Best HR Tools for Fast-Growth Companies

A colleague of mine has a company with a 350+ workforce.

The other day we were having lunch here in LA’s Silicon Beach. She said something that stuck with me:

HR tools and software are borderline useless for startups. But after year one, they’re the highest ROI investment you will make.

Coming from someone who’s raised 10X more money than most people make in a lifetime, you can bet I put down my salad fork and listened closely.

The benefits of modern HR software tools include:

Thousands of dollars per month in staffing efficiency.
Millions of dollars per year in regulatory and legal defense savings.
Hundreds of hours per week in employee impact, thanks to streamlined benefits and low-hassle onboarding.

If you’re purchasing for the first time, be sure to review my key features roundup that explains how to compare your options.

Top niche software by HR function

For this roundup, I’ll break down the best tools trending in 2021–2022 by functional area.

Best HR Tools for employee management and recruitment

The following are software companies specializing in employee management and recruitment. Primary features of this software include most or all of the following:

Job posting and management
Recruiting and applicant tracking
Interview management and assessments
Onboarding
Employee management and succession planning

Breezy

Location: USA
Founded in: 2014
Description: Breezy HR is end-to-end recruiting software designed to optimize your recruiting process

Workable

Location: USA
Founded in: 2012
Description: Workable is a hiring platform, where companies can find, evaluate, and hire candidates

Best HR Tools for Training and development

The following are software companies specializing in training and development. Primary features of this software include most or all of the following:

Learner management system
Learner portal
Video conferencing
Interactive learning
Synchronous and asynchronous learning
Assessments

360Learning

Location: USA
Founded in: 2013
Description: 360Learning platform combines collaborative tools with a Learning Management System (LMS) and allows for onboarding of new employees, training of customer-facing teams, and professional skill development

TalentLMS

Location: USA
Founded in: 2012
Description: TalentLMS is a fully customizable and easy to manage LMS

Best HR Tools for Scheduling and time tracking

The following are software companies specializing in scheduling and time tracking. Primary features of this software include most or all of the following:

Employee database management
Scheduling
Budgeting and forecasting
Attendance, time capture and tracking, overtime, and time off management
Payroll management and reporting
Reporting/analytics

Deputy

Location: AUS
Founded in: 2008
Description: Deputy is an all-in-one workforce management solution that simplifies employee scheduling, timesheets, tasking, and communication

7shifts

Location: CAN
Founded in: 2014
Description: 7shifts is an employee scheduling and management software designed for the restaurant industry

Best HR Tools for Payroll and Benefits

The following are software companies specializing in benefits and/or payroll. Primary features of this software include some combination of the following:

Onboarding
Time tracking
Payroll management and reporting
Employee benefits management and administration
Tax compliance
Reporting/analytics

Gusto

Location: USA
Founded in: 2011
Description: All-in-one people platform with payroll, benefits, and more capabilities. This tool is particularly popular for running payroll to remote teams within the US.

QuickBooks

An Intuit company
Location: USA
Founded in: 1983
Description: Offers accounting, bookkeeping, payment, payroll, time tracking, and inventory software

Best HR Tools for Workforce management

The following are software companies specializing in workforce management. Primary features of this software include most or all of the following:

Agile methodologies
Project planning and tracking
Resource and capacity management
Scheduling
Budgeting and forecasting
Communication and collaboration tools

ClickUp

Location: USA
Founded in: 2016
Description: Fully customizable task management software to plan, organize, and collaborate

Float

Location: Remote
Founded in: 2012
Description: Float is a resource management platform that gives you an accurate view of your team’s capacity, so you can plan, track, and optimize how work is assigned

Best Professional employer organizations (PEOs)

The following are software companies specializing in PEOs. Primary features of this software include international capabilities in most or all of the following:

Onboarding
Time and expense tracking
Payroll management and reporting
Employee benefits management and administration
Tax compliance
Other legal compliance (including contracts and other documentation)
Employer of Record

Deel

Location: USA
Founded in: 2018
Description: Deel is a global payroll solution which helps businesses hire independent contractors or full-time employees in over 150 countries, compliantly, and in minutes

Globalization Partners

Location: USA
Founded in: 2012
Description: Globalization Partners offers an AI-driven, automated, and fully compliant global Employer of Record platform to hire anyone, anywhere, quickly and easily

Best comprehensive HRIS/HRMS software tools

The following table lists providers of comprehensive (or nearly comprehensive) HRIS/HRMS software. This includes offering most or all of the following:

Recruiting and applicant tracking
Onboarding
Employee management and succession planning
Scheduling
Attendance, time capture and tracking, overtime, and time off management
Payroll management and reporting
Employee benefits management and administration
Reporting/analytics

ADP

Location: USA
Founded in: 1949
Most comprehensive software: ADP Workforce Now
Specialties: Human Capital Management, HR BPO, Payroll and Tax Services, PEO, Talent Management, Tax and Compliance, Benefits Administration, Payment Solutions, and Time and Attendance

BambooHR

Location: USA
Founded in: 2008
Most comprehensive software: BambooHR
Specialties: HRIS/HRMS Software, Employee Self-Service, Talent Management, Human Capital Management, Applicant Tracking System, Company Culture, Employee Engagement, and Payroll

Ceridian

Location: USA
Founded in: 1992
Most comprehensive software: Dayforce
Specialties: Onboarding, Payroll, Performance Management, Time & Attendance, Benefits, Document Management, Workforce Management, Dashboards, Recruiting, Learning, Succession Planning, and On-Demand Pay

Monday.com

Location: Israel
Founded in: 2012
Most comprehensive software: monday.com platform
Specialties: Project Management, Collaboration, Team Management, Communication, Production Tracking, Team Collaboration, and Work Management

Paychex

Location: USA
Founded in: 1971
Most comprehensive software: Paychex’s comprehensive, enterprise-grade software
Specialties: Payroll and Payroll Tax Services, Benefits Administration, Time and Labor, PEO, ASO, and HR Outsourcing

Paycom

Location: USA
Founded in: 1998
Most comprehensive software: Paycom’s comprehensive software
Specialties: Payroll Processing, HRIS, Benefits Administration, Time and Attendance, Talent Acquisition, Talent Management, Learning Management, Human Capital Management, Employee Self-Service, and Employee Engagement

Paycor

Location: USA
Founded in: 1990
Most comprehensive software: Human Capital Management (HCM) platform
Specialties: Payroll Management, Time & Attendance Solutions, Tax Filing & Compliance, Employment Screening Services, Human Capital Management, Applicant Tracking System, Onboarding, Recruiting, Learning Management System, and Benefits Administration

Paylocity

Location: USA
Founded in: 1997
Most comprehensive software: All-in-one Paylocity software platform
Specialties: Human Capital Management, HRIS, Payroll and Tax Services, HR Compliance, HR Data Analytics, Talent Acquisition and Retention, Employee Engagement, Workforce Planning, Onboarding, Employee Training and Learning, Performance Management, Employee Scheduling, Salary Planning and Budgeting, Benefits Administration, Time and Attendance, PEO, Learning and Development, Employee Recognition, Video Learning, and Expense Management

Rippling

Location: USA
Founded in: 2016
Most comprehensive software: All-in-one Rippling system
Specialties: Payroll, Benefits Administration, Time and Attendance, Talent Management

UKG

Location: USA
Founded in: 2020
Most comprehensive software: UKG Pro
Specialties: Benefits Administration, Workforce Management, Time and Attendance, Scheduling, Payroll Administration, and Tax Management

Workday

Location: USA
Founded in: 2005
Most comprehensive software: Workday suite
Specialties: Financial Management, Human Capital Management, Payroll, Expenses, Time Tracking, Procurement, Recruiting, and Planning

Zenefits

Location: USA
Founded in: 2013
Most comprehensive software: Zenefits platform
Specialties: Workforce Management, Payroll, Compliance, and HRIS

Top comprehensive Enterprise Resource Planning (ERP) software

The following table lists providers of ERP software. ERP software is typically comprehensive and integrated for an entire organization’s operations rather than just one specific department. By going this route, you’ll avoid cumulative costs and issues related to piecing different software together. Therefore, all you’ll need to do is fill in the software gaps that are important to your particular business. This software offers most or all of the following:

Project management
Inventory management
Purchasing and receiving
Billing and invoicing
Financial management
HR management (including many or most of the HRIS/HRMS capabilities)
Customer Relationship Management (CRM) and marketing automation

Microsoft

Location: USA
Founded in: 1975
Most comprehensive software: Dynamics 365
Specializations: Business Software, Windows Operating System, Windows Applications & Platforms, Cloud Computing, Productivity, Artificial Intelligence, and Machine Learning

Oracle

Location: USA
Founded in: 1977
Most comprehensive software: NetSuite
Specializations: Business Software, Applications, Database, Business Intelligence, Primavera, PeopleSoft, EPM, BEA, Hyperion, Retek, Utilities, Server and Storage Systems, BPM, ERP, CRM, JDE, and Siebel

Sage

Location: England
Founded in: 1981
Most comprehensive software: Sage X3
Specializations: Business Software, Business Intelligence, Payment Solutions, Accounting Software, People Management, Sage Business Cloud, Sage Software, Payroll Software, Software Applications

SAP

Location: Germany
Founded in: 1972
Most comprehensive software: SAP Business One
Specializations: ERP, Financials, Business Intelligence, Procurement, HCM, SCM, and Analytics

Zoho

Location: India
Founded in: 1996
Most comprehensive software: Zoho One
Specializations: Collaboration and Business Productivity Suite, CRM, Network Management, Enterprise IT Management, Social Media Management, Invoicing, Accounting, Email Marketing, Business Software, and Customer Experience

Primary choice criteria for HR software for small companies

When you’re deciding on HR tech tools for startups to medium-sized businesses, there are numerous criteria that need to be considered. Some of these primary choice criteria include:

Affordability: Consider the monthly and total costs of all modules, hardware/infrastructure, integration, and ongoing service/support (including staffing requirements); you should also consider the relevant cost savings (e.g. from consolidating to one software provider).
Ability to integrate: Consider if you’re able to integrate the software as-is or if it requires more/different hardware and/or changes to systems and software. This includes considering compatibility with other software and the software’s ability to receive your current data via import.
Has needed functionality: Consider your company’s unique needs and if the software meets them. For example, if your company is suited to have a punch clock (e.g. a factory), the software must integrate and allow for time tracking via a punch clock.
Scalability: Consider if the software is capable of meeting your needs both in the short- and long run (including if your company grows beyond expectations).
Capable of being used and serviced: Consider if you have sufficient in-house human capabilities to use and service the software; that is, if it’s too complex for current staff, it may require the hiring of people with greater technical ability or ongoing service and support from the software provider. Opt for greater user-friendliness, access to training and/or reference manuals, and lower staff and ongoing service/support requirements.
Long-term stability: Consider the age and history of the company and the likelihood of the software (and its successors) existing as you grow. Opt for companies that have a long and stable history, have a strong financial position, and continue to be innovative (either through internal development or via acquisitions).
Other characteristics: Consider other characteristics like security, remote accessibility, and others that are specific to your organization.

Primary features for HR tech tools for small companies

There are many different features that are important to HR software for growing companies. Some of the most commonly desired features include the ability to:

Store, access, and submit HR-related documents
Perform HR planning
Recruit, select, and hire new employees
Manage an employee database
Manage scheduling, time, attendance, absence, and leave
Manage and process payroll and benefits
Manage employee performance
Train and develop employees (including e-learning)
Track and report analytics and customized data (including compliance-related reports)
Receive automatic updates (including compatibility with other software/systems and notification and meeting of new legal requirements applicable to your business type and region)
Receive important notifications (e.g. of deadlines, expiring contracts, upcoming performance reviews, etc.)
Have employees self-serve

Summary and Final Recommendations

As you’re going through the final steps of your decision, make sure you ask to try out and/or see demonstrations of the software that you’re most interested in. HR software provides specialize in enterprise sales, and even small companies can benefit from their willingness to do hands-on demos and onboarding for potential clients.

During the process, include employees who will be using the software and solicit feedback to help you make your choice. Finally, once you’ve made your choice, be sure to schedule adoption and integration of the software away from critical time periods, like tax season, year-end, and other busy seasons, to ensure a smoother transition.

Now that you’re equipped with the information you need, it should be much easier to choose the right HR software and tools for your fast-growing business.