HR software for small business – Detailed introduction for UK business owners

Last checked and updated on 16 September 2022

If you are a small business owner in the UK, it is important to make sure that you have the right HR software in place. HR software can help to make your life a lot easier, and can also help to improve your business performance.

In this guide, we will discuss what HR software is, why it is important, and what features to look for when choosing a product. We will also compare some of the top products on the market and discuss the cost of small business HR software.

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What is HR software?

HR software is a tool that can be used to manage employee data, tracking employee performance, and managing payroll and benefits.

HR software can also be used to create and manage employee records, as well as to track compliance with employment law.

In addition, HR software can help you to develop and administer training programs, and to monitor employee morale.

Why is HR software important for a small business?

There are many reasons why HR software is important for small businesses.

  • First, it can help to save time and money. By automating HR tasks, you can free up your time to focus on other aspects of your business.
  • Second, HR software can help to improve employee morale by providing them with access to their records and performance data.
  • Finally, HR software can help to improve your business performance by providing you with data that can be used to make informed decisions about your workforce.

How does HR software save you time?

HR software can save you time in a number of ways.

For example, by automating the tracking of employee performance, you can avoid having to manually input data into spreadsheets.

In addition, by using HR software to manage payroll and benefits, you can avoid the need to hire additional staff to handle these tasks.

How does HR software help with compliance issues?

HR software can help you to comply with employment law by providing you with a central repository for employee records.

In addition, HR software can help you to track employee compliance with training programs and other requirements.

Finally, HR software can help you to monitor employee morale and identify any potential issues.

Product features to look out for – what makes the best small business HR software?

When choosing HR software for your small business, there are a few key features to look for.

FeatureGood to know…
User-friendlyUser-friendliness is one of the most important factors to consider when choosing HR software. The software should be easy to use and understand, with a user-friendly interface. This will make it easier for you and your employees to use the software, and will save you time in training employees on how to use the system.
CustomisableThe software should be customisable to meet the specific needs of your business.

Some businesses have very specific HR needs, while others may need only basic HR functionality. It is important to choose software that can be customised to meet the specific needs of your business. This will ensure that the software is effective in managing your workforce, and will make it more affordable in the long run.
ScalableScalability is an important factor to consider when choosing HR software. The software should be scalable, so that it can grow with your business. As your business grows, you will need HR software that can handle an increasing number of employees and an expanding workload. It is important to choose software that can scale with your business, so that you do not have to replace the system as your business grows.
AffordableThere are a number of HR software products on the market, and it is important to choose one that fits within your budget.

Some companies offer subscription-based pricing, which can be more affordable for small businesses. Pay-per-use models can also be more affordable for small businesses that do not need all the features of the software.

It is important to compare the pricing of different HR software products before making a decision.
Robust reporting capabilitiesThe software should have robust reporting capabilities, so that you can track employee data and performance. The reports should be customisable, so that you can see the information that is most important to your business.

The ability to generate custom reports is an important feature to look for in HR software.

This will allow you to track employee data and performance, and to make informed decisions about your workforce.
Compliance tracking featuresCompliance with employment law is an important consideration for any business. HR software with compliance tracking features can help to ensure that your business is compliant with the law.
Employee self-service featuresSelf-service features are an important consideration when choosing HR software.

Employee self-service features allow employees to access their records and performance data. This can help to improve employee morale, as well as to save time for the HR department.
A variety of integrations availableThe software should have a variety of integrations available, so that it can be used with other systems.

Some HR software products are designed to work with specific payroll or accounting systems. Others may be able to integrate with a variety of different systems. It is important to choose software that can be integrated with the systems you already use, so that you do not have to replace your existing systems.
Strong customer supportStrong customer support is an important consideration when choosing HR software.

The company should offer a variety of support options, such as live chat, email, and phone support. The company should also have a knowledge base or FAQ section on their website. It is important to choose a company that offers strong customer support, so that you can get help when you need it.

These are just a few of the factors to consider when choosing HR software for your small business. The most important thing is to choose software that meets the specific needs of your business.

By doing this, you will ensure that the software is effective in managing your workforce, and will make it more affordable in the long run.

Top 10 best HR software for small business

There are many great HR software products on the market. Some of the top products include:

  1. Namely
  2. BambooHR
  3. ADP Workforce Now
  4. Gusto
  5. Zenefits
  6. Paychex Flex
  7. Ascentis HRIS
  8. Halogen TalentSpace
  9. PeopleFluent ATS & HCM
  10. Ultimate Software UltiPro

1. Namely

Namely is a cloud-based HR software that helps businesses manage employee data and performance. The software offers a variety of features, including payroll processing, benefits administration, and compliance tracking. It also has robust reporting capabilities, so that you can track employee data and performance. The software integrates with a variety of different systems, and offers strong customer support.

Namely offers subscription-based pricing, with a variety of plans available. The cost of the software depends on the number of employees and the features you need. Namely offers a free 14-day trial, so that you can try out the software before you buy it.

2. BambooHR

BambooHR makes it easy for employees to submit time off requests, approvals, and other HR-related tasks through the cloud. Effortlessly input your employee data into one location from multiple sources to stay on top of all aspects of staff management that can be tracked with a spreadsheet or excel file.

BambooHR will allow you to spend less time on HR administration so that you can focus on more important tasks, like running your business.

3. ADP Workforce Now

ADP Workforce Now (AWN) offers comprehensive, easy-to-integrate workforce management solutions that equip you to manage the entire human resources process securely and seamlessly. One complete suite of apps handles employment processing: recruiting, onboarding, time and attendance reporting, benefits administration, leave requests/tracking, performance management and more.

AWN is a cloud-based solution that helps you manage your employees from anywhere at any time. It’s an affordable way to centralise employee data and automate HR processes, so you can focus on your business goals.

4. Gusto

Gusto HR is a cloud-based solution that helps small businesses manage their employee files, onboard new employees, and handle payroll tasks. The intuitive interface makes it easy to use, even for those who are not familiar with HR software. Gusto HR also integrates with popular accounting software solutions like QuickBooks, making it easy to keep your books up-to-date.

Gusto HR is a great choice for small businesses that need an all-in-one solution for managing their HR needs. The software is affordable, easy-to-use, and integrates with popular accounting software solutions. Gusto HR also offers a free trial, so you can try the software before you commit.

5. Zenefits

If you’re looking for a comprehensive HR solution, Zenefits is hard to beat. It offers everything from payroll and benefits management to time tracking and performance reviews. Its intuitive interface makes it easy to use, even for employees who aren’t familiar with HR software. And because it’s cloud-based, Zenefits can be accessed from any device with an internet connection.

While Zenefits is a great choice for small businesses, it’s important to note that it doesn’t offer a free trial or a free version. So if you’re on a tight budget, you may want to consider another HR software solution.

6. Paychex Flex

Paychex Flex is a software package that helps small businesses manage payroll and taxes. PayChex Flex provides tools to automate calculations in preparation for forms like P45s, P60s, P11D etc., saving companies time and money on human errors when filling these out manually.

The program also allows employers to track the hours of their employees with a time clock feature, and can manage holiday days and other time off.

Paychex Flex integrates with many common accounting software packages, making it a valuable tool for small businesses that want to streamline their payroll process. The software starts at £99 per month plus £0.99 per employee, with discounts available for annual plans.

7. Ascentis HRIS

Ascentis HRIS is a comprehensive solution for managing your employee files, tracking time and attendance, and automating payroll processes. It’s easy to use and customisable to fit the specific needs of your business.

Ascentis HRIS also integrates with popular accounting software programs like QuickBooks, making it easy to track employee hours and payslips. With its many features and affordable price, Ascentis HRIS is a great solution for small businesses.

8. Halogen TalentSpace

Halogen TalentSpace is a comprehensive HR software that helps small businesses manage their employee data, performance reviews, and compliance processes. It offers a variety of features such as applicant tracking, onboarding, performance management, learning and development, and compliance management.

This makes it easy for business owners to keep track of all their employee data in one place and ensure that their employees are meeting all the necessary compliance requirements. Halogen TalentSpace is a cloud-based HR software, which means it can be accessed from anywhere with an internet connection. It offers a free trial and pricing starts at £99 per month.

9. PeopleFluent ATS & HCM

PeopleFluent ATS and HCM software automates recruitment, on-boarding, and talent management processes. This solution is designed to enable business automation through HR technology while managing data security measures that are made mandatory by the GDPR regulations. PeopleFluent’s advanced CRM service provides users with powerful online analytics tools for strategic insights into performance and compliance.

The software is designed to manage an ever-changing talent landscape with a centralised system of record, supporting multiple countries, languages, and compliance standards. The solution offers role-based dashboards for different user types, so everyone has the information they need at their fingertips.

10. Ultimate Software UltiPro

Ultimate Software UltiPro is the leading HR software solution for small businesses. It offers an easy-to-use interface and a wide range of features that make it ideal for businesses of all sizes. Some of the key benefits of using UltiPro include:

  • Employee tracking and onboarding
  • Time and attendance tracking
  • Performance management
  • Benefits administration
  • Payroll management

UltiPro is a comprehensive HR solution that offers everything you need to manage your workforce. It is easy to use and has a wide range of features, making it ideal for small businesses.

Cost of small business HR software

The cost of small business HR software will vary depending on the product you choose. However, there are some products that are more affordable than others. For example, BambooHR starts at £99 per month, while Workday starts at £495 per month. Ultimately, the cost of the product you choose will depend on your specific needs and budget.

Final words

If you are looking for HR software for your small business, this guide should help you to get started. Be sure to consider the features that are important to you, as well as the cost of the product, before making a final decision. With the right HR software in place, you can improve your business performance and save time and money.

Frequently asked questions

What is HR software?

HR software is a tool that helps businesses manage their employee data, performance reviews, and compliance processes.

Why is HR software important?

HR software is important because it can help businesses automate their recruitment, on-boarding, and talent management processes. Additionally, it can help businesses keep track of all their employee data in one place and ensure that their employees are meeting all the necessary compliance requirements.

What are the benefits of using HR software?

The benefits of using HR software include improved business performance, time savings, and cost savings. Additionally, it can help businesses keep track of all their employee data in one place and ensure that their employees are meeting all the necessary compliance requirements.

What should you look for when choosing HR software?

When choosing HR software, you should consider the features that are important to you, as well as the cost of the product. Additionally, make sure to choose a product that is easy to use and offers a wide range of features.

How much does small business HR software cost?

The cost of small business HR software will vary depending on the product you choose. However, there are some products that are more affordable than others. For example, BambooHR starts at £99 per month, while Workday starts at £495 per month. Ultimately, the cost of the product you choose will depend on your specific needs and budget.

What is the best HR software for small business?

The best HR software for small business will vary depending on your specific needs and budget. However, some of the top products include BambooHR, Workday, and Ultimate Software UltiPro. Consider the features that are important to you when choosing a product. Additionally, make sure to choose a product that is easy to use and offers a wide range of features.

What are the most popular HR software products?

Some of the most popular HR software products include BambooHR, Workday, and Ultimate Software UltiPro. Consider the features that are important to you when choosing a product. Additionally, make sure to choose a product that is easy to use and offers a wide range of features.

What is the difference between HR and payroll software?

The main difference between HR and payroll software is that HR software helps businesses manage their employee data, while payroll software helps businesses process their employees’ paychecks. While both systems can be used to manage employee data, payroll software offers a more complete solution for businesses.

What is the best free HR software?

There is a wide range of free HR software available, so the best option for you will depend on your specific needs. However, some of the top products include BambooHR, Workday, and Ultimate Software UltiPro. When considering the features that are important to you, it is important to choose a product that is easy to use and offers a wide range of features.

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Important – The information provided in our articles is intended to be for general purpose use only, and not advice for you or your business. We strive to publish accurate information, but encourage you to fact-check and seek expert guidance. We recommend that you always speak to a qualified professional to get advice about how to operate your business under your specific requirements and circumstances.