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Last UpdatedMay 2022

Compare the Top 10 Best HR Software of 2022
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Top 10 Best HR Software of 2022

Human resources (HR) software, also known as a human resources information system (HRIS), is essential to scaling up your business. With the right HR software, you can more easily hire the employees your company needs to grow, manage your employees’ benefits and time off, run payroll, and maintain compliance with employment laws.

In addition, an HRIS platform gives you the critical insights you need into your business. You can keep track of how much time off employees are using, generate reports and get alerts on key employee metrics, see how much your benefits packages actually cost, and much more. Many top HR solutions also offer integrations to improve productivity and give you a holistic overview of how your business is doing.

There are dozens of HRIS programs available for small businesses, so it’s important to understand how they work and what they can offer. In this guide, we’ll introduce the top 10 HR solutions for small businesses in 2022 and explain how to choose the right HR platform for your growing company.

What is HR software?

HR software is a category of software designed to help you manage your employees. It’s also known as HRIS (human resources information system) or HRMS (human resources management system).

HR software covers a number of different functions that most small businesses need.

  • Hiring: HR software can create personnel files for job applicants, scan resumes, automatically screen candidates, and run background checks on potential hires.
  • Onboarding: HRIS systems can host online training courses for new hires and log completion of required training.
  • Time tracking and time off: HR platforms enable employees to log the hours they work for payroll, schedule vacation and sick leave, and keep track of their remaining leave.
  • Benefits administration: HR software can help manage employee benefits, such as health insurance, life insurance, and retirement plans.
  • Payroll: HR management software can run payroll or integrate with payroll software and automatically manage deductions for taxes and benefits.
  • Compliance: HR software helps your business comply with privacy laws, tax laws, and employment laws in your area.
  • Reporting: HRIS platforms provide tracking and reporting for all of the above functions, offering a birds-eye view of your business’s employees and operations.

Comprehensive HRIS platforms provide all of these functions in a single software package. Other HR software is specifically designed around functions like recruiting and hiring or benefits administration and compliance, giving you more functionality within these specific areas.

How to choose the right HR software for your needs?

With so many HRIS platforms to choose from, how do you decide which one is right for your business? There are many things to consider, but the most important factors are the following.

User Experience

Everyone in your company will rely on your HR software, not just your HR team. All of your employees need to use it for taking required training, entering timesheets, requesting time off, viewing pay stubs, and more.

So it’s essential that the HR software you choose is user friendly. Comprehensive HR software often stands out in this respect because programs like this serve as one-stop platforms. Employees know where to go to request leave and where to see their benefits, and they only have to learn how to use a single platform.

Integrations

The capabilities of HRIS for small businesses can be significantly extended through integrations. Many top HR platforms offer seamless communication with accounting software like Quickbooks and Xero, scheduling software like Google Calendar, and even communications platforms like Slack. Some platforms even support custom integrations.

Think carefully about the software your business already uses and whether a new HR software will work with those platforms.

Customizability

No business is the same, and the best HR software allows for that fact. The best HR software gives your HR managers the flexibility they need to create a platform that’s tailored to your company. For example, you should be able to classify employees into different benefits packages or set compliance rules for your specific city, state, and industry.

Support Options

Having support available when you need it can save your business a lot of headaches and money. Top HR management platforms come with access to customer support by phone, email, and live chat 5-7 days per week. It’s also worth looking for detailed online tutorials, since most HR software involves a learning curve when you first deploy it across your business.

Cost

HR software can be pricey, especially if you need a comprehensive solution that covers everything from hiring to payroll. However, keep in mind that a good HR system can pay for itself in terms of the time it saves your managers and employees.

Small businesses should expect to spend in the area of $10-$50 per employee per month, while medium-sized businesses may pay more than $100 per employee per month. Enterprise-scale solutions can cost significantly more.

How does HR software work?

Most HR software platforms operate on a subscription basis. Most HR software providers have multiple service tiers in order to cater to the needs of different businesses. For example, a basic service tier might not include payroll or management features for specific types of benefits, while a more advanced tier does.

Plans are typically priced per employee. You may be able to pay month-to-month or purchase a whole year of service at once. Some providers offer bulk discounts if you have a large number of employees.

Once you sign up, you can download the HR software or access it through an online dashboard. From there, your HR team can create accounts for all of the employees who need to log in for functions like time tracking and payroll.

FAQs

What are the benefits of using HR solutions for small businesses?
HR software platforms can help your business manage everything from hiring to administering benefits to running payroll. They make it easier for HR managers to do their jobs and for employees to get the information they need about their pay and benefits.

How can HR solutions for small businesses enhance your business’ efficiency?
HR software can streamline time off requests, approval, and scheduling, as well as help managers keep track of employee leave across your company. It can also help you onboard new hires by automatically administering required training.

How can an HR system save your business money?
An HR system can save your business a significant amount of time when it comes to managing leave, onboarding new hires, and administering employee benefits. It can also help you stay in compliance with employment laws, which is important to prevent hefty fines.