6 Must-Have Features of the Best HR Software for Small Business

Why Every Small Business Needs HR Software


December 3rd, 2018 HR Process  

hr software for small business

Adding ease and automation to monotonous processes by using HR software has been a trend that hasn’t stopped growing over time. If you are running smaller businesses, you may have arrived at the station a little later than others, but it doesn’t mean you missed the train entirely. In fact, adopting a modern hr software for small business can propel you into the future very fast.

But is HR software a must for small businesses, or is it just another way to waste cash?

What Does HR Software Do?

When processes have been in place for years, setting the ball rolling and making a change, even for the better, can sometimes be a daunting process. After all, the last thing that any organization needs is advancement simply for the sake of change. You need to be sure that your business will really reap the benefits of the investment you’re making.

Hearing your team or line managers complaining about time-consuming and inefficient processes should give you a clue that your small business could benefit from HR software. Maybe your teams are spending too much time updating manual spreadsheets that are overflowing with data. These tasks can resort to ad-hoc workarounds to save time. However, this can negatively impact consistency and control.

Or perhaps your HR team spends hours wading through unnecessary emails or participating in non-value-adding group chats. Realistically, they could be spending this time carrying out activities that really contribute towards the success of your business.

If you’re noticing these themes in your organization, it might be time to consider adding some automation and ease to your processes through HR software for small businesses.

Important Features to Look For in HR Software for Small Businesses

HR software for small businesses is an umbrella term, covering a multitude of different areas that it can automate and digitize. Of course, there are so many HR tasks and processes that can benefit from this software that one solution can’t cover all of them effectively and consistently.

Also an enterprise solution like a HRMS software is not a good fit for small businesses because of how complex and expensive these solutions are. It’s therefore imperative to work out what your priorities are to determine which solution will work best for your business.

Here is a snapshot of some of the most common features of HR software for small businesses:

1. Recruitment and onboarding

You can create vacant positions, match candidate CVs to job skills using keywords, and shortlist and compare candidates. You can also add ease to the job offer process by generating automatic contracts and letters and creating electronic employee records.

2. Exit management

Archive employee records at the touch of a button, create leaver documentation and track exit interview data to analyze themes relating to reasons for leaving.

3. Performance management

Create appraisal templates and collate and track employee performance scores and feedback results in the system, comparing progress across multiple departments.

4. Timesheet and leave management

Take the chaos out of organizing PTO, working out overtime, and planning staff cover by using online timesheets. Allow employees and employers to request and authorize leave quickly and effectively.

5. Training

Link employee training courses to employees’ roles and personal development plans. Also, track the attendance of training programs to measure the effectiveness of L&D initiatives.

6. Benefits administration

Some systems have a payroll component, while others allow interfaces between the system and your HR provider for improved speed and consistency. In addition, you can automate your annual salary review and bonus payments, analyze staff costs, and interpret the data in a variety of ways.

#1 HR Software for Small Businesses

What is the Best HR Software for Your Small Business?

Here are some of the best hr systems available in the market which small businesses can leverage to automate their hr processes.

1. BambooHR

BambooHR is designed for small and medium-sized businesses and allows you to organize all the information of your employees in one software while providing features such as time tracking or performance management.

2. Zenefits

Zenefits is a good choice for a smaller business. It offers off-the-shelf HR software solutions, with straightforward features (such as payroll, attendance management, or employee onboarding) to which you can add some customization without overcomplicating it.

3. Kissflow

Kissflow HR cloud is a full-fledged solution to all the core HR processes. With Kissflow HR software, you can customize the perfect solution on your own rather than trying to fit into another one and pay for features you don’t use.

For example, you can just start by managing the employee onboarding process. Kissflow is the definition of hr software for small business.

4. Gusto

Gusto offers a range of automated HR features, specializing in payroll and benefits administration, with a free one-month trial to see how it suits your business.

5. Zoho HR

Zoho HR is the people component of the Zoho range of business applications. It gives its users great integration across other business apps that they may use, along with a range of customizable forms and workflows.


With all of the hr software choices available on the market, it can be difficult for a small business to know where to start searching for an automated HR management system to suit its needs. This is particularly the case if this is your first investment in HR software. But once you see the benefits that seamless integration, customizable workflows, and efficient automation can bring to your HR team, your line managers, and your employees, you’ll be glad that you took the time to get it right.

#1 HR Software for Small Businesses