The best HR software for a small business

HR software for small business keeps your people data, time off, documents, hiring and reviews in one place instead of five spreadsheets. For a small business, the right pick depends on what you need first: BambooHR is the clearest all round option with public prices, Factorial lets you buy only the parts you need, Humaans suits growing teams that want to talk to sales, and Timetastic does one job, time off, for a very low price.

Prices checked on each vendor's own page on 31 October 2026: BambooHR, Factorial, Humaans and Timetastic. We could not read the current pricing pages of Gusto, Zoho People or Personio, so we do not quote them.

The tools side by side

BambooHR

BambooHR lists three plans: Core at $10 per employee a month, Pro at $17 and Elite at $25. For companies with 25 or fewer employees it quotes flat monthly rates of $250 for Core, $425 for Pro and $650 for Elite, and we could not confirm whether those are billed monthly or yearly. Core includes HR data and reporting, time off, benefits tracking and hiring basics with five job openings. Payroll is a separate add on for US employees only, priced on request.

Good for: a business of 20 to 200 people that wants one familiar HR system.

Falls short: for a very small team, the flat rate is a lot for a few people.

Factorial

Factorial shows "starts at $8 per month, per user" and builds a plan from modules. The core covers the directory, onboarding, payslip distribution, e-signature and documents. Time off, time tracking, recruitment, performance and training are separate modules, and the page shows no price for each. You need a tailored quote. We did not find a free plan.

Good for: teams that want only a few parts at first.

Falls short: you cannot see the full price before you talk to sales.

Humaans

Humaans lists Growth, Enterprise and Athena plans and shows no prices, only "talk to sales". Growth covers the directory, documents, absence, timesheets and onboarding. Hiring works through integrations with Ashby and Greenhouse.

Good for: growing, international teams.

Falls short: no prices to compare, so it is hard to judge for a team of eight.

Timetastic

Timetastic does leave and absence only: approvals, a shared calendar and a mobile app. It lists Business at $1.50 per user a month and Pro at $2.50 (its structured data shows pounds, so the currency you pay may differ), billed monthly with no minimum term. A 30 day trial needs no card. A Rota and Time Clock plan at $5.50 adds rotas and timesheets.

Good for: teams whose only problem is knowing who is off when.

Falls short: no hiring, no documents, no payroll.

What small teams really need first

Most small businesses do not need a full HR system on day one. Start with the jobs that go wrong without a system:

1. Time off. Who is away, how many days are left.
2. Documents. Signed contracts and letters in one place that you can find. See the templates for offer letters, warnings and terminations.
3. Onboarding. A checklist so a new hire gets laptop, accounts and a plan on day one.
4. Reviews and one to ones. A regular, simple routine. See feedback and surveys.
5. Payroll. Often best left to a payroll service or your accountant who knows your country.

How to choose

1. Count your people. Flat rates for 25 or fewer favour BambooHR for the small end; per user prices favour Factorial or Timetastic.
2. Ask for the full price in writing when a page shows only "from".
3. Check your country. Payroll and legal templates differ.
4. Ask where the data lives. People data is sensitive. Look for the storage region and how to export everything.
5. Try before you sign. Run a real month of time off requests.

What it really costs

A price per employee is only part of the bill. Ask about these before you compare:

• Set up or onboarding fees. Some vendors charge once to import your data.
• Modules. The base price may not include time off, hiring or reviews.
• Add ons. Payroll is the usual extra, and may be limited to some countries.
• Contract length. Annual terms are common, so a bad fit costs a year.
• Price changes. Ask how much the price can rise at renewal and with how much notice.

Here is a worked example for a company of 18 people. BambooHR's flat rate for 25 or fewer on the Core plan is $250 a month, which is about $14 per person. Factorial from $8 per user is $144 a month for the core, before the modules you add. Timetastic Business for 18 people at $1.50 is $27 a month, but covers only time off. These are not like for like, which is why the first question is always "what job do we need done?".

Data protection and trust

HR software holds some of the most sensitive data you have: addresses, bank details, health information in absence records, and performance notes. Check these points on the vendor's own pages:

1. Where the data is stored, and whether you can choose the region.
2. Who can see what. Managers should see their own team, not everyone's pay.
3. A data processing agreement, which most vendors publish.
4. Export. You must be able to download every record in a usable format.
5. Deletion. When someone leaves, can you remove their data on schedule?

If you employ people in the EU or UK, also ask how the vendor handles transfers of data outside those areas. Your own duties as the employer stay with you, even when the software is hosted elsewhere.

A simple rollout

Do not move everything on day one. A calm order is: load the people directory and contracts in week one, turn on time off in week two, add onboarding checklists in week three, and leave reviews and hiring for the next quarter. Ask two employees to try each step before you announce it. Keep the old spreadsheet read only for a month, then archive it. Staged rollouts give you time to fix mistakes before everyone sees them.

The short version

Choose BambooHR if you want public prices and a full suite, Factorial if you want to buy modules, Humaans if you are fine with sales calls, and Timetastic if time off is the whole problem. Get the full price in writing and keep an export of your data.