6 Best HRIS/HRMS Software for Small Business 2021

Cody Cromwell
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Best 6 HRIS Software and HRMS Tools

HRIS and HRMS software are the biggest tools that can be used to create, maintain and manage HR data within a business. HRIS is short for human-resources information systems and HRMS stands for human resources management system. As the name suggests, the HRIS is a tool used to store data related to the employees in a company. On the other hand, HRMS is in charge of managing the data collected by HRIS and across departments of a company.

While the most advanced HR systems for companies might run into the millions of dollars, there are more affordable HRIS and HRMS software solutions available to small to medium sized businesses. Below are the 6 most popular and best HRIS and HRMS tools have been chosen for small and medium size business for the size, budget, feature set and industry acceptance.

How We Evaluated the Best HR Software

Due to the ever-evolving nature of the world of HR software, a lot of the best platforms out there are changing all the time. The time and pressure-laden work environment of a small business can make managing a team tough, so it’s important that you have an HR software system that can help you make better business decisions. The best systems offer lots of integrated features, are easy to use, and provide insights into the business processes. They should provide decision-making and performance management features that business leaders can rely on to make effective and accurate decisions for their company.

To rate the best HR software and identify the top platforms, we looked at the price, features, and overall user experience of each platform. We evaluated the platforms based on their ability to meet the business needs of small businesses, and we factored in the quality of each’s integrations. Despite the usual technical jargon, the features and capabilities of each platform represent how well a system can help you manage your team.

We evaluated each HR software system against 14 key metrics that we’ve outlined below. Though some of them are self-explanatory, others are quite technical, so we’ve thoroughly broke down each of them for you.

In addition to looking at each HR system’s product features, we also took a look at the price of each platform.

Gusto: Best Overall HR Software for Small Businesses

Harnessing the Full Potential of HR: Finally, a solution to hiring, recruiting, and managing that gives employees as much information to make informed decisions about themselves as it does managers about how to employ them and measure their performance.

Gusto is a cloud-based software platform that enables small businesses to focus on what they do best: their business

We make life easier for small businesses with the tools they need to manage human resources efficiently. With Gusto, small businesses can save time and resources by streamlining HR and payroll processes and eliminating the need for a full-time HR manager.

Gusto’s online and mobile solution makes it easy for employees to get paid, check time and attendance, create time logs and clock in electronically, review pay stubs and direct deposit statements, update personal information and more, all from a single platform. With Gusto, HR is not a burden, it’s a more efficient way of doing business.

Gusto Pricing

Gusto Pricing Table

Gusto’s suite of HR and payroll software tools helps small businesses grow. With one easy-to-use platform, organizations can take care of their employee paperwork, leave of absence registration, full and partial tax filing compliance, and even onboarding. It does the heavy-lifting for HR departments, so they can spend more time strategizing and less time spinning their wheels.

Gusto’s new pricing table makes it easy to compare pricing across both their core HR and payroll services. It’s important to know exactly what you’re getting for the money, so we’ve created a simple comparison table to make it faster and easier for you to make the most informed decision.

Although it’s hard to put a price on happiness, the next best thing is ensuring the happiness levels of your workforce and organization stays high. That’s why we provide excellent HR and payroll software solutions to our customers that make their lives easier and more enjoyable.

Why You’Ll Love Gusto

Empower your team with a modern, hassle-free HR presence that integrates with your payroll and benefits.

Learn and Earn with the Best Training on the Topic to Make You Indispensable to Your Team

Take care of scheduled leave, payroll tax filing, and benefits compliance.

Gusto Features

Gusto offers an HRIS (Human Resource Information System) that manages employee information including on-boarding, payroll, and benefits. Under the same roof as QuickBooks, you can get access to a complete employee management package, with features on HR, payroll and benefits management.

Gusto is also an HRMS that streamlines recruiting, hiring, and onboarding, and provides a 15-minute onboarding process for new employees. It uses most of the popular payroll processing services, and guarantees that any bill payments are made to the correct employer.

As an HRMS, it allows you to manage all your HR functions in one platform. This interface integrates well with QuickBooks, and it doesn’t require you to purchase additional software.

As a cloud-based software, it’s easy to use and available to everyone, including non-admins. It’s an ideal HRMS for small businesses who want to have their first HRMS, and has a basic functionality that basic human resource management requires.

While it doesn’t offer all that you’d expect from an HRIS, it gives you everything that you need. If your business is at the beginning stages and you only need your core HR functions, you will be able to manage them in this HRMS.

Homebase: Best HR Software for Brick and Mortar Businesses

Homebase is an innovative payroll and HR system for businesses with up to 200 employees that takes a human approach to HR to assist business owners and managers in managing the following functions:

  • Employee scheduling and management
  • Payroll
  • Job costing
  • Time management
  • Time sheets
  • Time banking
  • Time evaluation
  • Time tracking

Homebase Pricing

Homebase is a subscription based software that enables your staff to access professional HR and payroll services easily online. It can be used by a small or large organisation.

The paid subscriptions ensure that your processes will run smoothly. They also provide you with added value that is not provided by your inhouse HR and payroll departments.

The most popular Homebase plans are Homebase Gold, Homebase Premium and Homebase Team.

The Homebase Gold plan is suitable when your business is less than 50 employees. When you buy the Homebase Gold plan, it comes with the software that is necessary for your company to function. The plan also comes with a number of exclusive features that include the capability to manage leave, rostering and payroll, and timeheets.

You get to manage the payroll information of your employees with the Homebase Gold plan. The schedule for the payroll processing is also set by you which ensures your employees are paid on time.

With the Homebase Gold plan, you also get information on staff and employee demographics. You can link payroll to your sales and purchase data through analysis of your payments. This will help you improve your payrolls efficiency through better sales forecasting. You will also be able to monitor staff performance and the health of your business.

The Homebase Premium plan is suitable when your business is between 51 and 500 employees. It is priced higher than the Homebase Gold plan as it comes with more features.

Homebase Pricing Table

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Homebase Features

Homebase is a cloud-based, on-premise HRIS/HRMS software designed for small businesses. It is 100% customizable to your needs and helps you manage essential administrative tasks like payrolling, time cards, employees, and benefits in order to save time and money.

Managers of Homebase boast its easy to use interface and hundreds of integrations with popular business software. You can also integrate your existing data or merge it with Homebase’s HRM software in order to make it more efficient.

As your business grows, you can grow with it. Homebase’s software allows you to grow, and grow with you.

Zoho People: Best HR Software for Performance-focused Businesses

Best HR Software for Small Business and Startups. zoho hr software for small business

Zoho People is one of the best HRIS software for small businesses. As a cloud-based platform, it allows small businesses to efficiently manage its workforce with utmost ease. People is designed with a single focus on performance monitoring and managing performance risk.

With its all-in-one employee and team management feature, it presents HR managers with the platform to troubleshoot and solve operational issues seamlessly. Zoho People has a robust time tracking feature that empowers small businesses to measure productivity, improve efficiency and track employee performance. Zoho People can efficiently capture information about demographic, team performance, talent management, employee performance, benefits, compensation and training in order to review effectively and rectify the problems before they escalate in future.

The best part of the HRIS Software Zoho People is that it is very flexible, scalable and works seamlessly well with any type of ERP. It aspires to fit seamlessly into the business ecosystem without disrupting it.

The zoho hr software for small business dashboard provides an all-in-one view of employee performance, capacity and utilization. It also integrates with Zoho CRM and Slack to share HR information across the organization.

This cloud-based HRIS platform makes it as easy to upskill your workforce as it is to access and use the basic recordkeeping features of those who are currently under your management.

Zoho People Pricing

Zoho People is the best HRIS on the market for small businesses and freelancers. Zoho People is not going to give you all the business-specific benefits that Slack or JIRA can offer. However, it will give your team the ability to easily share documents and work on projects through the Dropbox integration.

The company also offers a fantastic online training platform for your employees to learn new software. The 24/7 support that Zoho provides is a great feature to have.

Recent additions to the software have meant Zoho People also plays a pivotal role for small businesses as a time tracking system. Although there are other Zoho software applications that you can utilize for tracking, the employee time tracking feature provides you with the ability to itemize your time for a given pay period and is compatible with many different payroll providers.

The fact that the software integrates with Stripe for payment processing is one of the best features of Zoho People. This is useful for freelancers who want to receive payments through PayPal or other billers.

When you first open up Zoho People, you’ll notice that it’s a different looking application than the others in the Zoho environment.

While this may appear to be a bad theme choice, the clean layout and organization of the system makes it easier to search for desired employees within your company.

Zoho People Pricing Table

Zoho People Features

Zoho People is one of the fastest-growing cloud applications for human resource management and I created this exhaustive comparison of its features against other HRMS software, including some of the best-known products on the market that includes Microsoft, Oracle, Google, and many more.

It’s a top choice for small business that has a great HR software with a range of office productivity tools. Zoho People focuses exclusively on HRMS features and makes it very easy to administer nearly any HRMS software from a single platform.

Zoho People lets your employees take the web-based software tour and learn more about it. Zoho People offers exceptional market share in most of the countries it dominates. Its major feature is that HRMS and HRMS/Employee Portal are integrated, and you can use it for full-blown HRMS functions all the way to managing a small department.

HRMS Features You Get on Zoho People

Zoho People has some great features that you’re going to love, and here are just some of them:

  • Gives you a free credit report once a month
  • Works with both corporate and personal email accounts for all members of your organization
  • Has a reimbursable MileTax deduction calculator
  • Allows you to manage every major aspect of your business

Zenefits: Best for Growing Businesses that Want to Add Features as They Scale Up

Zenefits is a great choice if you are looking for an HRIS/HRMS software that is designed to get you up and running quickly, while still supporting advanced analytics. Zenefits is more affordable than the other HRIS/HRMS packages listed here and is optimized to do exactly what you need. While it might not be as powerful as some of the bigger packages on the market, Zenefits provides a lot of what most small and medium size businesses need. It’s also going to appeal to a lot of larger businesses that want to add features as they scale up, without spending a lot of money in the process.

Zenefits is pretty quick and easy to set up and you can easily get started tracking your employees. It is best to use in a single location, but you can track up to five locations with it. You can add unlimited SaaS/online tools as you grow your business, including high-demand web services such as Gdrive and Yellow Pages.

Zenefits also has very flexible reporting options and lets you export just about any report you need for your management team and compliance department. Zenefits is also best used with cloud based services, so it is ideal for business that want to move to paid cloud services. You can choose which of these services works best for you.

If you are planning to grow and sell your business in the future, Zenefits definitely makes sense.

Zenefits Pricing

Zenefits is a cloud based business management platform that simplifies employee interactions for small businesses. It focuses on HR and payroll and provides a web and mobile application to help businesses organize and manage their entire operations.

Other than Zenefits, there are plenty of HRMS (Human Resource Management Software) that you can use to manage your business. Some are better than others, and there are some that are perfect for small businesses.

Other HRMS solutions that we’ll discuss today are Office 365, Portfolium, Trello, Apple Pay, Walmart, Clear, and Intacct.

Here’s a summary of what the top solutions have to offer:

Licensing

Zenefits is licensed per user, whereas the alternatives are generally licensed per seat, although they can easily convert to the per-user model. Zenefits works with Dynamics 365 so they can take advantage of all key modules within the platform. This includes Office 365, Dynamics 365, and PowerApps.

Administration

When it comes to making modifications, Zenefits provides its users with a rich set of features that affect the core functionality on each of its modules. However, for each of these features, there are also many limitations.

Zenefits also offers several self-service options that you can use to make modifications related to document collaboration and shared planning.

Zenefits Pricing Table

If you haven’t signed up for Zenefits yet because of what I’m about to say, you need to read this first. Zenefits is a new company that is trying to get workers into the healthcare market, and they’re doing it mainly through partner insurance brokers. The business model is so simple and it is working so far.

If Zenefits can’t flood the marketplace with healthcare services and access to healthcare options – they are charging workers 30% of their premium cost – they will definitely lose out on the market gain.

It is not surprising to see many people like you come to read about Zenefits and the healthcare options it intends to put forth. It is also not surprising to see people figure out the real and bad way of using Zenefits.

For this reason, I thought it is best that I present you with a step by step guide on what you have to do in order to use Zenefits correctly.

Zenefits Features

The Zenefits software is a web-based HRIS and HRMS system. This ensures that employees can easily access the system from any convenient device, such as a computer, tablet or smart phone. The software is as flexible as the company that uses it because it can be customized to suit your needs.

The system is intended for use by small and medium-sized businesses. It is not intended for use by large organizations because it only supports individual employee timekeeping functions, not payroll and compensation functions. The system does not include training or support.

Zenefits does not offer all HRIS and HRMS functions, just the functions most relevant to small and medium-sized businesses. Users of Zenefits will not have access to scheduling, replacement, discrimination, leave programs and a full range of HR reporting with automatic self-auditing features. Employers who seek out more comprehensive HRIS and HRMS solutions should also review the options from i-net Software, Hubstaff, AgileHR and Eloqua as well.

The Zenefits system comes in two tiers. The lower-priced software is a standalone "Free Zenefits" system, while the higher-priced "Zenefits for Employees and Businesses" has a web-based interface plus an access number and server. The access number has a fee.

BambooHR: Best HRIS/HRMS Software for Businesses with an HR Department of One

If you need HRIS or Human Resource Management Software that suits your small or medium sized business, you’ll think twice about spending money if you know the features of this HRIS program can be served by utilizing its free feature. With standard features, BambooHR allows your HR department to handle record of all your employees’ information, system of supervision and work distribution. It may be a good solution for small businesses with HR departments that are less than a dozen employees.

One of the main strengths of the BambooHR is based on the fast turnover of employees. The documentation process will be short and straightforward and there are no irritating editing demands. You can give access to the system easily. All of the functions are strategic and easy to use. You can customize the system to a degree that it suits you. Unfortunately, the free version of this HRIS software that cannot be used in bigger businesses.

BambooHR Pricing

BambooHR is another solution that offers HRIS functionality. Despite being a relatively new company (they launched in 2012), they have been able to gather a good number of satisfied customers.

The pricing structure is divided into two plans (Basic and Pro). The Basic plan includes the ability to group employees and understand employee demographics. The Pro plan also features a number of health benefits, employee recognition, and time tracking.

It also allows you to export reports and allow supervisor hiring and advancement. The Basic version and the Pro version are paid in a monthly subscription basis. The Basic and also the free (starter) plan features identical sets of built-in reports, however, with paid plans, users can also create their own reports.

The reports can be produced in PDF, HTML, and Excel formats. For the HR manager, there is enough data athands to do a full summary of QA reports, leave reports, rate limits, employee tenure, satisfaction evaluation, and so on.

The best features of the software are its speedy performance, low transaction cost, and highly customizable reports. In fact, the user experience is designed to be a little bit more user friendly than traditional HRIS solutions.

BambooHR Pricing Table

Pricing table for BambooHR Software.

BambooHR, the best HR management system of 2021 is a complete human resource management software which helps small business to manage their HR efficiently.

Look at how to use BambooHR's advanced employee management features in a small business below:

1 Create Payroll(W2 processing):

  • Create Payroll.
  • Create paychecks: Salaries, overtime, commissions, bonuses, deductions, sick leave, etc.

2 Create Time Reports:

  • Generate and print HR forms.
  • Generate and print time card.
  • Print labor and attendance record reports.
  • Shoulder deduction calculation / calculation on basis of "turn over".

3 Create Leave Module:

  • Create & Print vacation and sick leave).
  • Automatic calculation of vacation and sick leave using "scheduled days off".

4 Create Expense Module:

  • Old-age pension calculation based on a set date.
  • Reimbursement calculation based on double entry.
  • Savings and loans calculation based on double entry.
  • Injury report.

5 Create Bonus Module:

  • Bonus calculation based on input from a job applicant.
  • Bonus calculation based on the total number of credits completed.

6 Create Enterprise Module:

BambooHR Features

What counts is that your software is simple, but very functional. For many companies, that’s important as they have to manage a lot of problem caused by the complexity of the other systems to consolidate their database, and at the same time, have a larger database than they can manage. BambooHR is the best HRIS system for Small Businesses because of its design and functionalities which can help the managers and HR team to manage the process of their company in a better way. This HRMS software can be incorporated very well in the process management of HR system. You do not need to spend much time if you have the software to manage the forms, reports, time and billing. With the help of this system your company may have an automation of processes, saving time and money.

BambooHR has the ability to manage the process of your employees everything with the help of the software which is easy for an employee to work on a simple platform and do work willingly without any stress.

If you want to hire a good HRIS software with the form builder and can manage payroll to the employee, then the BambooHR is very good because it can help both employer and employees to manage their time in a better way.

When I Work: Best for Multi-Location Businesses That Want to Improve Scheduling and Communication

When I Work is one of the best task management tools for multi-location businesses. With roots on iOS and web-based software, When I Work is and always has been supported by small and large businesses.

This tool makes it easy to track and manage employees and projects and is used by companies ranging from several employees up to over 10,000 employees.

While When I Work is suited for businesses of all sizes, it’s especially helpful for teams that have a majority of members working remotely. The interface is extremely effective at keeping tasks organized and easy to keep track of. Plus, the software allows for a diverse group of people to collaborate and manage projects without any confusion.

The potential downside of When I Work is that it’s cloud-based. Some users have reported a handful of glitches along the way, but this is far from the norm for this tool and shouldn’t put you off.

Want to add When I Work to your small business… or remove it…? Read our in-depth review from the GRiM To-Do List app to see if this is the best software for you.

When I Work Pricing

When I Work Pricing is an excellent tool for small businesses to provide employees with paid time off information. When I Work Pricing helps small businesses manage labor costs, ensure shift coverage, reduce time sheets, standardize time and attendance processes, and more.

A business account enables users to pay for and download paid time off and labor management software.

After the download, users will be able to use When I Work Pricing to manage paid time off for all of their employees.

Users can log in any time and view reports on payroll and time spent for employees. When I work pricing also makes it easy for users to provide time off for their employees, sell benefits, and more.

The ASAP payroll and time tracking software integrates with When I Work Pricing and provides employees with access for payroll, time and attendance, and time sheets. The ASAP payroll and time tracking software also enables the integration of QuickBooks payroll and time tracking into the When I Work Pricing system.

When I Work Pricing is one of the most popular and trusted time and attendance, labor management, and paid time off software available today. Some of the benefits it provides include:

Actually helps you decide if hourly employees will fit your and your business’s needs.

Easy implementation of an online time and attendance system.

An easy to use, easy to access, and easy to learn online time system.

When I Work Pricing Table

When I Work is a time tracking software for small business that's built for people who run multiple projects, such as freelancers, contractors, marketers, consultants and more. When I Work makes it simple to track time on multiple tasks from your computer, tablet, or phone. You can also log time using only your iPhone. Many competitors track time and expenses in spreadsheets or zero-time project management tools and track time while on the move with GPS tracking or applications. However, When I Work makes it easy ” just record your project and all the time you spent working on it in When I Work. Data can be backed up and transferred to your desktop.

When I Work offers major platforms to take your business beyond the traditional software package, such as Google screen now and custom apps for the iPhone and Android. You can use screens now to display project information and a simple interface to your customers. You can also use custom apps to display potential clients, create job proposals, and present logos or information. By installing a zero time scheduler application, you can set When I Work to automatically track time on simple tasks, such as invoice preparation or tracking a real estate sale, without having to enter project data manually.

When I Work is available in the Google Play Store, the iTunes App Store, and the Windows Store. The custom apps are available on your smartphone, but you can use the mobile website or desktop version on your computer.

When I Work Features

When I Work was first introduced in Australia in 2008 by Starfish HR and has since expanded to more than 40 countries and thriving sales around the globe. The software is offered for free to employers worldwide and is currently the most successful business management solution for small businesses.

According to its website, When I Work is perfect for busy entrepreneurs, subcontractors or part-time workers; allowing them to balance their work schedules and life with the touch of a button.

The system works with all major currencies, time zones, and time zones and it automatically records and calculates payments, payslips and expenses. It also has flexible pay and bonus systems and payroll features.

Its "time off" feature assigns specific set days off for any occasions like birthdays, vacations, or special events; along with an electronic image library that hosts a great selection of company photos.

The system is used by companies in a number of industries today and some of estimate include self-employed workers, small businesses, farms, real-estate agents and contractors, insurance agencies, and more.

With When I Work being a reliable scalable solution to manage small businesses, the main reason I selected it as one of the best HRIS/HRMS Software for small businesses is because of its effectiveness.

Tools & Specific Alternatives to HRIS/HRMS Software Suite

The software suite that you choose to develop your Human Resource Information System is your company’s lifeline to improve business efficiency and cost reduction. It is a vital part of any company’s HR efforts and should be treated as such. By offering employees a comprehensive system, your company can help better monitor employees, their activities, assignments and progress. If you are open to a new concept and easy to navigate, a system such as this will be easy to grasp.

HRIS and HRMS Software Suite optimizes the practice of management and administration and at the same time enhances the efficiency of your company’s Human Resource division. The ideal software is one that is customizable to the needs and requirements of the organization. This way, you can acquire a product that you can tailor to various categories such as Time and Attendance, Employee Benefits and Training, Payroll, Job Descriptions, Job Postings, Learning Management, Employee Edit and Payroll Setup.

Bottom Line

There's lots of different recruiting and performance management programs out there, but one area that is nearly void of options is HRIS/HRMS software. So in this post, I'm going to do the best I can to help you along with your needs for such software.