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Home >Best Human Resources Software in 2026

Best Human Resources Software

Robie Ann Ferrer Avatar

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Robie Ann Ferrer

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After evaluating 14 HR platforms, Rippling is my top pick overall, BambooHR is the most ideal for small teams, Gusto is optimal for new businesses, and ADP Workforce Now is the best fit for midsize firms.

How does HR software improve your business processes?

Human resources (HR) software systems unify administration, recruitment, payroll, training, employee engagement, performance management, and other essential HR functions. 

This provides a secure database of employee data and a centralized view of the company. It also helps HR teams effectively manage each stage of theemployee life cycle.

The right HR software solution can help optimize processes byautomating manual tasks, organizing employee records, and building data-driven reports. 

Moreover, advanced HR software solutions enable better workforce planning, financial forecasting, and strategic decision-making.

Which HR tools ranked the highest?

I reviewed 13 human resources software and narrowed them down to the best of the best:

Vendor

Best for

Starting price

Best overall

$40/mo. + $8/employee/mo.*

Small companies

$10.25/employee/mo.

New businesses

$49/mo. + $6/employee/mo.

Midsized businesses

Contact sales

Large enterprises

$18/user/mo.**

Companies with field and frontline staff

Contact sales

*Pricing is for small businesses. Rippling also allows you to create a custom package with the features you want.
**Starting price for SAP SuccessFactor HCM’s Core HR module.

Did you know?

A Gartner study found that over half (55%) of HR leaders say their current systems fall short of evolving business needs, and nearly the same number (51%) can’t clearly see the return on their HR tech investments. That’s why it’s critical to evaluate software against clear business criteria — so you invest in a platform that drives efficiency, compliance, and measurable ROI.

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TechnologyAdvice is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities. Our mission is to help technology buyers make better purchasing decisions, so we provide you with information for all vendors — even those that don’t pay us.

TechnologyAdvice is able to offer our services for free because some vendors may pay us for web traffic or other sales opportunities. Our mission is to help technology buyers make better purchasing decisions, so we provide you with information for all vendors — even those that don’t pay us.

Featured partners

  • Jan. 08, 2026:Robie Ann Ferrer used an updated scoring rubric and added Namely and Zoho People to the list of software evaluated. While Rippling and BambooHR retained their top spots, Gusto moved up to third place. Robie also made some revisions to the article to improve readability, as well as reflect rubric score changes and up-to-date pricing information.

2025

  • Nov. 5, 2025:Hanna Sillo added user reviews for Rippling, BambooHR, ADP Workforce Now, SAP SuccessFactors HCM, and Gusto for practical insights.
  • Jul. 15, 2025:Robie Ann Ferrer used a revised version of the original scoring rubric to compare 12 HR software. Trinet HR Platform was initially included, but she dropped it because TriNet has incorporated it into its HR Plus outsourced services. Then, she evaluated the dozen options on the list. As a result, Rippling replaced ADP Workforce Now as the best software for HR. Gusto also moved up from the honorable mentions list, while Deel didn’t make the top five. Finally, Robie made revisions throughout the article to reflect rubric score adjustments and added up-to-date product information for all vendors.
  • Apr. 25, 2025: Hanna Sillo reviewed the pricing and fixed formatting errors on the page.
  • Mar. 7, 2025:Hanna Sillo added a downloadable rubric and fixed formatting errors on the page.
  • Jan. 31, 2025:Jessica Dennis evaluated old and new software and revised this page for 2025. Following an updated all-in-one HR evaluation rubric, she replaced Gusto with Deel as the best HR software for startups. She also dropped Workday HCM from her honorable mentions and replaced it with Paycor and Gusto.
  • Beyond this, Jessica also reviewed the copy for accuracy and provided fresh analysis and expert insights to help with your purchasing decision.

2024

  • Oct. 11:Robie Ann Ferrer updated SAP SuccessFactors’ pricing, added details on Gusto’s Al tool Gus, and reviewed the pros and cons for accuracy.
  • Jul. 18:Jessica Dennis updated platform scores following the changes to module inclusion scoring, adjusted criteria weights, and added Paylocity and Deel to her honorable mentions, replacing Paycor.
  • Jun. 10:Jessica Dennis adjusted scores across all platforms due to changes in performance management scoring, updated user review weighting, and new feature evaluations for Bob’s Hiring and Rippling’s Goals and News Feed modules.
  • Apr. 30: Jessica Dennis adjusted each vendor’s scores following minor changes in our rubric for user ratings and how we score module inclusions. 
  • Jan. 22:Jessica Dennis added honorable mentions for Workday HCM and Paycor and corrected the overall score for Gusto after further research confirmed it lacks tools in its ATS for managing in-app interview scheduling.

2023

  • Dec. 29: Jessica Dennis reevaluated our top choices for 2024 with an objective scoring rubric. As a result, Rippling replaced Namely as our pick for midsize companies, and Gusto replaced Bob for startups.

To evaluate the best human resource software, I collaborated withIrene Casucian, one of our expert research analysts, where we used a 73-point rubric to review and compare 14 online HR platforms. Our options included:

  • ADP Workforce Now
  • Rippling
  • SAP SuccessFactors HCM
  • UKG Ready
  • BambooHR
  • Bob
  • Gusto
  • Workday HCM
  • Paycor
  • Paylocity
  • Deel
  • Paychex Flex
  • Zoho People
  • Namely

We looked for functionalities that streamline essential HR processes, from recruiting and payroll to performance reviews and learning management. 

In addition to checking customer support options, we researched the compliance tools, reporting, third-party software integrations, and customization features offered. 

If available, we leveraged free trials and demos to assess each software’s functionality and ease of use.

I also added my expert rating to each criterion, where I considered the effectiveness of that area or feature. Then, I narrowed down the list to my top five recommendations (plus one honorable mention). 

Below is the breakdown of the evaluation criteria.

HRIS and onboarding: 13%

This section covers each platform’shuman resources information system (HRIS) and onboarding features, which account for 13% of the total score. I rated systems higher if their HR database is built around a centralized employee record rather than payroll data. I also gave extra points to software with employee self-service portals.

Payroll and benefits: 12%

Payroll and benefits are among the most critical HR functions, tied with the HRIS and reporting criterion, at 12% of each platform’s total score. I looked at whether platforms offer built-in payroll and benefits modules, automated tax filings, and employee benefits self-enrollment features. I also ranked platforms higher based on their compliance support and tools that improve the employee experience, such as financial wellness apps.

Pricing: 15%

Pricing accounts for 15% of the weighted score. Software with transparent pricing, scalable tiers, discounts, no long-term contracts, and free trials received the highest scores. I also considered each platform’s “value for money,” which determines whether the number of features in each price tier or module is competitive with other vendors in the space.

Platform and interface: 13%

How easy is the platform to use? Can I create my own automations? Can I control employee access and permissions? And will employees’ data be safe? This category covers each solution’s intrinsic features and offerings, including how well it integrates with your current tech stack. This category represents 13% of the platform’s total score. 

Workforce management: 12%

The workforce management criterion evaluates features to control and monitor when, where, and how your staff work. Comprising 12% of their total score, I evaluated whether each platform offered native time-tracking, scheduling, and leave management modules. The best platforms also include approval workflows, automations, absence policy management, and built-in compliance controls for laws like the FMLA and FLSA. 

Talent acquisition: 11% 

The criterion evaluates the recruitment capabilities of each HR system, including candidate sourcing, screening, and interview management tools. I also considered additional capabilities like automated resume parsing and ATS pipeline movement. I also gave extra points to platforms with AI and tools to engage candidates. Talent acquisition makes up 11% of the total score.

Employee relations: 11%

At 11% of the overall score, this criterion assesses each software’s performance management, learning management, and employee engagement capabilities. Platforms with native modules for each scored highest, especially those with advanced features like customizable training courses, goal-tracking, and peer-to-peer recognition options. My expert score also considered platforms with unique employee experience tools, like newsfeeds, community forums, and chat functions.

AI, analytics & reporting: 8% 

This criterion accounted for 8% of the software’s overall score. Here, I looked for AI-powered tools that cover various HR functions, such as AI applicant screening or AI assistants for summarizing feedback. I also checked if basic and customizable reports are offered, including access to report templates and data export options. 

Support: 5%

This examines the various technical support options available to users, such as live chat, phone, and email assistance. The platforms with comprehensive FAQs and knowledge bases also ranked higher. Finally, I considered whether platforms offer business services, like HR outsourcing, to offload administrative tasks. Support makes up 5% of the total score.

My recommendations for the best human resources software are based on over five years of experience writing about and evaluating HR systems for small to midsized businesses (SMBs). I also have 10 years of expertise handling various facets of human resources, including managing HRIS, time tracking, and pay processing software. These allowed me to provide insights to help business owners determine which HR platform best fits their needs.

Best human resources software: A quick comparison

Our score (out of 5)Ease of useExtensive HR suiteCore HR in basic plan*Payroll in basic plan
Rippling
Visit website
4.18Moderate✓**✓**
BambooHR
Visit website
3.8HighModerateTime tracking costs extraPaid add-on
Gusto
Visit website
3.65HighModerateTime tracking in higher tiers
ADP Workforce Now
Visit website
3.6ModerateTime tracking in higher tiers
SAP SuccessFactors HCM
Visit website
3.56LowPaid add-on
Paycor
Visit website
3.56ModerateTime tracking in higher tiers

*Includes new hire onboarding, employee database, time tracking, and self-service tools

**Depends on modules or features selected

Rippling logo.

Rippling: Best overall HR software

Overall score

4.18/5.00

HRIS and onboarding

4.5/5.00

Payroll and benefits

 4.94/5.00

Pricing

3.35/5.00

Platform and interface

4.69/5.00

Workforce management

4.5/5.00

Talent acquisition

3.88/5.00

Employee relations

3.65/5.00

AI, analytics & reporting

4.38/5.00

Support

3.4/5.00

What are the perks of using Rippling?

  • Employee profile translation and localization for more than 150 countries.
  • Finance and IT management tools available.
  • Offers global payroll, employee of record (EOR), andprofessional employer organization (PEO) services
  • Ability to use Excel formulas in reports for more detailed insights.

What are the downsides of using Rippling?

  • There is no free trial, and it may be too expensive for basic HR needs.
  • New users may need time to learn how to navigate through all its features.
  • Scheduling requires the purchase of the Time and Attendance module.
  • Lacks direct phone support; you need to request a virtual call through its chat tool 

Why I chose Rippling

Rippling is the best overall HR software on my list, especially for fast-growing SMBs looking to unite HR, corporate spending, and IT under one system. Scoring4.18 out of 5 in my evaluation, it’s one of the most flexible HR platforms I’ve reviewed. Its workflow builder makes it easy to automate complex tasks, whether it’s sending onboarding paperwork or provisioning app access. You don’t need technical expertise to create HR automations that save time.

In addition to its customizable reports that visualize any dataset, I especially like how it handles global teams and hybrid workforces. With built-in tools for managing payroll, benefits, and computer devices across the U.S. and in over 100 countries, Rippling makes it easier to stay organized without adding more tools to your stack.

However, I consider pricing as one of Rippling’s weaknesses. Its module-based structure may let you choose the features you want, but total costs can add up quickly if you need multiple modules. Plus, pricing isn’t all transparent. I had to visitRippling’s page for small businesses to find its starter $40 monthly fee and $8 per-employee rate (as of this writing). It’s also unclear which modules are included in that package.

Workflow automation

Rippling is the only product on my shortlist with a workflow builder tool for creating custom automation from scratch. This is unlike SAP SuccessFactors, which requires IT knowledge to develop cross-module workflows, or BambooHR, which comes with pre-defined workflows for onboarding, offboarding, and approvals.

Instead, with Rippling’sWorkflow Studio, you can create a trigger in one module to set off an action in another. You can drag and drop actions, collaborate with others, and even add true/false conditional logic and wait times. 

For example, I used Workflow Studio to assign tasks to appropriate stakeholders in the event of a workplace accident. This reduces the need for me to follow up on critical paperwork that could impact the injured employee’s workers’ compensation benefit coverage.

Rippling displays a custom workflow screen with text boxes connected by lines to illustrate actions like “Complete first report of injury” occurs after the trigger “on injury or illness date.”
Creating a custom workflow in Rippling’s Workflow Studio. Source: TechnologyAdvice

Compliance assistance

Rippling comes standard withCompliance 360, which monitors and notifies you of potential federal, state, or local labor law infractions. Although this doesn’t replace training your HR teams on employment laws and taking proactive steps to stay compliant, it is a great backstop as your team grows.

For example, if you’re starting to hire employees in a new state, you might be unfamiliar with state labor laws like minimum wage or paid sick leave. Compliance 360 can notify you of these regulations during employee onboarding to ensure compliance. Or, if a law changes during the employee’s tenure with you, Rippling will alert you to the change.

Rippling lists open compliance issues by dates, employees, resolution deadlines, urgencies, and types, such as minimum wage issues and overtime violations.
Rippling’s Compliance 360 dashboard. Source: TechnologyAdvice

New hire assessment

Rippling’s AI-powered tool,Talent Signal, analyzes the first 90 days of a new hire’s work and provides early performance indicators based on actual outputs. It offers real-time, data-driven insights for people managers to act early and deliver critical feedback to help new hires succeed. 

Rippling lists open compliance issues by dates, employees, resolution deadlines, urgencies, and types, such as minimum wage issues and overtime violations.
Rippling’s Compliance 360 dashboard. Source: TechnologyAdvice
Rippling displays a custom workflow screen with text boxes connected by lines to illustrate actions like “Complete first report of injury” occurs after the trigger “on injury or illness date.”
Creating a custom workflow in Rippling’s Workflow Studio. Source: TechnologyAdvice
Rippling displays its scheduling dashboard with a weekly calendar in the middle, employees listed on the left, and multi-colored squares to represent different scheduled shifts.
Rippling’s scheduling dashboard. Source: TechnologyAdvice
Rippling displays its homepage newsfeed with recent employee posts in the middle and widgets on the right with who is out of the office, new hires, and work anniversaries.
Rippling’s news feed. Source: TechnologyAdvice
Rippling displays its candidate dashboard with a list of candidate names plus a search bar at the top and filters for status, tags, candidate location, and application source on the left.
Rippling’s candidate dashboard. Source: TechnologyAdvice
Rippling displays its global payroll dashboard with a list of payrolls organized by date, country, entity, people, pay date, and status.
Rippling global payroll dashboard. Source: TechnologyAdvice
Rippling displays a bar graph showing total employer payroll costs by country above a spreadsheet with this data; setting and filter controls are to the left and right of the graph.
Rippling reports and analytics. Source: TechnologyAdvice
Rippling displays an organizational chart with TechnologyAdvice at the top and lines connecting executives to managers to individual contributors.
Rippling organizational chart. Source: TechnologyAdvice
Rippling displays its homepage with different module icons listed vertically, plus a list of tasks in the middle and an analytics dashboard below this.
Rippling homepage. Source: TechnologyAdvice

Rippling’s package for small businesses starts at$40 per month, plus an $8 per employee, per month (PEPM) fee. It comes with access to the system’s base product, Rippling Platform, which includes reporting, custom workflows, role-based permissions, and manager approvals. While Rippling’ssmall business page hints that it also features benefits administration and payroll (as of this writing), I recommend contacting the provider to request a quote.

What’s great about Rippling is that it works with you to create a plan that fits your business needs. It has a comprehensive suite of modules to streamline HR processes, track staff expenses, and manage business applications and computer devices. It can even help you with your PEO, EOR, and global payroll requirements. 

“It’s not cheap, but if you’re running a lean team and need to stay compliant across time zones, it more than earns its keep.

Santiago Nestares atDualentry notes that Rippling has become one of the few systems their remote, global team relies on daily, simplifying the complexities of international hiring, payroll, and compliance.

However, he adds that the platform isn’t cheap, and some countries require extra setup. Still, it’s a trade-off they find worthwhile for a remote-first company that needs dependable global coverage.

Meanwhile, many reviews on G2 and Capterra highlighted Rippling’s easy-to-use all-in-one platform. Users like that it automates HR and IT processes, has solid reporting tools, and an extensive integration ecosystem. 

However, some reviewers said that learning to use its features takes time, especially if you get several modules. A few others mentioned that while its support team is generally helpful, the response time can be slow when dealing with technical issues.

At the time of publication, Rippling reviews earned the following scores on these websites:

  • G2: 4.8 out of 5
  • Capterra: 4.9 out of 5

Is Rippling the right fit?

Rippling is one of our favorite HR software vendors, featuring in many of our top product pages. For more information about its capabilities, check out some of our articles below:

The BambooHR logo.

BambooHR: Best for small businesses

Overall score

3.8/5.00

HRIS and onboarding

4.38/5.00

Payroll and benefits

3.73/5.00

Pricing

3.25/5.00

Platform and interface

4.75/5.00

Workforce management

 3.46/5.00

Talent acquisition

3.83/5.00

Employee relations

3.14/5.00

AI, analytics & reporting

4.08/5.00

Support

3.5/5.00

What are the perks of using BambooHR?

  • User-friendly interface that’s easy to navigate
  • Comprehensive HRIS with strong reporting tools
  • Customizable homepage and profile dashboards.
  • Automated wellbeing surveys to track employee happiness over time.

What are the downsides of using BambooHR?

  • Pricing isn’t all transparent and can be high with add-ons
  • Payroll, time tracking, and benefits modules cost extra 
  • EOR is a paid add-on and is available via its partner vendor, Remote
  • Compensation tools and HR benchmarks are limited to the highest tier.

Why I chose BambooHR

I chose BambooHR as my top pick for small business owners because, in my experience, it’s the easiest platform to use on this list. With a total score of3.8 out of 5, I’ve found it strikes the right balance between simple, pre-built workflows that simplify HR tasks and advanced features to support complex hire-to-retire processes.

When I tested it, I liked how the homepage lets employees view PTO banks, request time off, or clock in for a shift with just one click. I also appreciate its pre-built reports and AI-driven tools that analyze employee feedback, providing deeper insights into workforce sentiment. You can even customize BambooHR’s homepage with widgets to access this information as soon as you log in.

While BambooHR offers a comprehensive suite of HR tools, pricing can be a drawback. Its plans mostly include hiring and talent management modules, so you have to pay extra formust-have HR system features, such as payroll, time tracking, and benefits administration.

Digital record-keeping

BambooHR lets you upload, share, and store company and personnel documents directly within the platform. You can even create legally recognized online forms that support electronic signatures, which is great if you want to move from paper processes to an entirely digital filing system.

Creating these documents can be time-consuming, but it’s worth it. After you upload your PDF or .docx document to BambooHR, you can drag and drop the fields you want employees to complete into the appropriate areas. You can then send your electronic documents to the necessary employees for signatures and store the completed forms in their electronic personnel files.

BambooHR displays a background check authorization form with green text fields for things like name, address, social security number to indicate areas to type in responses.
Modifying forms for eSignature in BambooHR. Source: TechnologyAdvice

Employee self-service

Like most modern HRIS, BambooHR has employee self-service features likepreboarding checklists,benefits enrollment, and paystub access. What sets BambooHR apart is that employees can also update their information, request time off, clock in and out of shifts, update professional goals, and track training assignments from the same place.

Plus, if you’re a small business with frontline workers, BambooHR allows employees to access all this information from their mobile device instead of a desktop computer. It even made it into my list of thebest HR apps for mobile as a result.

Employee engagement analytics

BambooHR’s AI-driven employee Net Promoter Score (eNPS) topic summaries analyze worker feedback to identify key themes and sentiments. This feature enables HR teams to identify key drivers of staff satisfaction and address concerns proactively. 

BambooHR employee wellbeing reports
BambooHR’s analytics and employee wellbeing reports provide insight into worker happiness and engagement. Source: TechnologyAdvice.

BambooHR displays its Creat Job Opening workflow, with steps like job information, application details, and job pipeline on the left, and checkboxes to choose application questions on the right.
Creating a job opening in BambooHR. Source: TechnologyAdvice
BambooHR displays an employee profile for Jessica Dennis with tabs for personal, job, time off, documents, timesheet, benefits, performance, and more across the top plus the employee’s clock-in and out-times between November 17 and 30 listed below.
Employee profile in BambooHR. Source: TechnologyAdvice
BambooHR displays a background check authorization form with green text fields for things like name, address, social security number to indicate areas to type in responses.
Modifying forms for eSignature in BambooHR. Source: TechnologyAdvice
BambooHR displays a pop-up window with text boxes including goal objective, description, due date, and milestones for creating a professional goal.
Creating a goal in BambooHR. Source: TechnologyAdvice
BambooHR displays its hiring page with a list of job openings, like financial analyst and marketing manager, next to names of the hiring lead and current status.
BambooHR hiring dashboard. Source: TechnologyAdvice
BambooHR displays a list of employee profile pictures alongside columns showing their employee number, names, job title, location, employment status, and hire date.
BambooHR employee directory. Source: TechnologyAdvice
BambooHR displays its employee turnover report with annual and monthly turnover percentages at the top and a bar graph with number of employee separations between January and December 2024.
BambooHR employee turnover dashboard. Source: TechnologyAdvice
BambooHR displays its homepage with widgets for time off, training, benefits, announcements, and tasks.
BambooHR homepage. Source: TechnologyAdvice
BambooHR’s analytics and employee wellbeing reports provide insight into worker happiness and engagement. Source: TechnologyAdvice.

BambooHR pricing starts at$10.25 per employee monthly, but fees are based on the number of employees you have. If you have 25 or fewer workers, you get a flat monthly rate. If you have more than 25 employees, BambooHR will charge a PEPM fee.

It has three plans: Core, Pro, and Elite. The starter plan includes basic HR features for hiring, onboarding, time off and benefits tracking, compliance, and employee information management. You are granted access to additional tools, such as compensation andperformance management, when you upgrade to higher tiers.

Add-on modules are also available if you want to add employee time tracking, payroll, and benefits administration to your plan. And if you decide to get both payroll and benefits, BambooHR offers a 15% discount for that bundle (as of this writing).

Since our last update, BambooHR has introduced an EOR module (powered by Remote) add-on for companies that need help hiring and paying international employees. Its features include a global employment cost calculator and automatic two-way data syncs between BambooHR and Remote’s HR systems.

BambooHR plans
CoreProElite
Starts at $10.25 PEPM.Starts at $17.50 PEPM.Call for a quote.
Includes:
• HR data and reporting

• Hiring and onboarding
Time off and benefits tracking

• Employee satisfaction and feedback tools

• HR intelligence and AI-powered analytics

• Compliance alerts, templates, and how-to guides

• One compliance course

• Access to over 150 pre-built software integrations

• Flexible Custom Report Builder
Everything in Core, plus:

• Performance reviews

• Employee Community tool with a centralized communications hub for updates, interest groups, and announcements

• Upgraded AI tools

• 15 compliance courses

• Embedded EasyLlama courses

• Time Kiosk app and physical time clock support
Everything in Pro, plus:

• Salary benchmarking and compensation planning

• Access to HR benchmark data

• Custom dashboards and analytics

• Premium support services

• Advanced AI tools

• Over 300 compliance courses

“[I]t was one solution my CEO pointed out that was a game-changer for our company. It was a single point of truth for us and made life so much more transparent (which was badly needed) and personnel management easier.”

Amy Leger, CEO at1Eleven Group, notes that BambooHR was a “game-changer” during her tenure as COO of a small communications agency, where she previously managed hiring, offboarding, staff reviews, and time off manually.

She says it brought long-needed transparency to hiring, onboarding, goal setting, and performance reviews, all in one platform. But she adds that setup was “pretty clunky” and not very intuitive for administrators, even though employees found it simple once configured.

Amy also shared one wish for improvement: a more granular time-tracking feature for client work. Still, Amy says BambooHR’s automation and organization made it one of the best decisions she made for her team.

On popular review sites such as G2 and Capterra, reviewers said its user-friendly platform centralizes HR data and helps them stay compliant. However, some users complained about occasional software glitches when clocking in or filing leaves.

At the time of publication, BambooHR reviews earned the following scores on these websites:

  • G2: 4.4 out of 5
  • Capterra: 4.6 out of 5

BambooHR is a versatile HR suite that can efficiently handle the employee life cycle. Because of its wide range of features, intuitive platform, and user-friendly interface, it appears in many of our buyer’s guides, such as:

Gusto logo.

Gusto: Best for new businesses

Overall score

3.65/5.00

HRIS and onboarding

3.94/5.00

Payroll and benefits

4.2/5.00

Pricing

3.73/5.00

Platform and interface

4.19/5.00

Workforce management

 3.66/5.00

Talent acquisition

2.9/5.00

Employee relations

2.93/5.00

AI, analytics & reporting:

3.45/5.00

Support:

3.5/5.00

What are the perks of using Gusto?

  • User-friendly interface
  • Gusto-brokered health insurance integrated with all payroll plans
  • Offers EOR and global contractor payroll services

What are the downsides of using Gusto?

  • Advanced HR features like applicant tracking and performance reviews reserved for higher plans
  • The starter plan is only for single-state pay runs
  • Same-day and instant payments cost extra
  • EOR services limited to 11 countries (as of this writing)

Why I chose Gusto

Gusto’s base platform is payroll, but it also offers a wide range of HR features like onboarding and time tracking, plus workflow tools that make HR tasks easier for users. I gave it an overall score of3.65 out of 5, largely because of its intuitive and easy-to-use interface. Navigating between modules felt simple, and it even handles some of the trickier administrative processes, such as state registration services, R&D tax credits, and government notice reporting.

It’s well-suited for people who are brand new to HR software. Gusto provides a solid foundation to help you build confidence in core HR processes, while preparing you to eventually move into more advanced all-in-one systems like Rippling as your business grows.

However, Gusto isn’t suitable for larger organizations due to its limited scalability. It becomes unwieldy as you add more employees and develop more complicated work cadences. It also lacks Rippling’s advanced reporting automation-building capabilities, and you have to upgrade to higher tiers for additional HR features like recruiting and surveys. Functionalities that BambooHR offers in its starter plan.   

Full-service payroll

Gusto’s payroll module is built for simplicity. It walks you through each step, from entering employee hours to confirming direct deposits, using clear prompts and helpful explanations. It even allows you to adjust and change pay columns so you only see the pay details that you need.

Gusto’s pay runs can also be completed in just a few clicks, and everything from federal to local tax filings and payments is handled automatically. If you don’t expect changes to your payroll, you can enable its AutoPilot feature, which allows Gusto to automatically process payroll before paydays. Aside from helping you save time, this feature reduces the likelihood of you missing pay processing deadlines.

Gusto payroll custom data fields
You can easily add, delete, resize, and move pay columns with Gusto’s customizable payroll spreadsheet. Source: Gusto.

Benefits administration

Gusto simplifies the benefits setup by acting as a licensed health insurance broker, offering access to a wide range of medical, dental, and vision plans. You don’t need to bring your own broker, although Gusto lets you do that for a fee. It can help you compare plans, enroll employees, and stay compliant with benefits-related regulations.

If you’re a new business owner or an HR team looking for a new benefits provider, this built-in brokerage support removes the guesswork. It also speeds up decision-making, all while keeping costs manageable and HR processes in one platform. 

And if you want to provide financial management tools to employees, it has a free Gusto Wallet app that your team members can use to manage their paychecks and build health spending habits. Employees can also use it to record their clock-ins and outs, as well as view payslips and W-2 forms. 

Gusto Wallet allows employees to monitor their earnings, giving them a better understanding of their finances month-to-month. Source: Gusto.

Gusto pricing starts at$49 monthly plus $6 PEPM. It offers three plans: Simple, Plus, and Premium. There’s also a contractor-only payroll package that costs $35 monthly plus $6 per contractor per month*. Like the other human resource management software on my list, Gusto has add-on tools and services if you want to enhance your selected plan’s features.

Gusto plans

SimplePlusPremium
$49/mo. + $6 PEPM$80/mo. + $12 PEPM$180/mo. + $22 PEPM
Includes:

• Unlimited single-state full-service payroll

• Auto-run payroll

• Two- and four-day direct deposits

• Basic support

• Employee self-service

• Gusto-brokered health insurance

• New hire self-onboarding

• Basic PTO policies

• Custom admin permissions

• Reports for payroll and time off

• Email provisioning and deprovisioning tools
Everything in Simple, plus:

• Unlimited multi-state full-service payroll

• Next-day direct deposits

• Job postings and applicant tracking

• PTO management

• Time tracking and scheduling

• Time kiosk

• Software provisioning and deprovisioning

• Reimbursement and expense claim management

• Workforce costing and custom reports

• Employee directory and printable org charts
Everything in Plus, with:

• Dedicated customer success manager

• HR templates for handbooks, job descriptions, and policies

• Proactive federal and state labor law compliance alerts

• Access to certified HR experts

• Full-service payroll migration and account setup

• Health insurance broker integration

• R&D tax credit discount

• Priority support

Gusto contractor-only plan

  • Monthly fee: $35 plus $6 per contractor*
  • Includes unlimited US contractor payments, four-day direct deposits, and 1099-NECs at the end of the year 

Add-ons

For the Simple plan only(free with the Plus and Premium tiers)

  • Next-day pay: $15/mo. + $3 PEPM
  • Time tracking:$6 PEPM
  • Performance reviews: $3 PEPM

For the Simple and Plus plans only(free with the Premium tier)

  • Priority support: $30/mo. + $3 PEPM
  • HR resources: $50/mo. + $5 PEPM; includes compliance alerts and access to HR experts and HR templates

For all plans

  • Same-day pay:$90 per payroll
  • Instant pay: $100 per payroll
  • State tax registration: Prices vary by state
  • R&D tax credits: Pay 15% of identified tax credits
  • Health insurance broker integration: $6 per month per eligible employee
  • 401(k) retirement savings: Price varies by 401(k) integration
  • Health Savings Accounts (HSAs):$2.50 per month per participant**
  • Flexible Spending Accounts (FSAs): $4 per month per participant, with a $20 per month minimum**
  • Dependent care FSAs: $4 per month per participant, with a $20 per month minimum**
  • Commuter benefits: $4 per month per participant, with a $20 per month minimum**
  • Workers’ compensation: Price of premiums only
  • Life and disability insurance: Price of premiums only
  • International contractor payments: Price varies by foreign exchange rate, with a $5 per-payment fee to US-based bank accounts
  • Gusto Global: $699 PEPM; EOR services available in Australia, Brazil, Canada, India, Ireland, Mexico, the Netherlands, the Philippines, Portugal, the United Kingdom, and Spain (as of this writing)

*For new clients, Gusto waives the $35 monthly base fee for the first six months. This could change anytime, so please explore its website for the latest deals.**Annual $200 service charge covers HSAs, FSAs, dependent care FSAs, and commuter benefits.

“[W]ith the increasing work from home landscape, it truly makes onboarding seamless, even when teams are remote or scaling quickly.”

Sara Celotto, Fractional COO atThe Vision Catalyst, LLC, shares that Gusto has been her go-to HR system for more than a decade, helping her manage payroll, benefits, compliance, onboarding, and performance reviews across multiple law firms and founder-led businesses. She says it keeps everything organized and easy to manage, even as teams grow or work remotely.

However, Sara acknowledges that a few of her clients have experienced occasional hiccups, such as delayed tax filings. Despite that, she continues to use and recommend Gusto for its intuitive design, affordability, and reliability across industries.

Many of the reviewers on G2 and Capterra also mentioned Gusto’s intuitive interface and simple-to-use tools as its best features. While several users appreciate its efficient payroll module, a few others said that it can get pricey depending on the number of employees and the add-on features purchased. 

At the time of publication, Gusto reviews earned the following scores on these websites:

  • G2: 4.6 out of 5
  • Capterra: 4.6 out of 5

HR software battle: Gusto vs other tools

Want to see how Gusto compares with other human resources software? Check out some of our product comparison articles:

ADP logo

ADP Workforce Now: Best for midsized companies

Overall score

3.6/5.00

HRIS and onboarding

4.25/5.00

Payroll and benefits

4.29/5.00

Pricing

1.06/5.00

Platform and interface

3.75/5.00

Workforce management

4.16/5.00

Talent acquisition

3.93/5.00

Employee relations

3.71/5.00

AI, analytics & reporting

4.08/5.00

Support

4.38/5.00

What are the perks of using ADP Workforce Now?

  • Narrative insights to assist with people data analysis.
  • Optional HR advisory services for enhanced compliance.
  • Extensive product line for fast-growing companies.
  • Global payroll support for over 140 countries.

What are the downsides of using ADP Workforce Now?

  • Benefits administration is only available on the Plus plan and higher.
  • Time and schedule management is only available in the highest tier
  • Some features, like job postings, are powered through third-party partnerships
  • Hiring, performance reviews, and learning management are paid add-ons.

Why I chose ADP Workforce Now

ADP Workforce Now is optimal for midsized businesses, especially those with plans to scale. It can function as a simple HRIS, but its wide range of features, smart workflows, and open API allow it to transform into a full-scalehuman capital management (HCM) platform when your business grows.

I gave it an overall rating of3.6 out of 5 because of its scalability, customization options, proactive alerts, and compliance features. I like its analytics that provide actionable insights on staff performance and workforce trends. You can even use it to support strategic initiatives, likereducing turnover.

What’s also great about ADP is its extensive product and HR services catalog that caters to businesses of all sizes. It can even support global payroll andHR resources outsourcing (HRO) needs.

However, ADP Workforce Now can be pricey depending on the add-on modules you plan to get. Some tools, like job postings and hiring, cost extra—features that BambooHR offers in its starter tier. It also has a learning curve for new users, given the breadth of HR features it offers. Plus, you have to sign up for a different ADP solution if you need global payroll or a PEO service.

Breadth of integrations

ADP Workforce Now clients have access toADP Marketplace. Here, you can find solutions to integrate with ADP Workforce Now and consolidate your data across your entire HR tech stack.

With integrations available for performance management,employee engagement,recruiting, learning management,time clock software, andfinancial wellness, you do not have to sacrifice the HR platforms you already use to start with ADP.

Advanced payroll functionality

You can easily create multiplepayroll schedules from ADP Workforce Now’s payroll dashboard to cover differentemployee classifications. After you finalize payroll, you can click a button and automatically prepare and download a general ledger file to upload into youraccounting system

It also accommodates more industry- or company-specific payroll needs. For example, if you’re a federal contractor, ADP can help you runcertified payroll. Or, if you’re in a service industry like food or hospitality, ADP can calculate tip credits for your service staff to reduce the likelihood ofpayroll errors.

ADP Workforce Now payroll dashboard
ADP Workforce Now’s payroll dashboard lets you view all past and upcoming pay schedules and complete a step-by-step checklist to ensure accurate employee payments. Source: ADP.

Benchmarking

ADP Workforce Now is the only platform on my shortlist with benchmark information for understanding how your business compares to the competition. Using ADP’s U.S. client base of more than 42 million employees, you can see benchmark numbers in your industry and location for:

  • Creating fair and competitive total compensation packages.
  • Comparing turnover rates.
  • Tracking average time to fill in various roles.

Because Workforce Now offers this natively in-app with data that updates in real time, you don’t have to rely on third-party sources for this information, whether through integration or from outdated compensation survey reports. This is also a huge advantage if you’re a small business since access to this information is typically reserved for larger HCM platforms. 

ADP benchmarking data
Viewing salary ranges based on ADP benchmarks. Source: ADP.

ADP displays a dashboard for configuring fields on an employee roster report.
Setting up a customized report. Source: ADP
ADP displays a salary benchmark report for a software engineer position.
Viewing salary ranges based on ADP benchmarks. Source: ADP
ADP displays a workforce analytics dashboard with widgets for earnings, checks, and direct deposit analyses.
Pre-built payroll reports. Source: ADP
ADP displays an employee's timecard on a desktop window and a time off request form on a mobile app.
View of employee timecard worksheet. Source: ADP
ADP displays a dashboard of open roles and their respective hiring managers, recruiters, departments, locations, and costs to date.
View of recruitment dashboard. Source: ADP
ADP Workforce Now payroll dashboard.
From ADP Workforce Now’s payroll dashboard, you can view all your past and upcoming payroll schedules and complete a step-by-step checklist to ensure accurate employee payments. Source: ADP
ADP survey insights.
Voice of the Employee automatically draws insights from survey results to simplify future action planning. Source: ADP

ADP Workforce Now offers three subscription tiers to choose from: Select, Plus, and Premium. However, it does not reveal starting prices for any of its plans; you must contact ADP’s sales team for a quote.

All Workforce Now plans include new hire onboarding, payroll, compliance reporting, a centralized employee database, a self-service portal, and access to the AI-powered ADP Assist tool. However, employee benefits and workforce management are reserved for higher tiers. You will also need to pay extra for additional HR functions, such as recruiting, talent development, compensation tracking, and advanced analytics. 

ADP Workforce Now plans

SelectPlusPremium
Call for a quote.Call for a quote.Call for a quote.
Includes:

• Payroll and tax filings

• Basic reporting and analytics

• Onboarding and offboarding workflows

• ADP Assist

• Voice of the Employee (staff engagement surveys)

• Digital recordkeeping and unlimited storage
Everything in Select, plus:

• Benefits administration
Everything in Plus, with:

• Time tracking

• Leave management

• Scheduling

Add-on modules

Learning management

Talent acquisition

Performance management

Compensation management

HR assist (regulatory compliance assistance)

Analytics and enhanced insights

“It’s really more like the modules checking some very basic boxes for what you need a payroll system to be able to do.”

Susan Snipes, Head of People atRemote People, shares that ADP Workforce Now covers the payroll essentials her team needs, such as accurate tax calculations and standard HR modules for benefits and time tracking.

However, she says the platform is difficult to set up and maintain, often requiring help from customer support. Susan adds that onboarding feels clunky, reporting is hard to customize, and compliance issues have occasionally caused frustration. She hopes ADP will modernize its system rather than layering fixes onto an outdated framework.

Meanwhile, many of the reviewers on G2 and Capterra said ADP Workforce Now makes it easier to run payroll and HR day-to-day. They also like having basic HR tools together in one platform, instead of toggling through different systems. 

Other reviewers mentioned that while it has a lot of HR features, the costs and learning curve were steeper than expected. Some also noted that the interface feels a bit dated and that its mobile app can be glitchy. 

At the time of publication, ADP Workforce Now reviews earned the following scores on these websites:

  • G2: 4.2 out of 5
  • Capterra: 4.4 out of 5

What’s the right ADP product for me?

ADP’s vast product catalog means there are solutions for all companies. ADP Workforce Now, for example, is ideal for SMBs with over 50 employees but less than 1,000. If finding the right ADP software is intimidating, here’s a breakdown of its other major products:

Roll by ADP

Best for solopreneurs or small businesses with 2–10 employees. Roll by ADP is not a full HR suite, but its simple mobile-only interface is great for paying employees and storing basic staff information. And if you’re tech-averse, its AI chat function allows you to run payroll from a simple text conversation.

RUN Powered by ADP

Best for businesses with 2–49 employees. RUN Powered by ADP offers basic payroll and tax support. In its higher price tiers, you can also access unemployment insurance management, a basicapplicant tracking system (ATS) powered by CareerPlug, handbook creation, and alearning management system (LMS).

ADP Vantage HCM

Best for businesses with over 1,000 employees. ADP Vantage HCM offers advanced HR capabilities, particularly in workforce analytics. Although ADP Vantage has features similar to RUN and Workforce Now, it focuses on using your people dataset for strategic decision-making, like minimizing business costs.

SAP logo.

SAP SuccessFactors HCM: Best for large enterprises

Overall score

3.56/5.00

HRIS and onboarding

4.38/5.00

Payroll and benefits

 3.58/5.00

Pricing

1.24/5.00

Platform and interface

3.88/5.00

Workforce management

4.03/5.00

Talent acquisition

3.75/5.00

Employee relations

4.24/5.00

AI, analytics & reporting

4.08/5.00

Support

3.63/5.00

What are the perks of using SAP SuccessFactors HCM?

  • Intelligent text-based employee sentiment analysis.
  • 24/7 customer support via online chat, phone, or email.
  • Accessibility support, including zoom, high contrast themes, screen reader support, and keyboard navigation.
  • Native integration with SAP’s entire product line.
  • More than 2,000 standardized HR metrics.

What are the downsides of using SAP SuccessFactors HCM?

  • Too expensive for small teams.
  • Confusing line of product tiers and integration options.
  • Complex user interface.
  • Few plug-and-play integrations outside of SAP products and partners.

Why I chose SAP SuccessFactors HCM

I found SAP SuccessFactors Human Capital Management (HCM) impressive thanks to its customizable features and extensibility options tailored for enterprises. It earned an overall score of 3.56 out of 5,given its comprehensive suite that covers everything from core HR functions to advanced talent management. Its AI-powered features also help provide employee self-service tools and recommendations for skills-based learning. 

I especially liked how SuccessFactors integrates with other SAP products—likeenterprise resource planning (ERP),supply chain management,financial management, andcustomer relationship management. This creates an open flow of data across functions that are usually siloed. You could essentially operate almost all of your business processes from one platform.

However, SAP SuccessFactors HCM requires a significant investment, with its core product’s minimum 1,000 user requirement. Plus, its advanced features and complicated interface can feel overwhelming if you’re new to HR software or prefer something sleeker. I recommend Rippling if you want a more modern interface or BambooHR if you require easy-to-learn HR tools.

Predictive analytics

SAP SuccessFactors uses data from its various modules to inform big-picture business decisions. Besides collecting on lagging indicators, like employee retention and sentiment, it goes one step further by predicting data trends based on past performance.

It also uses machine learning algorithms to forecast trends so you can proactively address business changes in areas like recruitment and retention. For example, SAP can predict your future male-to-female recruitment ratio based on your historical hiring rates. From this data, you can quickly adjust strategies so you have the best chance of success for your recruitment equity goals.

AI capabilities

SAP SuccessFactors leveragesAI natural language processing to assist with workforce planning and streamline administrative HR tasks. One of my favorite use cases has been its AI writing assistant, which helps managers craft anddeliver constructive feedback to employees. If you have managers with several direct reports, this can ensure they complete theperformance review process on time.

I also appreciate its fully integrated generative AI assistant, Joule, that operates much in the same way as ChatGPT. It learns from the way you work and prior conversations you have to complete transactional, informational, and navigational tasks. For example, you can ask Joule to send requests for feedback, assign tasks, translate text, or confirm your PTO balance.

Considering SAP’s somewhat difficult-to-navigate user interface, Joule is also great for taking you directly to the pages to get you the information you need or complete a process. That way you don’t need to become an SAP expert.

SAP SuccessFactors HCM homepage
With the Joule as your AI co-pilot, you can easily find information and navigate through SAP SuccessFactor’s various modules: Source: SAP.

Succession planning

SuccessFactors HCM’s succession planning tools take a skills-based approach to developing employees and filling talent pipelines for critical roles.

It utilizes the organizational chart to come up withsuccession planning strategies to nurture high performers, address skills gaps, and identify key positions that have a relatively high impact if they become vacant. 

The platform then uses data from employee profiles to surface high-potential, top-performing talent to start grooming for crucial roles. Besides preparing for future turnover, it keeps high performers invested in the company and their professional growth.

SAP SuccessFactors succession planning
SAP SuccessFactor’s succession planning tools allow you to identify high-potential employees, critical roles, and development opportunities. Source: SAP.

Using the AI Assistant, Joule, in SAP SuccessFactors HCM. (Source: SAP)
Using predictive analytics in SAP SuccessFactors to forecast future hires. (Source: SAP)
SAP displays two mobile phones with personalized learning course recommendations, including "Improved Decision-Making Under Uncertainty and Stress" and "Effective Outsourcing Strategies in E-Commerce."
Mobile views of course recommendations in SAP SuccessFactors Learning. (Source: SAP)
SAP displays its ATS with a list of applicants on the left and information on the right for an applicant named Lydia Workman, including a list of exact, close, and probable skills based on their résumé.
Skills matching in SAP SuccessFactors Recruiting. (Source: SAP)
SAP displays its Rewards and Recognition dashboard with text explaining how to nominate peers for a spot award with boxes for monetary or non-monetary peer appreciation, thanking you, upskilling, and wow awards.
SAP SuccessFactors HCM rewards and recognition. (Source: TechnologyAdvice)
SAP displays an employee profile for someone named Molly Huddleston, with tabs to access personal data, job data, compensation, time management, performance, succession, and learning and development on the left and demographic data in the middle.
SAP SuccessFactors HCM employee profile. (Source: TechnologyAdvice)
 SAP displays its homepage with a banner saying "Good afternoon," icons for quick actions like viewing the organizational chart, and tasks under the text "For You Today."
SAP SuccessFactors HCM homepage. Source: TechnologyAdvice
A dialogue box for a candidate experience survey appears to the right of a company’s career page.
View of career site in the ​​SAP Candidate Experience module by Qualtrics. Source:SAP
SAP displays a dashboard of candidate experience survey results through an integration with Qualtrics.
View of candidate sentiment analytics in SAP’s Candidate Experience module by Qualtrics. Source:SAP
SAP displays a dashboard of employee engagement survey results through an integration with Qualtrics.
Employee engagement analytics charts in SAP Employee Engagement by Qualtrics module. Source:SAP
SAP SuccessFactors displays dashboard with test payroll information for ACME company, including an error alert and metrics for total gross comparison, total net comparison, total employee taxes, and total employer taxes.
Creating a test payroll in SAP SuccessFactors to understand employee data changes. Source:SAP
SAP SuccessFactor’s succession planning tools allow you to identify high-potential employees, critical roles, and development opportunities. Source: SAP.

Like most enterprise HR software, ​​SAP does not disclose pricing for its full SuccessFactors HCM suite, so you must contact its sales team for a quote. The overall cost is based on the size of your company, the products you need, and the number of administrative users. 

However, SAP does reveal the starting price for its SAP Core HR module, which includes time tracking, automated global pay processing, AI-enabled self-services, and a centralized people data management tool. At the time of publication, it costs$18 per month and requires at least 1,000 users and a minimum contract of one year. 

Similar to most of the HR software on my list, you can enhance its core platform with add-on features, such as recruitment, workforce management, learning and career development, analytics, and access to its AI assistant, Joule. So if you decide to get SAP SuccessFactors HCM’s entire integrated suite, you may end up paying hundreds of dollars per year per employee.

If you want to negotiate for better rates, I suggest bringing quotes from similar providers. Be sure to ask about discounts when bundling any of its products and services.

Note: SAP SuccessFactors also offers several sales-specific modules, which I did not outline in the chart above. For more information, check out theSAP SuccessFactors HCM website.

“The SAP tool helps to keep rotas and contracts organised, which is vital when managing shift patterns for large workforces, especially when hourly rates are involved.”

Wendy Makinson, HR Manager atJoloda Hydraroll, shares that SAP SuccessFactors HCM works well for their shift-based manufacturing and logistics operations. She says the time and attendance and employee central modules have been especially valuable for keeping rotas and contracts organized.

However, Wendy mentions that initial integration took time—particularly when configuring complex structures like overtime and shift rotations. Now that it’s running smoothly, adding or updating employee data is straightforward, though she’d like to see a simplified interface for shop floor kiosks. Overall, she describes the platform as a positive and reliable HR solution.

Reviewers on G2 and Capterra also consistently praised its scalability and depth of features. Others said that its enterprise-grade suite is sufficient to support the complex HR needs of large, global workforces.  

The biggest drawbacks that users raised were about its steep learning curve, limited or overly technical customizations, and dated interface. Some reviewers also reported delays in getting support when resolving advanced issues. 

At the time of publication, SAP SuccessFactors HCM reviews earned the following scores on these websites:

  • G2: 3.9 out of 5
  • Capterra: 4 out of 5

Honorable mention

HR software is a broad and segmented product category. Below are some runners-up that I think performed well in specific categories and may better suit your business’s needs.

Paycor: Best for companies with field and frontline workers

Overall score:  3.49/5.00

When to choose Paycor

Similar to BambooHR and ADP Workforce Now, Paycor offers an all-in-one HCM platform that caters to the needs of various businesses. It’s ideal for midsized companies, and its mobile and tablet kiosk apps make it optimal for those with frontline and field workers, providing you with multiple options to track their work time and HR records.

Paycor is also the only one in my roundup that allows managers to submit group punches for employees, which is great for deskless employees whose work locations change daily. Pair this with Paycor’s badge, PIN, biometric, or telepunch timeclock hardware for stronger time management processes, especially in industries like restaurants and manufacturing.  

Why it didn’t make the list

Paycor is a much more dated-looking platform than competitors like Rippling. Much of its data is still formatted like an Excel spreadsheet, increasing the learning curve for small businesses. For example, its pay grid for payroll processing can significantly speed up pay runs for advanced users, but can be very confusing if you’re unfamiliar with payroll.

It can also get pricey, depending on the features you want. Monthly fees aren’t published on its website, and its pricing matrix can be confusing since it offers different plans for small, midsized, and large companies. And while it has a feature-rich platform, the starter package for those with fewer than 49 employees includes only payroll tools. You have to upgrade to higher tiers if you want HR functionalities like onboarding, recruiting, and talent development.

Need help selecting the ideal solution for your business? Check out our article onhow to choose the best HR system, including ourHR software pricing guide.

Also read:Paid vs Free HR Software: Which is Right For You?

Find your new HR software

What are the types of HR software?

There are three main categories of HR software:HRIS, HRMS, and HCM. Although they are often used interchangeably, there are several technical differences between them. Some HR software also focuses on specific human resources functions, like recruiting, onboarding, payroll, benefits administration, performance management, employee engagement, and learning management.

Core HR software

An HRIS offers a variety of capabilities for HR data management. The goal of these multi-function systems is to maintain individual employee data and handle the company’s regulatory and legal employment requirements.

It stores key details about an organization’s workforce, including employees’ personal information, employment details, performance metrics, and compensation history. HRIS platforms can also act as a repository for important HR documents like employment contracts, tax forms, and policy guides.

At its core, an HRIS application focuses on optimizing processes associated with HR record-keeping and reporting. It can be a standalone product that integrates with other HR solutions, or it can serve as a central database in an all-in-one HR software suite. 

You can further divide HRIS into five types: operational, strategic, tactical, limited-function, and comprehensive HRIS. To learn more, check outTypes of Human Resource Information Systems (HRIS).

An HRMS focuses on process optimization and cost efficiency. This type of software improves how an organization handles its HR processes by automating tasks and centralizing access to critical information. Many HRMS products extend the functionality of a traditional HRIS by including tools for payroll, benefits administration, recruiting, and performance management. Some HRMS also offer tools for more robust reporting and forecasting purposes, like succession planning and position control.

An HCM software is often regarded as the largest umbrella in the HR software category. Most HCM solutions combine all of the functionalities of HRIS and HRMS platforms, plus additional features for employee engagement, learning management, and business intelligence. It also offers advanced data analysis capabilities for business intelligence and HR process optimization.

HCM software cultivates human capital by streamlining all HR functions and creating a holistic view of the employee lifecycle. This breadth allows companies to maximize the potential of their employees and their contributions to organizational performance. To that end, HCM software adds tactical and strategic HR features to keep employees engaged and motivated to work toward the company’s business goals.

Function-specific HR software

Recruiting software, specificallyapplicant tracking systems (ATS), help hiring teams optimize the hiring process. It manages the entire recruitment process from beginning to end, from sourcing and screening candidates to extending job offers and onboarding new employees.

ATS platforms manage information related to different candidates, allowing hiring managers to compare candidates against each other and choose the best one for the job. Many recruiting software suites include applicant tracking features in addition tocandidate relationship management and workforce planning capabilities.

Onboarding software facilitates the process of introducing new hires to a company. It typically includes capabilities such as electronic signatures,pre-boarding checklists, and employee questionnaires.

Effective onboarding platforms also include tools to helponboard remote employees and onsite workers, such as mobile and desktop support and customizable task assignments by role. That way, all necessary stakeholders timely complete their responsibilities to ensure a smooth employee onboarding experience.

Payroll software lets organizations track expenses, taxes, payouts, and schedules accurately. It also helps HR teams maintain compliance with labor and payroll regulations and analyze payroll data for discrepancies or inefficiencies. Organizations use payroll software to calculate, process, and record employee pay on time.

Payroll software can also come in different sizes and shapes depending on worker classification, company industry, and where employees live and work. For example, you may choose a contractor payroll solution if you only employ contractors. If you employ workers internationally, you’ll want to research global payroll systems to handle competing pay laws by country.

Performance management software enables organizations to assessemployee skills, track goals, and monitor performance over time. Companies often use performance management software to coach employees and evaluate performance during formal reviews or through weeklypulse updates. It gives managers a clear view of employees’ growth and development in their roles.

Employee engagement software helps companies understand employee sentiment over time and identify areas where the employee experience can improve. These systems offersurvey tools, follow-up workflows, gamification, and analytics to understand how employees feel about their work. Employee feedback data is then consolidated and analyzed to produce actionable insights that can improve retention.

Learning management software oreLearning systems, help HR teams design, organize, and deliver employee training programs. These systems can evaluate employee skills, track active certifications, and identify opportunities for professional development.

By incorporating this tool, HR can onboard new employees and keep tenured employees up to date with current industry knowledge standards. Moreover, LMS can optimize job and compliance training and learning and development.

How is AI changing HR functions?

Artificial intelligence isn’t just a buzzword in HR tech anymore. It’s changing how core function operate. While many human resources software vendors have offered some level of automation for years, such as automated pay runs, modern AI tools take it further. It can analyze patterns, make predictions, and deliver recommendation across the entire employee lifecycle.

Here are a few areas where AI is showing up in today’s HR platforms:

AI is speeding up sourcing and screening. Tools now scan resumes, match candidates to job descriptions, and even suggest interview questions based on the role. For example, SAP SuccessFactors and ADP Workforce Now use AI-driven matching to surface top candidates fasters, cutting time-to-hire and reducing bias.

AI tools are starting to offer sentiment analysis, eNPS breakdowns, and trend tracking across performance review and staff surveys. Platforms like BambooHR include AI-powered summaries of open-text feedback so HR teams can spot issues before they escalate.

HR software like Rippling and SAP SuccessFactors are using predictive analytics to forecast attrition risk, model compensation changes, or flag compliance gaps. These insights allow HR leaders to act proactively instead of reactively.

Some platforms now embed AI chatbots to handle routing employee questions about PTO, benefits, and onboarding paperwork. This frees up HR teams to focus on higher-level or strategic HR work while improving the employee experience.

Frequently asked questions (FAQs) about HR software

HR software automates repetitive admin work like payroll, onboarding, and benefits tracking, so HR teams can focus on people and not paperwork. It reduces compliance risk, improves data accuracy, and gives leaders real-time insights to make smarther workforce decisions.

HR software pricing depends on the features you need, the size of your team, and how the vendor structures its plans. Most charge a monthly base fee and a per-employee, per-month rate. For a platform with basic HR features, base monthly fees usually start at around $20 to $40, with per-employee pricing of $6–$15 per month.

Some are more intuitive than others. Platforms like Gusto and BambooHR are known for their clean interfaces and guided setup. More robust systems like SAP SuccessFactors offer deeper HR functionality but often require more training and configuration.

Yes. Most modern HR software vendors offer mobile apps. These let employees clock in/out, request PTO, or view pay stubs. Managers can also approve requests, track schedules, and access reports on the go. However, some platforms may limit advanced features (like performance reviews or workforce analytics) to the desktop version.

Robie Ann Ferrer is a human resources professional with a decade of experience helping companies manage their workforce and optimize HR processes. Her background includes roles as an HR Specialist and HR Business Partner, where she handled various facets of HR, such as payroll, benefits administration, employee services, compensation management, and HR systems.

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