When your team reaches a certain size, you’ll quickly realise that investing in human resources (HR) support is vital if you want to stay compliant and get the best out of new and existing hires. For most small businesses, a flexible and affordable HR solution is the best option.
HR software – also known as an HR management tool – is typically modular, with a core product that offers basic features, and more premium tiers with add-ons like recruitment, payroll, and absence management software. You can also find more specialist tools that offer limited functionality for recruitment or payroll.
Maciek Kubiak, head of people at PhotoAiD, simply uses a recruitment platform. “It is useful for conducting pre-employment tests for potential candidates,” he told Small Business. “It makes the recruitment process quicker and more effective. Plus, it is easy to use and permits to save time and focus on valuable applications, managing talent more efficiently.”
For the purposes of this article, we’ll be looking at platforms which provide multiple HR functions.
In this article we’ll cover:
>See also: A guide to outsourcing HR
Which HR software should I go for?
Pam Hinds, head of HR at RotaCloud, comments: “When it comes to choosing HR software tools for a small business, one of the main things you need to consider is – does it have all the features you need? This could be anything from absence and annual leave tracking to recruitment support or performance management tools. You don’t want to risk paying for a system that has lots of functionality that you won’t use, or a service that doesn’t do everything you need it to.”
So, it’s important to know the key features you need from your software, or problems you need to address, from the outset.
Once you’ve narrowed down a shortlist of software that has the features you require, Hinds highlights other key points to consider:
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- Usability. How easy is it to set up and use? Is there a steep learning curve or can you jump straight in?
- Integrations. Does it integrate with the software and tools you already use? For instance, time and attendance software that integrates with your payroll software?
- Security. Will you be storing important or sensitive information? How secure is the system?
- Customer service. Is it easy enough to get support if you encounter an issue?
- Scalability. How scalable is the system? Is it easy to add or remove employees from the system as you grow, and to enhance your set-up with additional features?
- Price. Is it within your budget?
Alper Yurder, general manager of Witco, advises you to look for customisation, for features that are essential to, and can grow with, your business.
“You’re not just getting HR software tools for now, you’re getting tools for the business you want to be. It’s about future-proofing,” he told Small Business.
“The right software depends on the culture of your business too – and in some cases even the sector you operate. For example, if you’re in a highly regulated business such as healthcare or finance, certain tools might be a better fit than others.”
You’ll want to factor in the ethics of the software company you go with. “Make sure the values of your provider that you go with are in line with the ethics of your own company,” said Yurder.
>See also: Top 10 HR tips
Should I use paid-for or free HR software?
Another important question you want to ask yourself is how much you want to pay or if you’d be willing to go for a ‘freemium’ product which comes with free features and extra costs for additional features.
Hinds points out that there are plenty of free or lower cost options on the market, depending on what your needs are. “However, there are often limits or caps with free systems, on things like number of users, amount of storage, the features you can use and access to support,” she said. “So, it’s important to look at what’s included, and excluded, in free versions of software to save you from getting set up and trained, then realising that a specific feature you need is in a paid tier.”
>See also: How to decide on HR policy for your small business
Cloud-based vs on-site server
Another point to consider is choosing between something cloud-based or on an on-premises physical server.
“Cloud software is always available, and everyone can log into it, from anywhere,” Hinds told Small Business. “But with server-based software, you can often only access it from a set location, and if your server goes down, all your software goes down with it and remains inaccessible until it’s fixed.”
Cloud-based HR systems are popular because you can access them from virtually anywhere, and you don’t need a hefty on-site server to run it. However, some argue that having data saved on a physical server is more secure than saving it in the cloud, as there is restricted access, according to Hinds. “Which option is best for you may depend on the existing hardware and infrastructure set-up of your business.”
“More and more services are moving towards the cloud these days. There are more pros than cons,” said Yurder. “Cloud-based software is more agile – you benefit from product updates instantly. It’s also more secure, given that providers create infrastructure that you wouldn’t be able to create yourself.”
Best HR software tools for small businesses
We’ve ranked the best HR software tools below, including a run-down of key features and integrations that can work with your existing software. The features listed are available on the most basic package.
1. Sage – Best for employee management
Sage HR is a comprehensive HR management software designed for small and medium-sized businesses. It streamlines recruitment, employee engagement, and talent management, offering tools for leave management, performance tracking, and employee database organisation.
With a user-friendly mobile app, modular add-ons, and seamless integrations, you can build a tailored package from Sage that delivers everything you need with nothing to spare. There’s a 30-day free trial and no long-term contracts or commitments.
Key features:
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Core HR and employee records – centralised database for all staff details and documents.
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Leave and absence management – employees request time off, managers approve quickly, with shared calendars to avoid clashes.
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Performance management – set goals, run appraisals and collect feedback to track progress.
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Timesheets and shift scheduling – track working hours, approve overtime and manage staff rotas.
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Expenses management – staff upload receipts and submit claims, managers can approve via desktop or mobile.
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Recruitment tools – post jobs, track applications and manage the hiring process
Pricing (excluding VAT):
Core HR + Leave Management: starts from £5.00 per employee/month
Optional add-ons:
Performance management: £2.50 per employee/month
Timesheets: £2.50 per employee/month
Shift scheduling: £2.50 per employee/month
Expenses: £1.25 per employee/month
Recruitment: £184.45 per month
Connected payroll: Additional subscription required
Trustpilot rating: 4/5 (19,471 reviews)
Sage HR offers a 30-day free trial.
2. Breathe – Best for customisation
Breathe is designed for busy small businesses across the UK, giving you everything you need to manage your people in one simple, secure package. From booking holidays to tracking performance, Breathe takes the hassle out of HR so you can focus on growing your business.
It’s all built around the Core HR package, which offers a staff holiday planner, sickness and absence tracking, performance management and an HR dashboard with tracking. It’s customisable, so you can add on modules. A free pro-rata holiday entitlement calculator is available on the website too.
Key features:
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Holiday and absence management – staff can book holidays online, and managers can approve in a couple of clicks. Breathe also offers a free tool for calculating employee holiday allowance
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Performance management – set objectives, run appraisals, book 1-2-1s, recognise achievements.
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Document storage – keep contracts, policies and staff docs safe in one secure, GDPR-compliant place.
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Reporting and dashboards – easy-to-read insights on sickness, holidays and other trends.
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Self-service portal – employees log in to update details, request time off, or check policies themselves.
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Optional extras – bolt on modules like recruitment, expenses, or rota and time tracking as your business grows.
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E-signatures – a new feature available on all plans, e-signatures allow you to review, sign and send important documents like contracts from within the Breathe platform.
Price
Pricing starts from £24 per month per organisation for Core HR for micro businesses of 1-10 people. The cost then scales in-line with the number of employees your business has. E.g. from 11-20 employees is £44 per month per business, from 21-50 is £99 per month per business, and so on.
You can then add optional modules to suit your needs, which means you only pay for what you use.
Module add-ons
Rota, time and attendance: £11 per month
Learn: £15 per business per month
Recruitment tracking: £16 per month
Expenses management: £14 per month
Health and safety: £12 per month
Trustpilot rating: 4.3/5 (131 reviews)
A 14-day free trial is available.
3. Bright HR – Best for health and safety support
BrightHR is an HR management tool that allows you to manage leave and absence, plan shifts and rotas, manage employee performance and more, with cloud-based storage, payroll integration.
There are three packages: Core (all the essential features), Enhanced (adds HR advice), and Full HR, which adds health and safety and employee wellbeing support.
Key features:
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Holiday and absence management – staff book holidays online, managers approve in clicks, and everyone can see who’s off.
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Performance management – set objectives, run appraisals and track progress without paperwork.
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Document storage – keep contracts, policies and staff files safe in one secure place.
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Reporting and dashboards – clear insights into sickness, holidays and other trends.
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Employee self-service – staff update details, request leave and access documents themselves.
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Optional add-ons – recruitment, expenses, rota/time tracking, health and safety, and employee wellbeing.
Pricing with BrightHR has changed from fixed pricing to bespoke. Get in touch with BrightHR’s team to find out more.
Trustpilot rating: 4.8/5 (6,200 reviews)
4. HiBob – Best for employee engagement
HiBob, commonly known as Bob, is a next-generation HR platform designed to improve productivity, engagement, and retention for your small business. The platform simplifies all your key HR functions, with automated workflows, people analytics, document management, and more, helping companies to streamline their operations.
Key features:
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Core HR and people data management – everything from employee records and org charts to personal profiles is in one place.
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Onboarding, time and attendance, time off – tools for welcoming new hires, tracking hours/work cycles, submitting and approving leave.
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Performance and learning – performance reviews, continuous feedback, goal setting, opportunities for staff learning and growth.
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Engagement and culture tools – social-style newsfeeds, recognition (Shoutouts, Kudos), pulse surveys and ways for people to connect.
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Analytics and reporting – dashboards to track things like turnover, absence, headcount, trends, plus custom reports.
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Compensation and payroll Integration – tools for managing compensation cycles, bonuses and equity, and integrations to help connect payroll.
Enquire for custom pricing.
Trustpilot rating: 4.4/5 (153 reviews)
5. Moorepay – Best for employees
Moorepay unites payroll, performance management, recruitment, expenses and staff training in a single platform, giving you a one-stop shop for the entire employee lifecycle – from discovering the best candidates to onboarding them and ensuring they can perform at their best.
Meanwhile, team members can use the Moorepay app to manage their payslips, request leave and submit expenses.
Moorepay provides a dedicated implementation service for new customers, ensuring the software is configured to your needs.
Key features:
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Payroll integration – payroll is integrated, which drives efficiency and reduces errors.
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Self-service app – employees can use the app to submit expenses, leave requests and more.
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Performance management – schedule performance reviews, track KPIs, and collect 360 feedback.
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Recruitment – automated recruitment processes make it easy to discover and manage the best candidates.
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Reporting and analytics – quickly generate reports to drive decision-making.
Contact Moorepay for pricing
Trustpilot rating: 4.4/5 (1,800 reviews)
6. Employment Hero – Best for AI support
Employment Hero’s AI-powered platform allows you to manage hiring, HR, payroll, and employee engagement all in one place.
You get an allocated payroll partner who can support with pay calculations and compliance, and an AI hiring tool that helps you discover the best candidates for your business. You can also access employment law support from professional UK advisors.
Key features:
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All-in-one HR, payroll and hiring – manage recruitment, onboarding, payroll, employee benefits and day-to-day HR in one platform.
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Employee self-service app – staff can request leave, log timesheets, view payslips, update details and access perks from their phone.
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Learning and development tools – built-in training modules, goal setting and resources to support career growth.
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Smart recruitment and onboarding – applicant tracking, automated candidate matching and streamlined workflows for new starters.
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Compliance and reporting – tools to manage employment law compliance and generate detailed HR and payroll reports.
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Perks and employee benefits – access to perks, discounts and wellbeing extras designed to boost engagement.
Plans:
HR Essentials: Starts from £40 per month. Includes leave management, paperless onboarding, applicant tracking, and documents and policies library.
HR Engage: Starts from £70 per month. Adds performance reviews, employee engagement, and learning and development tools.
HR Elite: Includes custom templates and workflows, enhanced people insights and enhanced reporting.
Unlimited: Includes everything in the Elite package, plus managed payroll, HR and employment law advisory, Team Chat, Learning Bundle and more.
Pricing Unlimited is bespoke and you must have at least 10 users. Contact Employment Hero to try a demo of the software.
Trustpilot rating: 4/5 (475 reviews)
7. Revolut – Best for fast-moving tech start-ups
Designed for companies like its own, Revolut People will give your business access to affordable HR, recruitment and performance tools. Meanwhile, you can build your team and crush your company goals, even with a small HR team.
Your team can grow alongside you with clear goal setting and built-in frameworks to monitor and boost performance.
Key features
Data-driven hiring – Use custom scorecards so that you can measure candidates against your own metrics and manage your hiring pipeline.
Performance resource hub – learn how to improve your team’s performance with resources such as a downloadable performance scorecard as well as handy webinars to help you and your team reach company goals.
Scalability – Easy to size up as your business grows.
Integrations – link up Revolut with your existing platforms including Monday.com, Notion, Jira, Looker, LinkedIn and Monster.
Plans
Performance: £8 per active employee per month
Performance + Recruitment: £11 per active employee per month
Performance + HR: £11 per active employee per month
Performance + Recruitment + HR: £12 per active employee per month
You can request a free trial with Revolut.
Trustpilot rating: 4.7/5 (389,630 reviews)
Right now, you can receive £100 welcome bonus by signing up to Revolut Business via Small Business. To receive the £100 you must onboard via the link below. Offer ends 31/12/2026. Fees, promotional terms, and T&Cs apply.
Get started with Revolut Business
8. Staffology – Best for employees
Staffology, as its name suggests, is designed with staff in mind. It’s great for businesses which have staff who work variable hours as there is a customisable work patterns function for part-time or flexible workers.
Staff can manage their expenses too. The expenses management module means staff can submit and manage their own expenses, which can be submitted from anywhere. You as an employer can run reports into how much each department is spending in order to locate areas of high spend. Build up your HR by using other modules including recruitment, training and performance.
Key features:
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Absence management – track holidays, sickness and other time off in one place.
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Flexible work patterns – handle part-time, shift or variable hours with custom work schedules.
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Employee self-service – staff can submit and manage their own expenses, leave requests and details.
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Reporting – generate HR reports to spot trends in absence, costs or performance.
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Recruitment and onboarding – modules to track candidates and streamline bringing in new hires.
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Integration with payroll – designed to link smoothly with payroll systems to keep pay accurate.
Pricing
All plans have a minimum of 10 users. So, for the foundation plan, even if you have fewer than 10 employees, you would be paying £7 per month.
Foundation: 70p per employee per month
Essential: £2 per employee per month
Professional: £3.90 per employee per month
Ultimate: Bespoke pricing
Trustpilot rating (under IRIS Software): 4/5 (3,556 reviews)
9. Factorial – Best for security
Factorial HR is an AI-powered time, talent, and payroll platform. It automates repetitive tasks like requests and expense approvals; quickly parses, scores and matches CVs; it can summarise feedback and help transform it into meaningful actions; and it can turn your questions into real-time reports. It also has an employee self-service portal, document storage and e-signatures.
Factorial is big on security. It has data security and a firewall, along with single sign-on on so you don’t need to create a username and password.
An app is available for employees on App Store and Google Play.
Key features:
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Document management – securely store contracts, policies and sensitive files, with custom permissions and digital signatures.
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Time tracking and attendance – track hours worked, approve or reject timesheets, and monitor overtime or extra hours.
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Performance reviews – set up personalised questionnaires, gather feedback and manage employee evaluations.
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Onboarding and offboarding – automate welcome and exit processes with custom workflows and checklists.
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Absence and leave management – employees can request holidays, managers approve in seconds, with shared calendars to avoid clashes.
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Integrations and security – integrates with common tools (email, Slack, etc.) and includes advanced data security with single sign-on.
Pricing
Prices start at £5.40 a month per employee per month, Contact Factorial for tailored pricing.
Trustpilot rating: 3.9/5 (501 reviews)
10. Deel – Best for a global workforce
Deel gives you one login on one platform to manage your global team. It promises 50% less time compiling reports, 45 days saved on hiring and onboarding per average hire, and 97 hours saved every month on HR admin.
It fits well with a small business as much as a large one, with the capability to start with the bare essentials and build as your business grows.
Key features
Workplace planning – Use workforce planning data to manage roles, costs and growth.
Built-in compliance – Lower your legal risks with built-in compliance tools, covering offboarding and other business matters. Plus, whistleblowing is protected with the anonymous reporting feature.
Easy to add features – Start with the basic features and build up as your business develops, without rebuilding your systems or workflows.
Comprehensive reporting – With Deel, you can get insights from any data point on the platform, allowing you to create more specified reports.
Plans
Standard: $599 per month (£664)
Enterprise: $899 per month (£442)
Trustpilot rating: 4.7/5 (8,728 reviews)
11. CharlieHR – Best for businesses with no HR team
CharlieHR automates tedious routine HR tasks, including time-off tracking and requests, performance reviews, policies and contracts, so you have more time to focus on your people. For example, there are custom onboarding forms for new starters and onboarding checklists, so that new employees can easily access the right support. It also offers tools for engagement, documents and data storage.
Charlie’s perks are a nice feature, and come free with your subscription, allowing you to offer over 30,000 deals and discounts to your employees.
Key features:
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Employee self-service – staff manage their own details, request holidays, and access documents without chasing HR.
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Onboarding and offboarding – smooth checklists and forms for welcoming new starters and handling leavers properly.
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Perks and benefits – employees get access to thousands of discounts and deals included with the subscription.
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Engagement and surveys – run pulse surveys and polls to gather honest feedback from the team. Light-touch micro polls that guarantee engagement. Results are anonymous to improve honesty
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Absence management – track holidays, sick leave and other absences in one simple system.
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Reporting and compliance – generate HR reports quickly and stay legally compliant with built-in templates and guidance.
- Integrations: Pento, Workable, Xero
Pricing
CharlieHR: From £20 per month (1-4 team members). Currently 75% off for the smallest teams.
Add-ons:
Charlie Recruit: From £55 per month
Charlie Advice: From £179 per month
There’s a week’s free trial on all packages.
Trustpilot rating: 3.2/5 (86 reviews)
Next steps
Sometimes it’s a case of trying HR software out to get a feel for different tools. Make use of those trial periods where you can!
And if you’re ready to invest in a solution, we can help you find the best platform.
Simply fill in our free quote-finding form, and answer a few questions about your business (it takes less than a minute). We’ll match you with the most appropriate HR support and software provider.
Further resources
