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Best HR Software Of 2024

Small Business and Personal Finance Expert Writer,  Deputy Editor, SMB
editor

Reviewed

Updated: Apr 26, 2024, 12:18pm

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

If you run the human resources (HR) department at your company, you likely have a lot to juggle at once. Using top-rated HR management software can simplify your life and make your job much easier. To help you find the right option, Forbes Advisor researched the best HR software and selected these solutions based on features, pricing, support, integrations, user reviews and more.

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The Best Human Resource Management Software of 2024

Why You Can Trust Forbes Advisor Small Business

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.

We reviewed 25 of the leading systems in the market using a detailed methodology consisting of five key categories consisting of 34 different metrics. With these, we rated all providers and found the ten best HR management providers for small businesses. Our ratings consider factors that included pricing, the quality and variety of general and unique features available, customer reviews on third-party websites and our expert scoring. All ratings are determined solely by our editorial team.


Best Overall

monday.com HR

monday.com HR
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

Free; $8 per seat

per month (3 seat minimum)

Customer support

24/7

Number of app integrations

35

monday.com HR
Learn More Arrow

On monday.com's Website

Free; $8 per seat

per month (3 seat minimum)

24/7

35

Editor's Take

It’s rare for software to get full points in every category, but monday.com HR pulls it off. It offers a robust recruitment pipeline that can automatically coordinate hiring managers’ and candidates’ schedules—all while keeping track of where candidates are in the process. Once you hire an employee, onboarding is simple with a ready-made template that prevents new workers from bombarding you with questions.

monday.com HR also helps with managing current employees by letting you collect feedback to gauge their well-being. If they have leave requests, you’ll get a notification right away—plus reminders if you let them sit for too long. Performance reviews are also easier than ever with a management system that tracks outcomes and schedules meetings.

It’s also possible to use monday.com as a communication platform so you can keep messages from managers and their direct reports all in one place. If your company is looking for work management solutions in other sectors, monday.com can also be used to manage customers, projects, roadmaps and more.

Learn more: Read our full monday.com HR review.

Who should use it:

With stellar consumer reviews and five different pricing tiers, monday.com is an excellent and affordable option for businesses large and small that want an all-in-one, cross-departmental HR management solution.

Pros & Cons
  • Eight ready-to-use HR templates
  • Create your own customized flows
  • Connects to workflow tools for finance, marketing, operations and more
  • Plans are inexpensive—and free plan works great for individuals
  • Modern interface is easy to use with good user experience (UX) design
  • 24/7 support
  • No ability for contractor payments
  • Can only choose team size in multiples of five
  • Not a ton of integrations compared to our other picks

Best for Payroll Services

Paycor

Paycor
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

$99 per month plus $5 per employee

Customer support

Monday to Friday, 8 a.m. to 8 p.m. Eastern time

Number of app integrations

210

Paycor
Learn More Arrow

On Paycor's Website

$99 per month plus $5 per employee

Monday to Friday, 8 a.m. to 8 p.m. Eastern time

210

Editor's Take

Paycor might be best known as a payroll solutions tool, but it also packs quite the punch with its HR features. It gives you the ability to automate mundane routine tasks to save you a ton of time. The software also has employee self-service tools so that they can update their profiles, sign digital documents and complete any assigned tasks without interrupting your day.

We also like Paycor’s transparent employee reports. You can have instant access to your headcount, turnover rate, compensation levels and absenteeism. Company-wide communication is also easy with mobile push notifications and chat messages.

You’ll get unlimited workflows with Paycor, meaning you can set up as many automated tasks as you’d like. If you’re in the healthcare, manufacturing, restaurant, professional services, education, retail or nonprofit industries, you can use pre-made workflows for recruiting, scheduling and paying staff. You can also use Paycor to design and implement benefits your employees will love.

Learn more: Read our full Paycor review.

Who should use it:

Businesses with fewer than 50 employees can benefit a ton from Paycor’s combination of HR and payroll software. If you have more than 50 employees, pricing is obscured until you talk with a rep, so we’re not sure if it still offers a good deal.

Pros & Cons
  • On-demand pay
  • 401(k) processing options
  • Low-tier plan includes automated payroll
  • Seven industry-specific builds
  • Expensive, especially if you have a lot of employees
  • Extra fees for setup
  • No integration with QuickBooks or Xero

Best for Automated Workflows

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

Customer support

Monday to Friday, 6 a.m. to 5 p.m. Pacific time

Number of app integrations

100-plus

Rippling
Learn More Arrow

On Rippling's Website

$8 per user

per month

Monday to Friday, 6 a.m. to 5 p.m. Pacific time

100-plus

Editor's Take

One of the interesting things about Rippling is that it helps four major departments in your company: HR, information technology (IT), finance and engineering. That means you can use automated workflows in HR and beyond. In particular, Rippling excels at automation based on trigger actions, such as an employee’s PTO balance, tenure or job title. You can set up your own if/then statements that perform whatever tasks you desire, including tasks on third-party apps, based on a specified factor.

If you don’t know where to get started with your workflows, you can choose from hundreds of recipe templates, including options, such as a work-life balance enforcer, benefits enrollment deadline reminders and upcoming PTO notifications.

Benefits administration, payroll, applicant tracking and learning management are also some of the impressive features included in a Rippling subscription. It takes 90 seconds to run payroll, and the system also calculates all payroll taxes automatically to eliminate your payday headaches. When it comes to benefits, you can browse over 4,000 plans to find the best medical, dental and vision coverage for your employees. Rippling also lets you send offer letters, run background checks and perform other onboarding tasks with a few simple clicks.

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

Who should use it:

Companies that want to get their HR, IT, finance and engineering departments running on the same software while also taking advantage of simple, preset automations will appreciate Rippling.

Pros & Cons
  • If/then automated workflows
  • Integrates data between 4 departments
  • Hundreds of recipe templates
  • Benefits and payroll support
  • Products can be purchased separately for a customized plan
  • Pricing isn’t transparent
  • No custom branding
  • No free trial
  • Limited customer support hours compared to our other picks

Best for Employee Self-Service

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

$108 per month for 20 employees + $5.40 per each additional employee per month

Customer support

Monday to Friday, 8 a.m. to 8 p.m. ET

Number of app integrations

131

BambooHR
Learn More Arrow

On BambooHR's Website

$108 per month for 20 employees + $5.40 per each additional employee per month

Monday to Friday, 8 a.m. to 8 p.m. ET

131

Editor's Take

If you’re tired of having employees bombard you with questions, BambooHR could help slim down your inbox with a ton of employee self-service features. All plans allow self-editing of employee profiles, along with a robust employee directory and org chart that provides contact info with a few clicks. A company calendar also lets everyone know their coworkers’ paid time off (PTO) schedules and work holidays. Best of all, these features can be accessed via mobile app for added convenience.

Customized data inputs let you record any stats you’d like about your employees. And all of this information can be synced up to third-party apps to eliminate double entry and improve accuracy. As with the other picks on this list, BambooHR also includes automated HR workflows so you can stop spending your time chasing down paperwork.

One downfall—basic features, such as payroll, performance management and time tracking are all add-on components. Since pricing isn’t listed online, we can’t say for sure whether these tools are worth it or if you’d be better off with a more comprehensive system.

Learn more: Read our full BambooHR review.

Who should use it:

Companies that would like to give employees more hands-on access to their information will love the self-service tools BambooHR provides.

Pros & Cons
  • Mobile app helps employees find their own answers
  • Offer letter templates included
  • Auto-post job openings on major job boards
  • Electronic signatures on e-docs
  • No onboarding, offboarding or applicant tracking support in base plan
  • No chat or telephone support with base plan
  • Payroll, performance management and time tracking not included

Best for Global Workforce Management

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

Customer support

24/7

Number of app integrations

600-plus

Workday
Learn More Arrow

Get Estimates From Participating Partners

Not disclosed

24/7

600-plus

Editor's Take

Workday excels at offering customized reports about your workplace. You can set up your home screen to show data automatically, such as year-to-date (YTD) turnover—sorted by voluntary, new hire and high performer turnover—headcount, open positions and hire and terminations by quarter.

But perhaps its most unique feature is its global compliance support. Managing HR for a company with employees in different states—or even different countries—can be a headache. Workday eliminates the stress by helping you stay on top of regulatory changes in over 80 jurisdictions to reduce labor or tax violations. You can spend less time investigating location-specific laws and more time improving your company’s culture.

Another feature that makes Workday a top pick is its informative org charts that allow you to give feedback or promotions right from the same drag-and-drop interface. Talent procurement is also easy thanks to a skill-focused strategy that narrows down applicants based on their knowledge. Workday even offers benefits administration that lets you manage eligibility and available plans easily, no matter where your workers are located.

Learn more: Read our full Workday review.

Who should use it:

Workday is best for mid- to large-sized companies who need custom HR and financial management over several locations.

Pros & Cons
  • Second highest number of app integrations among our picks
  • 24/7 phone and online support
  • Integrates HR and finance
  • Employee profile support for 200-plus countries
  • Pricing isn’t transparent
  • No free version
  • Software can be difficult to navigate

Best for Managing Freelancers

Zenefits

Zenefits
4.5
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

Customer support

Monday to Friday, 7 a.m. to 4 p.m. PT

Number of app integrations

46

Zenefits
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Get Estimates From Participating Partners

$8

per month per employee

Monday to Friday, 7 a.m. to 4 p.m. PT

46

Editor's Take

Unlike some of the other picks on our list, Zenefits is totally upfront about its pricing. You can easily see what each plan costs and includes without needing to reach out to a company rep. Furthermore, services, such as payroll, advisory services, recruiting and using your own benefits broker, are all add-on costs, meaning you only pay for what you need.

According to Zenefits, it helps you with everything from hiring to retiring. You can create a compensation package directly in the system and then auto-send offer letters to new hires. One unique feature of Zenefits is that it can also manage contractors and freelancers in addition to full-time employees. Once employees join your organization, they can then onboard themselves as well as edit their own records.

Zenefits allows you to take things digital with electronic documents, including W-4s and I-9s. This makes things easy come tax or payroll time when everything can be handled online without the time and labor of physically mailing documents. Finally, we also like Zenefits time off tracking features, which let you manage your company’s PTO policy, including time-off blackout dates and automatically calculated balances.

Learn more: Read our full Zenefits review.

Who should use it:

Companies who manage a lot of freelancers and only want to pay for features they’ll use via add-ons will appreciate Zenefits.

Pros & Cons
  • Ability to choose which add-ons you need
  • Independent contractors and temps are just $6/month per worker
  • Configurable people analytics dashboards
  • Complete performance management suite
  • 5-employee minimum requirement
  • Adding on every service is quite costly
  • You have to pay to use your own benefits broker

Best for Staying Organized

ClickUp

ClickUp
4.4
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; $5 per member

per month

Customer support

24/7

Number of app integrations

1,000-plus

ClickUp
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Get Estimates From Participating Partners

Free; $5 per member

per month

24/7

1,000-plus

Editor's Take

Though ClickUp is more well-known as a project management software, it also comes with a specific setup for HR management. Your HR team will have its own Space—a place to store all of your files and information. Within that Space, you can add new folders and create unlimited lists of tasks organized by stage, due date or priority.

ClickUp works well for recruiting since you can organize applicants easily and keep track of all your outreach efforts. Add them into your Space, and you’ll be able to move them around depending on the stage of the process they’re in. The same goes for onboarding—you can create trackable tasks and docs, as well as leave comments and feedback right from the app.

Keep in mind—since ClickUp is primarily for managing projects, it doesn’t come with a lot of extra features like some of our other picks. It can help you stay extremely organized, but it doesn’t offer things, such as payroll, benefits administration, contractor payments or peer reviews.

Learn more: Read our full ClickUp review.

Who should use it:

If you’ve got other solutions for things, such as payroll or benefits and just need help staying organized with everything you need to do, then ClickUp is a good option.

Pros & Cons
  • Free forever plan
  • Affordable premium plans starting at $5 per member per user
  • Unlimited users on every plan
  • Native time tracking
  • Most app integrations of all our picks
  • Can get expensive for larger companies
  • Support via phone not available
  • Limited HR-specific features

Best for AI-Powered Functionality

UKG Pro

UKG Pro
4.3
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

Tax functionality

Yes

Standout Features

AI-powered analytics and employee scheduling, compliance updates, direct wage access, charitable giving campaigns, succession planning tools and customization options

UKG Pro
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Not disclosed

Yes

AI-powered analytics and employee scheduling, compliance updates, direct wage access, charitable giving campaigns, succession planning tools and customization options

Editor's Take

AI-powered analytics delivers insights into payroll, pay equity and more. Users can visualize data in various ways including bubble charts, heat maps, scatter graphs and other formats. UKG Pro also uses AI to support performance management by removing bias, but the vendor’s site doesn’t make it clear how exactly this capability works. Finally, UKG Pro utilizes AI to help shift managers quickly create employee schedules, complete with compliance checks.

UKG Pro’s team of compliance experts push regular updates, helping businesses stay on top of evolving regulations related to HR and payroll for the U.S. and Canada. The system even proactively alerts pertinent teams and employees when the company is at risk of violating a regulation.

UKG Pro offers various ways to customize its look and feel. Customers can white label the interface to display the company’s logo and branding. It also allows users to customize the interface to their role and preferences. For instance, they can set up frequently visited links for easy access and change up the dashboard tiles to their liking. That way, they can view the information that matters most for their day-to-day work. Users can also easily configure automatic workflows and generate reports using one of the system’s built-in reports or by building a custom report.

Learn more: Read our full UKG Pro review.

Who should use it:

Midsized to large businesses looking to automate HR processes, use AI for smart insights and tailor the system and its functions to meet their unique needs.

Pros & Cons
  • Advanced analytics
  • Varied data visualization tools
  • Compliance support
  • Tax filing support
  • Pay-on-demand
  • Charitable giving campaigns
  • Mobile app access
  • Recruiting integrates with LinkedIn
  • Personalized employee development plans
  • Built-in social collaboration tool
  • Customization options
  • Does not offer a free plan
  • Nontransparent pricing information
  • Applicant tracking system is available for an extra fee
  • Does not handle contractor payroll
  • No AI-powered candidate sourcing
  • Subpar customer support
  • Poor UX
  • Steep learning curve for new users

Best for Payroll Compliance

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

Not disclosed

Tax functionality

Yes

Standout features

Automatic payroll error detection, expert payroll and tax services

ADP Workforce Now
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Get Estimates From Participating Partners

Not disclosed

Yes

Automatic payroll error detection, expert payroll and tax services

Editor's Take

ADP Workforce Now centralizes payroll, benefits administration, time tracking, HR and talent management within one system. It comes in three different plans for flexibility. Each plan includes payroll and tax capabilities, such as a payroll dashboard with error detection alerts and expert services for tax filing and payment.

ADP Workforce Now electronically dedicates and files local, state and federal taxes and proactively alerts payroll administrators or HR staff if it detects any calculation errors. It offers expert regulatory and compliance support in every U.S. state and abroad in more than 140 countries. This is a plus for companies that have a remote workforce distributed across the country and globally. ADP Workforce Now helps simplify the payroll process by reconciling multiple pay rates and schedules. If your needs outgrow Workforce Now’s capabilities, you can upgrade to ADP Vantage HCM.

Learn more: Read our full ADP Workforce Now review.

Who should use it:

Situated between its ADP Run platform for small businesses and ADP Vantage HCM suite for enterprises, ADP Workforce Now is designed for midsized businesses prioritizing efficient and compliant payroll. ADP Workforce Now is especially suited to businesses that employ across the country and internationally because it reconciles varied pay schedules, rates and currencies.

Pros & Cons
  • International payroll
  • Automatic error detection alerts
  • Library of built-in payroll reports
  • Custom reports
  • Voice of Employee tool for employee engagement
  • E-signature tool
  • Preboarding features
  • Unlimited document storage
  • Range of add-ons and pre-built integrations
  • Mobile app access
  • Responsive customer support
  • Benefits administration available only in top two tiers
  • Time-tracking tools only available in top tier
  • Learning curve for reporting tools

Best for Customization

Sage HR

Sage HR
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

$5.50 per employee per month

Tax functionality

No

Standout features

Leave management, timesheets, performance tracking

Sage HR
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$5.50 per employee per month

No

Leave management, timesheets, performance tracking

Editor's Take

Users can add any modules they need on top of its core HR functions so that no tools go unused. After selecting the modules that make the most sense, users can tailor Sage HR to fit their daily tasks and workflows rather than the other way around.

For instance, users can create custom reports for HR metrics that Sage HR doesn’t already report on by selecting all relevant fields and applying any filters they wish. Users can also set up workflow “recipes” to streamline their most repetitive tasks by stringing a sequence of actions together and applying triggers. These workflows accelerate multi-step processes involving multiple people for things such as reimbursements and timesheet approvals.

If you opt for the leave management module, HR teams can also create unlimited, customized time off policies, whether fixed annual vacation and sick days, unlimited PTO or something else. Everyone’s time off populates into a shared calendar, so everyone’s on the same page about who’s in and who’s out. Users can also generate custom reports for individual or team time off.

Learn more: Read our full Sage HR review.

Who should use it: A company should opt for Sage HR if it already has a payroll and benefits solution in place, has specific workflows and reports to track and prioritizes customization. Sage HR is also flexible, offering an array of add-on modules on top of its core HRIS. Otherwise, customers can opt to integrate their existing tools or upgrade to Sage HRMS to unlock access to payroll, benefits and other features.

Pros & Cons
  • System modularity for flexibility
  • E-signatures
  • Custom reports
  • Custom data fields
  • Custom workflows
  • Variety of templates
  • Shared time-off calendar
  • Interface available in a variety of languages
  • Mobile app access
  • User- friendly
  • Transparent pricing
  • Limited built-in integrations
  • No payroll or benefits administration
  • Lack of compliance tools

Compare the Best HR Software

Company Forbes Advisor Rating Best For Starting price Number of app integrations LEARN MORE
monday.com HR 5.0 5-stars-removebg-preview Best Overall Free; $8 per seat per month (3 seat minimum) 35 Learn More On monday.com's Website
Paycor 4.9 5-stars-removebg-preview Best for Companies That Need Benefits $99 per month plus $5 per employee 210 Learn More On Paycor's Website
Rippling 4.7 4.5-removebg-preview-1 Best for Large Teams $8 per user per month 100-plus Learn More On Rippling's Website
BambooHR 4.7 4.5-removebg-preview-1 Best for Payroll Integration Not disclosed 131 Learn More On BambooHR's Website
Workday 4.6 4.5-removebg-preview-1 Best for Simple Layout Not disclosed 600-plus Learn More Read Forbes' Review
Zenefits 4.5 4.5-removebg-preview-1 Best for Integrations $8 per month, per employee 46 Learn More Via partner site
ClickUp 4.4 4.5-removebg-preview-1 Best for Businesses on a Budget Free; $5 per member per month 1,000-plus Learn More On ClickUp's Website
UKG Pro 4.3 4.5-removebg-preview Best for AI-Powered Functionality Not disclosed - Learn More Read Forbes' Review
ADP Workforce Now 4.1 4.0 star Best for Payroll Compliance Not disclosed - Learn More On ADP's Website
Sage HR 4.0 4.0 star Best for Customization $5.50 per employee per month - Learn More Read Forbes' Review

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.

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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.

Pricing – 10%

For pricing, we considered whether the company offered an affordable solution as well as a free trial or version of its software. Companies that offered upfront pricing received higher ratings here than those that require making a call to its sales department or filling out a lead capture form. This accounted for 10% of our weighted scoring.

General Features – 30%

When looking at an HR management software’s general features, we consider whether the company offered common HR management solutions, such as benefits administration, payroll and org charts. Other general features we looked for included access to a mobile app, reporting dashboard, applicant tracking system and learning management tools. We weighted general features at 30% of our total score.

Additional Features – 20%

For features unique to HR management software, some of what we considered included if the company went beyond with offerings, such as engagement tools, shift scheduling and PTO tracking. Tax functionality and third-party software integrations also played a role in our evaluation of these providers. Additional features accounted for 20% of our final score.

Third-party Reviews – 10%

We wanted to know what other users thought of each of these services, so we looked at reviews to gain insight into each software provider’s offering. This entailed ranking both the overall score from customers and the number of reviews for these providers, focusing on how many of these reviews were at least higher quality (3.5 out of 5) for each one. These accounted for 10% of the total score.

Expert Score – 30%

We looked at how experts in the field ranked the service’s features, value for the money, popularity and ease of use. The scores from each of these categories were adjusted accordingly, leaving us with the highest-rated picks for your company. These criteria made up 30% of the total score.

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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.


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