HR software (HRIS) streamlines employee management, payroll, benefits, and compliance in one platform. This guide compares the best HR software for 2025, covering features, pricing, and which system is best for different business sizes.
HR Software Quick Facts 2025
- Average cost: $5 - $25 per employee/month
- Key features: Payroll, benefits, onboarding, time tracking
- Implementation: 2 weeks - 6 months (depends on size)
- ROI: 40-60% time savings on HR tasks
- Compliance: Automated tax filing, ACA tracking
Top HR Software Compared
| Software | Best For | Starting Price | Rating |
|---|---|---|---|
| Gusto | Small business payroll | $40/mo + $6/employee | |
| BambooHR | Growing companies | Custom pricing | |
| Rippling | IT + HR integration | $8/employee/mo | |
| Paychex | Full-service HR | Custom pricing | |
| ADP | Enterprise | Custom pricing | |
| Zenefits | Benefits admin | $10/employee/mo |
Detailed Software Reviews
BEST FOR SMALL BUSINESS
Gusto
- Pricing: $40/month base + $6/employee/month
- Best for: Small businesses 1-100 employees
- Features: Payroll, benefits, onboarding, time tracking
- Payroll: Full-service, automatic tax filing
- Benefits: Health, 401(k), HSA, commuter benefits
- Pros: Easy to use, excellent customer support
- Cons: Limited advanced HR features
BEST FOR GROWING COMPANIES
BambooHR
- Pricing: Custom (typically $8-25/employee/month)
- Best for: Growing companies 25-1000 employees
- Features: HRIS, ATS, performance management, reporting
- Recruiting: Built-in applicant tracking system
- Analytics: Comprehensive HR reporting
- Pros: Intuitive interface, strong core HR features
- Cons: Payroll is add-on, limited customization
BEST ALL-IN-ONE
Rippling
- Pricing: Starting at $8/employee/month
- Best for: Tech companies, remote teams
- Features: HR, IT, payroll, benefits in one platform
- IT integration: Manage devices, apps, and access
- Global: Support for international employees
- Pros: Unified HR + IT, automation, integrations
- Cons: Can be complex, pricing varies by modules
Feature Comparison
| Feature | Gusto | BambooHR | Rippling |
|---|---|---|---|
| Payroll | Included | Add-on | Included |
| Benefits Admin | Yes | Yes | Yes |
| Time Tracking | Yes | Yes | Yes |
| Onboarding | Yes | Yes | Yes |
| ATS (Recruiting) | Basic | Yes | Yes |
| Performance Reviews | No | Yes | Yes |
| IT Management | No | No | Yes |
| Global Payroll | Limited | No | Yes |
Key HR Software Features
Core HR (HRIS)
- Employee database: Centralized employee information
- Org charts: Visual company structure
- Document storage: Digital personnel files
- Self-service portal: Employees update own info
- Compliance tracking: I-9, W-4, state requirements
Payroll
- Automatic calculations: Wages, taxes, deductions
- Tax filing: Federal, state, local tax payments
- Direct deposit: Electronic payments
- Pay stubs: Online access for employees
- Year-end: W-2, 1099 preparation
Benefits Administration
- Enrollment: Open enrollment management
- Health insurance: Medical, dental, vision
- Retirement: 401(k) administration
- FSA/HSA: Pre-tax benefit accounts
- COBRA: Continuation coverage management
HR Software Pricing Models
| Model | Description | Example |
|---|---|---|
| Per Employee | Fixed fee per employee/month | $6-25/employee/month |
| Base + Per Employee | Monthly base plus per employee | $40/mo + $6/employee |
| Tiered | Different tiers with more features | Basic, Pro, Enterprise |
| Custom | Negotiated based on needs | Enterprise solutions |
How to Choose HR Software
- Assess needs: List must-have vs nice-to-have features
- Consider size: Current employees and growth plans
- Check integrations: Works with your accounting, ATS, etc.
- Evaluate ease of use: Both admin and employee interfaces
- Review support: Customer service quality and availability
- Compare pricing: Total cost including add-ons
- Request demos: See software in action
- Read reviews: G2, Capterra, TrustRadius
Implementation Tips
- Data cleanup: Clean employee data before migration
- Phased rollout: Start with core features, add over time
- Training: Train HR team first, then managers, then all employees
- Communication: Announce changes and benefits to staff
- Support: Designate internal champion for questions
FAQ
How much does HR software cost?
Typically $5-25 per employee per month, with some charging a base fee plus per-employee pricing. Enterprise solutions are custom quoted.
Do I need HR software for a small business?
If you have 5+ employees, HR software can save significant time on payroll, compliance, and onboarding. The ROI typically justifies the cost.
Can HR software replace an HR person?
For very small businesses, HR software can automate many tasks. Larger companies still need HR professionals, but software makes them more efficient.