The Best HCM Software of 2025
Forbes Advisor Ratings
Methodology
We ran a complete analysis of the leading solutions on the market using a wide range of criteria to determine the best HCM software providers for small businesses. We studied the industry and researched 29 different human resources (HR) management companies and plans, then scored these contenders across several categories using metrics that included pricing, essential and additional features and third-party reviews, which were weighted to favor features that small business owners find valuable in a provider.
Here are some of the categories that we used to come up with the providers that made the top of our rankings.
Decision Factor | Scoring Weight | Description |
---|---|---|
Expert Score | 20% | We use our expert insights to determine which of the providers are the best in the business. This includes considering each software’s ease of use, standout features, popularity and value for the price. |
Reviews | 15% | To get a better understanding of how a wide range of users and businesses find a provider, we look at reviews, giving preference to providers that are highly rated among their user base. We consider both expert reviews as well as consumer reviews when calculating our score. |
General Features | 44% | We review the key HCM features for each of the providers to score functionality. Some of the essential features we look for include core HR, onboarding, compliance and tax support. |
Additional Features | 15% | We also weigh the additional features most valuable to SMBs, including engagement tools and LMS, when scoring each company. |
Service and Support | 6% | Small businesses don’t necessarily operate on a set schedule, so 24/7 support is given a premium, as are multiple contact channels and online resources. |
Read more: How we test HR software
What Is HCM Software?
Human capital management (HCM) software is software that allows human resources professionals to manage people more efficiently. It helps to recruit, hire, develop, pay, manage and retain employees within the organization. It differs from human resources management (HRM) systems in that HRM is more focused on the day-to-day task of managing employees, while HCMs focus on a broader, more strategic approach to personnel management. Human resources information systems (HRIS), by contrast, are more focused on leveraging technology to make HR and business practices more efficient.
How To Choose the Best HCM System
Choosing the best HCM software will be in large part dependent on the needs of your business, and particularly its size and specific HR, workflow and business management software needs. Budget is also a critical factor, though there are core features that every HCM platform should include, regardless of other factors.
- Essential Features: These include core HR, recruiting integrations and candidat e tracking, payroll integration for seamless processing, time management solutions and benefits management.
- Customer Service: The best HCM software for you will be available during your business hours, regardless of when those fall, and by whatever contact channel you need, whether that’s phone, email, live chat or something else.
- Additional Features: Consider whether you’re looking purely for HCM features or if you also want a provider that includes business or workflow management tools on its platform. If you’ve got a provider serving those needs already that you’re satisfied with, those additional features may not be a critical factor for you.
- Ease of Use: Regardless of which company you choose, its platform should be intuitive and approachable. It’s not just you who will be using an HCM, but all your current and future employees, and if you’re spending lots of additional resources training employees to use it, it may become more of a hindrance than a help.
- Reputation: The best metric of how a company performs is often how its current and former customers feel about it, so consider an HCM provider’s reputation online on review aggregate sites and amongst expert reviewers before committing.
How Much Does HCM Software Cost?
Starting Monthly Fee | Free Trial | |
---|---|---|
Zoho | $10 per employee | Yes |
Omni HR | $3.45 per employee | Yes |
Unfortunately, the majority of the HCM companies we reviewed for our list don’t provide their pricing online. Many of them require customers to reach out and request a quote directly from the provider, which means quotes may differ not just based on the size of your company and the features you requested but also from company to company or according to any number of other factors. The leeway for potentially deceptive pricing practices from this type of behavior is extensive, and consumers should always be cautious of companies that do not publicly disclose any pricing guidelines.
That said, some HCM companies provide free trials so that you can test their products before shelling out for them. However, many of them also upcharge for add-ons or extras, so be sure that you’re accounting for all the services you’ll require when pricing out potential HCMs.
Small Business Expert Writer Kimberlee Leonard and Deputy Editor Lauren Holznienkemper contributed to this article.
Frequently Asked Questions (FAQs)
What's the difference between HCM and ERP?
HCM focuses on people within the organization, more specifically, the management of employee data, pay, benefits, role development and much more. In contrast, enterprise resource planning (ERP) looks at company resources on a more macro level to include not only HR but also finance and operations.
What is typically included in HCM software?
Typically, HCM software includes the ability to pay, recruit, hire, manage and retain key talent in an organization. It also includes more sophisticated tools for workforce management, such as succession planning and productivity management, and may also include business management tools, finance assistance or other features to help you grow your company or make it more efficient.
How is HCM different from HR?
HCM is more all-encompassing. It ensures that HR operations align with broader strategic business goals. Moreover, HCM is used not only by HR professionals, but also by employees, their managers and company leaders.
Is Salesforce an HCM?
Salesforce is a cloud-based customer relationship management (CRM) system. Because it is dynamic and customizable, it is possible to use Salesforce as an HCM solution.
Is HCM software secure?
As with most types of software, the best HCM software programs offer many levels of security. When choosing this type of software, you want to look for security features, such as two-factor authentication (2FA) or multifactor authentication (MFA), documentation that shows frequent security updates and patches, intrusion detection, the monitoring of user activities, data encryption and privacy protection.