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Best HCM Software Of 2024

Small Business Expert Writer
Deputy Editor, SMB

Reviewed

Updated: Mar 18, 2024, 8:17pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Human capital management (HCM) is the process of managing people from hiring to retirement. HCM software allows HR administrators to manage recruitment, compliance, reporting, workforce rewards, talent management and more from one centralized platform. Forbes Advisor analyzed more than two dozen of the leading providers to select the best HCM software available today.

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The Best HCM Software of 2024

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The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey.

  • 26 Human Capital Management (HCM) systems evaluated
  • 34 Criteria applied to all evaluated HCM systems
  • 884 Data points collected


Best Overall

Paycor

Paycor
5.0
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

$99 per month plus $5 per employee, per month

Free trial

3 months

Standout Features

Free W-2 and 1099 processing, two-day payroll processing, check stuffing

Paycor
Learn More Arrow

On Paycor's Website

$99 per month plus $5 per employee, per month

3 months

Free W-2 and 1099 processing, two-day payroll processing, check stuffing

Editor's Take

Paycor is an all-in-one human resources (HR) solution that integrates basic payroll services with HR management. It gets the best overall pick due to its comprehensive offering, multitiered plans and transparent pricing.

You can choose from one of its popular plans, and the company regularly runs specials to help save money. The Basic plan is $99 per month plus $5 per employee, per month. In this plan, you get payroll processed with the applicable taxes paid. Employees get their own portal to access various documents, relieving HR staff from having to process requests. The Essentials plan kicks things up a notch by assisting managers in processing new hires with email and document packages automated. The Essentials plan runs $149 per month plus $7 per employee, per month.

The popular Core plan gives administrators and managers access to more reports and a helpful support center. This plan costs $199 per month plus $8 per employee, per month. Where HCM takes hold with this software is the career path that employees can dive into to set goals and understand requirements for growth.

Learn more: Read our full Paycor review.

Who should use it:

Paycor is the best overall HCM software for small businesses that want a comprehensive, yet user-friendly solution.

Pros & Cons
  • Transparent pricing starting at $99 per month, plus $5 per employee per month
  • Top-notch payroll features
  • Paycheck stuffing
  • Wage garnishment
  • Clock in and out with ease
  • Easy to implement
  • New hire email packet
  • Errors with PTO adjustments
  • Doesn’t lock timecards after approval
  • Onboarding and time off management features are not available with the entry-level plan

Best Free HCM Software

monday.com

monday.com
4.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

Free for up to two seats; $9 per seat per month (three-seat minimum)

Free trial

14 days

Standout Features

Easily manage day-to-day HR functions, such as recruiting and time off

monday.com
Learn More Arrow

On monday.com's Website

Free for up to two seats; $9 per seat per month (three-seat minimum)

14 days

Easily manage day-to-day HR functions, such as recruiting and time off

Editor's Take

monday.com provides HR administrators the tools to get the job done in a clean and easy-to-use interface. Managers can view data in multiple formats, which helps them glean insights from reports with ease. Repetitive tasks can be automated, freeing up the time managers have to focus on more important tasks, such as talent development. The platform integrates with popular office tools, such as Slack, Gmail and Google Docs. This makes it simple to document work and conversations pertaining to employees.

There are five tiers of solutions offered by monday.com. We especially like the free forever individual plan that gives a small business the tools to manage people similar to a major enterprise. This plan offers two seats with up to three boards and unlimited docs. The next staged plan is the Basic plan for $9 per seat, per month, when billed annually. In this plan, there are unlimited viewers allowed with up to 5GB of file storage to keep documents organized. Users also get prioritized customer support starting with this tier.

The Standard plan is considered the most popular at $12 per seat, per month, when billed annually. This plan adds different views, such as timeline and Gantt charts, along with a calendar view for goal setting and deadline management. The Pro plan is $19 per seat, per month, and adds private boards and docs along with a formula column for customized reporting. If you still need more, contact sales to price out the Enterprise plan for your company.

Learn more: Read our full monday.com review.

Who should use it:
The monday.com platform is best for small organizations seeking a free solution that can handle most of their needs and grow into paid solutions over time as they grow.

Pros & Cons
  • Free forever plan for up to two users
  • Recruitment pipeline
  • Manage time off requests
  • Highly customizable with drag-and-drop features
  • Automates tasks
  • Document library
  • Built-in analytics
  • Info boxes don’t help
  • Cannot customize reports
  • Does not offer payroll

Best for Recruiting

BambooHR

BambooHR
4.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

Not disclosed

Free trial

Seven days

Standout Features

Onboarding and offboarding, benefits tracking and self-service portal

BambooHR
Learn More Arrow

On BambooHR's Website

Not disclosed

Seven days

Onboarding and offboarding, benefits tracking and self-service portal

Editor's Take

BambooHR makes the tedious work of HR management easy for administrators to tackle every day. Its goal is to help you create a people-first HR strategy that values employees and engages them for retention. It streamlines tasks and automates certain functions so that you can focus on what is important in HR―recruiting and developing the top talent for your company.

BambooHR doesn’t disclose prices, so you’ll need to inquire with a sales representative to get a quote. However, it does offer the features and benefits of its two plans. The Essentials plan is designed to take care of the most important functions of the HR department, which include maintaining employee records, reporting, analytics and time off management. The mobile app allows employees to utilize the self-service portal from anywhere. This plan offers email support, whereas the Advantage plan offers chat and phone support.

The Advantage plan offers all the bells and whistles needed for HR management. It makes onboarding simple with automated e-signatures used for required documentation. Managers can track applicants on a simple dashboard and make offers to new hires from within the system.

Learn more: Read our full BambooHR review.

Who should use it:

BambooHR makes recruiting and onboarding new talent a breeze. Companies that have frequent and active recruiting efforts will benefit from using BambooHR.

Pros & Cons
  • Payroll
  • Onboarding and offboarding
  • Applicant tracking system (ATS)
  • Time tracking
  • Benefits tracking
  • See coworkers’ vacation schedule
  • Self-service portal
  • No notifications for new hires
  • Confusing user permissions
  • Entry-level plan does not include ATS or phone support
  • Lacks transparent pricing

Best for Ease of Use

Rippling

Rippling
4.7
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

$8 per user,

per month

Free trial

Not available

Standout Features

Payroll, applicant tracking system (ATS), and features for remote teams

Rippling
Learn More Arrow

On Rippling's Website

$8 per user,

per month

Not available

Payroll, applicant tracking system (ATS), and features for remote teams

Editor's Take

Rippling is a workforce platform that puts a lot into each plan it offers. It operates on the cloud, so administrators can work from anywhere and gain access to necessary information with a few clicks of the mouse. Plans start at $8 per employee, per month.

In the Rippling Unity platform, administrators are able to maintain a unified workforce directory that is accessible at any time. The system provides analytics so managers can discern where they need to focus their attention on development and growth. It also has position management so that employees can set future promotion goals and track where they are in the process as they work toward them. It allows all documents to be e-signed for convenience and digital storage. Rippling also offers a mobile app where users can access personal information from anywhere.

Taking HCM to the next level, Rippling has a benefits administrator platform that automates new hires and open enrollment. It syncs with payroll to make processing and reporting a breeze. Rippling can handle small and large group benefits plans.

Learn more: Read our full Rippling review and Rippling pricing guide.

Who should use it:

Rippling assigns implementation managers to help integrate the solution making it ideal for administrators seeking extra help to get started.

Pros & Cons
  • Low-cost and transparent pricing
  • Full-serve HR software
  • Intuitive interface makes it easy to use
  • ACA & COBRA administration
  • Automatic reports
  • Applicant tracking system (ATS)
  • Helpful implementation managers
  • Integrated apps
  • Users report inconsistent service
  • Frustrating for staff to use
  • No free trial

Best for Customization

Oracle Cloud HCM

Oracle Cloud HCM
4.6
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting price

Not disclosed

Free trial

Not available

Standout features

Complete HCM cloud solution, payroll, HCM analytics

Oracle Cloud HCM
Learn More Arrow

Read Forbes' Review

Not disclosed

Not available

Complete HCM cloud solution, payroll, HCM analytics

Editor's Take

Oracle Cloud HCM centralizes the data and reports needed to manage people effectively. It allows administrators to plan and optimize global people processes so that they can make better decisions about talent, growth and employee experiences. The platform works for small and large organizations alike because it is scalable and customizable to the manager’s needs.

Oracle Cloud HCM doesn’t advertise pricing, so you’ll need to contact them for a quote for your company.

The Oracle platform breaks things down into HR modules for simplicity. In the modules, you have core human resources capabilities such as hiring and data retention. The benefits module works with your payroll to track and process payments and tax data. Employees can partake in journeys that walk them through taking their careers to the next level. One of the key modules is the work-life module which engages employees with surveys and activities to help them be better teammates and employees.

Learn more: Read our full Oracle HCM review.

Who should use it:

Oracle Cloud HCM is best for companies seeking to customize a solution tailored to their unique needs.

Pros & Cons
  • Robust HCM software
  • Payroll for global staff
  • Recruiting and onboarding
  • Absence management
  • Time and labor management
  • Dynamic functionality
  • Workforce modeling and predictions
  • Advanced HCM analytics
  • Not intuitive
  • Updates break reports
  • Does not disclose pricing
  • No free trial

Best for Intuitive Layout

Workday

Workday
4.6
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

Not disclosed

Free trial

30 days

Standout Features

Modern interface, payroll and workforce management, employee experience insights

Workday
Learn More Arrow

Read Forbes' Review

Not disclosed

30 days

Modern interface, payroll and workforce management, employee experience insights

Editor's Take

Workday is a nimble solution that helps HR administrators determine and task what comes next when it comes to HR management. It uses a multidimensional set of criteria to help administrators organize people. This groups people logically and sets a reporting hierarchy that aligns with the division, cost center or geography listed. Managers can set reports to see groupings based on these criteria, which allows them to organize and plan new initiatives.

When it comes to engaging employees, Workday utilizes a skills cloud to help with employee training and development. The self-service portal also gives employees the power to access and update data as needed. Managers can denote who’s on track for what type of company growth by utilizing the career and development planning platform. This means that managers can maintain a talent pipeline from both internal and external recruits.

The HCM suite integrates with Workday’s financial management and payroll platforms for simplicity and centralization. Workday does not disclose pricing, so you’ll need to contact a representative for a quote.

Learn more: Read our full Workday review.

Who should use it:

Workday is best for company administrators who are not tech-savvy and want an easy-to-use system that comes with all the bells and whistles displayed aesthetically.

Pros & Cons
  • Payroll and workforce management
  • Get insights on employee experience
  • Agile workforce planning
  • Financial management features
  • User-friendly interface
  • Personalize dashboard
  • Cloud-based software
  • Lacks pricing transparency
  • Editing hours is difficult
  • Limited actions lead to confusion

Best for Reporting

TriNet

TriNet
4.6
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting Price

$8 per month, per employee

(billed annually)

Free trial

14 days

Standout Features

Recruiting, onboarding, performance management and PTO tracking

TriNet
Learn More Arrow

On TriNet's Website

$8 per month, per employee

(billed annually)

14 days

Recruiting, onboarding, performance management and PTO tracking

Editor's Take

TriNet’s HR Platform (formerly called Zenefits) streamlines onboarding, benefits, payroll and PTO so that HR managers can focus on building better teams and talent within the organization. It maintains org charts and stores performance reviews for easy access. One of the key features of TriNet is how employee data flows from a profile into the benefits portal, where self-service access allows employees to manage things, such as retirement and health benefits.

There are three TriNet plans to choose from. The first is the Essentials plan, which allows managers to automate onboarding, track time off and integrate with popular office solutions, such as Slack. Analytics reports are a click away so that managers can utilize resources effectively.

The Growth plan allows for customization when configuring analytics. The Zen plan truly meets the needs of HCM managers who want to engage employees. There are surveys and a people hub for employees to connect and interact.

Learn more: Read our full Trinet review.

Who should use it:

Administrators needing easy access to talent reports will appreciate the multitude of reports offered and automated.

Pros & Cons
  • Affordable pricing starting at $8 per month, per employee
  • Robust software with HR, payroll and benefits management
  • Intuitive and easy to use
  • Recruiting, onboarding and performance management
  • Agile software
  • Centralizes information
  • Limited customizations
  • Problems managing payroll taxes
  • Payroll is an add-on for an extra $6 per employee per month

Best for Payroll Integration

ADP Workforce Now

ADP Workforce Now
4.1
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting price

Custom quote

Free trial

No, demo only

Standout features

Payroll integration, recruiting and new hire onboarding

ADP Workforce Now
Learn More Arrow

Read Forbes' Review

Custom quote

No, demo only

Payroll integration, recruiting and new hire onboarding

Editor's Take

ADP is a leader in providing payroll solutions to thousands of businesses nationwide. It has expanded its offering to create a complete HR solution for organizations, seamlessly integrating payroll with all other HR functions. It has three HCM solutions to choose from, all of which require you to complete a form to get a custom quote.

The first solution is the Select plan, which includes payroll and tax as well as enhanced HR tools. It provides employees the ability to handle their own accounts with intelligent self-service tools. The Select plan also offers access to the Voice of Employee, a tool that helps HR managers understand how employees feel through surveys and groupings. Finally, this plan includes new hire onboarding and digital record-keeping, so you are never without required forms and paperwork.

The Plus plan comes with everything that the Select plan offers and goes a step further. It also includes benefits administration to simplify administration and help you retain employees and key talent with the benefits they want.

The last plan is the Premium plan, which ADP says is the most popular. It includes everything in the Plus plan as well as workforce management tools, such as time collection modes, scheduling capabilities and PTO management.

Learn more: Read our full ADP Workforce Now review.

Who should use it:

HR professionals seeking to have an HCM solution that seamlessly integrates with its payroll solutions should look to ADP as a leader.

Pros & Cons
  • Powerful customized platform
  • Helpful team onboarding
  • Convenient payroll integration
  • Pricing is not transparent
  • Days off interface is confusing

Best for Employee Learning

Kallidus

Kallidus
4.0
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting price

Custom quote

Free trial

No, demo only

Standout features

Online course library, attract talent and cultivate talent internally

Kallidus

Custom quote

No, demo only

Online course library, attract talent and cultivate talent internally

Editor's Take

Kallidus is formerly known as Sapling, a leader in online human resources coursework. It helps HR professionals manage talent through its life cycle. This means it coordinates job listings to attract new talent and helps build that talent’s skill level to grow within the organization. Ideally, Kallidus helps HR professionals keep talent from acquisition through retirement.

One of the key features of the Kallidus product line is the outstanding onboarding experience that new hires go through. It automates many of the tasks, so nothing slips through the cracks, and captures the necessary data easily from new recruits. Kallidus also knows that employee growth is important, which is why it has an entire section that focuses on learning and development.

Kallidus also helps HR professionals manage employee performance, giving managers the tools to provide useful feedback and set new goals. This is integral in building high-performing teams. Compliance is another key area that Kallidus’ platform focuses on. Organizations will get the reminders needed to stay compliant with HR laws and regulations.

Who should use it:

Kallidus emphasizes employee learning and provides HR professionals with the tools to help develop employee talent.

Pros & Cons
  • Courteous support team
  • Positive user experience
  • Mobile app use is seamless
  • Glitchy when moving candidates through stages
  • Missing some functions leading to more admin work

Best for Security

HR Cloud

HR Cloud
3.9
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Starting price

Custom quote

Free trial

No, demo only

Standout features

Employee management, payroll integration, security and support

HR Cloud

Custom quote

No, demo only

Employee management, payroll integration, security and support

Editor's Take

HR Cloud has three platforms to choose from. The first tier is the Engagement plan, which is designed to combine communication, engagement, recognition and rewards into one seamless experience. In this plan, you get employee engagement, integrations that include payroll, and support and security protocols activated.

The Onboard plan is designed to make onboarding simple and help new employees have a great first day. It includes onboarding and offboarding protocols, HRMS, payroll integrations and support and security protocols activated.

The HR Suite is the most popular plan as it combines the Engagement plan and the Onboard plan into one with more offerings. On top of what you get with the other plans, the HR Suite helps manage time off, manages recruitment and employs performance reviews.

Who should use it:

HR Cloud emphasizes security knowing that it is a priority for HR professionals. It uses single sign-on protocols and offers a dedicated support team to help troubleshoot any issues.

Pros & Cons
  • Knowledgeable representatives
  • Easy implementation management
  • Useful for tracking employee databases
  • Not easy to customize
  • Doesn’t save applicant status changes

Forbes Advisor Ratings

Company Forbes Advisor Rating Starting price Free trial Standout Features LEARN MORE
Paycor 5.0 5-stars-removebg-preview $99 per month plus $5 per employee, per month 3 months Free W-2 and 1099 processing, two-day payroll processing, check stuffing Learn More On Paycor's Website
monday.com 4.9 5-stars-removebg-preview Free for up to two seats; $9 per seat, per month (three-seat minimum) 14 days Easily manage day-to-day HR functions, such as recruiting and time off Learn More On monday.com's Website
BambooHR 4.7 4.5-removebg-preview-1 Not disclosed Seven days Onboarding and offboarding, benefits tracking and self-service portal Learn More On BambooHR's Website
Rippling 4.7 4.5-removebg-preview-1 $8 per user, per month Not available Payroll, applicant tracking system (ATS), and features for remote teams Learn More On Rippling's Website
Oracle Cloud HCM 4.6 4.5-removebg-preview-1 Not disclosed Not available Complete HCM cloud solution, payroll, HCM analytics Learn More Read Forbes' Review
Workday 4.6 4.5-removebg-preview-1 Not disclosed Yes HR and financial management, ease to use, absence management Learn More Read Forbes' Review
TriNet 4.6 4.5-removebg-preview-1 $8 per month, per employee (billed annually) 14 days Recruiting, onboarding, performance management and PTO tracking Learn More On TriNet's Website
ADP Workforce Now 4.1 4-removebg-preview Custom quote No, demo only Payroll integration, recruiting and new hire onboarding Learn More Read Forbes' Review
Kallidus 4.0 4-removebg-preview Custom quote No, demo only Online course library, attract talent and cultivate talent internally View More
HR Cloud 3.9 4-removebg-preview Custom quote No, demo only Employee management, payroll integration, security and support View More

What Is HCM Software?

Human capital management (HCM) software is software that allows human resources professionals to manage people more efficiently. It helps to recruit, hire, develop, pay, manage and retain employees within the organization.


Benefits of HCM Software

There are many benefits of using HCM software. These benefits include:

  • HR process simplification: It takes many of the daily tasks that an HR manager performs and automates them, while tracking everything.
  • Data integration: By placing the data where it needs to go, HR professionals are less likely to have things slip through the cracks.
  • Mobility: Through the use of apps, HR professionals can access data on the go, making the organization more efficient.

How To Choose the Best HCM System

To choose the HCM system that best suits your needs, consider factors, such as features, pricing and more.

  • Essential Features: These include recruiting integrations and candidate tracking, payroll integration for seamless processing, time management solutions and benefits management, to name just a few.
  • Pricing and Budget: Solutions typically charge per member and may require a minimum number of users. A growing team will therefore likely increase the cost of the product, though some providers may offer volume discounts.
  • Security, Privacy and Compliance: Employee data must be kept secure and confidential. This is why you must choose an HCM software platform that takes security seriously and provides you with the confidence that data will not be breached.
  • Implementation Plans: Not only does an HCM software solution need to be priced right, but it also needs to be easy to use. The goal is to save administrators time so that they can focus on talent development instead. This means that the solution should have an interface that is easy to read and simple ways to search and develop reports.

Methodology

Forbes Advisor runs a complete analysis of the leading solutions in the market using a wide range of criteria to determine the best HCM software providers for small businesses. We studied the industry and researched 26 different human resources (HR) management companies and plans, then scored these contenders across several categories using metrics that included pricing, essential and additional features and third-party reviews, which were weighted to favor features that small business owners find valuable in a provider.

Here are some of the categories that we used to come up with the providers that made the top of our rankings.

Pricing – 10%

For pricing, we considered whether a service offers a free version, the cost of the software per month or per year and the value for the price. We reviewed which providers offer transparent pricing as well as free trials and money-back guarantees. This accounted for 10% of our weighted scoring.

Key Features – 30%

We reviewed the key HCM features for each of the providers to determine which offer the best feature set. Some of the essential features we looked for included access to a reporting dashboard, alerts and reminders, an ATS, benefits administration and peer reviews. Other key features we gave weight to included having access to a mobile app, time and attendance tracking and learning management tools. Key features accounted for 30% of the total score.

Unique Features – 20%

In addition to the key features, we also looked at the additional features that each provider offers and what value that is to businesses seeking HCM software. Some of these unique features include engagement tools, software integrations, shift scheduling and PTO tracking.

It was also in this section where we considered each provider’s support capabilities, such as live support. To determine support quality, we looked at the channels in which support is available, if it’s available with all plans, the hours of operation and how helpful real users find support. Unique features counted for 20% of the final score.

Third-party Reviews – 10%

To get a better understanding of how a wide range of users and businesses find a provider, we look at reviews, giving preference to providers that are highly rated among its user base. This entailed ranking both the overall score from customers and the number of reviews for these scores to give the fullest picture of reality and reduce bias. These accounted for 10% of the total score.

Expert Score – 30%

In addition to the criteria above, we also used our own expert insights to determine which of the providers are the best in the business. This included considering each software’s ease of use, any stand-out features, popularity and value for the price. Altogether, these criteria make up 30% of the final score.


Frequently Asked Questions (FAQs)

What's the difference between HCM and ERP?

HCM focuses on people within the organization, more specifically the management of employee data, pay, benefits, role development and much more. In contrast, enterprise resource planning (ERP) looks at company resources on a more macro level to include not only HR but also finance and operations.

What is typically included in HCM software?

Typically, HCM software includes the ability to pay, recruit, hire, manage and retain key talent in an organization. It also includes more sophisticated tools for workforce management, such as succession planning and productivity management.

How is HCM different from HR?

HCM is more all encompassing. It ensures that HR operations align with broader strategic business goals. Moreover, HCM is used not only by HR professionals, but also by employees, their managers and company leaders.

Is Salesforce an HCM?

Salesforce is a cloud-based customer relationship management (CRM) system. Because it is dynamic and customizable, it is possible to use Salesforce as an HCM solution.

Is HCM software secure?

As with most types of software, the best HCM software programs offer many levels of security. When choosing this type of software, you want to look for security features, such as two-factor authentication (2FA) or multifactor authentication (MFA), documentation that shows frequent security updates and patches, intrusion detection, the monitoring of user activities, data encryption and privacy protection.


Next Up In HR


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