5 Best Free HR Software for Small Businesses

Businesses that need more robust functionalities or a more powerful all-in-one solution may be better served by paid HR software. Many offer workforce management tools, advanced reporting, and audit trails, including survey solutions for assessing employee engagement at work.

For an online HR software that’s reasonably priced, consider Gusto. It has a feature-rich HR solution for managing the entire employee lifecycle. Plus, it offers solid pay processing tools and payroll compliance support, which is why it’s one of our recommended payroll services for small businesses. Sign up for a plan today.

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• Staff scheduling and time tracking: Unlike OrangeHRM, which only has a time tracking solution, Homebase has all the tools you need to manage and monitor staff attendance, such as shift swaps and geolocation and geofencing tracking for field employees. Like TimeTrex, it has facial recognition tools that allow you to verify whether the correct employee is clocking in—which helps prevent buddy punching.
• Flexible pay benefit: The provider’s “Cash Out” option allows your workers to access earned wages before paydays. Available via the Homebase app, employees can securely connect their payroll bank accounts and apply for next-day or instant cash-outs (note that fees apply for instant payouts). None of the other free HR management systems on our list have this feature.
• Employee feedback and performance matrix tracking: While Homebase doesn’t run employee performance reviews like OrangeHRM and TimeTrex do, it can monitor attendance-related performance data, such as the employees’ schedule adherence, shift trades, and on-time rates. Homebase also allows your workers to provide real-time feedback on how their work shifts went, enabling you to spot operational issues (like malfunctioning equipment) and gather insights to help assess employee morale.

The Homebase reviews on third-party review sites like G2 and Capterra are mostly positive. Users highlighted its ease of use and efficient scheduling, time tracking, and employee messaging tools. However, some dislike the occasional software glitches that would log them out of the app. A few others wished for more additional reporting features and PTO customization options.

• HR platform: Unlike similar global HR payroll providers that have HR modules for specific workers (employees vs contractors), its free HR management software can handle all worker types. You can enhance the platform’s capabilities by getting some of its paid add-ons, such as payroll and localized benefits plans.
• Solid onboarding tools: Unlike Homebase and OrangeHRM, Remote lets you use its onboarding tools for free. It has a five-step onboarding process, and Remote further simplifies the process by automatically sending onboarding emails and guiding new hires to complete requirements and upload documents. It will even check if employees have the required work visas and permits.
• International payroll: Remote is the only provider on our list that offers international pay processing tools. While it is a paid option, it allows you to process payroll in over 200 countries and Remote will help handle all local payroll compliances for you.

Many of the Remote reviews on G2 and Capterra mention its EOR services, which allow them to reach employees in different countries where they don’t have local entities in. They also appreciate its generally user-friendly tools and helpful support team. On the other hand, some users wished for more benefits options, while others commented that the platform is pricey for a small business.

• Feature-rich free HR software: TimeTrex’s free-to-use Community Edition may have been developed by a network of volunteers from 50+ countries, but it has a feature-rich platform that provides nearly end-to-end HR management—from scheduling shifts to processing payroll and conducting performance reviews. Plus, you get an employee database software, free of charge. The closest software on our list that it can compare to is OrangeHRM, although OrangeHRM lacks payroll capabilities (but its system can integrate with third-party payroll software).
• Multiple time clock apps: Similar to Homebase, TimeTrex has time clock apps that allow you to capture staff clock-ins/outs from multiple devices. What also sets TimeTrex apart from the other providers in this guide is its advanced facial recognition time clock solution, which can recognize and clock in/out your employees even if they wear glasses, a hat, or have facial hair.
• Employee information management: TimeTrex lets you attach documents to your workers’ profiles and create an employee hierarchy that shows reporting lines of supervisors and subordinates. While it may not have Connecteam’s training management solution with customizable course quizzes, TimeTrex can track your employees’ qualifications, skill proficiencies, and professional licenses (including identification numbers and issued/expiration dates).

TimeTrex reviews on G2 and Capterra are mostly positive. Users describe its platform as a simple yet powerful solution for tracking attendance and managing employees. They like that it is generally easy to use, although some commented that setting it up and navigating through its features can be intimidating. A few reviewers also noted that its interface looks outdated.

• Task management: Connecteam offers more than just an employee tasking solution, it comes with automation tools so you can easily set up recurring tasks, checklists, and even online forms. This is helpful for managing onboarding and training requirements, as well as staying on top of operational processes, such as morning shift preparations and inventory checklists. The other free software for employee management we reviewed don’t have robust task management tools.
• Scheduling and time tracking: Similar to Homebase, it has drag-and-drop functionality for moving work shifts from one employee to another. Tracking time is also made easy with its time clock app that supports PIN code time entries. For your field workers, Connecteam’s mobile app comes with GPS tracking and geofencing that can be set to specific work locations, job types, projects, and clients.
• Learning while on the go: Aside from allowing you to create online courses, surveys, and quizzes, Connecteam lets your workers access training programs through their mobile devices. If you have new hires, you can add the required courses to their onboarding checklists. It even has a “Library” tool, which is a fully searchable database of your company policies, business forms, and staff handbook.

Users who left Connecteam reviews on G2 and Capterra find its platform highly intuitive. They also said that it is easy to set up and comes with online tools that are great for scheduling work shifts and communicating with employees. However, some users commented that its software can be glitchy at times, with bugs that can cause duplicate shift entries, missing clock-ins, or system lags. A few others wished for more features, like customization options and an integrated document signing tool.

• Feature-rich free HR software: OrangeHRM provides nearly everything that you need to manage basic day-to-day HR processes (except payroll, although it integrates with pay processing solutions like PayPro and Definitiv). You can create custom roles for users (such as system administrators) and streamline tasks with its workflow automation tools. Plus, you can select its cloud-hosted version or choose to install its software on-site—provided you have an in-house IT team to manage it.
• Hiring: Create, manage, and distribute job listings to multiple job boards with OrangeHRM’s recruiting tools. You can even design custom applicant forms and create ready-to-use templates. What sets OrangeHRM apart from the other providers in this guide includes its “Interview Assistant” feature that helps you identify which questions to add from the list of online pooled questions.
• Performance reviews: TimeTrex may offer a similar feature, but its performance reviews module isn’t as robust as OrangeHRM. And while its free version only comes with 180-degree performance reviews, this is sufficient enough for small businesses to conduct employee evaluations. One drawback is that you need its paid plan if you want to add custom review questions, track goals, conduct 360-degree evaluations, and electronically sign off performance reviews.
• Career development planning: Available in OrangeHRM’s paid version, this feature comes with a 9-box matrix for assessing who your top performers are, including those who are underperforming. You can also use its “Individual Development Plan” to track development goals to help identified employees get ready for potential future roles in the company. Examples of development-related goals include attending certification courses and on-the-job exposure to specific tasks.

Many users who left positive OrangeHRM reviews on G2 and Capterra appreciate its wide range of HR solutions that make time tracking, learning management, and performance reviews easy for them. Others also like its ease of use and well-organized interface. However, some said that it looks a bit dated and has occasional glitches, such as software lags and password issues.