- SAP SuccessFactors: Best for Enterprises
- UKG Pro: Best for AI-Powered Functionality
- Paycor: Best for Companies That Need Benefits
- Workday: Best for Simple Layout
- Paycom: Best for Automations
- Namely HR: Best for Low-Cost Plan
- GoCo: Best for Time-Saving Features
- isolved: Best for New Businesses
- Paylocity: Best Payroll and HR Software Combo
- Trinet: Best for Professional Employer Organization (PEO) Services
- Gusto: Best for Contractor-Only Companies
If you run the human resources (HR) department at your company, you likely have a lot to juggle at once. Top-rated human resource management systems (HRMS) can simplify your life and make your job much easier. To help you find the right option, we researched and tested the best HR software and selected these solutions based on features, pricing, support, integrations, user reviews and more.
The Best Human Resource Management Software of 2024
Compare the Best HR Software
Company | Forbes Advisor Rating | Best For | Starting price | Self-serve employee portal | LEARN MORE | ||||
---|---|---|---|---|---|---|---|---|---|
SAP SuccessFactors | 5.0 | Best for Enterprises | $334 per user per month (estimated annual cost for all modules) | Yes | View More | ||||
UKG Pro | 4.7 | Best for AI-Powered Functionality | Not disclosed | Yes | View More | ||||
Paycor | 4.6 | Best for Companies That Need Benefits | Not publicly available | Yes | Learn More | On Paycor's Website | |||
Workday | 4.3 | Best for Simple Layout | Not disclosed | Yes | View More | ||||
Paycom | 4.3 | Best for Automations | Available via custom quote only | Yes | View More | ||||
Namely HR | 4.2 | Best for Low-Cost Plan | $9 per user per month | Yes | View More | ||||
GoCo | 4.2 | Best for Time-Saving Features | $5 per user per month | Yes | View More | ||||
isolved | 4.0 | Best for New Businesses | Not disclosed | Yes | View More | ||||
Paylocity | 4.0 | Best for Payroll and HR Software Combo | Not disclosed | Yes | Learn More | On Paylocity's Website | |||
Trinet | 4.0 | Best for Professional Employer Organization (PEO) Services | $8 per month, per employee | Yes | Learn More | On Trinet's Website | |||
Gusto | 4.0 | Best for Contractor-Only Companies | $40 per month, plus $6 per employee per month | Yes | View More |
What Is HR Software?
HR software is a system of tools that help HR teams streamline their core HR processes, such as running payroll and managing employee benefits. It houses employee and organizational data in one central interface, enables employee self-service and even automates some processes.
Benefits of HR Software
There are some key benefits to using HR software to help run your organization and manage your employees:
- Save money by lowering administrative costs: HR software simplifies the process and requires a smaller team to do the same work.
- Happier employees: When employees are able to self-manage their time cards, benefits and paid time off, they feel empowered. The result is happier employees.
- Automates vital functions: Software automates certain activities and sends reminders for others. This allows managers and employees to never miss an important action.
How To Choose the Best HR Software
To choose the best HR software, it’s important to first understand the different types of HR software and essential features to look out for. Then, consider the size of your company and whether the HR software integrates into your tech stack.
Types of HR Software
There are three main types of HR software:
- Human resource information systems (HRIS): At its core, an HRIS is a database that stores employee information and runs automated reports. It’s for HR teams and employees to manage and update employee information and typically, but not always, includes basic HR functions, such as payroll, benefits administration and time-tracking features.
- Human resource management systems (HRMS): An HRMS layers additional functionality on top of the HRIS, drawing from a wider set of data to support not only employees and HR staff but also managers. To that end, an HRMS typically includes recruiting features, an applicant tracking system as well as performance management and employee engagement tools.
- Human capital management (HCM) software: An HCM solution stores the most data of the three types and thus offers even more sophisticated functionality to support HR at a strategic level, such as predictive analytics and workforce planning, to ensure that people management aligns with overarching business goals. An HCM system often syncs with other parts of a business through a customer relationship management (CRM) or enterprise resource planning (ERP) platform.
These terms are often mistakenly used interchangeably, and some providers refer to their product using a label that doesn’t match the breadth or depth of its features. So, it’s crucial to look past the provider’s marketing language and check out the extent of its product’s functionality to assess what type of HR software it is.
Essential HR Software Features
Core features of HR software include payroll, benefits administration, automatic alerts and reminders, e-signatures and mobile access.
- Payroll: Payroll software helps HR staff or payroll administrators run payroll more efficiently and error-free through automatic payroll runs, compliance checks, tax filing and other helpful features. Payroll is essential because paying your employees correctly and on time should be a key priority.
- Benefits administration: For employers offering benefits to their employees, benefits administration tools help them select the right benefits package. They also help companies administer benefits in a manner that’s compliant with federal regulations such as the Affordable Care Act (ACA), the Consolidated Omnibus Budget Reconciliation Act (COBRA) and Employee Retirement Income Security Act (ERISA).
- Automatic alerts and reminders: HR teams typically juggle several different tasks, so HR software’s automatic alerts remind them to complete tasks, such as running payroll and collecting new hire benefits elections, in a timely and compliant way.
- E-signatures: The ability to electronically send, sign and submit documents streamlines and accelerates workflows such as the onboarding process, as opposed to printing out, scanning and sending emails back and forth.
- Mobile access: Mobile app availability is an essential feature, especially for primarily remote workforces. Mobile app versions of HR software enable on-the-go access to functions your employees might need to check on anywhere at any time, such as a candidate messaging tool for recruiters to stay connected with job candidates.
Company Size Considerations
An HRIS, HRMS and HCM broadly serve the needs of small, midsized and enterprise businesses, respectively. However, to arrive at the HR software solution that’s best for your company, take current size and needs into account while also considering anticipated workforce and business growth that will require more data and more sophisticated features.
ADP, Rippling, Sage and UKG are all vendors that provide a range of products to different market segments, so they’re worth checking out if you anticipate a lot of future growth in headcount. That way, you can add on features as needed or upgrade to a new price tier or product from that vendor.
BambooHR targets small to midsized business needs. So, if you anticipate remaining relatively small (at around 1,000 employees or fewer) and serving a niche market, BambooHR is an excellent choice.
Paycor and UKG Pro are designed for enterprise businesses because they include advanced tools such as predictive analytics and competitive benchmarking data. Generally speaking, enterprise businesses employ more than 1,000 employees, thus having enough head count volume and budget to invest in an HCM system.
Software Integrations
If you’re looking for modular, à la carte-style solutions such as ADP or a less comprehensive HR software system, such as BambooHR or Rippling Unity, you’ll need to ensure that those systems will communicate with other applications your company currently uses. For instance, if you opt for your current payroll software over BambooHR’s payroll add-on, you’ll need to make sure your payroll software will communicate with BambooHR.
Moreover, the HR software solution might integrate with your other software applications, but the ease of implementation will depend on whether your IT team or the vendor’s support team will need to manually build APIs to get the two (or more) systems to communicate with one another. Some HR systems have built-in integrations to work with other software, while others require manual API connection or don’t work at all with a particular solution.
What Does HR Software Cost?
HR software can cost anywhere from $0 for vendors offering free options to up to $30 per employee per month, depending on the product, price tier, optional add ons and the number of users. The price also depends on the pricing model, if there is more than one option. For example, paying on an annual rather than monthly billing cycle saves your company money.
2024 HR Trends
Human resource professionals are learning to adapt to the evolving expectations of both companies and employees on a post-pandemic planet. Here are the most relevant HR trends to be aware of in the new workplace landscape.
Remote/Hybrid Work Policies
Given the prevalence of remote and hybrid work models, it’s more important than ever to choose HR software that provides mobile app access, employee self-service, document management and remote collaboration tools.
People-first Culture and Overall Well-being
A majority of employees now report increased levels of both workplace and personal stress. Workers across the board may indicate feeling burned out, unappreciated, undercompensated and uncared for. Unsurprisingly, these feelings can lead to decreased productivity, quiet quitting and resignation.
It’s up to senior leadership and HR professionals to proactively address and protect the overall well-being of employees or risk losing them. One way to do this is to adopt a “people-first” culture that values and respects employees as a whole and does not see them as simply cogs in the company machine. Today’s HR software solutions support this approach by offering tools for employee engagement and learning and development.
Learning and Development
Giving employees the opportunity to grow gives an employer a competitive advantage in retaining its best talent. More than half of the surveyed workforce says it needs more training to perform better on the job. Companies, therefore, need to respond by opting for an HRMS or HCM that includes a learning management system or integrating a stand-alone learning management system (LMS) to upskill employees and maximize their potential.
DEIB in Workplace Culture
Diversity, equity, inclusion and belonging (DEIB) are important contributing factors to fostering a workplace where employees can be their authentic selves.
Unfortunately, current adoption of DEIB has been largely performative. According to PwC’s Global Diversity, Equity and Inclusion Survey, 75% of respondents value and prioritize diversity, but 32% also feel as though diversity is a barrier to advancement within the organization. Furthermore, only 4% of companies are currently meeting expectations for a successful DEIB program.
Using objective, quantifiable metrics to track and respond to relevant data will help human resources work towards integrating DEIB into the structure and culture of a company, rather than simply going through the motions. For example, employee engagement tools in HRMS and HCM solutions include employee sentiment tools and analytics, such as pay equity dashboards, that uncover potential inequities that the HR team can address.
Methodology
To rank the best HR management systems, we evaluated 25 of the industry’s leading software across five main categories for a total of 34 different metrics. After compiling this data, we used it to rank the systems and determine the overall best human resource management systems for small businesses.
Here is the breakdown of the categories we used to rank the providers that made the top of the list.
Decision Factor | Scoring Weight | Description |
---|---|---|
General Features
|
50%
|
The highest consideration for any HRMS decision has to go to the core HR features a platform offers. We looked at the basics such as org charts and payroll, and we also considered whether you get tools for performance management and onboarding, among other features.
|
Additional Features
|
30%
|
Tools to help with recruiting, learning management, shift scheduling and e-signatures, for example, are nice to have in one platform, but we consider these additional features, so we weighed this category a bit lower than core features.
|
Support
|
7%
|
At the very least, we want to reward the HR companies that offer the most support available, so we noted support availability, such as by phone, live chat and email. In each provider test, we contact support when possible to give you a personal account of our interaction with agents.
|
Pricing
|
5%
|
Choosing an HRMS by its price point alone isn’t realistic, which is why we gave this category a lower weight. We did consider transparency in pricing and gave more credit to those companies that publish costs rather than force you to get a quote.
|
Expert Score
|
5%
|
With HR software, data can tell you most of the story (does it have XYZ features?), but there are other factors that may affect your decision, including the value of a service in relation to cost, ease of use and how popular the platform is. Our experts get hands-on experience with the software to provide their opinion on how each compares to one another.
|
Reputation
|
3%
|
User reviews of desktop and mobile apps can be helpful when trying to decide between HR systems. We read through many reviews to find the best information about how users feel about support, bug fixes, new feature rollouts and overall opinion.
|
Learn More: How We Test HR Software
Payroll Solutions Tailored To Your Business Goals
Frequently Asked Questions (FAQs)
What are the main types of HR systems?
The three most common types of HR systems are HR information systems (HRIS), human capital management (HCM) software and HR management systems (HRMS).
How do I choose an HR system?
When choosing an HR platform, consider not only the essential features noted above but also cost, ease of use, integration and customization. The HR software solution should fit your budget, be easy to use, communicate with other software you use and be customizable to your needs without needing to reach out to the vendor to make adjustments. Regardless of which HRM system you choose, make sure it measures these 10 essential HR metrics.
Why is HR software so important?
HR software is important because it helps management perform key actions on time while empowering employees to take charge of their own accounts.
What’s the difference between an HRIS and HRMS?
An HRMS is a more advanced and sophisticated HRIS that layers added capabilities on top of the database contained within the HRIS. An HRIS stores employee data, allowing employees and HR personnel to view and modify employee information and run basic reports based on that data. An HRMS augments the HRIS by storing more varied data sets. These data sets power additional capabilities such as an applicant tracking system and a performance management module.
Is there any free HR software?
BrightHR, Deel, OrangeHRM and Zoho are a few examples of HR providers that offer a free version of their HR software.