Top 5 HR Software Solutions For Small Businesses With Under 50 Employees
Selecting the best HR platform saves time, cuts administrative costs by up to 40%, and supports regulatory compliance. In this guide, we'll explore the top HR software solutions specifically designed for small businesses, helping you make an informed decision that scales with your business growth.
Why Small Companies Need Dedicated HR Software
Small businesses often operate with lean teams where every hour counts. Manual HR processes drain valuable time that could be spent on strategic growth initiatives. Modern HR software eliminates repetitive tasks, centralises employee data, and provides self-service portals that empower your team.
Beyond efficiency, compliance remains a critical concern. Workplace regulations are constantly evolving, and mistakes can result in costly penalties. The right HR system keeps you compliant with built-in updates, automated record-keeping, and expert guidance when you need it most.
Additionally, employee experience matters more than ever. Today's workforce expects seamless digital experiences, from easy leave requests to accessible performance feedback. Quality HR software creates a professional environment that attracts and retains top talent, even when competing against larger organisations.
Key Features to Look for in HR Software for Small Businesses
When evaluating HR platforms, focus on features that deliver immediate value without overwhelming your team. The best solutions offer intuitive interfaces that require minimal training, allowing you to get up and running quickly.
Core functionality should include:
Employee database management with secure cloud storage
Automated onboarding and offboarding workflows
Time and attendance tracking with mobile accessibility
Leave management with approval workflows
Performance management and goal-setting tools
Compliance management with document storage
Reporting and analytics for data-driven decisions
Integration capabilities with payroll and accounting software
Scalability is equally important. Your chosen platform should grow with your business, accommodating additional employees and features as your needs evolve. Look for flexible pricing models that don't penalise growth.
Which HR Software Is Best for Small Companies with Under 50 Employees?
The answer depends on your specific requirements, budget, and growth trajectory. However, several platforms consistently rank highly in meeting the needs of small businesses. Let's explore the top contenders.
1. Sentrient - Australian-Focused All-In-One HR Solution
Sentrient delivers a comprehensive HR management system specifically designed for Australian and New Zealand businesses. With over 600 companies trusting their platform, Sentrient combines powerful automation with localised compliance support.
Key strengths include:
AI-powered HR assistance for intelligent recommendations
Pre-built training courses and compliance templates
Integrated payroll and rostering functionality
Community wall for enhanced employee engagement
Industry-specific features for healthcare, retail, construction, and more
Sentrient excels for businesses requiring robust compliance management and industry-tailored solutions. Their platform comes preloaded with training courses, policies, forms, and documents, enabling quick implementation without extensive setup time.
2. BambooHR - User-Friendly Global Platform
Trusted by over 34,000 businesses worldwide, BambooHR provides exceptional usability alongside comprehensive features. Their platform is particularly renowned for its applicant tracking system and employee experience tools.
Notable features include:
Streamlined hiring and onboarding workflows
Employee self-service portal with mobile access
Performance management with continuous feedback
Advanced reporting and custom dashboards
Benefits administration and open enrolment automation
BambooHR customers typically save hundreds of hours annually, with some reporting 20-hour weekly time savings on payroll alone. Their customer support is entirely in-house, ensuring responsive assistance when needed.
3. Employment Hero - Comprehensive Australian Platform
Employment Hero serves over 300,000 customers with an all-in-one employment platform covering hiring, payroll, HR reporting, compliance, learning, and engagement. Their Hero AI provides 24/7 answers to pressing HR questions.
Standout capabilities include:
Single source of truth for all employee data
ISO 27001:2013 certified security
Expert HR advisory service with unlimited workplace advice
Learning Management System with expertly vetted courses
One-on-One (1:1) tool for structured feedback
The platform particularly shines for businesses seeking expert-led compliance support alongside comprehensive HR functionality. Their cloud-based system enables complete remote workforce management.
4. Rippling - Global Workforce Management
Rippling unifies HR, IT, payroll, and spend management in one powerful system. Their platform supports global operations across 185+ countries, making it ideal for small businesses with international ambitions.
Core advantages include:
Unified HCM for complete employee lifecycle management
Automated payroll processing in minutes
IT security with identity and device management
Spend management, including corporate cards and expenses
Extensive integration ecosystem
Rippling is particularly valuable for tech-savvy businesses requiring tight integration between HR and IT functions, offering automation that significantly reduces manual busywork.
5. HiBob - Engagement-Focused HRIS
HiBob's platform (called "Bob") combines core HR functionality with exceptional engagement features. Designed with configurability in mind, Bob adapts to your organisation's evolving needs while maintaining enterprise-grade capabilities.
Key differentiators include:
Beautiful interface designed for high adoption rates
Advanced analytics with rich data insights
Out-of-the-box workflows for everyday HR tasks
Compensation management tools
Engagement features for remote and hybrid teams
Bob excels in businesses prioritising employee experience and data-driven decision-making. The platform provides vast amounts of rich data, enabling stronger insights for strategic planning.
Cost Considerations for Small Business HR Software
Pricing varies significantly based on features, employee count, and whether you choose to add on services like payroll integration. Most providers offer tiered pricing models with these typical ranges:
Basic plans: $5 - $8 per employee per month (core HR features)
Mid-tier plans: $8 - $12 per employee per month (adds time tracking, performance management)
Comprehensive plans: $12 - $20+ per employee per month (includes payroll, advanced analytics, learning management)
Many platforms offer volume discounts for annual commitments. Calculate your potential ROI by considering time saved, reduced errors, improved compliance, and enhanced employee satisfaction.
Please note that implementation costs may include data migration, initial setup, and training. However, most modern platforms are designed for quick deployment, often enabling you to be operational within days rather than weeks.
Implementation Tips for Small Companies
Successful HR software implementation starts with clear goal-setting. Identify your primary pain points, whether that's compliance concerns, time-consuming manual processes, or poor employee experience and ensure your chosen platform directly addresses these issues.
Follow these steps for smooth implementation:
Audit your current processes: Document existing workflows to identify improvement opportunities
Involve stakeholders early: Gather input from managers and employees who'll use the system daily
Plan your data migration: Clean and organise employee data before transfer
Start with core features: Roll out essential functionality first, then add advanced features progressively
Provide adequate training: Invest time in training sessions to ensure team adoption
Monitor and optimise: Regularly review usage metrics and gather feedback for continuous improvement
Most providers offer implementation support, training resources, and ongoing customer success programs to ensure long-term success. Take advantage of these services to maximise your investment.
Read for more information: Top hr software for small businesses
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