The 6 Best HR Software for Small Businesses in 2023

RUN by ADP: Best overall

Our star rating: 3.9 out of 5

ADP is one of the world’s best HR software companies. While ADP has several products that support businesses of all sizes in all industries, its most popular small-business product is RUN Powered by ADP, which empowers business owners to pay employees, onboard new hires, perform background checks, launch HR trainings and more.

Plans and pricing

ADP doesn’t list pricing for its RUN Powered by ADP product online, so potential customers must contact the company directly for a quote. ADP is also one of the only HR software providers to offer a free trial: New users can get up to three months free.

HR features

• Unlimited payroll runs with automatic state, federal and local tax filing.
• End-of-year tax form filing (Form W-2 and Form 1099).
• Add-on medical, dental and vision insurance benefits.
• Onboarding, hiring and reporting tools.
• Optional HCM features like applicant tracking systems and learning management systems.

Pros

• Thorough payroll and HR features.
• Excellent employee benefits in all 50 states.
• Multiple plans and pricing tiers for maximum scalability.
• Comprehensive blend of payroll and HR features tailored toward small businesses.

Cons

• No transparent pricing on site.
• Price may be too expensive for some small businesses.
• Most HR tools limited to two most expensive plans only.

Our ADP review explores ADP’s pros, cons, pricing and features in more detail.

Gusto: Best payroll processing

Our star rating: 4.1 out of 5

Gusto’s cloud-based HR and payroll software gives small-business owners an easy way to pay their employees without wasting time on complicated payroll concerns. Although Gusto’s software focuses primarily on enabling easy payroll processing, it also offers basic HR tools that most small businesses can’t do without, including employee benefits and new-hire onboarding.

Notably, business owners can use Gusto to find healthcare and other benefits for employees. Since Gusto has its own insurance brokerage, businesses don’t have to pay extra to integrate their benefits with their payroll software — the insurance premium is your only cost.

Plans and pricing

Gusto’s three plans ensure the software is scalable for small businesses that plan to expand. While all three plans contain the same excellent payroll features, the two pricier plans include far more HR features than the cheapest plan, which includes only basic HR tools:

• Gusto Simple: $40 per month plus $6 per employee. Third-party time-tracking integrations, employee benefits administration and full-service single-state payroll.
• Gusto Plus: $80 per month plus $12 per employee. Adds free multi-state payroll, additional onboarding features, PTO management and built-in time tracking.
• Gusto Premium: Custom pricing only. Adds compliance alert, HR resource center access and one-on-one HR expert advice.

Gusto also has a contractor-only plan that includes complete payroll processing features without the HR features that don’t apply to most independent contractors.

HR features

• Built-in employee benefits and workers’ compensation administration.
• Automatic new-hire reporting.
• Custom PTO policy creation and time-off management.
• Hiring tools like background checks and applicant tracking system access.
• Email and software provisioning and deprovisioning for new hires and exiting employees.

Pros

• Straightforward syncing with dozens of third-party business software apps, including accounting and time-tracking apps.
• More comprehensive HR features as companies grow and scale up to pricier plans.
• Extensive payroll, HR, time-off and workforce cost reports.
• Remote team management tools.

Cons

• Healthcare benefits limited to 36 states.
• HR library access and compliance alerts available with only the priciest plan.
• No mobile payroll app for employers (mobile-friendly site).

Our Gusto review explores Gusto’s pros, cons, pricing and features in more detail.

Rippling: Most comprehensive HR tools

Our star rating: 3.8 out of 5

Rippling’s fully automated payroll features make it one of our top payroll providers for small businesses, but its suite of HR features is potentially even more impressive. Through Rippling, small businesses can access HR tools usually reserved for midsize and large businesses, including compensation management, employee surveys, global headcount planning, learning management system access and more.

Rippling also has some unique IT and finance features that integrate easily with its payroll and HR suite of products. Businesses with remote teams can use Rippling for password management, employee expense reimbursement and remote device setup.

Plans and pricing

Rippling doesn’t list its monthly base fee online, but its per-employee payroll fee starts at $8 per contractor or employee paid per month. With Rippling, businesses can build their own unique finance, tech, HR and payroll packages from the ground up, which means a custom quote is required for most businesses.

HR features

• One-click job board posting.
• Hiring workflows customizable by position, department and seniority.
• Customizable learning management system courses.
• Global payroll, including international employee benefits.
• Centralized location for all company announcements and other resources.

Pros

• Customizable, scalable packages that work for businesses with anywhere from two to 2,000 global employees.
• Finance, tech, HR and payroll modules combine to create an all-in-one business management platform.
• Well-reviewed customer support team.

Cons

• Frequent software updates may be deployed with little warning.
• Thorough customizability may have a steep learning curve for first-time software users or business owners.
• Limited transparent pricing online.

Our Rippling review explores Rippling’s pros, cons, pricing and features in more detail.

Paychex Flex: Best employee benefits

Our star rating: 3.5 stars out of 5

Paychex is a well-rounded payroll and HR system that targets small, midsize and some large businesses. For the most part, its extensive HR features are offered as add-ons rather than being bundled with specific plans only. Instead of scaling up to a more expensive payroll plan, small businesses have the flexibility to choose an affordable payroll package while paying for only the HR features they need.

Along with its payroll and HR software, Paychex also has a PEO plan for small businesses that want to outsource their human resource department. Even if you choose a payroll software plan rather than Paychex PEO, you still have access to high-quality, PEO-level employee benefits. (The same is true for small businesses that use SurePayroll, a highly affordable payroll company owned by Paychex.)

Plans and pricing

Paychex lists the pricing for just one of its plans online. Its two other payroll plans require customers to get a custom quote:

• Paychex Flex Essentials: $39 per month plus $5 per employee. Full-service payroll processing, wage garnishment, benefits administration and HR library.
• Paychex Flex Select: Custom pricing only. Adds a learning management system.
• Paychex Flex Pro: Custom pricing only. Adds general ledger reports, employee handbook wizard and pre-employment screenings.

While Paychex doesn’t advertise a free trial, new customers can set up a Paychex account and import data for free. You won’t be charged until your first payroll run.

HR features

• Expansive HR library with hundreds of HR templates, documents, posters and more.
• Mobile payroll and HR apps for employers and employees.
• Optional hiring tool add-ons, including job board posting and candidate screening.
• Optional personnel management tool add-ons, including performance tracking and an employee handbook builder.

Pros

• Better-than-average HR library available with every plan.
• PEO-level employee benefits, including healthcare in all 50 states.
• International payroll available through Paychex’s partner FMP Global.
• Paychex PEO plus three scalable payroll/HR plans for flexibility and scalability.

Cons

• Add-on fees for basic services.
• General ledger report with most expensive plan only.
• Most HR features available only as add-ons, even with most expensive plan.

Our Paychex review explores Paychex’s pros, cons, pricing and features in more detail.

Justworks: Best PEO

Our star rating: 3.7 stars out of 5

As a domestic professional employer organization, Justworks partners with U.S.-based small businesses to take payroll and HR off their hands. While you deal with running your business, Justworks deals with processing payroll, onboarding employees, finding the best benefits and gauging employee satisfaction at work.

Justworks’ software automates and streamlines every phase of the employee life cycle, from onboarding new hires to assigning admin permissions to users with different job titles and levels of seniority. Along with offering standard employee benefits, Justworks also has employee health and wellness perks like gym reimbursements and commuter benefits.

Plans and pricing

Justworks is an exception to most other PEO companies in that it lists its pricing online, which makes it easier for potential customers to decide whether Justworks is right for them or not:

• Justworks Basic: $59 per month per employee (or $49 per month per employee for your 50th hire onward). Payroll, HR consulting, expense management and PTO management.
• Justworks Plus: $99 per month per employee (or $89 per month per employee for your 50th hire onward). Adds employee benefits.

Justworks Hours, Justworks’ time and attendance tracker, is available only as an add-on feature. It starts at $8 per month per employee.

HR features

• Remote hiring tools, including state-by-state compliance alerts.
• Medical, dental and vision insurance benefits.
• Applicant tracking through Greenhouse.
• Unique employee benefits like online counseling through Talkspace and fitness club membership through ClassPass.
• PTO policy creation and time-off tracking.

Pros

• 24/7 customer service with access to HR experts.
• Hands-off human resource outsourcing.
• Streamlined self-service onboarding for remote employees.
• Comprehensive HR resource center.

Cons

• Fewer HR features than some non-PEO competitors.
• Cost nearly doubles for access to employee benefits.
• Additional fee for time tracking.

Our Justworks review explores Justworks’ pros, cons, pricing and features in more detail.

Papaya Global: Best international benefits

Our star rating: 3.7 stars out of 5

Papaya Global is a global payroll service that makes it possible for small businesses to pay employees in more than 160 countries. Along with processing payroll in dozens of local currencies, Papaya helps small businesses offer competitive global benefits that stand out on a local level. Its team of compliance experts with on-the-ground experience in dozens of countries help small businesses comply with complex labor laws across the world.

Plans and pricing

Papaya Global’s payroll and HR services range from a few dollars per employee per month to a few hundred dollars per employee per month. It offers several solutions to better serve a wide range of multinational businesses operating on vastly different budgets:

• Payroll Platform License: $3 per employee per month. Expands business’s current payroll and payment systems to a global level.
• Full-Service Payroll: $12 per employee per month. Includes international payroll processing in 160+ countries.
• Payments-as-a-Service: $3 per employee per month. Enables faster global payments for remote international workforces.
• Contractor Management: $2 per contractor per month. Pays contractors in 160+ countries around the globe.
• Employer of Record Service: $650 per employee per month. Allows businesses to hire in more countries with less red tape.
• Global Expertise Services: $190 per employee per month. Includes global employee benefits and immigration support.

Note that the prices listed here are starting prices only. Interested customers will need to contact Papaya Global directly for a customized quote.

HR features

• Global health care benefits.
• Immigration support.
• Global equity benefits.
• Thorough workforce and payroll analytics.

Pros

• Extremely affordable starting prices for global employee and contractor payroll.
• Payment in dozens of local currencies.
• Expansive benefits tailored to local cultures.
• Fast go-live for new clients.

Cons

• Fewer HR features than some domestic payroll and HR companies.
• More expensive EOR service than some key competitors.
• Email-only customer service.

Our Papaya Global review explores Papaya Global’s pros, cons, pricing and features in more detail.

BambooHR: Best for employee experience

Our star rating: 3.9 out of 5

BambooHR is committed to helping small businesses create company cultures that attract and retain great employees. While it offers fairly standard payroll tools, its employee-focused HR services excel at helping small businesses find the best employees, then gather and implement employee feedback to ensure employee satisfaction at work.

While BambooHR has at least as many HR features as a standard PEO, it isn’t actually a professional employer organization. Instead, it gives businesses the in-house tools they need to offer top-notch human resource experiences without the cash investment often required by more intensive solutions.

Plans and pricing

BambooHR’s custom pricing is based on your company’s size. Businesses with between one and 20 employees will be charged a flat monthly fee, while businesses with over 20 employees pay a custom monthly per-employee fee.

BambooHR doesn’t list its prices online, though it has two primary plans and a handful of add-on services:

• BambooHR Essentials: Includes employee record management, basic self-service tools and PTO management.
• BambooHR Advantage: Adds onboarding, offboarding, ATS access, comprehensive data and reporting, e-signature capabilities and employee wellbeing surveys.

Optional add-on plans include:

• Full-service payroll.
• Employee benefits administration.
• Time and attendance tracking.
• Performance management.

HR features

• Applicant tracking system with comprehensive mobile app.
• Customizable new hire packet templates.
• Self-guided employee onboarding and offboarding systems.
• Performance appraisal software.

Pros

• Expansive in-house HR software.
• Well-reviewed customer service team.
• Comprehensive set of employee-engagement tools.
• Fully featured, non-PEO alternative to PEO solutions like Justworks.

Cons

• No transparent pricing online.
• Add-on services may make plans too expensive for some small businesses.

Our BambooHR review explores BambooHR’s pros, cons, pricing and features in more detail.

Paycor: Best compensation management tool

Our star rating: 3.4 stars out of 5

If one of your company’s primary aims is to offer competitive compensation and benefits, Paycor’s HR software for small businesses can help. Its compensation and employee engagement tools help employers measure how satisfied their workers are while on the job, and its comprehensive data analytics give business owners key personnel insights that can boost performance, productivity and satisfaction.

While Paycor’s HCM software principally targets midsize businesses, it can work well for small businesses, especially those that want thorough data insights. Paycor also offers industry-specific software that better meets the needs of employers and employees in unique or niche fields.

Plans and pricing

Like most HCM software, Paycor doesn’t list its prices online. However, it does offer 50% off its base prices for up to six months.

HR features

• On-demand HR support center.
• Career management, compensation planning and talent development tools.
• Employee pulse surveys.
• Automated, AI-based talent sourcing.

Pros

• Industry-specific HR software plans.
• Up to 50% off for six months for new customers.
• Multiple plans for scalability, including plans for businesses with under 50 employees.

Cons

• No transparent online pricing.
• Additional fee for time and attendance tracking.

Our Paycor review explores Paycor’s pros, cons, pricing and features in more detail.