HR & work · Ranked by price to features
9 Best HR Software for Small Business of 2026
By the Rankozo research desk · Updated November 9, 2026 · Next review December 24, 2026
Connecteam is the best HR software for small businesses with hourly or deskless staff in 2026, free for up to 10 users and $29 a month for the first 30 on its yearly HR & Skills Basic plan. Deel HR suits office and remote teams that want employee records and time off at $5 per employee a month, and Gusto is the pick when payroll should come with PTO and onboarding, from $49 a month plus $6 per person.
- Tools ranked
- 9
- With free plan
- 2
- Cheapest paid plan
- Deel HR, $5
- per employee per month
By the numbers
- $49.46US employers spent an average of $49.46 per hour worked on compensation for civilian workers in June 2026.U.S. Bureau of Labor Statistics
- 30.0%Benefits accounted for 30.0 percent of private industry employer compensation costs in the US in June 2026, or $14.07 per hour.U.S. Bureau of Labor Statistics
- 3.4%US compensation costs for civilian workers rose 3.4 percent in the 12 months ending September 2026.U.S. Bureau of Labor Statistics
- 3.9%US benefit costs for civilian workers rose 3.9 percent in the year to September 2026, faster than wages and salaries at 3.1 percent.U.S. Bureau of Labor Statistics
- $1,200The median cost per hire for nonexecutive roles at US organizations was $1,200 in 2025, down 27% since 2017, according to SHRM benchmarking of its members.SHRM
Comparison table
| Tool | |||||
|---|---|---|---|---|---|
| Connecteam | 01 | 8.7 | 9.5 | $29per month for the first 30 users | Yes |
| Deel HR | 02 | 8.5 | 8.9 | $5per employee per month | No |
| Gusto | 03 | 8.5 | 8.2 | $49per month plus $6 per person | No |
| Factorial | 04 | 8.4 | 8.1 | $8per user per month | No |
| Rippling | 05 | 8.4 | 7.6 | $8per employee per month plus base fee | No |
| BambooHR | 06 | 8.3 | 7.1 | $250per month flat for up to 25 employees | No |
| Zoho People | 07 | 8.1 | 8.6 | Free plan | Yes |
| Justworks | 08 | 8.0 | 7.7 | $50per month plus $8 per employee | No |
| Paycor | 09 | 7.5 | 6.4 | Check price | No |
Click a column to sort. Prices are the cheapest paid plan quoted from each vendor's US pricing page; "Check price" means the US price check is pending.
How this ranking works
One method for every tool. We compared documented features and published prices; we did not run hands-on tests. Value carries the most weight.
Full methodThis list is for companies with fewer than 100 employees that want to move employee records, time-off requests and new hire onboarding out of spreadsheets and email. We compared documented features and published prices on each vendor's own pages in November 2026 and worked out what each costs per employee. Rankozo scores value at 40%, features at 35% and ease of use at 25%, so cheaper tools that still cover records, leave and onboarding rank higher. Three of the nine also run payroll, which changes how to compare them; the buying guide shows monthly totals at common team sizes.
The verdict
Connecteam gives small teams the lowest cost per employee for time off, documents and onboarding, and it is free up to 10 users, but it has no payroll and is built around a phone app. Deel HR is the cheapest dedicated HR database at $5 per employee. Gusto is the best value if you also need payroll, and Factorial and Rippling offer more modules for teams heading toward 100 people at $8 per employee and up. BambooHR is the easiest HR database to adopt, but its $250 flat minimum only makes sense near 25 staff. Zoho People and Paycor did not publish USD prices we could check, so confirm quotes before you decide.
- 01Top value
Connecteam
8.7/10Mobile-first employee app whose HR & Skills hub covers time off, documents, onboarding, hiring, org chart and training.
Price
$29per month for the first 30 users
Free Small Business plan for up to 10 users; HR & Skills Basic $29 per month for the first 30 users billed yearly, $0.50 per extra user
“The HR & Skills Hub includes Time Off Courses Quizzes Documents Recognition Rewards Celebrations Timeline Hiring Onboarding Org Chart Basic Kick-start with the essentials $ 29 /mo For the first 30 users” Quoted from the pricing page, November 9, 2026.
- Free plan
- Yes
- Free trial
- 14 days
- Value (40%)
- 9.5
- Features (35%)
- 7.6
- Ease of use (25%)
- 8.8
Best forSmall businesses with hourly, shift or field staff who mostly work from their phones.
Connecteam takes first place on price. Its HR & Skills hub bundles time off, documents, an employee timeline, hiring, onboarding, an org chart, courses and quizzes, and the Basic tier costs $29 a month for the first 30 users on yearly billing, then $0.50 for each extra user. A 50-person company pays about $39 a month, under $1 per employee, and businesses with up to 10 users can use every hub and feature on the free Small Business plan. The app is designed for phones, which suits restaurants, cleaning crews, retail teams and contractors where few people have a work laptop. The limits are real, though. Connecteam does not run payroll, so you still need Gusto, QuickBooks or a similar service. Time clock and shift scheduling live in the Operations hub, priced separately at $29 a month for 30 users. For records, leave and onboarding on a tight budget, it is hard to beat.
- ✓Free for up to 10 users across all hubs
- ✓Flat $29 covers the first 30 users on the yearly HR & Skills Basic plan
- ✓Built for staff who do not sit at a desk
- ✕No payroll of its own
- ✕Time clock and scheduling sit in a separate Operations hub with its own fee
- ✕Per-user fees apply above 30 users
- Free plan:
- Yes, up to 10 users
- Paid HR plan:
- $29 per month for 30 users, yearly
- Extra users:
- $0.50 per month each, yearly
- Monthly billing:
- $35 per month for 30 users
- Free trial:
- 14 days, no credit card
Bottom line: The lowest cost per employee on this list, with time off and onboarding in a phone-first app. Pair it with a payroll service.
- 02
Deel HR
8.5/10HR system with worker profiles, org chart, time off and approvals, connected to Deel's global payroll and employer of record services.
Price
$5per employee per month
Core from $5 per employee per month; Advanced and Elite tiers add performance, learning, planning and compensation
“Core starts at $5 per employee per month and covers worker profiles, org chart, time off, job architecture, workflows, approvals, anonymous reporting and people analytics.” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 8.9
- Features (35%)
- 8.4
- Ease of use (25%)
- 8.1
Best forSmall office or remote teams that want low-cost employee records and time off, with hires in other countries later.
Deel HR ranks second because $5 per employee per month buys the core of an HR system: worker profiles, an org chart, time off with approvals, workflows, job architecture, anonymous reporting and people analytics. A 20-person team pays about $100 a month, and a 60-person team about $300. That is less than half the published entry price of Rippling or Factorial. The profile is the same record Deel's payroll, employer of record and US PEO services run on, so a company that later hires abroad does not switch systems. Deel lists three levels: Advanced adds performance, goals, learning and surveys, and Elite adds workforce planning and compensation management. Recruiting is extra. Onboarding is strongest when you also use Deel's ATS or payroll products, which move new hires into onboarding inside Deel. The buying process runs through a demo, so expect a sales call before you can see the product, unlike Connecteam or Gusto where you can sign up yourself.
- ✓Lowest per-employee rate among the per-seat HR databases here
- ✓Same profile feeds Deel payroll, EOR and PEO
- ✓Moving up a tier keeps the same data
- ✕Recruiting is a paid add-on
- ✕Performance reviews need the Advanced tier
- ✕Sales demo flow rather than instant self-serve signup
- Starting price:
- $5 per employee per month
- Tiers:
- Core, Advanced, Elite
- Recruiting:
- Add-on
- Countries:
- 150+ per Deel
- Customers:
- 40,000+ per Deel
Bottom line: The cheapest dedicated HR database here at $5 per employee. Best for teams that may hire across borders.
- 03
Gusto
8.5/10Payroll, benefits and HR platform for small businesses, with onboarding checklists, document storage and PTO policies.
Price
$49per month plus $6 per person
Simple $49 per month plus $6 per person (one state); Plus $80 plus $12; Premium $180 plus $22
“Simple Run basic payroll in one state. $49/mo + $6/mo per person” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 8.2
- Features (35%)
- 8.3
- Ease of use (25%)
- 9.1
Best forUS small businesses that want payroll and basic HR in one bill.
Gusto is the pick when HR software should also pay people. The Simple plan costs $49 a month plus $6 per person and includes unlimited payroll runs, tax filings and payments, and basic PTO policies with holiday pay. Gusto's HR tools add custom onboarding checklists that issue documents, enroll employees in benefits and provision software, plus document storage, e-signatures and new hire welcome emails. For a 20-person company the bill is about $169 a month, payroll included, which compares well with buying an HR system and a payroll service separately. The catches are on the edges. Simple covers one state, so a remote hire elsewhere pushes you to Plus at $80 plus $12 per person. Time tracking and scheduling are included on Plus but cost $6 per person extra on Simple. Gusto has no contracts and sets up the account for free, and its interface is among the easiest to learn here.
- ✓Payroll, tax filing and HR basics in one price
- ✓Free account setup and no contracts
- ✓Clear upgrade path as the team grows
- ✕Simple plan covers one state only
- ✕Time tracking is an add-on on Simple
- ✕Per-person fee doubles on Plus
- Entry plan:
- Simple, $49 + $6 per person
- Multi-state:
- Plus, $80 + $12 per person
- Onboarding:
- Custom checklists, e-signatures
- Contracts:
- None, cancel anytime
- Setup:
- Free account setup
Bottom line: The best all-in-one option for US teams that need payroll with onboarding and PTO. Watch the one-state limit on Simple.
- 04
Factorial
8.4/10Modular HR platform whose Core includes the employee directory, onboarding and offboarding, documents and e-signatures, with time off and other tools added to a tailored plan.
Price
$8per user per month
From $8 per user per month; final price is a tailored quote based on the modules you choose
“Factorial starts at $8 per month, per user” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 8.1
- Features (35%)
- 8.7
- Ease of use (25%)
- 8.4
Best forSmall and midsize teams that want to pick HR modules and pay only for those.
Factorial starts at $8 per user per month, and every plan includes Factorial Core: the employee directory, onboarding and offboarding, payslip distribution, bulk documents, legal e-signature, custom notifications and fillable PDFs. That covers two of the three jobs small teams buy HR software for out of the box. Time off is a module with smart validations, unlimited policies and custom absence types, and you add it along with time tracking, shift management, performance reviews, recruitment, training, expenses, procurement or IT tools to build a tailored plan. A 20-person team on the entry price pays about $160 a month, which lands between Deel HR and BambooHR. The drawback is transparency. Factorial publishes the starting price only, and the quote depends on the modules you pick, so the number you see can rise once time off and time tracking are added. It earns a high features score because it also offers IT inventory and device management linked to HR records.
- ✓Onboarding and documents included in every plan
- ✓Unlimited time-off policies
- ✓Wide module menu, from shifts to device management
- ✕Only a starting price is published
- ✕Final cost depends on a sales quote
- ✕Most modules are added on top of Core
- Starting price:
- $8 per user per month
- Core:
- Directory, onboarding, documents, e-signature
- Time off:
- Unlimited policies, custom absence types
- Pricing model:
- Tailored quote
- Modules:
- Time, talent, finance, IT
Bottom line: A flexible HR suite where onboarding and documents are standard. Get a written quote with time off included before you compare.
- 05
Rippling
8.4/10Unified HR, IT and finance platform where one employee record drives onboarding, documents, time off and connected apps.
Price
$8per employee per month plus base fee
From $8 per employee per month plus a monthly base fee; total depends on the products you choose
“Rippling plans start at $8 per employee per month, with a monthly base fee.” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 7.6
- Features (35%)
- 9.3
- Ease of use (25%)
- 8.3
Best forFast-growing teams that want onboarding to cover devices and app access as well as HR paperwork.
Rippling has the deepest feature set on this list. Its HRIS keeps all employee data in one place, and when a manager or department changes, the update flows to every connected system. Onboarding is automated from the offer letter to device shipping, documents carry signatures and audit trails, and PTO policies show real-time balances with approvals. Employees request leave and view pay stubs on their own. Workflows can trigger actions in Rippling or connected apps, and custom reports respect role-based permissions. Pricing starts at $8 per employee per month plus a monthly base fee, but Rippling does not publish the base fee and builds a custom quote from the products you choose, which is why its value score trails Deel HR and Factorial. For a 20-person team the per-employee part alone is $160 a month. Rippling makes most sense for companies that expect to grow quickly and want HR, payroll, IT and spend in one record from the start.
- ✓Data changes update every connected tool
- ✓Onboarding reaches IT, not only HR
- ✓Grows into payroll, time, recruiting and PEO
- ✕Base fee is not published
- ✕Total price depends on a custom quote
- ✕Most modules are sold separately
- Starting price:
- $8 per employee per month + base fee
- Onboarding:
- Offer letters to device shipping
- Time off:
- Custom PTO policies
- Compliance:
- All 50 states and 180+ countries per Rippling
- Pricing model:
- Custom quote
Bottom line: The most complete platform here for teams planning to scale toward 100 people. Ask for the base fee in writing.
- 06
BambooHR
8.3/10Dedicated HR database with employee records, hiring and onboarding, time-off tracking and reporting.
Price
$250per month flat for up to 25 employees
Core $250 per month flat for 25 employees or fewer; from $10.25 per employee per month above 25
“For companies with 25 employees or fewer, our HR software pricing is charged at a monthly flat rate of $250 USD/mo for Core, $425 USD/mo for Pro, and $650 USD/mo for Elite.” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 7.1
- Features (35%)
- 9.0
- Ease of use (25%)
- 9.1
Best forCompanies with 15 to 100 staff that want a dedicated, easy HR record system.
BambooHR is the classic choice for a small company's first real HR system, and its Core plan covers all three jobs in this list's angle. Employee records sit in one secure database, time off includes requests, accruals, approvals and a shared calendar, and hiring and onboarding come with candidate records, job posting and offer letter templates. Custom reports, dashboards and approval workflows round it out. Companies with 25 employees or fewer pay a flat $250 a month for Core, $425 for Pro and $650 for Elite. Above 25 employees, pricing moves to a per-employee rate that starts at $10.25 a month for Core, with volume discounts applied automatically. That flat minimum is why it ranks sixth here: a 10-person team pays $25 per employee, while Deel HR would cost $5. At 25 people the gap narrows to $10 each. BambooHR scores high on ease of use and features, and month-to-month terms are available.
- ✓Records, time off and onboarding all in Core
- ✓Flat price makes budgeting simple
- ✓Month-to-month terms available
- ✕$250 minimum is steep for teams under 10
- ✕Payroll and performance cost more
- ✕Job openings are capped by plan
- Core, 25 or fewer:
- $250 per month flat
- Core, over 25:
- From $10.25 per employee per month
- Pro, 25 or fewer:
- $425 per month flat
- Elite, 25 or fewer:
- $650 per month flat
- Customers:
- 30,000+ per BambooHR
Bottom line: The most polished dedicated HR database for teams near 25 to 100 people. Too expensive per head for very small teams.
- 07
Zoho People
8.1/10Low-cost HR system with employee database, leave, documents and onboarding, plus attendance and performance on higher tiers.
- Free plan
- Yes
- Free trial
- 30 days
- Value (40%)
- 8.6
- Features (35%)
- 8.0
- Ease of use (25%)
- 7.6
Best forVery small teams and Zoho users who want a free or very cheap HR database.
Zoho People offers a forever free edition for up to 5 users that includes employee database management, time-off management and document management, which makes it the cheapest way for a micro business to stop tracking leave in a spreadsheet. Paid plans run in four tiers. Essential HR adds onboarding and offboarding, HR reports and the Zia AI bot; Professional adds attendance, timesheets and rosters; Premium adds performance, compensation and engagement; and Enterprise adds an HR help desk and a learning management system. Paid tiers have a 5-user minimum, and every plan can be tried free for 30 days, after which the account drops to the free edition. Zoho's pricing page served only euro and pound prices to our checker, so the USD price is pending and the value score reflects the free plan rather than a confirmed dollar rate. It fits naturally for companies already on Zoho apps.
- ✓Free edition for up to 5 users
- ✓30-day trial of all plan features
- ✓Fits with other Zoho apps
- ✕USD prices did not load for us
- ✕Paid plans need at least 5 users
- ✕Onboarding is not in the free edition
- Free plan:
- Yes, up to 5 users
- Free trial:
- 30 days
- Minimum users:
- 5 on paid plans
- Plans:
- Essential HR, Professional, Premium, Enterprise
- Customers:
- 50,000+ businesses per Zoho
Bottom line: A strong free option for teams of 5 or fewer and a low-cost step up after that. Confirm the USD rate on Zoho's site.
- 08
Justworks
8.0/10Payroll and HR service for US teams with onboarding, PTO management and a document center, plus PEO plans with benefits.
Price
$50per month plus $8 per employee
Payroll $50 per month base fee plus $8 per employee; PEO Basic $79 and PEO Plus $124 per employee with no base fee
“Payroll & HR Tools with access to Time Tracking $8 /month/employee + $50/month base fee” Quoted from the pricing page, November 9, 2026.
- Free plan
- No
- Value (40%)
- 7.7
- Features (35%)
- 7.9
- Ease of use (25%)
- 8.6
Best forUS companies that want payroll, onboarding and PTO now, with the option to move to a PEO for benefits.
Justworks' Payroll plan costs $50 a month plus $8 per employee and pairs payroll with a set of HR tools: online onboarding and offboarding, PTO management with policies and holiday pay, time off reports, basic timecards, a document center, a calendar and directory, and a mobile app for employees. Multi-state payroll, contractor payments and W-2 and 1099 filings are included. For a 20-person team that comes to about $210 a month, roughly $40 more than Gusto Simple, but with multi-state payroll in the base price. Time tracking costs $8 per employee more. The bigger reason to choose Justworks is the upgrade path: PEO Basic at $79 per employee adds HR consulting, 24/7 support and compliance help, and PEO Plus at $124 adds medical, dental and vision administration. On the Payroll plan, the org chart, custom reporting and 24/7 support are not included, so the HR side is thinner than BambooHR or Rippling.
- ✓Payroll, onboarding and PTO in the entry plan
- ✓Multi-state payroll included
- ✓Clear path to PEO benefits
- ✕Org chart and custom reporting need a PEO plan
- ✕24/7 support is PEO only
- ✕Costs more per employee than Gusto Simple
- Payroll plan:
- $50 base + $8 per employee
- PEO Basic:
- $79 per employee
- PEO Plus:
- $124 per employee
- Time tracking:
- $8 per employee add-on
- Onboarding:
- Online onboarding and offboarding
Bottom line: A good fit for US teams that want payroll with PTO and onboarding today and a PEO later. HR reporting is basic on the Payroll plan.
- 09
Paycor
7.5/10HCM suite covering payroll, HR, onboarding, recruiting, time and benefits, with a small business package for 1 to 49 employees.
- Free plan
- No
- Value (40%)
- 6.4
- Features (35%)
- 8.6
- Ease of use (25%)
- 7.8
Best forSmall businesses that want one vendor for payroll, HR and time and prefer a sales-led setup.
Paycor is a full HCM suite: payroll, HR, onboarding, recruiting, learning, time and attendance, scheduling, benefits administration and compliance tools all sit on one platform. Paycor groups customers into 1 to 49, 50 to 1,000 and 1,000+ employees, and its pricing page lists compliance dashboards, document acknowledgment and e-signatures, plus an HR Support Center with templates and guides. Paycor also helps with Work Opportunity Tax Credit screening. The problem for a price comparison is that Paycor publishes no plan prices, so every quote starts with a sales conversation, and the page advertises 50% off for the first 6 months, which means the year-two price is what matters. That is why it ranks last on value despite a high features score. Choose Paycor if you want payroll, HR and scheduling from one vendor with a sales team handling setup, and compare its quote against Gusto and Justworks before signing.
- ✓Serves segments of 1 to 49 and 50 to 1,000 employees
- ✓Broad suite from payroll to learning
- ✓HR Support Center with compliance resources
- ✕No prices published on the pricing page
- ✕Demo and quote required
- ✕More than a small team may need
- Published price:
- None, quote required
- Small business segment:
- 1 to 49 employees
- Onboarding:
- Onboarding software module
- Time:
- Time and attendance, scheduling
- Promotion:
- 50% off for the first 6 months per Paycor
Bottom line: Broad features for small employers, but no public prices. Get a written quote that includes the year-two rate.
What to check before you pay
Work out the monthly bill at your headcount
Published entry prices give very different totals. At 20 employees: Connecteam HR & Skills Basic $29 (yearly), Deel HR $100, Factorial and Rippling from $160 before Rippling's base fee, Gusto Simple $169 with payroll, Justworks $210 with payroll and BambooHR $250. At 50 employees: Connecteam about $39, Deel HR $250, Factorial and Rippling from $400, Gusto $349 and Justworks $450.
Decide whether HR and payroll come from one vendor
Gusto and Justworks bundle payroll, tax filing, PTO and onboarding in one per-person price. Connecteam, Deel HR, Factorial, BambooHR and Zoho People are HR systems first, so you add payroll from another vendor or as an extra product. Compare an HR tool plus your current payroll against a bundled plan before choosing.
Check what onboarding actually covers
Onboarding means different things. Factorial includes onboarding and offboarding plus legal e-signature in every plan. Gusto uses custom checklists that issue documents and enroll benefits. Rippling extends onboarding to device shipping and app access. Zoho People puts onboarding on Essential HR, not the free edition, and Deel HR links onboarding to its ATS and payroll products.
Watch for flat minimums and hidden base fees
BambooHR charges $250 a month for Core up to 25 employees, so a 10-person team pays $25 per head. Rippling adds a monthly base fee that it does not publish. Factorial and Paycor price by quote. Ask each vendor for a written total at your headcount, and for Paycor's 50% first-six-months offer, ask for the year-two price.
FAQ
How much does HR software cost per employee for a small business?
Published entry prices range from under $1 to about $25 per employee a month. Connecteam's HR & Skills Basic plan is $29 a month for 30 users, Deel HR starts at $5 per employee, Factorial and Rippling start at $8, and BambooHR charges a flat $250 a month up to 25 employees.
Is there free HR software for small businesses?
Yes. Connecteam is free for up to 10 users across all its hubs, and Zoho People has a free edition for up to 5 users that covers the employee database, time off and documents. Neither free plan includes payroll.
Which HR software includes payroll?
Gusto and Justworks include payroll and tax filing in their entry plans, at $49 plus $6 per person and $50 plus $8 per employee. Rippling, Deel, BambooHR and Paycor sell payroll as an added product, and Connecteam, Factorial and Zoho People focus on HR.
What is the best HR software for a company with fewer than 25 employees?
For hourly or field teams, Connecteam costs the least and is free up to 10 users. For office teams, Deel HR at $5 per employee covers records and time off, and Gusto suits owners who want payroll and onboarding together. BambooHR's $250 flat fee is better value once you are near 25 people.
How did you rank these HR tools?
We compared documented features and published prices from each vendor's site in November 2026. Each tool is scored on value (40%), features (35%) and ease of use (25%), and the overall score is the weighted average. Tools without a verified USD price are scored on what their pages document.
Questions or corrections: editorial@rankozo.comSee our disclosure. Prices change; confirm on the vendor page before buying.
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