7 Best HR Software for Small Business in 2025

BambooHR plans*

• Core: $250 monthly for up to 25 workers; changes to $10 per employee monthly if you have more than 25 workers
  • Includes employee management, hiring and onboarding, time off and benefits tracking, workflow automation, and support via chat, email, and phone
• Pro: $425 monthly for up to 25 workers; changes to $17 per employee monthly if you have more than 25 workers
  • Core + performance reviews, staff surveys, and employee community tools

Add-ons*

• Payroll: $190 monthly for up to 25 workers; changes to $7.47 per employee monthly if you have 25 and more workers
• Time tracking: $3 per employee monthly for up to 25 workers; changes to $7.47 per employee monthly if you have 25 and more workers
• Benefits administration: $140 monthly for up to 25 workers; changes to $5.48 per employee monthly if you have 25 and more workers

*Pricing is based on a quote I received.

• New hire onboarding: Like the other small business HR software in this guide, you can create tasks allowing new hires to sign online forms and complete onboarding documents. What sets BambooHR apart is its customizable Get to Know questionnaire that asks new hires about their hobbies, interests, and basic personal details (such as where they grew up). You can use the data collected to send an email introducing the new hires to their teammates, helping your employees connect with them easily (and vice versa).
• Engagement tools: You can run online surveys that come with Net Promoter Scores (NPS) for measuring employee loyalty and engagement levels. It uses AI to instantly categorize NPS responses into common topics to help you gauge how workers feel about the company and identify areas to improve. ADP, Gusto, Rippling, and Paycor’s employee surveys aren’t as advanced.
• Performance management: BambooHR is one of our best performance management systems for small businesses. It was highly rated for its customizable review cycles and evaluation criteria. It also offers pre-built assessment templates, automated reminders, anonymous peer feedback, and a goal status report to help managers track team-wide progress.

A snapshot of BambooHR’s employee satisfaction survey tool (Source: BambooHR)

The BambooHR reviews on third-party review sites like G2 and Capterra are mostly positive. Users like the intuitive platform, easy setup, implementation support, and the many HR tools that BambooHR offers. However, they’re not fans of its mobile app because of its limited features. Others wished for more custom reporting tools.

Gusto plans

• Simple: $40 per month + $6 per employee monthly
  • Includes full-service payroll, tax filings, single state pay processing, two- and four-day direct deposits, employee benefits, basic hiring and onboarding, offer letter templates, new hire reporting, and basic support
• Plus: $80 per month + $12 per employee monthly
  • Simple + next-day direct deposits, multistate payroll, expense reimbursements, scheduling, time and PTO tracking, advanced hiring and onboarding tools, project tracking, performance reviews, surveys, and full support with extended support hours
• Premium: $180 per month + $22 per employee monthly
  • Plus plan + full-service payroll migration, health insurance broker integration, access to HR experts, direct line to priority phone and email support, and a dedicated account manager
• Contractor-only plan: $35 per month + $6 per contractor monthly
  • Full-service payroll, four-day direct deposits, and state new hire reporting

Add-ons

• State payroll tax registration: Pricing varies per state
• R&D tax credits: 15% of identified tax credits
• Health insurance and other benefits: Pricing varies by benefit
• Health insurance broker integration: $6 per eligible employee monthly
• Gusto Global: $699 per employee monthly
• International contractor payments: Pricing varies

Add-ons for Simple plan only*

• Next-day direct deposit: $15 per month + $3 per employee monthly
• Time tracking: $6 per employee monthly
  • Includes time tracking and scheduling tools
• Performance reviews: $3 per employee monthly
• Priority support: $30 per month + $3 per employee monthly
• HR resources: $50 per month + $5 per employee monthly
  • Includes access to HR experts, federal and state compliance alerts, and HR forms/documents

Add-on for Plus plan only

• Priority support and HR resources: $8 per employee monthly (included for free in the Premium tier)

*These features are included in the Plus and Premium tiers

• Affordable payroll-first plans: With monthly fees that start at $40 plus $6 per employee, Gusto is optimal for small businesses looking for reasonably-priced pay processing tools. Rippling, BambooHR, and Homebase offer payroll as an add-on and require you to purchase their core HR products first.
• Gusto-brokered employee benefits: Gusto’s licensed benefits advisors can help set up your employees’ health plans, making it easy to find an option that fits your budget and needs. If you already have a broker, Gusto can integrate your existing benefits plans into its system for a fee ($6 per eligible employee monthly). Its free Gusto Wallet app even lets you track, save, and manage money from your paychecks, tools that can help your employees build healthy spending habits.
• Personalized onboarding: Gusto’s onboarding tools are similar to the other small business human resources software in this guide. What sets it apart from the rest is its electronic cards that the new hire’s teammates can sign to welcome the employee.

Gusto’s online pay runs can be done in four easy steps. (Source: Gusto)

Gusto is rated highly on user review sites like Capterra and G2. Both employers and employees praise its user-friendly interface and the ease of running payroll. Some reviewers also appreciate how it handles the filing of payroll taxes. However, a few users dislike its occasional software lags and mobile glitches. Customer support is also a hit or miss.

Rippling works with you to create a custom package with the features you want. It offers a base Rippling Platform that automates all workforce operations and manages system permissions, reporting, and workflows. It has two plans:

• Core: Custom-priced
  • Includes role-based permissions, basic reports, automation tools, custom workflows for onboarding events, and a workflow builder
• Pro: Custom-priced
  • Core + advanced reports, 10 custom workflows, and custom formula fields that can be added to reports and workflows

Three add-ons are also available if you want:

• Unlimited workflows
• Access to Rippling’s API platform and over 600 integrations
• Custom apps that you can build within Rippling—no coding needed

In addition to the above tools, you can enhance the Rippling Platform by adding the modules you want, such as:

• Applicant tracking
• Learning management
• Employee survey
• Benefits administration
• PEO and EOR services
• Expense management
• IT tools for app and device management
• Compensation bands for creating and securely sharing salary bands and comparative ratio (compa-ratio) details with stakeholders

• Useful IT solution: Rippling was the first HR software I ever reviewed that offers tools to set up and manage company-assigned computers and business software. If a member of your field-based and distributed teams is resigning, Rippling can remotely remove computer and app access on the employee’s last working day. It even automatically retrieves computers when employees leave.
• Extensive software integrations: None of the other HR tools for small businesses we reviewed can connect with as many third-party systems as Rippling does. It integrates with over 600 software applications, making it much more efficient for companies planning to add Rippling to an existing group of software products.
• Learning management tools: Rippling has over 1,000 pre-built courses, from cybersecurity to HIPAA, but you can also build your own. You can create course enrollment rules, set up quizzes, and track training progress. Rippling records certifications for compliance as well.
• Flexible PEO: ADP and Paychex may have PEO services, but they lack Rippling’s easy on/off button. Let’s say you signed up for Rippling PEO. If you decide that you no longer need to outsource HR administrative tasks, you can easily turn its PEO option off and immediately start using Rippling’s HR platform. No customer support call needed, helping simplify the process of moving from a PEO service.

Rippling makes it easy to assign or order computers with the required software. (Source: Rippling)

Users who left Rippling reviews on popular review sites like G2 and Capterra like its intuitive interface and easy integrations. Several others commented that its robust solutions, ease of use, and automation tools are Rippling’s standout features.

However, some reviewers said that it has a learning curve, mainly due to its many HR features. Others complained about occasional system login issues and slow loading pages.

Paycor plans for small businesses with up to 49 employees

• Basic: Custom-priced
  • Includes payroll, tax filing services, check stuffing, new hire reporting, basic wage garnishments, and standard reports
• Essential: Custom-priced
  • Basic + onboarding, PTO tracking, “Pro” wage garnishment payment services, basic analytics, a custom report builder, and access to an online HR support center
• Core: Custom-priced
  • Essential + employee data imports, engagement tools, and access to Paycor’s HR module
• Complete: Custom-priced
  • Core + advanced analytics, compensation planning, and access to Paycor’s career management module

Paycor plans for businesses with 50 and more employees: Custom-priced

Add-ons

• Time and scheduling: Custom-priced
• Benefits administration: Custom-priced
• Workers’ compensation: Custom-priced

• Payroll and compliance: Paycor’s payroll product comes with unlimited and automatic pay runs, as well as flexible pay grids that allow you to add columns to fit your pay processing needs. It’s also equipped with compliance features, such as proactive alerts and compliance dashboards, to help keep you up-to-date with labor and tax regulations relevant to your location and industry.
• Compensation management: Paycor takes compensation management to the next level with customized and automated salary planning tools, including bonuses, merit increases, and other programmable rewards. This can help eliminate manual work, make compensation more predictable for your employees, and make everything easier to track and budget.
• Performance management: Similar to Gusto, Rippling, and BambooHR, Paycor helps with performance management, providing you with the tools you need to track and assess employee work performance. However, its features are slightly more advanced, with its nine-box grid to visualize staff performance and potential, employee skills evaluations, and a library of questions to guide performance conversations.

Paycor’s performance review module lets you conduct skills assessments to check where employees stand relative to what they need for current or future positions. (Source: Paycor)

Users who left Paycor reviews on G2 and Capterra like that it is easy to use with efficient time tracking and payroll functionalities. Others commented that while customer service is generally good, the wait times are sometimes long.

Paychex Flex plans

• Select: Custom-priced
  • Includes full-service payroll, tax filing services, direct deposit, and paycard payments, new hire reporting, analytics and reports, employee self-service tools, and access to a financial wellness program
• Pro: Custom-priced
  • Select + background checks, state unemployment insurance (SUI) and workers’ comp report services, garnishment payments, general ledger integrations, and an employee handbook builder
• Paychex Flex Enterprise: Custom-priced
  • Pro + document and performance management tools, job costing and labor distribution, and paycheck previews to allow employees to review their paychecks before paydays

For solopreneurs needing help with running self-employed payroll, Paychex offers a custom-priced Paychex Solo plan. Aside from payroll tools, it comes with incorporation services and a 401(k) plan for solopreneurs.

Add-ons

• Recruiting and applicant tracking: Custom-priced
• Employee onboarding: Custom-priced
• Time tracking: Custom-priced
• Benefits administration: Custom-priced
• Employee benefits plans: Custom-priced
• Learning management: Custom-priced

• Hands-free payroll processing: Paychex has a “Voice Assist” tool that provides a secure and hands-free way to process both employee and contractor payroll. It works on Google Assistant-compatible devices and comes with voice verification and artificial intelligence (AI) features, so you can run payroll without having to log into Paychex Flex. None of the human resource management software for small business owners we reviewed have this functionality.
• Financial wellness program: Paychex’s financial management tools stand out among the rest given its cash flow assistance (via short-term loans) for employees. It also helps your employees plan and track financial goals through educational resources and financial management tools.

Paychex Flex’s HR dashboard displays helpful information about your workforce demographics, turnover rates, and more. (Source: Paychex)

Users who left positive Paychex Flex reviews on G2 and Capterra said that it offers good reporting options, great onboarding functionalities, and an easy-to-learn interface. Reviewers also found its platform simple to use because it does not crowd its interface with extraneous features.

However, some users find it a bit more expensive than similar software because of the add-on fees for time tracking, training, and benefits administration tools. A few others commented that getting through its support team is a nightmare and it’s also confusing to keep track of who to call given the different points of contact for specific modules.

ADP Run plans

• Essential: Custom-priced
  • Includes payroll, tax filings, onboarding, direct deposits and a Wisely debit card, new hire reporting, background checks, and employee discounts
• Enhanced: Custom-priced
  • Essential + check signing services, job costing, SUI management, and job postings via ZipRecruiter
• Complete: Custom-priced
  • Enhanced + HR forms and documents, an employee handbook wizard, salary benchmarks, and an HR help desk (includes phone and email access to HR advisors)
• HR Pro: Custom-priced
  • Complete + applicant tracking, learning management, sexual harassment prevention training, and access to legal assistance from Upnetic Legal Services

Add-ons

• Time tracking: Custom-priced
• Retirement plans: Custom-priced
• Workers’ compensation: Custom-priced
• Health insurance: Custom-priced

• Employee benefits and discount perks: Like Paychex and Gusto, ADP issues insurance directly from its organization. You can choose from health plans to retirement options. It even has retail and restaurant discounts you can offer as a perk to employees.
• Secure paychecks: ADP RUN’s check signing services include paychecks that have 10 advanced fraud protection features. Similar to Paychex and Paycor, ADP will stuff and seal payroll checks into envelopes, as well as deliver these to your office so you can distribute them to employees.

ADP lets you run payroll quickly or put it on automatic. (Source: ADP)

Many of the online ADP RUN reviews are positive. Users raved about the features and onboarding but said that the overall UX needed work. Some reviewers also complained about the long wait times to contact support.

Homebase plans*

• Basic: Free for businesses with only one location (up to 20 employees)
  • Includes time and attendance, scheduling, employee management, and staff messaging tools plus email support
• Essentials: $24.95 per location monthly ($20 per location monthly if billed annually)
  • Basic + unlimited employees, GPS tracking, customizable overtime and breaks, shift trades, shift notes, custom messaging channels, and live chat/phone support
• Plus: $59.95 per location monthly ($48 per location monthly if billed annually)
  • Essentials + PTO tracking and controls, hiring, and user permission settings
• All-in-One: $99.95 per location monthly ($80 per location monthly if billed annually)
  • Plus + new hire onboarding, HR and compliance, and labor cost management

Add-ons

• Payroll: $39 plus $6 per employee monthly
• Background checks: $30 each
• Task manager: $13 per location monthly
  • This tool lets you build, assign, and track task lists
• Job posting boosts: Starts at $79 per job listing
• Tip manager: $25 per location monthly
  • This tool automatically pulls tips from your POS to Homebase, calculates the tip pool, and adds it to timesheets

*Homebase offers monthly and annual subscriptions. If you select the annual option, you can save up to 20%, but you must pay the annual fees in a lump sum and upfront.

• Shift feedback: With Homebase, you can gather feedback from workers after their work shifts. If this tool is turned on, employees who will clock out will be prompted to rate their shift using a five-star system and add notes about their shift experience. This allows you to keep track of what your team is feeling at work.
• Labor cost management: Aside from tracking employees with multiple pay rates, Homebase can help manage labor costs by sending alerts when employees are nearing overtime. It can also automatically clock out workers at the end of their shifts.

With Homebase, you can create color-coded staff schedules and add notes to employee shifts. (Source: Homebase)

Reviewers who left Homebase reviews in G2 and Capterra appreciate its ease of use, affordability, and efficient time and scheduling tools. They like that it has a chat feature that lets them directly communicate with their team. Some, however, wished for more customization options and fewer app glitches.