Best HR Software of 2025

Started as a payroll service, Gusto has grown into one of the most popular (and comprehensive) HR platforms for small businesses. It strikes a strong balance between enterprise features and cost-effective pricing plans giving business owners a sample, all-in-one solution for paying and managing their team.

Full disclosure: I use Gusto for my business in the HR department. I don’t need all of the features, but Gusto’s simplified platform makes it very easy to manage employees and contractors, set up tax filings, and track hours so I can budget contractor hours more effectively.

However, as a very small business owner, I have found that my customer service queries are not always top priority. That was a major issue when, for an entire calendar year, Gusto failed to file my company’s quarterly tax returns on time. I spent a preposterous amount of time on the phone and sending emails throughout the year because every time they claimed they figured out the problem, I got another bill and late fee from the IRS.

I left, came back with the next company I started, and they’ve been great this time around.

UKG is a major player in the HR and workforce management space that’s primarily geared towards large enterprises. However, their solutions for small to medium-sized businesses are robust, offering a comprehensive suite of tools that can grow with your business.

UKG (Ultimate Kronos Group) is a powerhouse in the HR and workforce management space. While they serve large enterprises, their solutions for small to medium-sized businesses are robust, offering a comprehensive suite of tools that can grow with you. Businesses that are trying to scale and want a partner that provides comprehensive, accessible data to support their HR initiatives will appreciate UKG’s feature set and analytics capabilities. It can handle everything from payroll to time tracking, and helps you use data to make smarter decisions about your workforce.

Zoho People is one of the best budget-friendly solutions on the market, with one of the few completely free programs on the market. Brand new companies that are just starting to think about HR software can leverage Zoho People to start slow, and have a clear upgrade path to add features as they go.

At the lowest level, you’ll have basic employee management tools for up to five employees, document management, e-signatures, and time-off management. As you grow, you can customize your needs with different plans that remain budget-friendly. The big caveat, though, is that you’ll have to pay to add features, get additional storage, gain tools like payroll, and more.

Rippling combines HR, IT, and finance into one system, with a wide range of robust automation and IT management features. Rippling is a dream for tech-savvy teams, with impressive automation tools that allow you to automate HR and payroll workflows based on data triggers all over your system. For instance, as soon as a new employee is entered into the system, Rippling can automatically create a new email account and send them a company computer. You can also apply automation to compliance, benefits administration, time tracking, and more, which frees up time for managers and employees alike.

Rippling offers products in four key categories: human capital management (HCM), payroll, IT, and spend (expense management, corporate cards, and bill paying). Building the right package for your business will require working with a rep.

BambooHR is known for its intuitive, user-friendly interface and strong core HR features like onboarding and time tracking. It’s built specifically for small and medium-sized businesses experiencing growth and wanting a more data-driven approach to employee management. It offers advanced applicant tracking and onboarding tools to streamline hiring and growth, while intuitive self-service tools make it easy for employees to report time off, track performance goals, and much more.

TriNet is the only company on this list that is a Professional Employer Organization (PEO), which means they don’t just provide HR software; they become your co-employer. Frankly, TriNet is not a realistic choice for many small businesses, but it’s a popular choice among startups with high growth potential due to its comprehensive offerings. TriNet can give small businesses access to a world-class HR team and extensive benefits offerings that are typically only available to major companies. TriNet takes on the legal and administrative for your payroll, benefits, and compliance, functioning essentially as a third-party team to completely manage your HR needs so you can focus on your business.

However, partnering with a PEO like TriNet can come with significant downsides for small businesses. You will give up direct control of many HR processes, which can be especially frustrating for employees when they need to navigate benefits or other HR questions with an impersonal support team that they’ve never met. It’s also considerably more expensive than entry-level HR software.

I have to confess to some personal bias with OnPay because it really saved my bacon after my nightmare experience with Gusto. After Gusto simply stopped replying to my messages, I dropped them, signed up with OnPay purely due to the low cost, and was onboarded and ready to go within one pay cycle.

OnPay is far from the most robust HR software on the market, but it’s a great resource for small businesses and freelancers as a transparent, flat-rate payroll solution. It has a very user-friendly interface and automates all of the most complex payroll tasks, including tax filing, garnishments, and benefits deductions, so you really just have to click every other week. There’s no extra charge for running payroll, and the customer service team is truly excellent.

OnPay isn’t a good solution for companies with more than 50 employees that have complex talent management and analytics needs, but it’s an excellent choice for simple businesses whose primary concerns are running payroll and balancing the budget.