HR Management

Top 5 HR Software Solutions For Small Businesses With Under 50 Employees

Wraps up in 12 Minutes

Author: Gavin Altus

Published On October 30, 2025

Running a small business with fewer than 50 employees comes with unique challenges. You’re juggling recruitment, onboarding, payroll, compliance, and employee management often without a dedicated HR team. That’s where the right HR software for small companies becomes a game-changer.

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.

The ROI Of HR Software for Small Businesses

Investing in HR software delivers measurable returns across multiple dimensions. Time savings represent the most immediate benefit, with businesses typically reclaiming 10-20 hours weekly on HR administration alone.

Financial benefits extend beyond time savings. Automated processes reduce errors in payroll and compliance, avoiding costly penalties. Employee self-service decreases HR support requests by up to 60%, allowing lean teams to focus on strategic initiatives.

Perhaps most valuable is the impact on employee satisfaction and retention. Modern HR platforms deliver professional experiences that enhance engagement, reduce turnover, and enhance your employer brand. When employees can easily request leave, access essential documents, and receive timely feedback, they feel more valued and supported.

Future-Proofing Your HR Technology

The HR technology landscape continues evolving rapidly, with artificial intelligence, predictive analytics, and advanced automation becoming standard rather than optional. When selecting a platform, consider not just current needs but future capabilities.

Look for providers that invest in innovation, particularly in areas such as AI-powered recommendations, sentiment analysis, and predictive workforce planning. These features will become increasingly crucial for gaining a competitive advantage.

Integration capabilities also future-proof your investment. Ensure your chosen platform integrates seamlessly with other business systems, including accounting software and communication tools, to create a unified technology ecosystem.

Making Your Final Decision

Choosing HR software is a significant decision that impacts your entire organisation. Begin by requesting demos from your shortlisted providers and testing the platforms with real-world scenarios relevant to your business.

Pay attention to user experience during demos. If the software feels complicated or unintuitive during the sales process, it won’t improve after purchase. The best platforms feel natural and require minimal training.

Consider trial periods when available. Hands-on experience with a small group of employees provides invaluable insights before committing to a full rollout. Most providers offer 14 to 30-day trials or money-back guarantees.

Finally, evaluate the vendor relationship beyond the software. Responsive customer support, regular product updates, and a clear development roadmap indicate a partner invested in your long-term success.

Conclusion

Selecting the right HR software for small companies with under 50 employees represents a strategic investment in your business’s future. The platforms we’ve explored, from Sentrient’s Australian-focused solution to BambooHR’s global capabilities, each offer unique strengths tailored to different business needs.

The key is identifying your highest-priority requirements, whether that’s bulletproof compliance, exceptional user experience, comprehensive features, or cost-effectiveness. Remember that the best HR software isn’t necessarily the one with the most features, but rather the platform that aligns perfectly with how your business operates and where you’re headed.

Small businesses that adopt modern HR technology gain significant competitive advantages, including streamlined operations, improved compliance, enhanced employee experiences, and data-driven insights that inform strategic decisions. These benefits compound over time, creating organisational efficiencies that scale as you grow.

Ready to transform your HR processes?

Start by requesting demos from 2-3 providers that resonate with your specific needs. Experience the platforms firsthand, involve your team in the evaluation process, and choose the solution that feels like a natural extension of your business operations.

The investment you make today in HR software will pay dividends through saved time, reduced stress, and the ability to focus on what matters most: growing your business and supporting the people who make it possible.

Don’t let manual HR processes hold your small business back. Take the first step toward streamlined, professional HR management that positions your company for sustainable growth and success.

Frequently Asked Questions

1. What is HR software for small businesses?

HR software for small businesses is a digital platform that streamlines and automates human resource processes, including recruitment, onboarding, payroll, time tracking, performance management, and compliance. These systems provide a centralised database for employee information while offering self-service portals that reduce administrative burden for small teams operating without dedicated HR staff.

2. How much does HR software cost for companies with under 50 employees?

HR software typically costs between $5 – $20 per employee per month, depending on features included. For a 30-employee company, expect monthly costs of $150 – $600. Many providers offer annual discounts and tiered pricing, with basic packages starting at around $5 to $8 per employee for core features. At the same time, comprehensive platforms with payroll integration cost $12 to $ 20 or more per employee per month.

3. Can small businesses use the same HR software as large enterprises?

While some enterprise HR platforms can scale down, small businesses typically benefit more from solutions designed specifically for their size and needs. Small business-focused platforms offer simpler interfaces, quicker implementation, more affordable pricing, and features tailored to lean operations. They avoid unnecessary complexity while providing essential functionality that grows with your business.

4. How long does it take to implement HR software?

Most modern HR software platforms designed for small businesses can be implemented within one to four weeks. Cloud-based systems with pre-built templates and guided setup often enable you to be operational in just a few days. Implementation time depends on the complexity of data migration, customisation requirements, and whether you’re integrating with existing payroll or accounting systems.

5. Is HR software secure for storing employee data?

Reputable HR software providers implement bank-level security measures, including data encryption, regular security audits, ISO certifications, and compliance with data protection regulations. Most platforms host data in secure, redundant data centres with multiple backup systems. Always verify that your chosen provider meets relevant security standards, such as ISO 27001 and SOC 2 compliance.

6. Do I need technical expertise to manage HR software?

No technical expertise is required for most modern HR platforms. They’re specifically designed for HR professionals and business owners without IT backgrounds, featuring intuitive interfaces, guided setup processes, and comprehensive support resources. Most providers offer extensive training, detailed documentation, and responsive customer support to ensure a successful adoption.

7. Can HR software integrate with my existing payroll system?

Most HR software platforms offer integration capabilities with popular payroll providers through APIs or direct connections. Some platforms include built-in payroll functionality, eliminating the need for separate systems. When evaluating options, confirm that your specific payroll provider is supported or consider switching to an all-in-one solution that includes payroll processing.

8. What happens to my data if I switch HR software providers?

Reputable HR software providers allow you to export your data in standard formats (CSV, Excel, PDF) when you decide to switch platforms. Before signing a contract, clarify data ownership, export capabilities, and any associated fees for data migration. Most modern platforms make data portability straightforward, though some manual reformatting may be required for the new system.

9. How does HR software help with compliance?

HR software helps maintain compliance by automating record-keeping, providing built-in policy templates that align with local regulations, sending automated reminders for required actions, generating audit trails for all HR activities, and updating automatically when laws change. Many platforms offer expert advisory services that guide users through complex compliance matters.

10. Can HR software work for remote or hybrid teams?

Yes, modern HR software is designed explicitly for distributed workforces. Cloud-based platforms enable employees to access HR functions from anywhere using computers or mobile devices. Features like digital document signing, mobile time tracking, virtual onboarding, and remote performance management make these systems ideal for remote and hybrid work arrangements.