Top 8 Employee Management Software For Small Businesses

There are lots of great employee management software in the market.

But the ones that are affordable for a small business yet are easy to use and have all the necessary features – only a few, right?

In this guide, we’ll share with you a list of top 10 softwares for employee management that are easy to use, scalable, plus, easily integrate with most HR software solutions.

Ready to find the perfect software solution? Let’s go!

What Are Employee Management Software Solutions?

Employee management software solutions are digital tools designed to help businesses efficiently handle various aspects of their workforce.

These platforms streamline and automate HR tasks, such as employee onboarding, performance tracking, leave management, and payroll processing.

Why Employee Management Software Matter:

1. Time-saving automation: Employee management software automates repetitive HR tasks, such as tracking attendance, managing leave requests, and processing payroll. This automation saves small businesses valuable time and allows them to focus on more strategic initiatives.

2. Centralized employee data: These solutions provide a single platform to store and access employee information, including contact details, employment history, and performance records. Centralized data makes it easier for small businesses to make informed decisions and maintain accurate records.

3. Improved compliance: Employee management software helps small businesses stay compliant with labor laws and regulations by providing features such as tax calculations, mandatory leave tracking, and secure data storage. Maintaining compliance is crucial for avoiding costly legal issues.

4. Enhanced employee experience: These solutions offer self-service portals that allow employees to access their information, request time off, and view pay stubs. This level of transparency and convenience improves employee satisfaction and engagement.

5. Better performance management: Employee management software provides tools for setting goals, conducting performance reviews, and offering feedback. These features help small businesses align employee performance with company objectives and foster a culture of continuous improvement.

6. Scalability: As small businesses grow, employee management software can scale to accommodate increasing workforce needs. These solutions offer flexibility and customization options to adapt to the changing requirements of expanding businesses.

Criteria For Selecting Employee Management Software For Small Businesses:

When selecting employee management software for your small business, take the time to evaluate your specific needs and priorities. Request demos or free trials to get hands-on experience with the software.

Here are the top criteria to consider while selecting an employee management software:

1. User Interface:

Look for solutions with clean layouts, easy navigation, and clear instructions to ensure quick usage and reduce the learning curve for employees and HR staff.

2. Essential Features:

Identify the core features that align with your small business’s needs.

These may include employee record-keeping, time and attendance tracking, leave management, performance management, and payroll processing.

Now, ensure that the software you select offers the functionality that addresses your specific requirements.

3. Integration Capabilities:

Consider software that integrates seamlessly with other tools your business already uses, such as accounting software, project management platforms, or communication tools.

Smooth integration eliminates data overload, reduces manual data entry, and enhances overall efficiency.

4. Affordability:

As a small business, there’s no point in spending extra hundreds of dollars every year on software solutions, when you can get the same result with a budget-friendly tool.

That’s why affordability is the #1 factor while considering an employee management software solution.

Pro-Tip: Look for solutions with simple pricing, flexible payment options, and scalable plans that can grow with your business. Don’t forget to factor in any additional costs, such as setup fees, training expenses, or support charges.

5. Customer Support:

Reliable customer support is essential particularly if you have a small team with limited IT-expertise.

So, look for software providers that offer reliable customer service across different channels including email, ticket, live chat and knowledge base.

Responsive and knowledgeable customer support ensures that any issues or questions are quickly solved, reducing any downtime in your business.

Top Employee Management Software For Small Businesses:

#1. Zoho People – Best Affordable Employee Management Software For Small Businesses

Pricing: Starts at just $1.50 per user per month

Trial: 30 Days Free Trial available

Integrations: Quickbooks, Microsoft Teams, Zapier, G Suite, Zoho Apps

Zoho People is a cloud-based HR software designed to simplify HR operations, retain talent, and build a high-performing workforce while prioritizing employee experience.

The platform offers a wide range of features, including:

• Employee management

• Leave management

• Performance management

At just $1.50 per user per month, Zoho People is one of the most affordable options on the list, making it an excellent choice for small businesses on a tight budget.

Compared to alternatives like Gusto ($6 per user per month) and BambooHR ($12 per employee per month), Zoho People offers a comprehensive set of features at a fraction of the cost.

However, even though the user interface is well-designed you might experience a bit of slow loading times compared to other platforms.

#2. Zimyo – Best AI-Powered HR Management Tools For Small Businesses

Pricing: Starts at just $3 per user per month

Trial: 14 Days Free trial available

Integrations: Zoom, Google Meet, Microsoft Outlook, CXcherry, TraqCheck. SenseLoaf

Zimyo is an AI-powered HR management system (HRMS) designed to help small and medium businesses.

The platform serves over 2,000 customers, and 500,000 users which shows its wide popularity.

Zimyo also offers a comprehensive suite of HR features, including:

• Employee management

• Time and attendance tracking

• Onboarding

• Document management

• Helpdesk support

• Workflow management

• Expense management

What’s noteworthy is the platform provides performance management tools, such as reviews, objectives, and feedback, as well as payroll automation. It’s clearly a great all-in-one HR employee management tool.

One of Zimyo’s standout features is its AI-powered capabilities, which help automate and streamline various HR processes.

At just $3 per user per month, Zimyo is an affordable choice for small and medium businesses compared to alternatives like Gusto ($6 per user per month) and Rippling ($8 per user per month).

#3. Gusto – Best For Payroll And Employee Management For Small Businesses

Pricing: Starts at $6 per user per month

Trial: Not available

Integrations: Quickbooks, Xero, Freshbooks, Homebase, Saplings, ActiveCampaign

Gusto is an all-in-one payroll and HR platform designed specifically for small businesses. It serves over 300,000 growing companies, helping them manage payroll, benefits, and HR tasks efficiently.

One of Gusto’s standout features is its modern and easy-to-use payroll system. Business owners can run payroll in minutes from anywhere.

Gusto also offers an integrated platform that includes time tracking, benefits management, and more.

While Gusto is an excellent choice for small businesses, it may not be the best fit for very large companies with huge employee bases because some of its customization options can feel limited at that scale. For these larger businesses, solutions like BambooHR or Rippling will be more suitable.

#4. Rippling – Best For Growing Tech-Savvy Small Businesses

Pricing: Starts at $8 per user per month

Trial: Not available

Integrations: Google Workspace, Greenhouse, Jira, Slack, Zendesk, Github

Rippling is an all-in-one platform that simplifies HR, IT, and finance management for small businesses. It allows companies to easily handle payroll, time off, expenses, devices, apps, and more from a single place.

One of Rippling’s standout features is its powerful workflow automation, which can significantly reduce administrative tasks and save time. The user experience is intuitive and easy to navigate, making it accessible for both HR professionals and employees.

The onboarding process is also simple and highly customizable. 

While Rippling offers a comprehensive suite of features, it may not be the best fit for businesses with tight budgets, as it tends to be more expensive than some alternatives like Zoho People ($1.50 per user per month) or Appreiz ($2 per user per month). Additionally, Rippling doesn’t offer a proper leave-management system in place.

That said, Rippling is an excellent choice for tech-savvy small businesses willing to invest in a solid and feature-rich platform that can streamline their HR, IT, and finance processes.

Its user-friendly interface, powerful workflows, and extensive integrations set it apart from many competitors.​

#5. Paycor – Best For HR And Payroll Management For Small-Medium Businesses

Pricing: Starts at $9 per user per month

Trial: 14 Day Free Trial Available

Integrations: Glassdoor, Daily Pay, GoCo, WorkforceHub, Employee Navigator, Emerge

Paycor is an all-in-one HR and payroll software designed to help small to medium-sized businesses manage their HR processes, payroll, and employee data.

The platform offers a wide range of features, including HR management, payroll processing, employee’s time and attendance tracking, benefits administration, and talent management.

One of the key benefits of Paycor is its user-friendly interface, which makes it easy for both employers and employees to use the system effectively. The platform also offers customizable solutions, allowing businesses to choose the features they need based on their specific requirements.

At $9 per user per month, Paycor is more expensive than options like Zoho People ($1.50 per user per month) and Appreiz ($2 per user per month).

However, it offers a more comprehensive feature set and is better suited for businesses with more complex HR and payroll needs. Smaller businesses with simpler requirements and tighter budgets may find more affordable alternatives like Zoho People or Appreiz to be a better fit.

In short, its user-friendly interface, customizable features, and strong focus on HR and payroll management make it a solid choice for businesses looking to simplify their HR processes.​

Pros:	Cons:
User-friendly interface	Higher priced compared to other alternatives
Strong payroll management	Customer support could be better
Customizable solutions
Lots of talent acquisition and management tools

>> Learn More

#6. BambooHR – Best Easy-To-Use Employee Management Software For Small Businesses

Pricing: Starts at $12 per employee per month

Trial: 7 Days Free Trial available

Integrations: Lattice, Checkr, Deel, Indeed, Slack, Payroll Harmony

BambooHR is a popular employee management and all-in-one HR management tool offering wide range of features like:

• Employee database management

• Reporting

• Hiring

• Onboarding

• Time tracking

• Performance management

• Payroll

One of the key benefits of BambooHR is its user-friendly interface, which makes it simple for HR professionals to manage employee data and get valuable insights through powerful reporting and analytics.

Pros:	Cons:
Wide range of features	Higher price tag compared to alternatives
Easy to use interface	Scope of improvement in customer support response time
Strong focus on employee experience
Simple onboarding process

>> Learn More

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#7. GoCo – Best For Easy Onboarding And HR Automation

Pricing: Starts at $5 per user per month

Trial: Free Demo available

Integrations: JazzHR, Quickbooks, ADP, 15Five, Trello, Zoom, Zapier, Zendesk, Harvest, Slack

GoCo is an excellent choice for small businesses looking to streamline their HR processes and consolidate data into a single platform.

The dedicated Customer Success Team provides personalized support to ensure a smooth and reliable experience. However, larger companies with more complex needs may find GoCo’s customization options and reporting capabilities somewhat limited.

At $5 per user per month, GoCo is more affordable than BambooHR, which starts at $12 per employee per month. While BambooHR has a more established reputation, GoCo’s modern interface and focus on automation make it a great alternative for small businesses.

Compared to Zoho People, which starts at $1.50 per user per month, GoCo is slightly more expensive but offers a more comprehensive feature set, including performance management and workflows.​

Pros:	Cons:
Automated onboarding process	Limited customization options
Great workflows	Customer support response time could be better
User-friendly interface
Efficient time tracking and payroll syncing

>> Learn More

#8. WebHR – Best Overall All-In-One Employee Management Solution For Small Businesses

Pricing: Starts at only $2 per user per month

Trial: Free demo available

Integrations: Google Workspace, Microsoft Dynamics, Indeed, JazzHR, Slack, Quickbooks

WebHR is a cloud-based HR software that helps small businesses manage all their HR tasks in one place. It can handle things like hiring new people, paying employees, tracking time off, and measuring how well employees are doing their jobs.

What makes WebHR stand out is how easy it is to use. Both HR staff and regular employees can quickly learn how to use all the features. The calendar shows who is working, who is off, and other important information.

The time tracking tool is one of the best out there. And when you hire someone new or someone leaves, WebHR guides you through every step.

For small businesses, WebHR is an excellent choice due to its affordability, starting at just $2 per user per month. But very big companies with unique needs might find it limiting in some special features they want.

Compared to Zoho People, which starts at $1.50 per user per month, WebHR costs a bit more but provides additional features like performance management. And while BambooHR is pricier at $12 per employee per month, WebHR delivers similar main features at a lower cost.

Overall, WebHR is a top choice for small businesses that want a user-friendly, budget-friendly way to handle all their HR needs in one place.

When choosing an employee management software for your small business, it’s crucial to consider factors such as affordability, ease of use, essential features, integration capabilities, and customer support.

Take the time to evaluate your specific needs and priorities, and request demos or free trials to get a complete idea about the software.

Among the top picks for small businesses, Zoho People stands out for its affordability and comprehensive features, while Zimyo offers AI-powered automation and employee engagement tools. For businesses looking for an all-in-one solution, WebHR provides a user-friendly and budget-friendly option.

Interested to explore more HR software solutions to grow your company and effectively manage everything? Check out our marketplace to find the right solution for your business needs.