Running a small business in 2025? Then you already know—managing HR can feel like spinning plates while riding a unicycle. Payroll, hiring, onboarding, benefits… it’s a lot. But don’t worry, we’ve rounded up the best HR tools for small businesses this year. They’re powerful, affordable, and easy to use. Let’s explore the champions of your HR game.
1. BambooHR
BambooHR is one of the most popular HR tools for small to mid-sized businesses. It’s perfect for those who need a bit of everything—employee records, hiring, time-off tracking, reports, and more.
Pricing:
- Starts around $6.19/month per employee.
- Free trial available (usually 7 days).
Pros:
- Beautiful, intuitive design—anyone can use it.
- Excellent onboarding and offboarding tools.
- Customizable reports and user permissions.
Cons:
- No payroll feature in basic packages.
- Pricing isn’t always transparent.
2. Gusto
Gusto is known for payroll. But it’s grown into a full people platform. Small businesses love it for HR tasks like hiring, benefits, and team management.
Pricing:
- Starts at $40/month base + $6/month per employee.
- More advanced plans also available.
Pros:
- Fantastic for payroll—it’s what Gusto does best.
- Handles tax filing, W-2s, and 1099s automatically.
- Simplified onboarding and benefits management.
Cons:
- Support can be slow at times.
- Limited international functionality.
3. Zoho People
Already using other Zoho products? Then Zoho People is a no-brainer. Lightweight and flexible, it’s great for managing time, leave, attendance, and more.
Pricing:
- Free for up to 5 users.
- Paid plans start at $1.25/user/month.
Pros:
- Super affordable—even for startups.
- Strong integration with other Zoho tools.
- Mobile app is sleek and easy to use.
Cons:
- Payroll integration may require third-party tools.
- User interface feels dated to some folks.
4. Rippling
Rippling combines HR and IT. That means you can manage employee data, payroll, benefits—and even their devices—all in one place. Pretty neat, right?
Pricing:
- Starts at $8/month per user.
- Modular pricing—pay for what you need.
Pros:
- Exceptional automation capabilities.
- Employee onboarding takes minutes, not hours.
- Great for scaling businesses with complex needs.
Cons:
- Can get pricey as you add more features.
- Some tools may be too advanced for really small teams.
5. Zenefits
Zenefits is HR software built for modern teams. It’s simple, digital-focused, and packed with features. Think time tracking, hiring, benefits, and compliance.
Pricing:
- Starts at $8/user/month (Essentials).
- Higher tiers available for more features.
Pros:
- All-in-one HR platform, even benefits and compliance.
- Gorgeous and easy-to-use interface.
- Custom workflows to save time.
Cons:
- Payroll is an add-on, not included in base price.
- Customer service can be hit or miss.
6. Homebase
Homebase is designed especially for small businesses in retail, food, and hospitality. If you run a coffee shop or a boutique, this one’s for you!
Pricing:
- Free for basic time tracking and scheduling.
- Premium plans start at $20/month per location.
Pros:
- Best-in-class scheduling and time tracking.
- Works great on mobile for hourly teams.
- Simple payroll integration.
Cons:
- Not ideal if you’re hiring salaried professionals.
- Advanced features locked behind paywalls.
Quick Tips for Choosing the Right HR Tool
- Know your needs. Do you need payroll, hiring, or just time tracking?
- Pick a tool that scales. Choose something that grows with you.
- Watch the budget. Make sure you’re getting value—not just paying for bells and whistles.
Final Thoughts
Choosing an HR tool can feel overwhelming. But it doesn’t have to be! Start small. You don’t need something with all the bells and whistles right off the bat.
If you just need help with time tracking, try Homebase. Want everything in one place? Look into Gusto or Rippling. Prefer something lightweight and flexible? Zoho People might be your match.
The best part? All of these tools offer free trials or free tiers. Try them before you commit!
Remember, the right HR software isn’t just about function. It’s about freeing up your time so you can do what matters most—growing your business.
So go ahead. Pick an HR hero and save your sanity in 2025.
