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Best HR Software for Small Business
on 19 Oct, 2023

Best Human Resource Software for Small Business and Startups

Running a business is not as simple as it seems to be. Situations get significantly more challenging when employees get added, irrespective of the organisation's size and type. At the outset of such a growth in the number of employees, Entrepreneurs might get attracted to handle human resources (HR) operations independently for their startups and small businesses. However, to foster healthy management, they'll certainly require the assistance of an HR service to streamline tasks like recruitment, onboarding, keeping track of time, payroll administration, and employee benefit management. One can efficiently handle various HR operations from beginning to end with the best HR software for small business.

For this, we have prepared a list of the best HR software, where we have compared various products' features, functionality, price, usability, and other factors. The best available products discussed in this write-up will help select the apt human resource software for small business.

Top 5 Human Resource Software for Small Business & Startups 

1. Gusto : Your All-in-One People Platform, Simplify Hire, Pay, Insure & Support Your Team.

2. Rippling : Revolutionize HR, IT and Finance with Rippling.

3. Bambee Put Your HR on Autopilot & Streamline Employee Management, Automate Onboarding, HR Policies and Even Employee Training.

4.  Zoho People : Unleash Your HR Potential with Cloud-Based Hr Software Solutions.

5. Paychex : Where Simplicity Meets Power in Payroll, HR and Benefits

Detailed Review of world’s Best 5 Human Resource Software

1. Gusto

Gusto is an online tool for managing human resources for startups and small businesses that eases out employers' most challenging aspects of benefiting administration and payroll processing. Gusto makes payroll processing for independent workers and contractors and aids in employee benefits like health, retirement, and more. Additionally, the Human Resource software for small business offers features like automated charity giving and a digital wallet that gives staff members more flexibility regarding when and where to utilise their funds.

Gusto HR Software


  • Gusto provides businesses with trendy, modern, user-friendly access to payroll software and HR experiences.
  • Gusto also provides sophisticated HR support solutions for businesses that require further assistance with developing rules and remaining compliant concerning the company's technology capabilities.
  • Gusto has increased the number of onboarding, time tracking, and employee benefit management services it offers in addition to payroll.
  • Gusto enables businesses to combine payroll plus healthcare insurance coverage on the same interface by acting as an employee incentive broker.
  • Gusto has also launched its partner marketplace and is constructing additional links with outside HR applications.
  • With the support of its comprehensive solution tax filing division, Gusto's payroll services prepare and submit your payroll taxes effortlessly, becoming the best HR software.for startups and small business.


  • Gusto concentrates on relatively tiny businesses. When businesses have more than 75 to 100 employees, Gusto's platform usually becomes unsuitable.
  • The Gusto time tracking app is relatively minimal and just intended to track paid time off.
  • Gusto does not offer extended capabilities like an ATS or a performance management system.
  • During the pandemic, Gusto's customer service requests surged, failing to keep up with demand from the customers they served.

2.  Rippling

Rippling unifies all workforce management systems typically dispersed throughout an organisation, including computers, payroll, costs, and benefits, allowing businesses to manage and optimise every phase of employee engagement in one central location. Considering the beginning of the onboarding process with Rippling, companies can recruit new employees from any location worldwide. Their paycheck, corporate card, benefits, and third-party apps such as Slack and Microsoft 365 are all set up in less than 90 seconds.  Its comprehensive features make Rippling one of the best HR software for startups and small business in the current market.

Rippling HR Software


  • In the HRIS market, Rippling has the best HR software for startups, ratings for its cutting-edge user interface, which promotes self-service among employees.
  • The onboarding elements from Rippling are their most distinctive product, combining online directory organisation with seamless IT and HR task synchronisation. This benefits white-collar workers who depend on several workplace efficiency and productivity software.
  • Additionally, Rippling is among the best in the industry in linking with outside Human Resources solutions. They have already developed integrations with countless Human Resources software, like Greenhouse, Lever, Lattice, 15Five, and others.


  • Rippling doesn't constitute a complete HR information system. Other parties supply its ATS and LMS, consequently needing more performance or engagement features.
  • Rippling did release a time and attendance approach; however, it still needs to be appropriate for businesses with highly complicated time requirements.
  • Because users can't customise its processes, its time management tools have limits; Rippling, a young startup itself, is unsuitable for larger businesses (those with more than 300 employees).
  • There is no contact centre and only ticketing-based customer support at Rippling.

3.  Bambee

Instead of conventional HR software for startups, Bambee is a highly regarded best HR software outsourcing service. The company assists small firms with at most 500 staff members with HR risk reduction. As it helps ensure that the company's HR specialists can provide individualised advice depending on each employer's needs, Bambee mainly specializes in small enterprises. Bambee and its professionals may assist with hiring, training, disciplinary action, and dismissal of employees.

Bambee HR Software


  • Bambee matches your organization with a committed HR manager by contacting via email, telephone, and chat. So startups can get individualized HR support.
  • The vendor can develop HR rules per your company's culture and relevant labour laws.


  • Bambee does not provide employee time monitoring or benefits administration.
  • The business levies a one-time setup charge.

4.  Zoho People

A cloud-based HR software solution called Zoho People makes developing people easier, responding swiftly to shifting circumstances, and managing HR more effectively. It prioritises the worker experience while streamlining human resources processes, retaining talent, and establishing an efficient staff. Onboarding, time and absence management, scheduling, performance management, and advanced analytics are just a few of the fundamental functions offered by Zoho People. Additionally, the program provides all the resources required to support HR personnel and employees in remaining effective, current, and productive even while on the road.

Zoho People HR Software


  • It provides information about the abilities and potential of each individual as well as the performance of each squad. It also offers suggestions for how the company can perform better.
  • Monitoring time and vacation days might take less time for HR departments. Users may concentrate on employee efficiency while the software's time and attendance system reliably records working hours and provides flawless reporting.


  • Payroll functions are not included because they can be accessed through another Zoho app.
  • Users claim that the Zoho People support staff responds slowly.

5. Paychex

Paychex Flex is a well-known best HR software for small business capable of helping almost all companies, from small startups to big corporations, with various human resources tasks. Paychex Flex has many options to fulfil the demands of businesses with remote employees, making it exceptionally well-suited for decentralised workforces. The time efficiency platform determines, pays, and reports your state, federal, and the majority of local payroll taxes instantly and seamlessly. With assistance from the platform, companies that operate remotely may easily adhere to minimum wage and hour regulations in every location where they have workers. A wide range of alternatives to self-service are also made accessible to remote staff members under mid and top-tier plans via an intuitive Smartphone application.

Paychex HR Software


  • Paychex provides conformity onboarding and payroll capabilities ideal for businesses employing remote workers.
  • Both the web platform and smartphone application make it very simple to access the employee self-service capabilities.
  • Paychex has tutorial material that makes it easy for beginners to get up to pace quickly.


  • Most Paychex plan rates, except for the least expensive plan offered by Paychex Flex, are not listed on the company's website and must be requested by contacting the vendor directly.
  • Many of the most incredible payroll applications include essential payroll functions in their standard prices; however, Paychex levies extra for them. No matter which plan-tier customers select, all Paychex subscribers must shell out additional features like workers' compensation, general ledger integration, and benefits administration.
  • Paychex does not provide a free trial.

Advantages Of Engaging Best HR Software for Small Business & Startups

Leveraging and implementing technology can boost the efficiency of managing concerns associated with people and modify HR procedures. Therefore, Human Resource software for small business play a vital role in simplifying the hectic HR operations in this digitalized world. Here's a list of significant benefits of best HR software for small businesses.

●  Talent Acquisition

The most significant challenge for any business, specifically new ones, is recruiting the best employees. In order to hire exceptional employees, applications must first undergo an in-depth assessment evaluation. Furthermore, you must demonstrate your organisational attitude so that top candidates are genuinely motivated to submit their applications. Here, in such scenarios, the best HR software for startups might be helpful. The HR software can speed up the hiring process by analyzing resumes and gathering data. Furthermore, they can swiftly assist in instilling the corporate culture in the prospects.

●  Payroll management

The use of best HR software for small businesses simplifies payroll handling. These softwares, as mentioned above, can assist in automating procedures like managing personnel data and keeping track of attendance and recording time. Additionally, it would take care of data security, payroll computation, tax compliance, payment processing, paycheck creation, reporting, accounting system interface, and payslip generation. It simplifies payroll processes for small businesses, minimizes errors, and improves corporation productivity.

●  Easy Onboarding process

These programmed softwares can assist HR teams in creating and keeping track of digital onboarding schedules that direct new hires through all of the necessary processes and paperwork. The smooth communication and verification of employee contracts, policies, and other essential papers is another benefit of best HR software for startups. HR software streamlines the onboarding procedures to provide a seamless, efficient transition for new hires, boosting productivity and employee engagement immediately. In addition, HR software can also benefit companies by managing employee benefits, educating staff members on HR policies and organisational culture, evaluating data on staff members, submitting reports, and other tasks.

Bottom Line

A startup's success depends upon several factors. However, one major factor is the HR management process. By this what’s meant is- HR's rapid decision-making skills in demanding situations, defining responsibilities, and fostering leadership and management in the face of rapid expansion. The best HR software for startups is required to streamline activities for the HR staff by automating human resource management. Therefore, choosing the right HR software for startups and small businesses becomes a vital task of the organisation. And one must locate the best HR software for their startups and businesses that best complements their business and workflow.




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