For years, human resources managers (HR) in small businesses were relegated to managing spreadsheets, paper forms and an endless number of filing cabinets with employee records – creating a chaotic, inefficient system. Today, however, the emergence of web-based and software-as-a-service (SaaS) HR management systems (HRMS) have bridged the gap. And now small-to-mid-sized businesses (SMB) have a more cost-effective way to access the HR technology that was once only available to big-budget enterprise businesses.
We talk to a lot of people who want to know about the best HR software solutions for small businesses. Beyond the wide range of HR applications, there are also a number of vendors offering HRMS solutions to small businesses. So finding the system that’s right for your organization can be a serious challenge. To get you started, I’ve put together a list of a few of the more popular HR systems for small businesses.
When it comes to automating your broad range of HR functions, ActionHRM delivers a powerful punch in its web-based HRMS. Serving the SMB market for over 10 years, ActionHRM offers three different packaged options – ranging from Basic to Enterprise, with various levels of functionality through an impressive number of applications. What we like best about this system, though, is its intuitive interface. It’s easy to learn and easy to implement, so automating your HR department is a cakewalk.
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Let’s face it: HR professionals have been traditionally better known for their people skills than technology know-how. BambooHR is changing this with its web-based HRMS that can automate your most essential HR functions (i.e., personnel tracking with customized reporting). It also offers scalable functionality for deeper integration. If your company is still tracking employee data in spreadsheets and needs a more organized method, BambooHR should be on the shortlist of systems you consider. It’s straightforward and easy to use, making it ideal for organizations with 50 to 1000 employees.
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Sage Abra is a widely popular solution for HR management. We really like Sage, in part because the company is committed to understanding and responding to the needs of its customers. Their HRMS solution offers a full suite of applications users can choose from – personnel tracking, onboarding, benefits, performance management, and more – to automate any number of HR processes. Sage Abra can support organizations with 50 to 5,000+ employees, making it a great choice for organizations planning for growth. It can also be installed on site or hosted remotely.
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Though it can support companies with 250+ employees, EffortlessHR's web-based HRMS is a solid solution for the one-person HR department. At the 25 to 100 employee level, HR managers are often wearing many hats (office manager, accounts payable/receivable, etc). And this system offers the basic functionality you need to automate your core functions, so you can focus on getting your job(s) done. Beyond the basics, this system has an application for employee time tracking and offers an employee self-service portal. EffortlessHR also includes tools, such as a comprehensive list of federal and state laws, as well as a how-to guide and required posters.
Comparing Systems: From Basic Needs to Bells and Whistles
When comparing HR systems for your small business, there are a few key items that you should take into consideration.
Of course, every system offers different applications and modules to meet your various needs for process automation. Although some HR systems boast across-the-board functionality, it’s important to keep in mind just what your organization really needs. All the bells and whistles look great, sure, but you probably don’t need a succession planning application when you have 20 employees. That said, here are a few of the core functions most small business HR departments are looking for, as well as a breakdown of who offers what.
*BambooHR and ActionHRM partner with third-party HR technology providers, integrating their best-of-breed applications to offer extended funtionality to their users.
Of course, this is nowhere near a comprehensive list of HRMS options for the SMB market, but it’s a good start. What other systems are you using? Any pro tips for your fellow HR professionals?
