
10 Best HR Software for Small Business in 2025
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HR software can streamline many essential human resource processes for small businesses, including hiring, onboarding, payroll, benefits administration, and compliance management. The best HR software can simplify these tasks, improve efficiency, and reduce risk so you can focus on building your business.
Key takeaways:
HR software can help small businesses with payroll, tax compliance, employee onboarding, applicant tracking, time tracking, benefits administration, and more
Key features, compliance coverage, cost per employee, integrations, and SLAs are important factors to consider when choosing HR software
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In 2025, small businesses have dozens of HR software platforms to choose from. While this means there’s an abundance of small business HRIS software to choose from, it can be challenging to determine which product is the best option for your team.
In this guide, we'll break down the benefits of using HR software, outline key points to consider when selecting the right solution, and explore the best options for HR software tailored to small businesses.
What does HR software do for small businesses?
The benefits of HR software for small businesses vary by platform, but most solutions help automate and simplify core human resources functions, such as:
- Payroll and tax compliance
- Employee onboarding and applicant tracking
- Time tracking and scheduling
- Benefits administration
- Performance and engagement
Here’s a closer look at HR tools for small businesses:
Payroll and tax compliance
Manually processing payroll can be time-consuming and may increase the risk of errors. HR software streamlines this task by automating payroll calculations, deductions, and payment of federal, state, and local taxes.
During tax season, online HR software can also quickly produce compliant W-2 and 1099 forms. Some automatically update when tax, wage, or overtime laws change, helping your business stay compliant throughout the year.
Employee onboarding and applicant tracking
Recruiting and hiring talented candidates is critical for keeping a small business running smoothly. HR software with applicant tracking systems (ATS) can automate job postings, collect resumes and applications, and screen candidates to compile shortlists faster.
Background check platforms, like Checkr, make it easy to run screenings for criminal history, work and education verification, and other background checks before finalizing a job offer. During onboarding, digital tools can assist with I-9 verification, document collection, and new hire checklists, helping you bring employees up to speed quickly.
Time tracking and scheduling
Maintaining optimal staffing helps ensure efficiency and exceptional customer experience. Online HR software makes it easier to generate and share schedules and adjust them as needed.
Automated time tracking tools record clock-ins and clock-outs, manage PTO and overtime, and notify supervisors about missed punches or overtime thresholds. These features refine labor management and reduce timekeeping errors.
Benefits administration
Offering benefits to employees can boost loyalty and retention, and the right small business HRIS software can make your program easier to manage. Benefits administration tools track eligibility, display plans, and allow employees to self-enroll or make changes during onboarding or open enrollment periods.
By connecting your benefits administration and payroll software, you can ensure the appropriate deductions are applied automatically, keeping everything in sync.
Performance and engagement dashboards
Monitoring performance and engagement levels help small businesses retain talent and support growth. HR platforms have dashboards that track key metrics, including time-off requests and new hire retention rates, and gather feedback through surveys and reviews. Some software can even identify employees who might benefit from coaching or who are at risk of burnout, prompting managers to take proactive steps.
10 best HR software platforms in 2025
Exploring some of the best HR software for small businesses in 2025 can help you identify the right platform for your needs. Here are 10 of the best HR software platforms, including their key features, ideal use cases, and pricing details.
Featured: Checkr
If you’re looking for a background check solution, Checkr stands out as one of the best software options for 2025. It enables you to conduct criminal background checks, employment verification, education verification, driving history checks, drug testing, reference checks, and more, quickly and easily. 97% of Checkr’s customers report that our turnaround times are faster than those of our competitors.
Checkr’s candidate portal simplifies communication by collecting information, gathering consent, and prompting follow-up. Our APIs allow seamless integration with over 100 HRIS and ATS platforms, streamlining your workflows. Built-in compliance features help ensure you meet federal, state, and local regulations.
In addition to background checks, Checkr can assist you with onboarding. A self-service dashboard collects documentation from employees and autofills I-9 verification forms. You can also integrate E-Verify to refine the process and reduce manual steps.
Best for: Employment background checks and I-9 verification
Key features:
- Fast, accurate background check screening
- Multiple background check packages
- Candidate portal for simplified communication and consent
- Integrates with over 100 HRIS and ATS platforms via API
- Built-in compliance tools enable small businesses’ compliance with federal, state, and local laws and regulations
Pricing: Background check packages start at $29.99 per check, I-9 verification $7 per form
1. Gusto
Gusto is a user-friendly payroll and HR solution for small businesses. It automates direct deposits, tax filings, and compliance updates in all 50 states. With upgraded plans, Gusto adds tools for onboarding, time tracking, and performance management.
Best for: Payroll and basic HR functions
Key features:
- Automated payroll and tax filings
- Coverage in all 50 states
- Self-service employee portal
- Add-on tools for hiring, performance management, and time tracking
Pricing: Starts at $54 per month plus $7 per employee
2. BambooHR
BambooHR is an intuitive, all-in-one HR platform that features tools for hiring, onboarding, payroll processing, time tracking, and benefits administration, all accessible through a single dashboard. It stands out for its performance management and engagement tools, including goal setting, real-time wellness dashboards, and peer feedback capabilities.
Best for: Performance management and employee engagement
Key features:
- Streamlined hiring, payroll, and benefits in one platform
- ATS with over 150 job board integrations
- Goal tracking, peer feedback, and employee review tools
- Surveys, wellness tracking, and communication tools
Pricing: Multiple plans to choose from, pricing available upon request
3. Rippling
Small business HR needs change over time, and Rippling’s unique platform was built with this in mind. Its modular system covers everything from payroll processing and recruiting to global workforce management. Rippling also includes IT and finance tools, such as expense management, corporate card tracking, and online bill pay.
Best for: Small businesses needing a scalable, all-in-one solution
Key features:
- Modular tools for HR, IT, and accounting
- U.S. and international payroll
- Tools for recruiting, benefits administration, time tracking, and performance management
- Device management and single sign-on support
Pricing: Available upon request
4. Workday
Workday combines robust HR tools with powerful AI capabilities to automate workflows and analyze workforce data. It stands out for its human capital management (HCM) features, providing insights into hiring, compensation, and employee lifecycle strategies.
Best for: Human capital management and workforce analytics
Key features:
- AI-enabled automation and data analysis
- Integrated payroll and HR transactions
- Automatic compliance updates
- HCM for compensation, time tracking, and performance management
Pricing: Available upon request
5. Greenhouse
Greenhouse is a leading ATS designed for high-volume hiring and collaborative recruiting. It helps hiring teams collaborate on interviews, reduce bias, and manage candidate pipelines more effectively.
Best for: Applicant tracking, recruitment, and onboarding
Key features:
- Candidate scorecards and hiring team collaboration
- DEI tools to remove bias from the hiring process
- Custom candidate portals and scheduling
- Automated tools for instant job board postings
Pricing: Available upon request
6. iCIMS
iCIMS is a powerful recruiting platform built for scalability. It features AI-driven tools for resume screening, interview scheduling, and candidate relationship management, making it ideal for small businesses planning for future growth.
Best for: Recruiting and talent pipeline management
Key features:
- Custom-branded, mobile-friendly portals
- Candidate relationship management tools
- AI-powered applicant screening
- In-depth analytical tools
Pricing: Available upon request
7. Paylocity
Paylocity offers customizable HR tools with a focus on talent management and employee experience. It includes everything from payroll and benefits to performance tracking and learning modules, all accessible through a mobile app.
Best for: Talent management and employee engagement
Key features:
- Automated payroll for the U.S. and over 100 countries
- Mobile-friendly employee portals
- Talent management tools, including pulse surveys and built-in access to learning modules
- Compliance tools to help customers comply with federal, state, and local laws and regulations
Pricing: Available upon request
8. Deel
Deel is a top solution for small businesses with international teams. With it, you can hire employees and contractors in over 100 countries without the need to establish separate legal entities. Deel handles international payroll, compliance, and onboarding with ease.
Best for: Global hiring and payroll
Key features:
- Global employer of record (EOR) in over 100 countries
- Contractor onboarding and payments
- Automated international payroll in local currencies
- Performance and learning management add-ons available
Pricing: Payroll tools start at $29 per employee per month; add-ons from $15 per employee per month
9. Eddy
Eddy is a straightforward, affordable HR platform for small businesses. With transparent, tiered pricing and easy onboarding, it includes tools for hiring, time tracking, PTO, payroll, and training, all from a single dashboard.
Best for: Small businesses looking for a simple all-in-one HR software solution
Key features:
- Full-service payroll processing and tax filing
- Electronic document signing for onboarding
- Time tracking, PTO, and applicant tracking
- Optional training and reporting upgrades
Pricing: Starts at $50 per month, plus $4 per employee per month
10. GoCo
GoCo, owned by Intuit, is an HRIS solution specifically designed with smaller teams in mind. Talent management, time tracking, and compliance and authorization features are just a few of the capabilities GoCo offers.
Best for: Teams that are new to digital HR and have fewer than 50 employees
Key features:
- Self-service for employee benefits
- Payroll functionality like mobile clock-in and overtime calculation
- HR reports with multiple chart options
- Integrations with other business tools like Slack and Asana
Pricing: Available upon request
Benefits of using HR software
HR software offers small businesses a range of benefits, including:
- Efficient processes and API-first workflows
- Mobile access for managers and employees
- Faster onboarding and accurate payroll
- Compliance guardrails and real-time reporting
- Integrations with other tools
Here’s a look at each of these key benefits.
Streamlined processes and API-first workflows
HR software for small businesses helps automate time-consuming tasks, such as payroll processing and candidate screening. API-first platforms allow businesses to customize workflows, sync data across departments, and improve collaboration between hiring teams and HR.
Mobile access for managers and employees
Many HR solutions offer mobile-friendly portals. Managers can approve PTO requests or review timecards from anywhere. Employees can enroll in benefits, access pay stubs, or request time off, whether they’re at home, in the office, or on a job site.
Faster onboarding and accurate payroll
Automated tools make onboarding more efficient by speeding up background checks, document collection, and training assignments. Online HR software also improves payroll accuracy by minimizing manual input and calculation errors, which reduces tedious administrative tasks.
Compliance guardrails and real-time reporting
Built-in compliance features help businesses stay on the right side of federal, state, and local laws and regulations related to hiring, compensation, background checks, and tax liability. Real-time reporting tools provide immediate access to the HR data you need to support regulatory compliance and decision making.
Integrations with accounting, CRM, and ATS tools
Some of the best HR software options integrate with ATS tools, CRM platforms, and accounting software, making human resources data available across programs. The automatic syncing simplifies workflows and eliminates the risk of user data entry errors from one program to another.
How to choose the right HR platform
Selecting the right HR platform for your small business starts with knowing your needs and asking the right questions. Follow these key steps to make an informed decision on the best HR software for your small business:
Map mandatory features
Before comparing human resource software for small businesses, define your goals. Whether it's improving payroll accuracy, simplifying onboarding, or ensuring compliance, create a checklist of must-have features and refer to it when you evaluate HR platforms.
Check local and state compliance coverage
Not all HR software programs provide compliance support for every U.S. jurisdiction. Confirm that each option you consider supports all the locations where you operate. If you have international employees, confirm the use of global compliance tools as well.
Weigh cost per employee vs. feature depth
Comparing platforms by their per-employee cost is useful, but only when balanced with what you're getting. In some cases, you may maximize your return on investment with a slightly more expensive platform that delivers all the mandatory features you need, versus one that is less expensive but doesn’t allow you to accomplish all of your goals.
Test integrations
List the tools your business already uses, such as QuickBooks, Slack, or your ATS, and identify which ones you'd like to integrate with your new HR software. Then, confirm that the platforms you’re considering offer those integrations. When possible, request demos to understand the setup process and how data flows between systems.
Demand transparent support for SLAs
Service level agreements (SLAs) are formal documents that outline what level of service you will receive from an HR software solution. Although they vary, they may include details like:
- Tools and features provided
- System uptime guarantees
- Customer support response times
- Issue resolution times
- Data recovery safeguards and procedures
- Security parameters
- Platform performance benchmarks (such as page or app load time)
Reputable HR software providers should be willing to provide you with a transparent SLA. Compare details between platforms to inform your final decision regarding the best HR software for your business.
Start running employment background checks today
HR software can streamline key human resources processes, including hiring and onboarding, payroll, employee engagement, and retention. If you’d like to make more confident, compliant hiring decisions, Checkr offers flexible background check solutions to suit small businesses in a range of industries.
Our screening packages help you meet regulatory requirements and internal hiring policies. The Checkr Candidate Portal keeps communication clear by enabling you to collect information and authorizations directly from applicants.
With powerful APIs, you can integrate background checks into your existing ATS or HRIS for a smooth automated workflow. Plus, you’ll receive ongoing compliance support across all our products to mitigate risk and support fair hiring practices. Get started with Checkr today.
Disclaimer
The resources and information provided here are for educational and informational purposes only and do not constitute legal advice. Always consult your own counsel for up-to-date legal advice and guidance related to your practices, needs, and compliance with applicable laws.


