6 Best HR Software Solutions for Small Business in 2020

In today’s edition of AppsRanked, my radar is on the HR software niche – their significance and how they can streamline employee centric processes.

Without a doubt, there are tons of advantages associated with investing in HR management software. However, the universal fact is that no single tool comes with it all. The claim that many tools market themselves with the ‘best HR solution’ holds little ground when it comes to the actual functionality.

Therefore, whether you’re looking for a basic HR system, or your eyes are fixed on a rather feature packed solution; you have to carefully weigh in all the pros and cons. Only through this you will be able to make a smart decision of picking the right one for your team. (Mxore on this later)

Benefits of HR Software

Let’s first quickly skim through some of the top benefits of using HR management software:

1. Reduced Cost

A good HR software should be able to save you a great deal of money. Otherwise, it’s just not the right fit. You must be wondering how exactly ‘spending’ on software is going to save you money?

Trust me when I say this, an efficient HR system streamlines your processes and saves you the hassle of all the paperwork that you must do otherwise. It standardizes employee related processes and cuts costs associated with keeping individual records of each.

2. Efficient Employee On-boarding

One of the best HR software in the market will make employee on-boarding effortless for you. With an automated employee portal at hand, you don’t really have to worry about complex on-boarding procedures.

An effective HR software will make employee on-boarding a breeze through features like applicant tracking, employee databases, e -signatures, and more.

3. Automated Data Management

Everyone’s well aware of the internal data that needs to be regularized and analyzed when managing a team. Employee personal record, leave management, annual reviews, performance management, and the list goes on.

You’re signing up for destruction if you think you can handle all of this without any professional HR system. Hence, for me one of the top most benefits of best HR software would be the automation and management of internal employee data.

4. Improved Efficiency

Through HR systems, team leaders can get a 360 degree view of employee performance in real time. Constant monitoring directly impacts the quality of effort being put in, and therefore improves the overall team efficiency.

The data fed into the HR software also helps align respective stakeholders in gaining valuable insights regarding employee records. This in turn can prove to be extremely beneficial in designing the long term strategies for employee management.

The above mentioned benefits are just a tip of the iceberg. A deeper evaluation of modern HR systems unravels a whole new world of convenience which can literally skyrocket your team’s productivity.

Best HR Software in 2020

Let’s now move towards the prime focus of this blog. Finding the best HR software for you!

    1. BambooHR
    2. Namely
    3. PeopleSoft
    4. People HR
    5. Zenefits
    6. Kronos

1. BambooHR – Editor’s Choice for Best Free Cloud Storage

An all in one best HR software coming with an intuitive feature set for small and mid-sized businesses.

An all-inclusive HR management system which addresses everything starting from employee onboarding, till it’s time to design compensation strategy.

Starting from: Request quote
Pricing model: Subscription based pricing
Free Trial: Available
Devices: Android, iOS, Web

  • User-friendly Interface
  • Applicant Tracking
  • Employee Onboarding
  • Custom Workflows and Approvals
  • Employees Training Tracking
  • Advanced reporting
  • Custom Access Control
  • Email Reminders
  • Audit Trail
  • Multiple Integrations
  • Phone support

  • No payroll integrations
  • Only for small and mid-sized businesses

BambooHR has managed to emerge on top position in my list of best HR software for small businesses and for all the right reasons. It caught my attention because of the elements it covers when it comes to HR management.

Hiding behind a simple user-interface, BambooHR gives users the satisfaction of dealing with it all. From the moment an employee is on-board, till it’s time to evaluate the performance – everything is safely secured in the system.

BambooHR brings a lot to the table, all the while keeping user-ease a priority. And this is precisely why it became my instant favorite HR management software.

Key Features

  • Applicant tracking abilities to make recruitment hassle free
  • Central employee database for keeping records at one place
  • Custom workflows and approvals for smooth execution of processes
  • E-signature functionality for time management
  • Time tracking module that includes daily time entry, timesheets, and approvals
  • Employee performance management portal

2. Namely

A comprehensive HR management solution meant for large teams and their needs.

HR software designed for teams looking for a hefty feature set and freedom to customize.

Starting from: Request quote (no information on website)
Pricing model: Request quote
Free Trial: Available
Devices: Android, iOS, Web

  • Employee Onboarding Tool
  • Time Tracking and Attendance Management
  • Talent Acquisition and Management
  • Payroll Management
  • Employee Benefits Administration
  • Workflow and Analytics
  • Custom Roles and Permissions
  • Custom Profiles
  • Organizational Charts
  • Mobile Apps

  • No public information about pricing
  • Can be over complicated for beginners

Namely is safe haven for anyone looking for an elaborate HR system. It brings together the advanced functions of HR management and wraps them perfectly in an easy-to-use interface. The tech savvy HR experts might find it to be the perfect solution they’ve been looking for.

The software comes with custom controls and allows the users to leverage their freedom in a way they want. It can be considered as a breath of fresh air because not many tools allow this liberty. Another noticeable functionality of Namely is the ability to review employee training using customizable templates in the dashboard.

Key Features

  • Intuitive and user-friendly interface to make things easy
  • Social networking feed for company updates
  • Namely exchange for managing employee benefits
  • Employee engagement through a single, integrated platform
  • Employee performance review capabilities
  • Advanced HR analytics and dashboards for powerful reporting

3. PeopleSoft

Technology driven feature set + highly scalable application = PeopleSoft

An enterprise-level best HR software coming with powerful modules to automate people management like a pro.

Starting from: Request quote (no information on website)
Pricing model: Request quote
Free Trial: Available
Devices: Web

  • Optimized Workflow Management
  • Automated Leave Management
  • Performance Review Module
  • Online Analytical Capabilities
  • Compensation Management
  • Payroll and Benefits Processing
  • Career Development and Talent Review
  • Inventory and Supplier Management
  • Financial and Audit Management
  • Advanced Controls and Permissions

  • Not suitable for startups or small businesses
  • Extensive trainings might be required for understanding the system
  • No public disclosure of pricing plans
  • No mobile apps available

PeopleSoft is HR software which gives tough competition to its contenders. What’s distinctive about the tool is the selective, not to forget, intricate modules that are smartly put together to deploy the best solution for you and your team.

It nicely brings together talent management, financial management, and workforce management under one umbrella. Quite evident, the advance spectrum of tools is quite intimidating and gives other software in the market a run for their money.

It is, however, important to understand that it might not be a viable fix for beginners and can prove to be unsuitable for company with less than 500 employees.

Key Features

  • Core human capital management features, including workforce directories
  • Payroll solution for native, as well as global employees
  • Time and labor management, along with leave management
  • Travel and expense management to keep track of money
  • Succession planning and enterprise learning management
  • Real-time alerts of overtime, and other crucial labor data
  • Performance monitoring and tracking for benefits planning

4. Zenefits

One of the best HR software for small businesses which also bags the award for the most user-friendly interface.

An HR system which improves efficiency by automating key HR functions and acts as a quick fix for all of your HR needs.

Starting from: $8/month/employee
Pricing model: Subscription based
Free Trial: Available
Devices: Android, iOS, Web

  • Smooth User Experience
  • Extensive Employee Records
  • Hiring and Onboarding Management
  • Employee Benefits Management
  • Automatic On/Off Boarding
  • Automatic Payroll Scheduling
  • Employee Directory
  • Business Intelligence Reports
  • Automatic Time Scheduling
  • Mobile Apps

  • Advanced features available in higher pricing plans
  • Per employee payment model
  • Mobile app supports limited admin controls

If you’re someone like me who isn’t sold by a fancy feature set, Zenefits is for you. One of my personal favorite HR software for small businesses, it steals the limelight primarily because of its excellent balance.

It’s not too dominating like PeopleSoft, and neither does it overpower small businesses with ostentatious features like Namely. The tool serves the purpose of a convenient, yet effective HR system pretty admirably.

Key Features

  • Auto send of offer letters to new recruits
  • Benefits administration and management for seamless processing
  • Automatic payroll sync to timely update all the necessary changes
  • Single platform dashboard to collaborate with your team members in real time
  • Pay preview to manage employee paychecks before final processing

5. People HR

A unified HR solution which pretty much offers everything a small or mid-sized business can ask for.

A multi-functional HR software designed to automate and streamline your key HR workflows.

Starting from: £3/month/employee
Pricing model: Subscription based
Free Trial: Available
Devices: Android, iOS, Web

  • Recruiting Management
  • Employee Database Management
  • Automated Onboarding & Off-boarding
  • Employee Benefits Management
  • Custom User Roles
  • Custom Reporting
  • Employee Self-Service Capabilities
  • Learning Management
  • Performance Appraisals
  • Time & Attendance Tracking

  • Customizability is limited
  • Advanced reporting module is missing

People HR provides a reliable platform for automating all of your essential HR functions. The central focus of the tool revolves around establishing a stable HR system for your team. And, I must admit, it succeeds in it too.

A deeper understanding of the tool made me come to the conclusion that the tool is as straight forward as it can get. Standing true to its name – People HR – it really does provide a people oriented solution for all of your people management needs.

Key Features

  • Recurring tasks automation for developing a workflow
  • Central employee database for storing information in one place
  • Holiday requests planning and leave management
  • Integration with other payroll services to streamline payroll processing
  • Employee timesheets for keeping track in real-time
  • Automated expense authorizations and approvals
  • A virtual HR assistant to help you extract important information when required

6. Kronos

Another enterprise level HR software coming with an array of features to help you with an ever changing HR landscape.

A solid HR management software which offers high level of configurability and a powerful feature set to raise the bar a bit higher.

Starting from: Request quote (no information available on website)
Pricing model: Request quote
Free Trial: Available
Devices: Android, iOS, Web

  • Affordable Pricing
  • Enterprise-level Functionality
  • Payroll Data Access
  • Automated Payroll Processing
  • Timesheet and Absence Management
  • Benefits Administration
  • Talent Acquisition and Onboarding Module
  • Workforce Data and Labor Analytics
  • Performance Analytics Management
  • Automated Alerts and Reminders
  • Custom Access Controls and Permissions
  • No flat pricing structure

  • Steep learning curve
  • Can appear to be complex for many users

Kronos comes neck-and-neck with BambooHR when it comes to the type of features being offered. Both tools can be considered as solid contenders for advanced HR needs. But, in all honesty, I found BambooHR to be kinder when it came to the learning curve.

The suite of products Kronos offers require ample time to get a grip on. Which is why I would not recommend it if you’re just starting out.

Though the software positions itself as a right fit for SMBs too, but to consider it as one would be a blow on the dignity of other tools which are specifically serving that target market. The multitude of features can most certainly prove to be too powerful for SMBs.

Key Features

  • Applicant tracking system to easily navigate through the entire hiring process
  • Elaborate performance management and reviews for all the current employees
  • Payroll management, along with payroll information editor
  • Real-time visibility into workforce activities, as well as valuable insights regarding performance
  • Automated enrollment and benefits administration tool
  • Formal succession planning strategy and 360 degree organizational view

Simply put, HR systems provide leverage to teams which otherwise is quite difficult to get. On top of that, ever changing employee needs make it a priority to invest in one. Hope my review helped you in choosing the best HR software for your business.

Is there any tool you would like to be added in this list? Comment away!

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