The Best HR Software For Your Business – 2020 Review
Want to jump straight to the answer? The best HR software for most people is Gusto or BambooHR.
The best HR software provides employees with the tools they need to manage company policy, compliance, scheduling, and more.
When HR solutions were first released, it was typically licensed as on-premise software. But today, cloud-based technology has made it much easier for businesses to attain and use HR tools to streamline their processes.
Whether you’re a first-time buyer or looking to switch from your existing HR solution, you’ve come to the right place. I’ll help you find the best HR software for your business.
The 7 Best HR Software
After researching dozens of HR solutions on the market today, I’ve narrowed down the top seven that you should consider:
Continue below to learn more about the features, benefits, prices, use cases, and potential drawbacks of each one on the list.
#1 – Gusto — Best HR Software For Small Business Payroll
- Trusted by 100k+ businesses
- Payroll and benefits
- Manage compliance
- Month-to-month pricing
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Gusto is best known for its online payroll services. But the platform also has additional HR features, making it perfect for startups and small businesses.
More than 100,000 small businesses trust Gusto for payroll and HR.
The platform is super easy to use. Business owners who are managing payroll and HR on their own without a dedicated department can still navigate through Gusto with ease.
Gusto automatically calculates and files local, state, and federal taxes. It seamlessly integrates with tools like Quickbooks, Xero, Clover, TSheets, and more.
Gusto allows you to also manage health insurance. There are more than 3,500 medical, dental, and vision plans available through Gusto’s licensed advisors. Other employee benefits options available on Gusto include 401(k) retirement, 529 savings, workers’ compensation, HSA, life and disability, commuter benefits, and more.
Use Gusto to manage compliance for things like HIPAA, COBA, Department of Labor, IRS, ACA, and ERISA.
Here’s a quick overview of Gusto pricing:
- Core — $19 per month + $6 per person
- Complete — $39 per month + $12 per person
- Concierge — $149 per month + $12 per person
Gusto also has a free plan for businesses that haven’t hired W-2 employees. You can use Gusto to pay 1099 contractors for just $6 per month per person.
All Gusto pricing is month-to-month, so you can can cancel at any time without a long-term commitment. Get started here.
#2 – BambooHR — Best Human Resources Management System (HRMS)
- For small and medium businesses
- 1.56+ million active employees
- Great mobile app
- 7 day free trial
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For businesses seeking a complete HRMS solution, BambooHR will be a top choice for you to consider.
This software is trusted by more than 17,000 companies and has 1.56+ million active employee users for very good reason.
BambooHR places a big emphasis on your employees. The software specializes in hiring, onboarding, compensation, and company culture.
Designed for small and medium businesses, the solution makes it easy for business owners and HR departments to collect, maintain, and analyze data about their employees. This information will ultimately help the way you hire new talent and create a culture that empowers your team.
They also offer an excellent user interface. That way even the newest employee can learn the ropes quickly.
Some of the top features offered by BambooHR software include:
- Employee records
- Benefit tracking
- Time off management
- Company calendar
- Onboarding and offboarding
- Applicant tracking system (ATS)
- Company branding
- Advanced HR reporting
- Tailored workflows and approvals
BambooHR also has an exceptional mobile app that’s ideal for employees and HR administrators alike. You can purchase add-ons for things like performance management and time tracking.
Pricing for BambooHR is not available online. You’ll need to contact their sales team to get a quote.
Unfortunately, payroll isn’t available for this software. So you’ll need to run your payroll elsewhere. Check out our guide of the best online payroll services for some guidance in that department.
Try BambooHR free for seven days.
#3 – Sage Business Cloud People — Best For Multinational Organizations
- Made for mid-sized businesses
- Supports international employees
- Local and national compliance
- Easy to scale
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Sage offers a wide range of products for businesses from accounting tools to management and more.
The company’s Sage Business Cloud People is an ultra-specific HR solution. It’s designed for medium businesses with a global presence.
Sage makes it easy to manage HR for employees across the world. They help you create a single global policy for your entire organization while remaining compliant with all local and national regulations.
So it doesn’t matter if you have employees in Chicago and Singapore—Sage has your back.
The platform is ideal for businesses with 200 to 5,000 employees. Small businesses should look elsewhere for HR needs.
Sage is robust enough to scale with your medium-sized company as it grows. It has everything you need to attract, maintain, and manage your workforce at a global level.
Compared to other HR services on the market today, the setup for Sage Business Cloud People is a bit complex. They advertise as offering “rapid implementation,” but if you read the fine print, it says you can go live in as little as 90 days.
Three months is a long time to get set up. So if your HR needs are time-sensitive, this platform probably isn’t for you.
Pricing for Sage Business Cloud People is not available online. Contact their sales team to book a free demo.
#4 – Zenefits — Best All-In-One Human Resources Software
- All-in-one HR solution
- Starting at $8 per month
- Free payroll for one year
- 14 day free trial
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Zenefits is trusted by 11,000+ businesses and used by more than 400,000 employees.
Where they really shine though is their all-in-one HR solutions. Zenefits provides features for compensation packages, employee onboarding, PTO management and requests, employee management, and more.
The provide built-in compliance features and safeguards to help you prevent accidental mistakes. The software automates the majority of compliance tasks and government filings as well.
With Zenefits, you’ll be able to increase employee productivity throughout your organization. Your staff can use Zenefits for things like self onboarding, choosing benefits, and signing documents.
Here’s a quick overview of the plans and pricing for Zenefits:
The rates are affordable. Also, depending on the size of your organization and the needs of your HR department, there’s a plan for everyone.
Payroll is not included in any of the base plans, but you can add it on for $6 per employee.
For a limited time, Zenefits is offering one free year of payroll to help small and midsize businesses during the COVID-19 pandemic. There are some restrictions; for example, you must sign up for an annual HR subscription plan.
Try Zenefits free for 14 days.
#5 – Namely — Best HR Software for Mid-Sized Companies
- Made for mid-sized businesses
- Easy to scale
- Built-in payroll processing
- Lots of integrations
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Namely is a full-service HR solution for mid-sized organizations.
It’s trusted by 1,400+ businesses, so it’s not quite as popular as some of the other options on our list. But don’t let that number fool you. Namely’s HR solution has everything you need to manage a mid-sized HR department at scale.
With Namely, you’ll benefit from core features like:
- Employee management
- Talent management
- Benefits administration
- HR compliance
- Time and attendance
The software processes over $10 billion in payroll each year, so it’s great to have that feature built-in.
You’ll have access to live HR advisers, a learning management system, a living handbook, and OSHA logs to manage your HR compliance. Namely has enhanced services for things like benefits consulting as well.
The software is easy to use, and employees love it. Accessing pay stubs and requesting time off is just a few clicks away from the web portal or mobile app.
On average, HR departments save 11 hours per week by switching to Namely. Imagine how much more productive you could be with an extra 572 hours per year to spare.
Namely integrates with third-party tools for things like applicant tracking, e-sign, time and attendance systems, background checks, international payroll, and more. If you’re using already using a tool and can’t find it on the pre-built list of integrations, you can build your own through the secure Namely API.
Pricing for Namely HR is not available online. You’ll need to request a free demo and quote.
#6 – SAP SuccessFactors — Best HCM Software Suite
- Ideal for SMEs
- All-in-one product suite
- HR analytics
- Workforce management tools
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SAP SuccessFactors specializes in HR software for HCM (human capital management). They put a unique twist on HCM and HRMS with the SAP SuccessFactors HXM suite.
If you’re not familiar with the acronym HXM, it’s probably because it isn’t an industry term. SAP coined the phrase “Human Experience Management” for this product suite.
This cloud-based human resources software is segmented into four different categories of products:
- Employee experience management
- Core HR and payroll
- Talent Management
- HR analytics and workforce management
As you can see, the product suite covers everything your HR department could possibly need.
The platform is robust and feature-rich, but it’s likely overkill for most small businesses. I’d recommend SAP SuccessFactors to larger organizations and SMEs. A small and mid-sized enterprise would benefit more from some of the advanced features offered in this product suite, especially in terms of analytics and workforce management.
Pricing for SAP SuccessFactors is not available online. You’ll need to contact the customer service team via phone, email, or live chat to get more information.
#7 – People HR — Best For Applicant Tracking and Recruitment
- Applicant tracking system
- Starts at $5 per month
- Secure top-level talent
- Essential HR features
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The People HR software is best known for its applicant tracking and talent recruitment features. But it also has a wide range of human resources essentials that you can benefit from. This UK-based company provides HR services to companies throughout the world.
In terms of the HR essentials, People HR provides features for:
- Automating repetitive HR tasks
- Centralized employee information hub
- Vacation planning and absence management
- Timesheets and time recording
- Expense reporting and approvals
Payroll is not built-in to People HR, but the software integrates with ADP, Sage Payroll, Ceridian, and Activpayroll.
The ATS (applicant tracking system) is the feature that really makes People HR shine. It allows you to easily attract, identify, and secure top-level talent. Publish open positions, screen for talent, manage your shortlist, and send an offer directly through the platform.
Here’s a quick overview of the plans and price points for People HR:
- Team — $5 per employee per month
- Professional — $6 per employee per month
- Enterprise — $8 per employee per month
- Elite — $10 per employee per month
As you can see, the rates are extremely affordable, even for smaller organizations. Although it’s worth noting that the recruitment and applicant tracking features aren’t available in the Team or Professional plans. You’ll need to upgrade to Enterprise or Elite to access those features.
Try it for free; no credit card required.
What is HR software?
Human resources software helps businesses of all sizes manage various aspects of HR processes. From employee onboarding to payroll, benefits, training, and more, HR software makes everything easier for your HR staff and employees alike by giving you the tools you need.
Without HR software, organizations face a bottleneck in the HR department. The only way for employees to access information is by calling HR, sending an email, or physically visiting the HR office.
These scenarios aren’t realistic for the modern workforce, especially with so many people working remotely or in the field.
How to Find the Best HR Software For Your Business
With so many HR solutions on the market today, finding the best option for your business can feel like a daunting task.
Fortunately, I’ll explain what factors and elements you need to take into consideration as you’re evaluating prospective solutions. This is the methodology that we used to pick the winners on our list.
The first way to narrow your options down is by the number of employees you have. Startups and small businesses with 20 employees won’t have the same needs as a company with 200 or 2,000 employees.
Startups and small businesses should look to solutions like Zenefits or Gusto. Namely and SAP SuccessFactors are better for medium businesses.
It’s important to make sure that your HR software can scale with you as your company grows.
What exactly do you need HR software for?
My needs might not be the same as yours. Not all software provides every single HR capability. So you need to identify the main reason why you’re seeking HR software.
For example, you won’t find payroll on the feature list for the majority of software on our list. In most cases, you’ll have to pay extra to get payroll on the few platforms that do offer it.
Other solutions address specific needs, like human capital management (HCM), applicant tracking systems (ATS), and human resources management system (HRMS). Some providers address ultra-specific needs, such as HR software for managing international employees.
In addition to your core needs, you should look to see what other additional features are offered by the software you’re evaluating.
Mobile apps and employee self-service tools are nice to have. Time tracking, time-off management, onboarding tools, and dozens of other features won’t necessarily fall into the “core HR” feature list. But they’re still great to have if you’re trying to optimize your HR department.
Just don’t let a long list of additional features distract from your primary HR needs.
Most HR software is billed on a monthly basis per employee. These rates can start as low as $5 per employee per month.
Some platforms charge a base rate for your core plan, and then charge a per employee rate on top of it. Other software has different per employee rates based on the features available in the plan you select.
Not every HR solution has transparent pricing available online. In some cases, you’ll have to contact the sales team to request a quote and demo. Always test out the software with a free trial when its available before you commit to anything long term.
What’s the best HR software on the market today? Generally speaking, there is no “best for everyone” solution.
If your priority is small business payroll, choose Gusto. For a complete HRMS, try BambooHR or Zenefits. Mid-sized organizations should learn towards solutions like Namely. People HR is our top recommendation for applicant tracking and recruitment.
Check out SAP SuccessFactors for an HCM product suite. For mid-sized organizations with international employees, we recommend Sage Business Cloud People.
Regardless of your business size, industry, or HR needs, you can find what you’re looking for using this guide.