The Best HR Software of 2025
Methodology
From our initial evaluation of 33 HR software products, we selected 29 for thorough testing on 45 separate metrics, each of which represents from 1% to 5% of the product’s score. We then conducted a deep dive into the products with the 10 best scores to identify their strengths and weaknesses for specific sizes and types of business.
These are among the features in each category that contributed to our HR software scores:
Decision Factor | Scoring Weight | Description |
---|---|---|
General Features | 19% | The 10 general features contributing 19% to the overall score include onboarding, document management, performance management and compliance tools. Among the additional features are shift scheduling, employee engagement and automated workflows. |
Additional Features | 15% | We ranked additional features included, such as software integrations, shift scheduling and engagement tools. |
Core HR | 13% | Each of six core capabilities accounts for 3% of the HR software’s score: org charts, employee handbooks, reporting dashboards, time and attendance tracking, payroll and benefits administration. |
Recruiting | 7% | Seven features contribute 1% each to the product’s score: syndicated job posting, social recruiting, automatic candidate match, employee referrals, interviewing tools, candidate sourcing and applicant tracking. |
Service and Support | 6% | Providing support by telephone and live chat each account for 2% of the score. Using email to reach support and making a knowledge base available were each worth 1% of the HR software’s total score. |
Consumer Sentiment | 40% | We collected responses from customer reviews to get a pulse on how satisfied or unsatisfied consumers are with the service. |
What Is HR Software?
HR software is a system of tools that help HR teams streamline their core processes, such as running payroll and managing employee benefits. It houses employee and organizational data in one central interface, enables employee self-service and even automates some processes.
How To Choose the Best HR Software
Finding the best HR software for your business begins by understanding the different types of HR applications and the essential features to look out for. Then, consider the specific needs of your company and whether the HR software you’re considering integrates into your tech stack.
What tips do you have to choose the best HR management software?
Types of HR Software
There are three main types of HR software.
- Human resource information systems (HRIS): At its core, an HRIS is a database that stores employee information and runs automated reports. It’s used by HR teams and employees to manage and update employee information and typically, but not always, includes basic HR functions, such as payroll, benefits administration and time tracking.
- Human resource management systems (HRMS): An HRMS layers additional functionality on top of the HRIS, drawing from a wider set of data to support not only employees and HR staff but also managers. To that end, an HRMS typically includes recruiting features, an applicant tracking system as well as performance management and employee engagement tools.
- Human capital management (HCM) software: An HCM solution stores the most data of the three types and thus offers even more sophisticated functionality to support HR at a strategic level, such as predictive analytics and workforce planning, to ensure that people management aligns with overarching business goals. An HCM system often syncs with other parts of a business through a customer relationship management (CRM) or enterprise resource planning (ERP) platform.
These terms are often mistakenly used interchangeably, and some providers refer to their product using a label that doesn’t match the breadth or depth of its features. So, it’s crucial to look past the provider’s marketing language and check out the extent of its product’s functionality to assess what type of HR software it is.
Essential HR Software Features
Core features of HR software include payroll, benefits administration, automatic alerts and reminders, e-signatures and mobile access.
- Payroll: Payroll software helps HR staff or payroll administrators run payroll more efficiently and error-free through automatic payroll runs, compliance checks, tax filing and other helpful features. Payroll is essential because paying your employees correctly and on time should be a key priority.
- Benefits administration: For employers offering benefits to their employees, benefits administration tools help them select the right benefits package. They also help companies administer benefits in a manner that’s compliant with federal regulations such as the Affordable Care Act (ACA), the Consolidated Omnibus Budget Reconciliation Act (COBRA) and Employee Retirement Income Security Act (ERISA).
- Automatic alerts and reminders: HR teams typically juggle several different tasks, so HR software’s automatic alerts remind them to complete tasks, such as running payroll and collecting new hire benefits elections, in a timely and compliant way.
- E-signatures: The ability to electronically send, sign and submit documents streamlines and accelerates workflows such as the onboarding process, as opposed to printing out, scanning and sending emails back and forth.
- Mobile access: Mobile app versions of HR software enable on-the-go access to functions your employees might need such as clock-in and clock-out functionality or a candidate messaging tool for recruiters to stay connected with job candidates.
Company Size Considerations
HRIS, HRMS and HCM products broadly serve the needs of small, midsized and enterprise businesses, respectively. However, to arrive at the HR software solution that’s best for your company, take your current size and needs into account while also considering anticipated workforce and business growth that will require more data and more sophisticated features.
Paycor, Rippling, SAP SuccessFactors and UKG are all vendors that provide a range of products to different market segments, so they’re worth checking out if you anticipate a lot of future growth in head count. That way, you can add on features as needed or upgrade to a new price tier or product from that vendor.
GoCo targets small to midsized business needs. So, if you anticipate remaining relatively small (at around 1,000 employees or fewer) and serving a niche market, GoCo is an excellent choice.
Paycor, Workday and UKG Pro are designed for enterprise businesses because they include advanced tools such as predictive analytics and competitive benchmarking data. Generally speaking, enterprise businesses employ more than 1,000 employees, thus having enough head count volume and budget to invest in an HCM system.
Software Integrations
If you’re looking for modular, à la carte-style solutions, such as GoCo, or a less comprehensive HR software system, such as Zoho People or Rippling Unity, you’ll need to ensure that those systems will communicate with other applications your company currently uses. For instance, if you opt for your current payroll software over GoCo’s payroll module, you’ll need to make sure your payroll software will communicate with GoCo.
Moreover, the HR software solution will likely need to integrate with your other software applications, but the ease of implementation will depend on whether your IT team or the vendor’s support team will need to manually build APIs to get the two (or more) systems to communicate with one another. Some HR systems have built-in integrations to work with other software, while others require manual API connection or don’t work at all with a particular solution.
How Much Does HR Software Cost?
One of the most difficult aspects of purchasing HR software for a small or midsize business is finding out how much the product costs. Only two of the HR software vendors in our evaluation publish the prices for their products: TriNet and Zoho People. Two others provide partial pricing information: GoCo and SAP SuccessFactors. Others require that companies contact their sales office to schedule a meeting.
We found that it can take several days to receive a custom quote from HR software vendors. After reaching out to the services that don’t publish prices, we received timely responses from Paycor, Paycom, Rippling and Paylocity. Within three days we received detailed price quotes for our fictitious 25-employee company from Rippling and Paylocity.
In addition, we were promised quotes from Paycor and Paycom that hadn’t arrived in time to be included here (Paycor’s estimated prices given over the phone by a company sales rep appear in the table below). UKG responded to our initial request for pricing with an email that asked for more information, which we provided. Their final contact with us was an email promising to send a demo invitation that never arrived. Finally, we received no response from Workday after multiple attempts.
Company | Low Tier | Mid Tier | High Tier | Annual Discounts | Free Trial |
---|---|---|---|---|---|
Paycor | $99.00 fee plus $6.00 per user | $399.00 setup fee plus $30.00 per user | N/A | N/A | No |
SAP SuccessFactors | N/A | $334.00 per user per month (annual contract)* | N/A | N/A | No |
GoCo | $5.00 | N/A | N/A | N/A | No |
TriNet | Essentials: $10.00 | Growth: $20.00 | Zen: $33.00 | 18% to 20% | No |
Rippling | Core + Payroll: $20.00 | N/A | N/A | 20% | No |
Paylocity | $10.00 | N/A | N/A | N/A | No |
Zoho People | Essential HR: $1.50 | Professional: $2.50 | Enterprise: $5.00 | 10% to 20% | 30 days |
*This pricing is based on published costs for every module, but may be negotiable.
Our HR Software Pricing Guide breaks down the price ranges for various categories of HR software:
- Recruiting software from $25 to $299 per month
- Onboarding software from $70 to $150 per month
- Attendance and time tracking software from $3.50 to $7 per employee per month
- Employee scheduling software from $20 to $40 per month
- Performance management software from $4 to $11 per employee per month
Some low-cost HR software, such as Zoho People, come with limits on storage, customizations and other features that many small businesses will quickly exceed. This increases your company’s monthly bill and also makes it difficult to anticipate your total spend for HR from month to month or year to year. The lack of free-trial offers from most of the vendors we evaluated requires that businesses be deliberate before making long-term commitments to an HR software provider.
Alana Rudder, Amy Nichol Smith, Kiran Aditham and Lisa Lindsey contributed to this article.
Frequently Asked Questions (FAQs)
What are the main types of HR systems?
The three most common types of HR systems are HR information systems (HRIS), human capital management (HCM) software and HR management systems (HRMS).
How do I choose an HR system?
When choosing an HR platform, consider not only the essential features noted above but also cost, ease of use, integration and customization. The HR software solution should fit your budget, be easy to use, integrate with other software you use and be customizable to your needs without needing to reach out to the vendor to make adjustments. Regardless of which HRM system you choose, make sure it measures these 10 essential HR metrics.
Why is HR software so important?
HR software is important because it helps management perform key actions on time while empowering employees to take charge of their own accounts. It also automates routine HR tasks to allow HR managers and staff to focus on the most important parts of their work, including interactions with employees.
What’s the difference between an HRIS and HRMS?
An HRMS is a more advanced and sophisticated HRIS that layers added capabilities on top of the database contained within the HRIS. An HRIS stores employee data, allowing employees and HR personnel to view and modify employee information and run basic reports based on that data. An HRMS augments the HRIS by storing more varied data sets. These data sets power additional capabilities such as an applicant tracking system and a performance management module.
Is there any free HR software?
ClickUp, monday.com and Zoho People are a few examples of HR providers that offer a free version of their HR software.