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With so many HRMS options available for small businesses, choosing the right one can be overwhelming.
You need a solution that manages key HR tasks like employee data management, payroll, recruitment, and benefits administration, but finding the perfect fit can be a challenge.
Drawing on my experience as an HR expert and my hands-on use of numerous HRMS tools with small teams, I’ve put together this simplified guide highlighting the top HRMS solutions for small businesses.
Best HRMS For Small Business – Pricing Comparison Chart
Here’s a comparison chart of some of the best HRMS (Human Resource Management Systems) for small businesses, with a focus on pricing.
The actual prices may vary depending on features, user numbers, or specific offers from the vendor, but this chart provides a general overview.
| HRMS | Starting Price | Free Trial | Features | Best For |
|---|---|---|---|---|
| BambooHR | $6.19 per employee/month | Yes (7 days) | Employee records, time-off tracking, performance management, reports | Small businesses needing an all-in-one HRMS solution |
| Zoho People | $1 per employee/month | Yes (30 days) | Employee database, attendance, leave management, workflow automation | Budget-friendly HRMS with customizable features |
| Gusto | $40/month + $6 per employee | Yes (30 days) | Payroll, benefits administration, compliance, onboarding | Small businesses focused on payroll and benefits |
| Rippling | $8 per employee/month | Yes | Employee management, payroll, benefits, device management | Integration with various tools and apps |
| Zenefits | $10 per employee/month | Yes (14 days) | Payroll, onboarding, benefits, time-off tracking, compliance | Small businesses looking for scalable HRMS solutions |
| Paycor | $99/month | Yes (14 days) | Payroll, onboarding, time tracking, reporting | HRMS focused on payroll and compliance |
| Justworks | $59 per employee/month | No | Payroll, benefits, compliance, consulting | Growing small businesses with full HR needs |
| Namely | Custom pricing | Yes (14 days) | HR, payroll, benefits, performance management, onboarding | Customizable HRMS for mid-sized small businesses |
How to Choose the Best HRMS for Small Business?
Choosing the right HRMS (Human Resource Management System) for a small or medium-sized business (SMB) is a crucial decision that can impact your model of resources and business operations.
Here’s a step-by-step guide to help you make the right choice:
Identify Your Business Needs
Key HR Functions
Consider what HR tasks you need help with—payroll, benefits administration, time tracking, employee onboarding, performance management, or compliance.
Current Challenges
Identify specific pain points in your current HR processes, such as manual data entry or compliance issues, and look for an HRMS that addresses these problems.
Scalability
If your business is growing, make sure the HRMS can scale with your business and offer additional features as your HR needs expand.
Set a Budget
Initial Costs vs. Long-Term Value
Some HRMS platforms have upfront costs or higher subscription fees but offer comprehensive features that save time and money in the long run.
Pay-Per-Employee Pricing
Many HRMS platforms offer pay-per-employee pricing, which helps keep costs low for SMBs. Make sure you understand the pricing structure and if there are any hidden fees.
Look for Key Features
Payroll and Benefits Management
If payroll is a priority, opt for an HRMS that offers integrated payroll and benefits administration, such as Gusto or Zenefits.
Employee Self-Service
Features that allow employees to update their own information or request time off save HR teams a lot of time.
Compliance and Reporting
SMBs must ensure compliance with labor laws. Choose an HRMS that helps with reporting and keeps you updated on regulations, like Paycor.
Integration
Check if the HRMS can integrate with other software you are using, such as accounting, project management, or CRM systems.
Evaluate Usability
User-Friendly Interface
A complex HRMS might slow down adoption among your team. Look for systems that are intuitive and easy to navigate for both HR staff and employees.
Mobile Access
Mobile-friendly HRMS platforms, like Rippling, allow managers and employees to access HR functions on the go, which is beneficial for a remote workforce.
Check for Customer Support and Training
Customer Support
Evaluate the quality and availability of customer support. Some vendors offer 24/7 support, while others may have limited service hours.
Training and Onboarding
Choose a system that provides thorough training and resources to help your HR team and employees get the most out of the software.
Take Advantage of Free Trials
Test the Platform
Many HRMS platforms offer free trials, allowing you to see firsthand if the system meets your business needs.
Evaluate Fit
During the trial period, focus on how the system works with your current processes and whether it simplifies your HR tasks.
Compare Options
Create a comparison chart based on features, cost, scalability, and ease of use. Narrow down your choices to the top 2-3 options and analyze them more closely based on your specific needs.
Consider Future Needs
Long-Term Goals
Choose an HRMS that can grow with your company, offering more advanced features like performance management, learning and development, or succession planning as your business grows.
Vendor Roadmap
Some HRMS vendors are constantly updating their platforms. Check to see if the vendor is planning any future updates or features that align with your growth plans.
Seek Feedback
From Peers and Industry Experts
Reach out to other SMB owners or HR professionals to gather insights about the HRMS platforms they’re using. This feedback can help you make a more informed decision.
From Your Team
Involve your HR staff in the decision-making process. They will be the primary users and can provide valuable insights into what features would improve their workflows.
Finalize Your Decision
Cost-Benefit Analysis
Once you’ve gathered all the information, compare the benefits of each HRMS against their costs. Select the platform that offers the best value for your business needs.
The Best HRMS for Small Business that Hire Abroad
| HR Solution | Best For | Key Features | Why It’s Great for Hiring Abroad |
| Deel | Global payroll and compliance | Payroll in 150+ countries, Multi-currency payments, Contractor management, Managed services | Simplifies compliance and payroll management across countries without local entities. |
| Remote | End-to-end international hiring | Payroll and benefits in 170+ countries, EOR services, IP protection, data privacy | Full-service international HR, payroll, and compliance for global scaling. |
| Papaya Global | Automation and scalability | Payroll, benefits, compliance in 140+ countries, Automated payments, Workforce analytics | Automates HR functions for seamless international management. |
| Oyster HR | Small businesses with remote teams | Payroll and compliance in 180+ countries, Country-specific benefits, Localized employment contracts | Ideal for remote-first businesses managing international employees. |
| Gusto Global | U.S. companies expanding internationally | Contractor payments in 80+ countries, Domestic payroll for U.S. employees, U.S. labor law compliance | Best for U.S. businesses hiring international contractors. |
| Paychex Flex | Integrated payroll and HR | Payroll for U.S. and international employees, Compliance management, Time and attendance tracking | Manages both domestic and international employees with integrated HR features. |
| ADP Global | Comprehensive HR and payroll solutions | Global payroll in 140+ countries, Automated compliance, Global workforce analytics | Comprehensive HR and payroll for managing global teams. |
| Multiplier | Hiring contractors and full-time employees | Contracts, payroll, and benefits in 100+ countries, Local labor law compliance, Multi-currency payments | Enables hiring internationally without setting up local entities. |
| Payoneer | Simplified international payments | Cross-border payments, Multi-currency payments, Invoice and payroll management | Simplifies international contractor and vendor payments. |
