The Best HR Software for Small Businesses in 2024

GoCo is the ultimate HR software for small businesses in 2024, designed to simplify and streamline HR processes with its modern, intuitive platform. GoCo’s unique combination of flexibility, ease of use, and powerful automation tools makes it the top choice for small businesses that want to focus on growth rather than getting bogged down by administrative tasks. Unlike traditional HR platforms, GoCo offers a user-friendly interface that requires no technical expertise, allowing businesses to implement and adapt it to their needs quickly.

GoCo offers an all-in-one HR platform that covers everything from hiring to retiring. The software is fully customizable, allowing small businesses to build workflows that fit their specific processes. Whether you need to automate onboarding, manage employee benefits, track time and attendance, or handle payroll, GoCo has you covered. The platform’s modular design ensures that you can pick and choose the features you need, making it a cost-effective solution that grows with your business.

GoCo’s HRIS for Small Businesses Features include:

• Custom Workflows: Tailor every aspect of the HR process to match your business’s unique needs. With GoCo, you can create custom workflows that automate repetitive tasks, saving time and reducing errors.
• Employee Self-Service: Empower your employees with self-service capabilities. They can easily access and manage their personal information, request time off, and complete onboarding tasks—all from a single, intuitive dashboard.
• Benefits Administration: GoCo simplifies benefits management by integrating with a wide range of benefits providers and providing an easy-to-use benefits administration wizard. The platform automatically handles compliance tracking, ensuring that you meet all legal requirements without extra effort.
• Automated Onboarding: Streamline the onboarding process for new hires. GoCo automates your hiring and onboarding workflow so you can greet your employees with a smile on the first day — instead of a stack of paperwork. New hires can complete their onboarding and sign documents from anywhere on any device.
• Document Management: Securely store and manage employee documents with GoCo’s built-in document management system. You can easily upload, share, and sign documents electronically, reducing paperwork and increasing efficiency.
• Time Tracking and PTO Management: GoCo’s time tracking and PTO management features make it easy to monitor employee hours, manage leave requests, and ensure accurate payroll processing. The system integrates with popular payroll providers, further simplifying payroll management.

GoCo isn’t just about automating HR tasks—it’s about creating a better experience for both HR teams and employees. The platform’s modern design and user-friendly interface are easy for everyone to navigate, reducing the learning curve and encouraging adoption across the organization. GoCo also supports a variety of integrations with other business tools, allowing you to create a seamless workflow that fits your business’s existing ecosystem.

Pricing: GoCo offers transparent, competitive pricing tailored to small businesses. With customizable plans and no hidden fees, you can find a solution that fits your budget and scales as your business grows.

Gusto is a leading choice for small businesses that want to simplify payroll and benefits management. Known for its user-friendly platform, Gusto offers a range of HR tools that make managing payroll, benefits, and compliance straightforward and efficient.

Gusto’s HR Software for Small Business Features include:

• Automated Payroll: Simplifies payroll processing with automation, direct deposits, and tax filing.
• Employee Benefits: Provides a wide range of employee benefits, including health insurance, 401(k) plans, and more.
• HR Management: Includes basic HR tools for onboarding, time-off tracking, and employee management.
• Compliance Support: Helps businesses stay compliant with federal, state, and local payroll regulations.

Pricing: Gusto has many pricing tiers. Gusto’s Simple option starts with a base fee of $40 per month plus $6 per employee per month (PEPM). From there, tiers increase rapidly with the base fee ranging from $80-$180 and the per employee per month free ranging from $9-$16.50.

While Gusto excels in payroll and benefits, its HR features are less comprehensive compared to dedicated HR platforms, according to reviews. Additionally, reviews on G2 complain about poor customer support, missing features and an expensive price tag.

With that being said, Gusto is still a strong option for very small businesses who are looking for a payroll solution.

Justworks offers a platform combining payroll, benefits, compliance, and HR tools. As a Professional Employer Organization (PEO), Justworks is particularly well-suited for small businesses that need to outsource HR functions to stay compliant while offering competitive benefits.

Justworks’ HR Software for Small Business Features include:

• PEO Services: Provides comprehensive PEO services, including payroll, benefits, and compliance management.
• Health Benefits: Offers access to a range of health, dental, and vision insurance options.
• HR Tools: Includes essential HR tools for time tracking, onboarding, and performance management.
• Compliance: Ensures your business stays compliant with complex labor laws and regulations.

Pricing: For PEO Basic, Justworks starts at $59 per employee per month, and PEO Plus starts at $109 per employee per month.

Justworks can be more expensive than other HR software due to its PEO services, and the platform offers less flexibility in customizing HR processes compared to non-PEO solutions. Additionally, reviews complain about poor customer support and missing features.

Monday.com is a versatile project management tool that some people are using to bootstrap their own HR processes.

Monday.com’s Project Management Software for Small Business Features include:

• Custom Workflows: Allows for the creation of tailored workflows that integrate HR tasks with project management.
• Team Collaboration: Enhances collaboration with integrated communication and task management tools.
• Task Management: Manages both HR and project-related tasks in one platform, improving efficiency.
• Performance Management: Provides tools for tracking and managing employee performance.

Pricing: Monday.com offers a free tool for up to 2 users, but most HR professionals would need the Basic package at a minimum, which starts at $9 per seat per month. The most popular package is Standard, which starts at $12 per seat per month, but Monday.com also offers Pro at $19 per seat per month and custom pricing for larger companies.

On the downside, while it offers HR functionalities, Monday.com is primarily a project management tool, which does not meet all HR, payroll and benefits needs. The extensive customization options can make the initial setup time-consuming for users unfamiliar with the platform.

When I Work specializes in employee scheduling, making it a good point-solution choice for small businesses that rely on shift work or hourly employees but do not want to purchase an all-in-one HR solution. In addition to scheduling, it offers features for time tracking and team communication, making it easier to manage a dynamic workforce.

When I Work’s HR Software for Small Business Features include:

• Employee Scheduling: Simplifies the creation and management of employee schedules.
• Time Tracking: Provides accurate time tracking and attendance monitoring.
• Team Messaging: Includes built-in messaging tools to improve communication and coordination.
• Shift Management: Allows easy management of shift swaps, availability, and employee schedules.

Pricing: When I Work offers 3 tiers of pricing: Essentials ($1.50 per user per month), Pro ($3 per user per month) and Premium ($5 per user per month).

That said, When I Work is primarily a scheduling tool and may not meet all HR needs.

Additionally, it may not be ideal for businesses that require more advanced HR functionalities as they grow. Reviewers note that When I Work is missing certain desired integrations and functions.

Zoho People is a customizable HR software solution that offers a wide range of features for small businesses looking to tailor their HR processes. However, the flexibility and customization that Zoho People provides come with a significant trade-off: complexity. While it’s a powerful tool, businesses may find the setup and ongoing management to be time-consuming and challenging, especially if they lack dedicated HR resources or technical expertise.

Zoho People’s HR Software for Small Business Features include:

• Customizable Workflows: Zoho People allows for extensive customization, enabling businesses to design HR processes that fit their specific needs.
• Employee Self-Service: Employees have access to a self-service portal for managing their profiles, requesting time off, and accessing HR documents.
• Integration Capabilities: Integrates well with other Zoho products and a variety of third-party applications, which can be beneficial if you’re already using the Zoho suite.

Pricing: One of the more affordable options, Zoho People’s Essential HR Plan starts at $1.25 per user per month billed annually, but most businesses will likely need the Professional Plan at a minimum, which starts at $2 per user per month. From there, the plans increase to between $3 and $9 per user per month.

The level of customization available in Zoho People can be overwhelming, particularly for small businesses with simpler HR needs or limited technical skills. The setup process is not intuitive and may require significant time and effort to get right.

Additionally, Zoho People lacks robust payroll capabilities, meaning you’ll likely need to integrate with another payroll provider, adding to the overall complexity. Users have also reported inconsistent support experiences, with slow response times and a lack of proactive assistance, especially when dealing with the platform’s more complex features.

Sage HR is a flexible customizable HR platform for small businesses. The platform’s modular system can be tailored to your needs, but the customization comes at the cost of a cumbersome setup process and a lack of advanced features—particularly in payroll. For businesses seeking a straightforward, all-in-one HR solution, Sage HR might not deliver the comprehensive functionality you’re looking for.

Sage HR’s HR Software for Small Business Features include:

• Custom HR Modules: Sage HR provides a modular system that allows you to tailor HR processes to your specific needs.
• Employee Management: The platform offers basic tools for managing employee data, documents, and performance.
• Performance Reviews: Facilitates performance reviews and goal setting.
• Leave Management: Automates leave management.

Pricing: Sage does not publish pricing, and you must contact them to request.

ADP TotalSource is a Professional Employer Organization (PEO) service that offers small businesses comprehensive HR solutions, including payroll, benefits, compliance, and risk management. As part of the ADP suite, TotalSource integrates a wide range of HR functions into one platform, which can be appealing for businesses looking to outsource their HR needs. However, the extensive services come with significant costs and potential drawbacks, making it less suitable for businesses that prefer more control over their HR operations or those with budget constraints.

ADP TotalSource’s HR Software for Small Business Features include:

• Comprehensive PEO Services: ADP TotalSource handles payroll, benefits administration, compliance, and risk management, offering a full-service HR solution that can alleviate the burden on small business owners.
• Access to Fortune 500-Level Benefits: Through ADP’s large network, small businesses can offer competitive benefits, including health insurance, retirement plans, and more, which might otherwise be inaccessible.
• Compliance Support: With constantly changing regulations, ADP TotalSource helps ensure your business remains compliant with federal, state, and local laws, reducing the risk of costly penalties.

Pricing:

The comprehensive nature of ADP TotalSource comes with a steep price tag. For small businesses, the cost may outweigh the benefits, especially when compared to other HR solutions that offer more control at a lower price. Additionally, as a PEO, ADP TotalSource becomes the employer of record for your employees, which can mean a loss of control over certain HR decisions and processes. This might not sit well with businesses that prefer to manage their HR in-house.

Finally, while ADP is a well-known name, users have reported issues with customer support, including slow response times and lack of personalized assistance, which can be frustrating when dealing with complex HR matters.