The Benefits of Small Business HR Software: Features to Look For and Popular Options


Small businesses have unique human resource management needs, and that’s where small business HR software comes in. HR software can streamline hiring, onboarding, benefits administration, performance management, and more. In this post, we’ll explore the benefits of small business HR software, key features to look for, and popular options on the market.

Benefits of Small Business HR Software

1. Saves Time and Streamlines Processes

Small businesses often have limited resources, including time. HR software automates tasks and processes, saving HR professionals time and making their jobs easier. For example, software can send applicant tracking notifications, automate interview scheduling, and generate onboarding paperwork. This automation frees up time for HR professionals to focus on other important tasks.

2. Improves Compliance

HR software helps small businesses stay compliant with federal, state, and local employment laws. It can track employee data and documentation, such as employment agreements and performance reviews. This can help prevent legal issues and fines.

3. Enhances Employee Experience

HR software can also improve the employee experience by streamlining processes like onboarding, performance management, and benefits administration. Employees can access the software to view their pay stubs, request time off, enroll in benefits, and more. This self-service aspect saves employees time and reduces the workload for HR professionals.

4. Provides Data Insights

Many small business HR software solutions offer analytics and reporting capabilities. HR professionals can use this data to make informed decisions about hiring, compensation, training, and more. For example, they can analyze turnover rates or track training completion rates to identify areas for improvement.

Key Features to Look For

1. Applicant Tracking System (ATS)

An ATS is a software application that helps businesses manage their hiring process. It tracks applicants from the initial application through to the hiring decision. This system can automate many steps, such as posting job openings, screening resumes, and scheduling interviews.

2. Onboarding

Onboarding is the process of integrating new employees into a company. HR software can automate onboarding tasks, such as sending welcome emails, assigning training modules, and collecting new hire paperwork.

3. Performance Management

Performance management is the practice of setting employee goals, measuring progress, and providing feedback. HR software can automate this process by providing a platform for goal-setting, tracking progress, and scheduling performance reviews.

4. Benefits Administration

HR software can help small businesses manage employee benefits, such as health insurance, retirement plans, and paid time off. Employees can enroll in benefits, view their coverage, and make changes through the software.

5. Self-Service Portal

A self-service portal allows employees to access and update their personal information, view pay stubs and tax documents, request time off, and more. This feature saves HR professionals time by allowing employees to handle many of these administrative tasks themselves.

Popular Small Business HR Software Options

1. Gusto

Gusto is an all-in-one HR platform specifically designed for small businesses. It offers payroll, benefits administration, and HR tools in one place. Gusto’s features include automatic tax filing, HR compliance, benefits enrollment, and more.

2. Zenefits

Zenefits is another all-in-one HR solution that includes HR, benefits, and payroll. It offers features such as onboarding, time tracking, and benefits administration. One unique feature of Zenefits is its compliance dashboard, which alerts businesses to potential issues in real-time.

3. BambooHR

BambooHR is an HR software solution that specializes in applicant tracking, onboarding, and performance management. It has a user-friendly interface and offers integrations with other popular business software, such as Slack and Salesforce.

4. Zoho People

Zoho People is a cloud-based HR software that offers features such as attendance tracking, performance management, and benefits administration. It includes a self-service portal for employees and offers integrations with other popular business software, such as G Suite and Microsoft 365.


Small business HR software can help streamline HR processes, save time, improve compliance, enhance the employee experience, and provide data insights. When choosing a software solution, it’s important to consider key features like an ATS, onboarding, performance management, benefits administration, and a self-service portal. Popular options on the market include Gusto, Zenefits, BambooHR, and Zoho People. Whatever solution you choose, small business HR software can help your HR professionals be more efficient and effective in their roles.

More Posts from Crocodile

Leave a Reply

Your email address will not be published. Required fields are marked *

Try our Gator-Grade HR System today!

Need Help?


Would you like a free demo of Crocodile?

We’d love to give you a free and personalised demo of Crocodile. Please feel free to fill in the contact form and we’ll be in touch.