I searched the keyword online and studied several current, reputable roundups and buying guides. I looked for patterns across recommendations, common feature sets, and the selection criteria they used. The strongest shared ideas came from sources like Zapier’s small-business HR picks, the U.S. Chamber of Commerce’s explainer on HR systems and costs, SelectSoftwareReviews’ 2025 small-business list, TechnologyAdvice’s updated rankings, and Shortlister’s pricing insights. Together, these sources emphasize core features (like payroll, time tracking, onboarding, and benefits administration), ease of use, and total cost per employee. They also explain the differences between HRIS, HRMS, and HCM, and warn about add-on fees and integration gaps.
A few quick highlights from that research:
- Reviewers agree small teams should focus on an all-in-one that covers employee records, payroll, time and attendance, and self-service. Names that pop up often include BambooHR, Gusto, Rippling, Zoho People, Homebase, and GoCo.
- The U.S. Chamber guide explains the difference between HRIS, HRMS, and HCM, and notes that vendors layer modules like applicant tracking system (ATS), performance management, and learning on top.
- Average spend varies. Shortlister pegs a multi-year average near $21.16 per employee per month (PEPM), while the Chamber aggregates broader ranges from Gartner. The lesson: prices swing widely based on modules.
Now, let’s turn that research into a plain-English guide you can use today.
What Small Businesses Actually Need from HR Software
Choosing software shouldn’t feel like wrestling a bear. Start with the must-haves and a short list of nice-to-haves. Keep the list practical and tied to daily work.
Core HR, Records, and Self-Service
You need a clean employee database, solid role-based permissions, and a tidy way to store documents (contracts, IDs, tax forms). A staff self-service portal is critical. People should update their details, see pay stubs, request PTO, and pull W-2s/1099s without bugging your team. That one change saves hours each month.
Keywords to note: employee self-service, HRIS, employee records.