HR software for small businesses is an important tool for many organizations. It can influence their employees’ impression of the organization and how services and products are delivered, manage employee records and attendance, automate various payroll processes, provide easy access to benefits information, improve performance management.
In this guide, we review the aspects of Small Business Software For Hr, employee management software for small business, best hr software for midsize companies, and Which is the best HR software for startups?
Small Business Software For Hr
A successful small business can’t be built on the shoulders of just one person. You need to find and hire talented employees who can help you grow your company, but that’s only half of the equation. You also need HR software that will help you keep track of all these new hires so they’re not falling through the cracks.
Hiring the right person for your business can be a little bit tricky.
It’s important to make sure that you get the right people in your organization who will help you grow your business and make it successful. There are several steps you can take while hiring:
- Research: You need to do some research before hiring anyone, such as checking out their social media profiles, or doing background checks on them if they’ve worked at another company before. This way you know what kind of person they are before deciding whether or not they’re right for your company.
- Screening: Once you have found potential candidates, it’s time to screen them by asking questions about their interests and passions in order to see how well matched they would be with the position at hand. If there’s no interest shown in answering these questions honestly then chances are good that whoever ends up being hired won’t last long either because of lackadaisical attitude towards work (i
Onboarding is the process of introducing new employees to their role, responsibilities and benefits at your company. It can take place over weeks or months, but it’s important to make sure that there’s a specific point where you officially welcome them into the fold. Here are some key aspects of onboarding:
- The goal is to make sure employees understand how they fit into the bigger picture and how they can contribute most effectively.
- Onboarding should include all new hires–not just interns or contractors who aren’t expected to stick around long term.
- The first step is communicating with each person what their goals are for their first months on the job so that everyone knows what needs to be done by when. This includes setting up a training schedule as well as defining regular check-in times with managers so employees have someone else looking out for them throughout this process too! You should also keep track of everything going on at different stages so nobody gets left behind (or forgotten about).
It’s important to understand what compliance is and why it’s necessary. Compliance is the process of ensuring that your company meets certain standards in order to be considered “legitimate” by the government and other organizations. This can include things like:
- Licensing requirements
- Complaint history
Payroll & Taxes
Payroll & Taxes
The best payroll software for small businesses will handle all of your employee’s time tracking, leave management and paychecks. This means that you can focus on growing your company without worrying about payroll and taxes. In addition to processing payroll, tax filing is also handled by most HR software packages.
Time & Labor Tracking
Time tracking software is a powerful tool for managing employee time. Most small businesses use it to keep track of the hours worked by their employees, but it can be used for so much more!
Time tracking tools allow you to see where your team spends most of their time beyond just tracking clock-in and out. You’ll know what tasks they’re working on and which projects they’re spending time on. This allows you to better manage your employees’ schedules based off of what they’re actually doing each day, not just how many hours they’ve logged into the system.
Leave management software offers a convenient way to manage your staff’s leave requests, accrual, and utilization. It automates the process so you can focus on other important parts of running your business.
Most leave management solutions let you:
- Automatically track accrued vacation days for employees across multiple locations and departments. This will help prevent overuse or underuse of leave by employees who are working in different locations than their headquarters or branch offices, or who work remotely from home offices (e.g., telecommuters).
- Allow employees to submit their own time off requests online through a web portal or mobile app. Employees can see an overview of their available time off before submitting a request so they don’t accidentally commit too much time away from work without proper approvals first!
- Display reports based on any criteria such as location, department name/ID number etc…
So why should you consider HR software? Well, if your business employs one or more employees (or if it’s looking to hire soon), then it’s likely that there are details of their employment that need tracking. This could include their personal information, hourly wage and overtime pay rate, vacation time accrued and taken, work-related injuries and illnesses, payroll tax calculations and more.
To help ensure compliance with labor laws like those relating to minimum wage requirements (and avoid penalties), payroll software can automatically calculate gross wages based on employee time worked or a piece rate system—or both—then subtract federal income taxes from the total before sending out paychecks via direct deposit or paper checks.
Leave management software is another area where many small businesses struggle; after all, who wants to juggle complex leave request forms? Leave management systems allow managers at all levels within an organization—from owner-operators right down through HR staff members themselves—to enter requests for employees’ vacation days in a centralized database where they will be approved or denied automatically based on pre-defined criteria set by each company’s human resources department.
employee management software for small business
Human resource management software helps small businesses manage core HR processes such as payroll and benefits administration, to name a few. The right combination of functionalities will depend on the business’s size, industry, and needs.
Smaller businesses often can’t afford to purchase a fully integrated HRIS that includes all use cases. That’s why we’ve gathered the best HRM software to help small businesses carry out core and strategic HR use cases.
Top HR Solutions
We can also help you by curating a list of the best HR software for your small business. Click the image below to enter your feature needs, and our unbiased Technology Advisors will set you up with a list of HR software options that meet your requirements.
The Best HR Management Software for Small Businesses
Best for core HR: Namely
Manage time-off requests, workflows, performance management and more on Namely’s platform. Credit: Namely
Namely is a web-based platform specializing in core HR and talent management for growing companies. Their product covers payroll and benefits administration, time tracking, and performance reviews, and it serves as a system of record for all of your employee data. Namely also offers a built-in social news feed and custom reports for individual and team metrics.
The system is designed to be adaptable and user-friendly, which makes it stand out against more complicated enterprise solutions. But Namely’s penchant for small and growing companies doesn’t mean they skimp on resources: business clients receive 24/7 customer service through a dedicated Namely account manager.
While Namely has a ton of great features, it doesn’t offer an applicant tracking system (ATS), which can make recruiting more difficult. It also isn’t built for multinational businesses, but most smaller companies won’t need to worry about that.
Best for hiring: JazzHR
JazzHR enables easier hiring with advanced organization tools to evaluate candidates. Credit: JazzHR
JazzHR is an HR solution designed for applicant tracking and interview management. JazzHR helps companies post jobs, screen applications, and manage the interview process through a centralized, real-time platform.
Managers can create custom recruiting stages with automated to-dos (e.g. follow-up emails, reminders), and add stakeholders to the process as users with varying permissions and privacy levels.
Post directly to job search sites like Indeed, Glassdoor, and CareerBuilder, and use built-in SEO tools to make sure you have the right title and job description. JazzHR also offers social recruiting, employee referral programs, applicant screening, background checks, resume review, branded career sites, interview guides, and recruitment calendars.
Although it doesn’t have a native mobile app, career sites and interfaces are automatically optimized for the device in use. While JazzHR is great for recruiting new talent, it doesn’t offer much in the way of talent management. Once you find the right people, you’ll need a separate tool to manage them.
Best for employee self-service: BambooHR
Bamboo HR empowers employees to own and manage their employee data, such as vacation time and overtime. Credit: BambooHR
BambooHR is a cloud-based core HR solution designed to meet small business administrative needs and give employees efficient self-service access.
The web application serves as a central repository of employee information, such as job and salary history, benefits, and training. Employees can access company documents, request time off, view, and edit their personal data all from a single dashboard.
With varying levels of custom access, administrators can manage time-off requests, set accrual policies, and generate custom reports based on any data in the system. For expanded use, BambooHR integrates with many popular applications for applicant tracking, eSignatures, payroll, and performance management. The system is also accessible on mobile devices through native apps for iOS and Android.
The recruiting aspect of BambooHR doesn’t include background checks, so you’ll need another way to handle those. Additionally, it doesn’t have any tools for goal management or employee recognition that could help keep your staff engaged and motivated.
Although BambooHR doesn’t offer some of the robust features of its competitors, the price point is hard to beat, and the user experience is simple.
Best for payroll: Gusto
Gusto makes payroll management simpler with its automated features. Credit: Gusto
Gusto is a user-friendly HRM software solution that features payroll functionality and a variety of automated features to save HR teams valuable time.
Gusto’s payroll management tool automatically files payroll taxes at the local, state, and federal levels at the end of the fiscal year. This feature comes included while competitors charge an extra fee.
Gusto’s AutoPilot feature automates payments to employees to ensure they always get their paychecks on time. Employee forms like I-9s and W-2s are securely stored and organized in Gusto’s digital platform.
An added benefit for companies with a distributed remote workforce is Gusto’s compliance with the latest state tax laws. This ensures employers remain compliant in their payroll practices.
Best for benefit administration: TriNet Zenefits
Employees can select and manage their benefits in the TriNet Zenefits platform. Credit: TriNet Zenefits
TriNet Zenefits—formerly called Zenefits—offers comprehensive HR software for hiring and employee data storage, but it also offers benefits administration at no additional charge. You just cover the health plan fees.
Benefits administration works for health insurance, life insurance, commuter benefits, as well as flexible spending accounts (FSA) and health savings (HSA) accounts. However, if you opt for your own third-party benefits broker—instead of Zenefits’ broker—this add-on incurs a small monthly fee.
You can extend your Zenefits plan with add-on payroll, advisory services, and recruiting at a low monthly or annual cost. Zenefits’ flexibility to add on later makes it a great option for small businesses that can’t commit to all the features now but plan to later as their financial resources allow.
Best for a deskless workforce: Connecteam
Easily contact employees through Connecteam’s employee directory. Credit: Connecteam
Connecteam is a mobile-first employee management tool that’s designed with communication in mind. Connecteam helps mobile-ready teams share information on the go by combining all of this and more in a single app:
Connecteam’s one-on-one chat and the ability to send an update to the entire team at once enables instant connection with individuals or the entire team.
Also, with a relatively small group of employees in a small business, Connecteam makes it easy to find a colleague in the directory and call them directly from the app—no fumbling for phone numbers and copying them over to the phone’s call app.
Why Do Small Businesses Need Human Resource Management Software?
Human resource management software helps HR teams at small businesses stay organized with hiring, training, and managing employees. Software solutions do this by providing a central interface to manage and even automate these different functions.
HRM software also serves as an employee self-service portal for some functions like benefits administration, for example. It empowers employees to make and act on decisions related to the conditions of their employment without necessarily needing to reach out to someone on the HR team.
Small businesses with tighter budgets and limited IT resources still face many nuanced challenges.
No dedicated HR staff
Many small businesses either assign HR responsibilities to a cross-functional manager or to a single, in-house HR administrator. In both scenarios, a single person handles payroll and benefits, time tracking, grievances and disciplinary action, hiring, and promotions, which can be overwhelming.
While HR software can’t replace an HR administrator, it can make it easier on the staff you do have. It simplifies and even automates certain HR processes, like sending new hire paperwork and benefits enrollment, your team can focus on the tasks that most need their expertise.
Record-keeping and regulatory compliance
HR regulations are constantly in a state of flux. And the growing popularity of remote work models has only made HR management more complex. Small businesses must balance healthcare reform, tax codes, and labor laws, often for more than one state. Failing to stay current and compliant with these policies is sure to result in mistakes, processing delays, and in worst cases, legal fees.
HR software organizes your records and makes them easily searchable and accessible. Many HR tools also automatically calculate tax and benefits withholdings to reduce the chances of human error and keep you compliant.
best hr software for midsize companies
An overview of the best HRIS systems for mid-sized companies, describing which organizations benefit most from each vendor’s services.
For companies that are trying to find the best HRIS systems, it can be helpful to understand the best options, so you can start building a shortlist
Adding names to a shortlist is easy, but what becomes challenging is how to efficiently narrow the list down. Most, if not all, HR teams are too strapped for time to sit on ten to fifteen introductory demonstrations just to find the best HRIS systems.
We believe the key to finding the best HRIS systems is identifying the technology provider whose strengths align most with your biggest needs. So, below we’ve listed 10 different HRIS systems for mid-sized buyers, and what types of organizations see the most success on their platforms.
Best Human Capital Management Systems (HCM) for Mid-Sized Companies:
Ceridian’s flagship product is called Dayforce, a highly automated and scalable platform for all organizations. Ceridian’s biggest strengths are in Core HR where they offer leading expertise and automations around payroll, time tracking, accruals and taxes, all of which can save admins a lot of time due to the accuracy and velocity of the employee data in the system, while still offering an enjoyable employee-facing experience too.
UKG Pro (formerly UltiPro) needs no introduction for most HR professionals. They helped pioneer the Human Capital Management industry and have continued to build on their market leadership by offering an end-to-end HRIS platform that can automate many of HR’s most nightmarish headaches. In addition to a long track record, UKG also has a large, diverse client base and an experienced staff, so there isn’t much they haven’t seen and can’t handle.
Paycor is similar to many other HCM companies, in that they started offering payroll software for medium sized business and then added additional modules later. However, Paycor stands out in the SMB space by offering one of the most well-rounded offerings in the market. Their ATS (Newton) is a true market leader and the value of their total package is often hard to beat
Rather than trying to be everything to everyone, BambooHR’s popularity has skyrocketed because they’ve focused on doing fewer things, better. Traditionally, this has meant offering a very modern, easy-to-use and affordable HRIS. They also give buyers the flexibility to buy their in-house talent modules, or to easily integrate standalone tools instead. Recently, BambooHR acquired a payroll company and are transitioning into being a fully end-to-end HRIS. Bamboo tends to be a great small business HRIS.
Paycom is one of the few true, single-database Human Capital Management platforms in the marketplace. Their entire system has been built in-house, rather than acquired via acquisition, which drastically reduces the amount of manual entry that administrators need to do. Not only do admins enjoy the simplicity and automations, but end users also find the technology approachable, modern and intuitive.
Rippling can give you a glimpse into the future of where HR technology is heading. Rippling’s technology brings IT and HR processes together, like never before. Onboarding a new employee in Rippling not only brings them live in the payroll system, but will also add the employee to other apps like Slack, Salesforce, email and more. Rippling can help reduce the hundred minor steps that can add up to hours of an HR leader’s day. Rippling has become one of the best HRIS for small business.
ADP’s flagship product in the mid-market is called Workforce Now (WFN). WFN is an end-to-end offering that provides a robust payroll and timekeeping suite that you would expect from ADP. Workforce Now also recently invested heavily into opening up their APIs. In addition to their software, ADP provides a variety of outsourced services that can minimize a team’s HR management needs and provide best practices for HR processes
UKG Ready (formerly Kronos) has always been a market leader in workforce management technology. The most complex organizations in the world use Kronos to simplify their time collection, scheduling and workforce forecasting capabilities. And Kronos has continued to build on this foundation by developing a modern end-to-end HRIS, with their workforce management expertise at the heart of the entire system.
Paylocity is a strong choice for mid-sized companies looking for a well-rounded partner. Paylocity has been recognized for their strong Core HR offering (payroll, time and benefits), and they have continued to expand the talent management functionality to layer on top of it. In addition to offering a capable platform, Paylocity is often a great value and one of the quickest HRIS’s to deploy too.
Namely sets the standard in the HRIS space for employee self-service. Their interface was modeled after social networks and employees find it easy-to-use and enjoyable. Namely has a nearly end-to-end offering and, for the modules that they don’t make in-house (ATS, LMS), they have pre-built integrations with market leaders.
Important Features of a Human Resource Management System
Employee Self-Service Portal
An employee self-service portal is a tool that gives employees the ability to access their own employee data and employee file in a Human Capital Management system.
Employees can make changes to their profile, such as adding dependents or changing their address.
Employees can also use the HRIS software to view important employment information, such as previous pay stubs, time-off balances and pay rates.
Payroll Management & Tax Filing
The payroll module is responsible for calculating the correct pay for employees based on their hours worked, benefit selections and tax deductions
When the HRIS software processes payroll, it automatically deducts taxes from an employee’s gross pay. The HRIS software will then take responsibility for payroll management by transferring funds to the appropriate tax authorities on behalf of your company.
Additionally, an HRIS software can provide payroll management reports that can be easily accessed by both management and employees to track wages as well as other important information such as deductions and benefits offered during a given period of time. To help facilitate this process even further, most HRIS systems offer tools such as direct deposit, mobile wallets and pay stubs that allow you to manage all areas of your company’s human resources with ease
Benefits Administration & Benefits Enrollment
Benefits enrollment and benefits administration is a core function of a Human Resource Management System. HR professionals use it to gather employee input on their benefits options, assess the employees’ needs, and enroll them in appropriate plans.
Common employee benefits include health insurance, dental insurance, life insurance, long-term disability insurance, and retirement plans. Employees will enter the Benefits Administration module during open enrollment and during their new hire orientation so they can pick the right plans for their needs.
A good benefits administration tool will use employee data to provide decision support to help an employee pick the right benefit package; for example it could suggest that a high deductible health plan might be better than a low deductible one if you have chronic health issues or are planning to start a family soon.
A good system will also integrate with insurance carriers and payroll systems so that employees are paid properly by taking into account any deductions related to their coverage (such as contributions towards COBRA payments).
Employee database – The HRIS software serves as the single system of truth for businesses and is where they store all employee information. To be truly effective, it should allow employees to access their own personnel files at any time. Additionally, it should also allow managers and executives access to information about their subordinates so they can manage them effectively, while giving HR professionals the ability to see a full picture of their department’s work history and demographics.
Org chart – Finally, an employee database should have an org chart feature so you can see which employees report to which managers. This makes it easy to manage your staff without having to go through several layers of bureaucracy just because there’s no centralized system in place with this type of functionality built-in already (which there usually isn’t).
In addition to HRIS software system features such as automation and data-sharing, compliance tracking is also important. A strong HRIS will ensure that you are tracking all fields that are required by law. This means reviewing your compliance reports on a regular basis and making adjustments if necessary. Examples of compliance reports include ACA (Affordable Care Act) reports and EEOC (Equal Employment Opportunity Commission) reports.
Recruiting and Applicant Tracking
The Applicant Tracking System (ATS) should manage the entire recruitment process, from creating new job openings to closing the hiring process. Recruitment tends to be the initial step in the talent management journey
A good applicant tracking system should also be able to store resumes and cover letters, and it should create a new profile for applicants.
Recruiters should be able to create their own hiring experience with custom stages, and they can use this system to organize interviews by helping candidates get scheduled and by organizing managers to interview the candidates.
Which is the best HR software for startups?
Human capital is the most valuable resource for any business, whether it is a start-up or a huge enterprise. Therefore, HR software for startups is necessary to streamline the entire process of managing personnel. There are a number of corporate procedures that may be streamlined with the help of a human resource (HR) software.
This means it is responsible for handling the whole employee lifetime, from the recruiting of applicants through their retirement. Small firms and startups, on the other hand, must look for a cost-effective and flexible HR software solution.
HR software, developed by top software development companies, which can manage these issues with ease is regarded as the finest software. Naturally, they are designed to decrease mistakes and hazards, streamline HR processes, reduce money and effort, as well as assist you expand your organisation.
Top 10 HR Softwares For Your Startup
Thanks to the variety of software solutions that have now been made available in India. Companies can now streamline the procedure of their HR Management. Given below are the top 10 HR Software’s for Startups in India that you might want to have a look into.
For small and medium enterprises across a wide range of sectors, there’s GreytHR, a one-stop-shop for all things HR. This cloud-based solution ensures that your staff have access to the system from anywhere they have internet connection.
Many HR operations are automated, and employees have access to their own employee site. There is no need to wait until the end of the day to check on the status of their leaves.
Start-up and small enterprises are encouraged to take advantage of the company’s expertise in human resources (HR). A greater emphasis will be placed on essential procedures in order for the expansion to be successful in all areas. Evidently, the manner this company does business is what sets it apart. To fulfil its customers’ demands, GoCo offers full flexibility and customisation. Aside from that, GoCo offers a variety of items based on your needs and wants.
HR software for startups, PeopleWorks promises to increase staff efficiency. Automating the applicant selection process in this top HRMS (human resource management system) streamlines the laborious recruiting and onboarding process.
Geo-based attendance monitoring is one of the most intriguing features of this software, which allows you to keep track of your distant employee’s attendance in real-time.
Startups love Qandle’s sophisticated recruitment tools, which are hosted in the cloud. An intuitive applicant tracking system is provided, along with a link that may be shared with job boards.
Or to put it another way, it guarantees that the appropriate people for the right jobs get hired. And the Qandle Assistant, an artificial chatbot, gets the job done swiftly. By asking the chatbot, you may find out the status of your leave balances, request leave, raise help desk complaints, and much more without having to wait for a human response.
In order to keep productivity under check, sumHR offers a swivelling performance appraisal system. Ayurveda, Instant Pay and Johari are among the firms who utilise sumHR to improve their HR processes.
It is well-known for its well-organized reinstatement, which includes Orientation and training and departure inspections. A unified database also makes it easy for workers to retrieve various regulations.
6. HR Mantra
HR Mantra is an award-winning HR software that has been used to configure millions of HR policies for organisations. Every day, it saves each employee 30 minutes, allowing them to spend more time on strategic planning.
There was a tenfold increase in return on investment. There’s also an automated code generator that streamlines the entire onboarding process using alphabets or bar codes. Each employee’s contact information is stored in a centralized database. It is by far the best software developed by top software agencies.
It is an AI-driven human resource technology that seeks to expedite corporate growth through the use of human capital. An 18+ year subject knowledge has been included into this startup HR solution. There is a clear real-time view of numerous HR operations, enabling us to make wise and educated decisions based on the information you have.
8. Keka HRMS
Start-ups in India may take use of Keka HRMS, a full HR solution. Your HR staff may devote considerable time planning with the help of this virtualized technology, which automates boring activities like employee data input or the onboarding process. Aside from that, its research tool gives actionable insights to boost the productivity inside the organisation.
9. Zoho People
A simple yet effective HR solution for startups in India is Zoho People (formerly known as Zoho HR). A 360-degree HR solution, it interacts seamlessly with other Zoho apps to optimise corporate processes. It’s capacity to assess employee performance by keeping track of their strengths and flaws sets it apart from the competition. A wonderful thing about Zoho People is that it allows you to employ from a variety of sources.
CavinHR is a premier HR tool used for startups with a rugged collection of features. It simplifies the whole HR process, includes time monitoring, leave requests management and so much more. Its system offers profound insights into the performance of employees and shows how to boost operational productivity.
As a way to recruit and retain the best personnel in the business, startups must provide a seamless employee experience. Using HR software for startups is one approach to streamline the entire process. Investigate the best HR software for startups and get your business running smoothly!
Onboarding, payroll, productivity, and development are all essential components of any modern firm. He must be extremely efficient, and even a small blunder might prove to be expensive. A virtualized HR software system, however, can streamline the whole of your Hr activities and provide blunder-free management for your organization.