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Features, benefits & costs: The best HR software for small businesses

Last updated April 2025

When you’re running a small business, HR might not be at the top of your to-do list, but it’s absolutely important for success.

After all, your employees are at the heart of everything you do.

Having the right HR software can simplify administrative tasks, save time, and help to improve employee happiness.

With so many HR systems out there, it can be overwhelming to figure out which one suits your small business needs.

To help with your search, we’ve rounded up the industry’s most-loved and best HR software for small businesses.

In this guide, we’ll cover standout platforms for small businesses in the UK including:

  • Stribe
  • Sage
  • Breathe
  • BrightHR
  • BambooHR

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Quick comparison: HR software for SMEs

comparison table_hr software for small businesses

Which HR software is best for your small business?

 

When deciding on the best HR software for small businesses, it all depends on your specific needs.

If you’re looking for a cost-effective solution with employee feedback tools, Stribe might be your best bet.

If you need a more comprehensive HR management system software, Sage and BambooHR offer robust features.

For businesses that just want to streamline HR processes and improve organisation, Breathe and BrightHR are great choices.

 

Here’s a quick checklist of things to think about when choosing HR software that’s best for your SME:

  • Ease of use
  • Affordability
  • Scalability
  • Integrations
  • Security
  • Customer service
  • GDPR compliance

stribe yellow logo - pulse surveys for dispersed remote and hybrid workforces and employees

Stribe: Best HR software for employee engagement, surveys and feedback

Stribe is an intuitive HR software platform designed to help SMEs improve employee engagement through anonymous employee surveys.

With a strong focus on gathering meaningful feedback, Stribe has helped over 800 senior HR leaders ditch clunky processes and overwhelming data with employee surveys that reach every employee – no matter where they work.

 

Features

  • Anonymous: Stribe makes a commitment to complete anonymity for employees.
  • Accessible for all: Employees using Stribe can share feedback via multiple channels, in the way that works best for them – no matter where they work.
  • Automated: Ditch manual analysis and spreadsheets; with Stribe all employee insights are done for you.
  • Scalable: Works for businesses of all sizes, from small startups to growing teams.
  • Affordable: Transparent pricing makes Stribe an ideal choice for small businesses on a budget.
  • Mobile app: Stribe’s employee survey app is available on iOS and Android.
  • Integrations: Stribe integrates will all of the most powerful HRIS systems, including those featured in this article.

 

Pricing

Stribe’s pricing depends on the size of your organisation – visit our pricing page. Charities and not-for-profit organisations receive discounted pricing.

 

Why it’s great for small businesses

Stribe’s simple, no-fuss set-up, and focus on employee feedback make it perfect for small businesses that want to improve their workplace culture.

It’s cost-effective, and designed especially for small to medium sized organisations with deskless, dispersed, remote and hybrid workforces.

sage hr

Sage: Best for comprehensive HR and payroll solutions

Sage is a well-known name in the UK for providing a range of business software, including HR and payroll solutions.

Sage HR is ideal for small businesses looking for a complete HR system that covers everything from recruitment to payroll.

 

Features

  • Employee management: Store employee details and documents in one place.
  • Leave and absence tracking: Keep track of employee holidays, sick days, and time off.
  • Payroll integration: Automate payroll with seamless integration to Sage Payroll.
  • Employee self-service: Employees can update their own personal information and request time off.
  • Mobile app: Access HR data and manage tasks on the go with the Sage HR app.

 

Pricing

Sage HR pricing starts from £4.60 per employee, per month.

 

Why it’s great for small businesses

Sage provides a complete HR management system that’s both affordable and scalable – making it a trusted option for small businesses in the UK.

Its payroll features are especially useful for businesses looking for an integrated solution.

 

breathe logo alternative hi res

Breathe: Best for simplifying HR admin

Breathe focuses on simplifying HR tasks, making it perfect for small businesses that want a straightforward system without unnecessary complexity.

It’s great for businesses that need to manage employee records, performance, and absence efficiently.

 

Features

  • Employee records: Manage personal details, contracts, and performance reviews in one place.
  • Holiday and absence management: Keep track of holidays and sick days easily.
  • Performance management: Set goals and review employee performance with simple, built-in tools.
  • Reports and insights: Generate insightful reports to better understand your workforce.

 

Pricing

Breathe pricing starts from £22 per month.

 

Why it’s great for small businesses

With a focus on ease of use and essential HR functions, Breathe HR is ideal for small businesses that want to manage HR processes without overcomplicating things.

The pricing is also very affordable, especially for companies with fewer than 50 employees.

brighthr logo

BrightHR: Best for health and safety

Bright HR offers a powerful yet simple HR management system that’s designed to streamline people management for small and medium-sized businesses.

The platform also provides 24/7 employment law advice and health & safety support, ensuring compliance and peace of mind for employers.

 

Features

  • Time and attendance tracking: Easily track and manage shifts with a simple clocking-in system.
  • Holiday and absence management: Say goodbye to messy spreadsheets—approve holiday requests and track sick days in just a few clicks.
  • Document storage: Store, share, and manage all your HR documents safely in the cloud, so you can access them anytime.
  • HR support on demand: Get 24/7 advice on employment law and health & safety to keep your business compliant.

 

Pricing

BrightHR pricing starts from £2.20 per employee, per month, depending on the size of your organisation.

 

Why it’s great for small businesses

Bright HR is praised for its user-friendliness and the high level of customer support it provides.

It’s a solid choice for businesses that need reliable HR software with 24/7 support.

bamboo hr logo

BambooHR: Best for all-in-one HR

BambooHR is marketed as an all-in-one HR software designed to simplify and integrate human resources tasks for small and medium-sized businesses.

The platform offers a comprehensive suite of features, including hiring and onboarding, payroll and time tracking, benefits administration, employee experience tools, and performance management.

 

Features

  • Hiring and onboarding: Post jobs, track applicants, and send offer letters all in one place.
  • Built-in payroll and time tracking: Keep paydays smooth and accurate with integrated payroll and easy time tracking that doesn’t require multiple systems.
  • Performance management: Set goals, give feedback, and run reviews.
  • Employee wellbeing tools: eNPS surveys and insights into team happiness.
  • Self-service for staff: Employees can manage their own time-off requests, update personal info, and see their own data – saving you time and keeping things tidy.

 

Pricing

BambooHR offers custom pricing depending on the size of your team.

 

Why it’s great for small businesses

BambooHR brings all your employee data, processes, and tools into one easy-to-use system.

It’s built to help growing small businesses save time on admin – from hiring and onboarding to payroll and performance.

Final words

Choosing the right HR software for small business doesn’t have to be stressful.

Whether you’re looking for an all-in-one solution, or a more specialised and in-depth tool, there’s something out there for every small business depending on your needs.

We hope this guide has helped you explore your options, and helps you to find the best HR software to support your growing team.

 

About the author

jade madeley
Jade Madeley

Starting out her early career as a journalist, Jade Madeley is an accomplished content writer with 8+ years’ experience across business, personal finance, SaaS, human resources and employee engagement. Working with Stribe, she crafts insightful content that brings complex HR topics to life and drives meaningful action.

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