Are you searching for the best human resource management software for small businesses? You are in the right place. Here, we have a list of the top ten best HR software for startups and small establishments. 

All the small businesses cannot afford an HR staff. It’s where HR management software comes into the picture. Such an application handles a variety of tasks, including hiring, salaries, and performance management. Continue reading to learn about some of the best options and how to choose the software that is right for you.

10 Best Human Resource Management Software for Small Businesses in 2024

Odoo HR

Pricing: Free for one app, for multiple apps – $7.25  and $10.90 per user/month

Do you want to automate your HR functions? Try Odoo HR because it helps with almost all the functions of human resources, including hiring, staff management, appraisals, expenses, and much more. Moreover, this application is easy to use. So, you can set it up without spending a lot of time.

The latest version of Odoo HR features includes editing their job positions, responsibilities, and priorities. It also helps you create reports on the candidates who were not hired. Also, the new edition has the ability to automatically add the employee’s resignation and leaving date. However, other details like physical address, vehicle number, etc. are stored in archives.


Pricing: Starts at $8 per user/month

Rippling is the best human resource management software for small businesses because it comprises a variety of ready-to-integrate HR products. This application comes with onboarding solutions, learning management, time tracking, administrative options, payroll, and application tracking. It also has international payroll services and PEO.

Rippling is the perfect management software for IT companies because it can also handle technical functions apart from HR. This application assigns computers and related software to the newly hired staff. It also has a de-provisioning structure for employees who have resigned. 


Pricing: Four editions from 2999 to 5999 INR 

FactoHR is one of the first human resource management software with a mobile application. So, you can perform HR-related tasks anytime and anywhere. It’s helpful in almost all HR activities, which helps you make intelligent decisions and achieve predetermined goals without any challenges.

FactoHR comes with attendance tracking, real-time leave tracker, payroll processing, performance measurement, and compliance insurance. Hence, it improves employee engagement and also helps you to measure their performance. 

This software is available in four different versions, including Essential, Advance Velocity, Bolster, and Performer. The price varies according to the plan. So, check the features and pick something that fulfills all your needs.


Pricing: Three editions from 6999 to 13999 INR

Keka is an employee-centric human resource management software for small businesses. Unlike conventional HR management applications, it’s a modern platform with a focus on employee experience and the simplification of tricky workflows. Moreover, this software also assists you in onboarding, payroll, talent management, and much more.

The world of startups is changing. Keka is built for the future because it helps your employees to adapt, scale, and evolve according to your business development. So, you can spend less time on HR jobs and focus more on business planning. 


Pricing: Simple and Plus are available at $40($6 per month/ person) and $60 ($9 per month/ person) per month respectively. The Premium version has exclusive pricing.

Gusto is a high-class HR management application for startups because of its full-fledged features and affordable prices. Gusto manages paid time off (PTO), compensation of workers, and benefits. This software also files the year-end tax reports and payroll taxes.

Gusto lets you run the payroll endless times and pay the employees via direct bank deposit, pay cards, and checks. What’s more? It has a unique feature called Gusto Cashout, which allows your employees to withdraw money before payday. In other words, your staff can access their earned salary in case of emergencies.


Pricing: Namely provides custom prices as per your needs. Contact the brand to know the monthly investment per user.

Namely is a web-based HR management application for small and growing businesses because it specializes in benefits administration, performance reviews, time tracking, and payroll. This application also acts as a database for all your previous and current employees. In addition, it comprises an inbuilt social news feed and customizable reports for metrics. 

Namely is user-friendly software. Moreover, it’s designed to grow your business. Plus, there is 24 by 7 support for Namely clients. Therefore, you can quickly learn, deploy, and use the application without any hassles. However, Namely lacks ATS (applicant tracking system), which might make the hiring process challenging. 


Pricing: Four packages are available between 2450 INR to 6450 INR per month. All the plans support up to 50 employees and charge 49 INR per new user. 

You might not find HR management software loved by all the three pillars of an organization, HR, leaders, and employees. But, things are different with Qandle. It’s an attractive, intelligent, and highly customizable HR software, which also comes with a smartphone application. Hence, everyone prefers to use this application. 

Qandle comes with a lot of features to help you manage recruitment, employee databases, payroll, leaves, travel expenses, and much more. It’s easy to use. Hence, you can perform all the HR-related tasks without any challenges, even if you are a newcomer. 


Pricing: Three packages available. Essentials come at $39 per month + $5 per employee. Flex Select and Flex Pro have custom prices. 

Paychex has HR services for small, medium, and even large-sized businesses. It also comes with a Solo package for self-employed individuals, comprising payroll, business incorporation features, and a retirement plan. Furthermore, this application has a Flex package for solopreneurs who expect business growth in the future. It offers hiring, learning management, tax administration, employee benefits, and full-fledged payroll.

With Paychex, you get access to HR advisors and payroll specialists. Like Rippling, Paychex also offers PEO management and HR consulting. As this human resource management software is available in different versions, you can try one of them according to your employee strengths and future plans. 


Pricing: Two plans available. Contact BambooHR for custom prices as per your needs. 

BambooHR lets the employees see and manage their data, including overtime and leaves. This cloud-based application also showcases information about salary history, benefits, and training. In addition, the staff can request time off, access professional documents, and edit all their personal data. So, BambooHR could be the best software if you want to provide self-service to your employees.

BambooHR offers multi-level customization for administrators. So, they can set time-off requests, and accrual policies and generate reports based on the available data. However, it does not have any functions for background checks and employee recognition. 


Pricing: Offers custom pricing

If you want to make your professional life easy, then try PeopleHR because it has futuristic features to manage all HR tasks. This cloud-based SaaS HR application is a boon for small business owners because it takes away the burden of human resource headaches. Hence, you can focus on business planning and management instead of wasting time on hiring and payroll.

PeoplesHR is created by experienced developers. So, it has an incredible approach toward talent onboarding, tenure management, benefits & compensation, and employee disengagement. In other words, PoeplesHR has everything your human resource staff needs from recruitment to resignation or retirement of an employee. 

Why do Small Businesses Need Human Resource Management Software?

Human resource software helps you to get organized in terms of hiring, training, payroll, and staff management. These applications accomplish this task by providing a centralized dashboard wherein you can access, manage, and even automate almost all the functions of an HR.

Human resource management software helps employees perform self-service in multiple departments. For instance, such programs allow the staff to edit their personal details, mark leaves, and check overtime durations without disturbing anyone in the HR team. So, small businesses with a small budget can use such applications to reduce their operational costs. Other reasons why a small business needs HR management software are as follows:

  • Removes the compulsion of dedicated staff: As a small business, you cannot hire multiple members of the HR team. A single HR administrator can handle all the tasks including hiring, payroll, time tracking, promotions, disciplinary actions, and grievances. But, it might be overwhelming for one individual to tackle all the jobs, especially if you have a medium or big-sized team. Human resource management software can be the best bet in such a situation.
  • Keeps you compliant: Most of HR management applications automatically calculate taxes to minimize human errors and maintain compliance. In addition, such software keeps you safe from legal fees by balancing healthcare reforms, labor laws, and tax codes.
  • Reduces employee attrition: As per the PwC Pulse Survey, 65% of US workers are in the process of searching for another place to work. And 22% of them are thinking about changing their jobs within the next 6 months. Can you believe it?

Well, you can use one of the best human resource management software for small businesses to reduce your operational costs. Such a step helps you to invest additional amounts in your workforce, which reduces the attrition rate. Plus, it minimizes the stress on your HR administrator.

  • Helpful in performance management: You can quickly recognize the individuals who are performing well, especially if you have a small team. But, what about the staff who are unable to keep up? 

A lot of HR management software comprises performance management, which ensures all your teammates are meeting expectations. It can also reward the employees based on their performance. Such a practice is motivational for all the members of your business.  

Bottom Line

Consider prices per user and convenience while selecting the best human resource management software for small businesses. All the applications on our list tackle basic HR functions like hiring and onboarding. Some of them offer complete human resource services, including payroll, hiring, onboarding, and training. A few of the applications have the option to consult HR advisors and payroll specialists. So, compare the recommendations and find the correct option as per the size of your business.  

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