9 Best HR Software for Startups
Last Updated: By TRUiC Team
As a startup entrepreneur, you have a lot on your plate. You're wearing many hats and trying to do everything yourself in order to save money. One area where you can't afford to skimp is human resources. Hiring and managing employees is critical to the success of your business, so you need the best HR software out there.
In this guide, we will discuss the best HR software for startups and break down the pros and cons of each option. We'll also provide pricing information and feature breakdowns so that you can make an informed decision about which software is right for your business.
Top 10 HR Software for Startups
1. Gusto: Best for Payroll Management
Hiring and processing employees is a task all on its own but payroll management is another aspect startup entrepreneurs don't always account for. Gusto is the best HR software for startups for payroll that offers full-service management as well as a number of other HR tools to help you run your business. With Gusto, you'll be able to automate paychecks, offer health benefits, and keep track of employee PTO all in one place.
Pricing
Gusto offers four pricing packages that have a flat monthly fee as well as a monthly employee fee:
- Simple Plan: $40/month plus $6 per employee/month
- Plus Plan: $80/month plus $12 per employee/month
- Premium Plan: Exclusive Pricing, Contact for Quote
Features
- Automate your payroll management
- Paperless and direct transactions available
- Year-end forms and tax prep automated for you
- Automate employee benefits like healthcare, 401(k), and college savings
Pros
- All-in-one payroll management system
- Complies with all HIPAA, ACA, and ERISA standards
Cons
- May need customer support to undo specific actions
2. BambooHR: Best for Managing Employee Lifecycle
BambooHR is no stranger to the HR industry, and it's hailed as one of the best HR software for managing the employee lifecycle. With BambooHR, you'll be able to keep track of employee data, performance reviews, and time-off requests all in one place. The software also tracks valuable data input like retention and turnover so you can make more informed decisions about your employees.
Pricing
For as good as BambooHR is, they don't make it easy to see how much they cost. You'll have to contact the business to discuss a quote based on the number of employees you have and what features you're looking for.
Features
- Creates a centralized employee database
- Includes applicant tracking system
- Generates accurate data reporting
- Tracks employee performance
Pros
- Easy to use with a sleek and modern interface
- Provides enough data for startups to improve employee processes
Cons
- Lacks an attendance features for employees
- Confusing pricing options
3. OnPay: Best Cost
OnPay is one of the more affordable HR payroll solutions out on the market, and it offers a full suite of tools for startups. With OnPay, you'll be able to automate payroll, payment workflows, and tax filing. The software also offers integrations with other business software like QuickBooks and Xero, so you can manage everything in one place.
Pricing
With one of the best pricing options available, OnPay only has one plan: a flat fee of $36 per month with an additional $4 per person added for each month.
Features
- Employees can take advantage of self-onboarding
- Options for paying 1099 contractors available
- Tax accuracy guarantee included
- Integrated health benefits
Pros
- Automates all your tax payments
- Can create custom payroll reports
Cons
- Only Android mobile app available
4. GoCo: Best for Tracking Benefits
GoCo isn't as well-known as some of the other brands on this list, but its benefit tracking makes it one of the best HR software for startups. With GoCo, you'll be able to automate both payroll and employee benefits, and you'll even get benefit expertise from advisors throughout the country. The software even integrates with some of the best payroll software to create a seamless process for your team.
Pricing
The pricing for GoCo isn't straightforward, as you'll need to contact them with the types of apps you're interested in so they can build a customized plan for you.
What you can count on is the $5 a month per employee that will be in addition to your flat monthly payment.
Features
- Employees can enroll in benefits online
- Benefits can be automatically deducted from payroll
- Completely automated HR process
- An easy to use benefits calculator available
Pros
- Is fully compliant with global, state, and national regulations
- Complete customization of workflows
Cons
- Not the best software for scaling
5. Zenefits: Best for HR and Benefit Integration
For the startup that is looking for an all-in-one solution for their HR and benefits needs, Zenefits is the best choice. With this software, you'll be able to automate both payroll and benefits while also getting access to an expert team of HR professionals. Not only is the software intuitive to use, but it also features a list of add-ons that can make your HR process easier to manage.
Pricing
Zenefits offers three packages priced per employee monthly, but it also offers “add-ons” like payroll services for an additional monthly fee per employee:
- Essentials: $8/employee/month
- Growth: $14/employee/month
- Zen: $21/employee/month
Features
- Automated PTO tracking
- Insurance benefits are tracked
- 401(k) management abilities
- Mobile app for convenient tracking
Pros
- Integrates your HR and benefits processes seamlessly
- Offers an extensive list of automated benefits for employee tracking
Cons
- No on-demand phone support for customer service, ticket model only
6. Remote: Best for International Startup Teams
Timing couldn't be better for Remote, as many workforces are transitioning to hybrid and fully remote setups. With this software, you'll be able to manage your payroll and benefits for employees working anywhere in the world. It's one of the best HR software that offers legal and HR experts in almost every single country, so you never have to feel cautious about how you're handling your HR process.
Pricing
It's difficult to get specific pricing for the different packages Remote offers. According to the platform’s website, pricing ranges from $299-$699 per employee per month based on the chosen billing schedule and country selection. However, it’s best to contact their team to get more information.
Features
- 401(k) tracking available
- Full benefits dashboard and management
- Includes employee benefits administration
- Centralized employee database
Pros
- Excellent for tracking remote employee benefits
- Full list of HR benefit features available
Cons
- Can be tricky to implement
- Confusing pricing options
7. Bitrix24: Best for HR Communication
No other software makes it as easy to get your message to your employees as Bitrix24. It's one of the best HR software solutions for communication and collaboration between team members, and it even includes some project management tools so your team can remain on schedule. You'll be able to manage contacts, messages, tasks, emails, files, and more.
Pricing
Bitrix24 offers a free plan for unlimited users with up to 5 GB of data a month as well as three paid plans:
- Basic: $49/month for five users and 24 GB of data
- Standard: $99/month for 50 users and 100 GB of data
- Professional: $199/month for unlimited users and up to 1,024 GB of data
Features
- Instant messages for your team
- Activity stream intranet service
- Task reporting
- Calendar sharing
Pros
- Great for being able to scale with your company
- Is able to integrate with CRM software
Cons
- Most of the advanced features are behind paywalls
8. Cezanne HR: Best for Scaling
Cezanne HR is close to BambooHR in the type of features and functionality of the platforms, but it is slightly better if you feel like your startup is going to scale quickly. With Cezanne, you'll be able to manage an ever-growing employee base with ease. The software is cloud-based, so it can handle as much data as you need it to, and the security is top-notch, meaning you never have to worry about confidential information being leaked.
Pricing
Cezanne HR does not have set plan pricing for its services but notes on its website that subscriptions start at £200/month (or roughly $260/month) and are based on employee headcount. It’s best to contact their team to get more information.
Features
- Can handle various functions, including personnel files, organization charts, and directories.
- You can change views in the dashboard for managers and employees
- Can support currencies and languages from around the world
- Has good integration with benefits and payroll
Pros
- Able to handle up to 5,000 employees, so perfect for a growing business
- Add-ons available for more complicated tasks
Cons
- Primarily geared toward UK- and Europe-based teams
- Can be confusing to use for first-time HR software users
9. PeopleSpheres: Best for Full Customization
PeopleSpheres works slightly differently than most of the other HR software on this list because it's designed to be completely customizable. This means that you can mold the software to fit any need your business might have. PeopleSpheres makes it easy to integrate your current systems into the software and add on any other apps, making it one of the best HR software options for your startup.
Pricing
There is no pricing listed for PeopleSpheres on its website, so you’ll have to contact the team to get a quote directly from them.
Features
- Automates admin and HR processes
- Centralized portal for completing workflows
- Cross-application reporting and analytics
- Mobile app allows easy access while on the go
Pros
- Able to keep existing systems while using the new platform
- Allows for complete HR customization how you want it
Cons
- If your old platforms don't work, you can't fix it with PeopleSpheres
Frequently Asked Questions
Do startups need HR?
It's important for startups to develop HR policies and procedures early on to ensure that they are compliant with employment regulations. HR can also help startups attract and retain top talent, manage employee benefits, and create a positive work environment.
When should startups hire an HR manager?
The timeline will depend on the size of the startup and how quickly it is growing. Generally, startups will want to hire an HR manager when they reach 20-30 employees.
