consider Long-Term Support And Updates
An HRIS isn’t a one-time purchase—it’s a long-term tool for your business.
Make sure the provider offers ongoing support and regular updates to keep the system running smoothly.
Check if they offer live support, email support, or a dedicated account manager.
Also, look into how often they release updates and whether those updates include new features or improvements.
How Much Does An HRIS Software Cost?
On average, expect to spend between $100-$300 per month for an HRIS solution for a company of around 10 employees. The cost can vary significantly depending on the features, the number of employees, and the specific needs of your business.
Here’s a breakdown of what you can typically expect:
1. Basic HRIS
For small businesses, basic HRIS systems that handle essential functions like employee data management, time tracking, and basic reporting usually start around $80 to $100 per month.
These systems often charge on a per-employee basis, typically ranging from $5 to $10 per employee per month.
Basic plans might include features like:
- Employee database management
- Basic time and attendance tracking
- Simple reporting tools
2. Mid-Tier HRIS
Mid-tier HRIS systems that offer more advanced features, such as payroll integration, performance management, and customizable workflows, generally cost between $100 to $300 per month.
Per-employee pricing in this tier usually falls between $10 to $20 per employee per month. These systems often include:
- Integrated payroll processing
- Advanced performance management tools
- Customizable reports and dashboards
- Compliance management features
3. Premium HRIS
Premium HRIS systems designed for businesses with more complex needs or those that require extensive customization and support can cost $300 to $600 or more per month.
The per-employee pricing can range from $20 to $30 or more per employee per month. These systems often offer:
- Comprehensive payroll and tax filing services.
- Advanced analytics and workforce insights.
- Learning management systems.
- Dedicated customer support and account management.
- Full customization and integration with other business tools.
Additional Costs To Consider
- Setup Fees – Some HRIS providers charge a one-time setup fee, which can range from $500 to $2,000 depending on the complexity of your needs.
- Customization Costs – If you need specific customizations, there might be additional charges, which can vary widely.
- Training and Support – While many HRIS systems include basic support in their pricing, premium support or training sessions might come at an extra cost.
HRIS vs. HRMS vs. HCM Software
When you’re exploring different HR solutions for your company, you’ll often come across terms like HRMS and HCM along with HRIS.
So what do they exactly mean and how do they differ from each other? Let’s break it down:
| HR Systems | Best For: | Core Functions: | Examples: |
| HRIS | Small Business | Employee records, payroll, benefits, time tracking, compliance | BambooHR |
| HRMS | Growing Business | HRIS and recruitment, performance management, training, employee development | ADP |
| HCM | Large Organization | HRMS and workforce planning, succession planning, advanced analytics | Workday |
HRIS (Human Resources Information System)
An HRIS is the foundational system that manages core HR functions. It focuses primarily on administrative tasks like employee data management, payroll, benefits administration, and time tracking.
HRIS systems are ideal for small to medium-sized businesses looking for a solution to streamline these essential HR operations.
HRMS (Human Resources Management System)
An HRMS builds on the basic functions of an HRIS by adding more sophisticated features like performance management, recruitment, and training. It does everything an HRIS does, plus more.
HRMS systems are suited for businesses that need more comprehensive HR management, including talent management and employee development.
HCM (Human Capital Management)
HCM software takes a broader approach, focusing on the entire lifecycle of an employee—from recruitment to retirement.
It’s not just about managing HR tasks but also optimizing the workforce and aligning HR strategies with business goals.
HCM software is typically used by larger organizations that need to integrate HR with broader business strategies.
All-In-One HRIS vs. Multiple Specialized HR Tools For Small Business
To simplify your HR processes, in the starting, it’s common to use multiple HR tools. And you might be even quite comfortable with managing your process through it.
So in that situation, is it worth it to move to an all-in-one HRIS or should you use multiple tools for each feature? Here are some pros and cons of each to help you make the right choice:
Pros Of All-in-One HRIS:
- Simplified Management – With everything in one place, managing your HR tasks is more straightforward, reducing the need for multiple logins and platforms.
- Integrated Data – An all-in-one system ensures that all your HR data is connected, which reduces the risk of errors and improves reporting accuracy.
- Cost-Effective – Often, an all-in-one solution can be more cost-effective than paying for multiple specialized tools.
- Easier Training – Training your HR team on one system is simpler than training them on multiple platforms.
Cons Of All-in-One HRIS:
- Limited Specialization – All-in-one systems might not be as deep or specialized in certain areas as dedicated tools, such as recruitment software or performance management systems.
- Less Flexibility – You may have to compromise on certain features if the all-in-one system doesn’t offer everything you need.
- Vendor Dependence – Relying on one system for all your HR needs can make it harder to switch vendors if you’re unhappy with the service.
Pros Of Multiple Specialized HR Tools:
- Specialized Features – You can choose the best tool for each specific HR function, ensuring you have the most advanced features.
- Flexibility – If your needs change, you can easily swap out one tool for another without overhauling your entire HR system.
- Customized Solutions – Specialized tools often offer more customization options tailored to specific HR tasks.
Cons Of Multiple Specialized HR Tools:
- Integration Challenges – Getting multiple tools to work together smoothly can be difficult, leading to data silos or inconsistencies.
- Higher Costs – Paying for multiple tools can be more expensive than an all-in-one solution.
- Complexity – Managing multiple tools can be more time-consuming and require more training for your HR team.
Final Thoughts
Choosing the best HRIS for your small business is a big decision, but it’s one that can pay off in a big way. The right HRIS can save you time, reduce errors, and help you manage your team more effectively.
Remember to assess your needs, compare costs, and take advantage of free trials before making your final decision. And don’t forget to consider long-term support and updates—these can make a big difference in how well the system works for you over time.
Still unsure which HRIS is right for you? Connect with our industry-leading HR experts at hrtech and get customized guidance on picking the best solution for your business. Contact us now to learn more.
