HR MANAGEMENT TOOLS: Best HR Management Tools [2023]

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No doubt, the effects of digital transformation on corporate departments have been substantial. Look at the Human Resources (HR) department as an example of a place where innovation has made a big difference in the past few years. The human resources department of an organization oversees the administration of payroll, pension, and tax requirements in addition to recruitment for the corporation. This procedure usually requires long arrangements. However, with the help of HRM tools, the hunt for new employees and the management of payroll have both become more efficient for HR managers. Numerous HR management tools are employed by a business entity( small or mid-sized) to support the numerous HR functions. In this post, we highlight a few of the best and most free HR management tools in 2023.

Read Also: WORKFORCE MANAGEMENT TOOLS: Best Workforce Management Tools

But before we proceed to our list of the best and free HR management tools, let’s first understand the basics of this software.

What are Tools for HR Management?

The term “HR management tools” refers to the wide range of technical solutions that help businesses handle their HR duties better on a daily basis. Compliance is what HR procedures are all about, and conducting these procedures manually is laborious, time-consuming, and cumbersome. The HR team can save time, cut costs, and manage their employees more easily thanks to the power of automation that HR management tools have.

HR management tools take care of all the basic HR tasks, from new hire requests to employee exit interviews. Depending on their needs, organizations can choose more complex human resource management software that handles a wider range of day-to-day administrative tasks, like managing employees’ vacation time and timesheets. On the other hand, they can choose software that handles strategic parts of human resources, such as hiring and managing performance.

What are the 7 HR Basics?

The seven basics of HR;

  • Hiring & selection.
  • Performance and talent management.
  • Training & development.
  • Succession planning.
  • Compensation and remunerations.
  • Human Resources Information Systems.
  • HR data and analytics

What are the 5 components of HR?

  • Staffing
  • Development
  • Compensation
  • Motivation
  • Employee and labor relations

What are HR instruments?

  • Performance appraisal
  • Potential appraisal
  • Career planning
  • Feedback and counseling
  • Training
  • Organization development
  • Rewards
  • Employee welfare and work-life quality
  • Human resource information system

Best HR Management Tools

The HR department of a firm may be the driving force behind its digital transformation. It’s easy to see why implementing digital platforms would be beneficial. Automation of procedures is the most efficient way to handle HR duties like hiring, employee evaluation, salary and bonus administration, and training.

During the digital transformation of HR management, HR managers must shift their mindset to that of skilled partners for top managers and managers of individual departments. This is because HR managers have access to data and technology that can significantly improve the efficiency and effectiveness of personnel management, ultimately contributing to the attainment of the company’s goals.

However, choosing the right human resources tool could be hard because it requires a lot of planning and evaluation. Hence, before making a decision, you should come up with a comprehensive plan, analyze the needs of the company, and think about the different options you have. We have made a list of a few HR management tools that stand out from the rest;

#1. Rippling HR Software

When it comes to onboarding new employees quickly and effectively, Rippling is a top choice for small and medium-sized firms because of its extensive features and functionalities. Sending an official offer and new worker paperwork, conducting background checks, electronically verifying documents, adding employees to payroll, enrolling them in health insurance, ordering and shipping computer equipment, and setting up Google Workspace, Slack, and Office 365 accounts can all be accomplished in under a minute. If you had to do things the traditional way, you’d be busy all afternoon.


  • The software has a 90-second onboarding time for new employees.
  • The entire process from start to finish takes only 2.5 weeks, and that includes the time spent training and supporting your own personal support representative.


  • Features geared toward automation can be useful for large corporations, but they may be unnecessary for small firms.

#2. GoCo

The ability to automate repetitive processes with effective workflows can feel like liberation for smaller businesses with few human resources or for larger corporations experiencing rapid expansion. Everything on your daily, weekly, monthly, and quarterly to-do lists can be streamlined with the help of GoCo’s highly adaptable tools. The straightforward control panel gives you instant entry to customizable workflow templates for various HR processes like onboarding, performance evaluations, an involuntary dismissal checklist, new recruit orientation, acquisition of talents, and many more. Additionally, GoCo allows for user-defined fields and provides over a hundred helpful reporting variables for creating meaningful reports from any data you have in your system.

Users can convert paper papers into digital files with GoCo’s Magic Docs tool. Recently, GoCo has improved this tool by including a drag-and-drop template builder, in addition to the capacity to add additional document signatories as well as complete orders for signatures. Documents like performance reviews and offer letters might benefit from the bespoke procedures that are created to speed the approval process.


  • Human resources have never been easier than with GoCo’s customizable, time-saving, and user-friendly workflows.
  • Workflows for things like trips, promotions, and requests for new equipment can all be automated using GoCo’s HR software.


  • Some small organizations may struggle to find their way around the automation capabilities because they have fewer automation needs.

#3. Gusto HR Software

Gusto is a cutting-edge HRIS system that has an intuitive dashboard and a plethora of payroll options. Payroll processing may be a headache for businesses due to the time commitment and risk of fines and other penalties. Using Gusto, business owners and HR managers can avoid the time-consuming task of manually figuring up employee pay, benefits, taxes, and more. The straightforward control panel makes it simple to begin processing payroll on a regular basis for direct-deposited American workers. If your staff is paid on a salary and is paid at set intervals, you can automate the entire process and have faith that Gusto will handle everything correctly.

In addition, Gusto is unique among payroll services in that it does not charge extra for processing irregular payroll, including the inclusion of special bonuses, or modifying a recent payroll run. What’s more, the software will file your company’s state and federal tax returns as well as any local ones, saving you a ton of time. Paperless pay with Gusto Wallet and debit cards on the other hand will not only help your employees save time, but it also helps them save money. Gusto also delivers complimentary financial tools to help them meet their goals.


  • Even with multiple checks to ensure correctness, Gusto can process payroll in a matter of minutes.
  • If you need to make changes to your most recent payroll run or process payroll on an irregular schedule, Gusto won’t charge you any extra.


  • Gusto cannot be used to pay full-time employees located outside of the United States.

#4. Paycor

With Paycor’s human capital management software, companies can streamline payroll, recruitment, and retention of talent, employee management, administration of benefits, and most significantly, maybe your workforce’s overall experiences. During the course of more than three decades, the platform has aided employers in a wide variety of fields in four key areas: hiring, training, paying, and keeping their personnel. To help their employees today, more than 40,000 businesses use Paycor.

Paycor has two primary service bundles, with basic fees between $99 and $199 per month and per-employee fees between $5 and $14 per month, depending on the firm size.

To further evaluate employee participation and engagement, the software’s analytic features include the capability to predict employee turnover, benchmark salaries, and collect demographic data.


  • With Paycor’s assistance, your HR software will be expertly tailored to your business’s specific requirements.
  • The Paycor mobile app provides full payroll capabilities in addition to additional important features for HR and staff.


  • The service may be too costly in comparison to alternative HR management tools for businesses that have minimal HR needs.

#5. Deluxe

If you’re a small or medium-sized firm in need of all-encompassing human resources and payroll solution, look no further than Deluxe HR Solutions. Onboarding, compliance, payroll, document management, and time and attendance monitoring are just some of the HR procedures that may be streamlined with this software. The software’s built-in compliance capabilities are there to assist businesses in automating their processes related to the Affordable Care Act and payroll tax compliance. Employers may rely on Deluxe HR to supply all mandatory posters and notices required by labor legislation.

If you’re an employer, Deluxe HR can assist you to locate insurance policies that will cover your employees. Employees can use Deluxe HR’s self-service tools to view and download pay stubs, update their personal profiles, submit vacation requests, and have their paychecks deposited directly into their bank accounts, all without involving HR staff.

Deluxe offers HR software, digital marketing tool, payroll solutions, and brand management software, while most other HR tool companies just offer HR, payroll, attendance management, and associated software products. The variety of choices presented here is perfect for the needs of a small firm in need of multiple answers.


  • To aid businesses in automating their HR and regulatory compliance operations, Deluxe HR provides simple yet powerful software solutions.
  • The payroll and benefits systems of other companies can be seamlessly integrated with Deluxe HR.


  • A one-year agreement is necessary for the service.

#6. Sage Business Cloud

Sage Business Cloud is an end-to-end answer for new hire onboarding due to its comprehensive set of automated workflows and insightful data. It also has a lot of features optimized for mobile users, allowing your company’s administrators and managers to easily keep tabs on, manage, and interact with their team members from afar. Easily manage your most important human resources processes using the software’s streamlined “recipes” for individualized work processes.

The online database the dashboard connects to gives you full control over your remote workers. You can run your team from anywhere thanks to the portable tools for communication, reporting, asset management, and more.

Sage HR’s interactive price module simplifies the selection process. The precise monthly charge is calculated in four different currencies based on your chosen modules, feature sets, and the number of employees. The basic package, which covers up to 10 workers, costs $55 per month. Sage offers plans for organizations of all sizes, with the most feature-rich package costing up to $1,600 per month for enterprises. With Sage, you can test out the software risk-free for 14 days and get a feel for its features and functionality with access to full functionality and extensive example data for both managers and employees.


  • Due to its seamless compatibility with Sage Business Cloud, this HR platform is an obvious choice for companies already using Sage for accounting and payroll.
  • Unique among HR management systems is its support for not just English and Spanish but also Russian, Latvian, Estonian, Czech, Polish, and Thai.


  • The full potential of this program is unlocked when used in tandem with other offerings from the Sage Business Cloud.

#7. Paychex Flex HR Software

Paychex, the largest HR provider for small and medium-sized organizations, understands how to assist remote teams by providing comprehensive solutions for payroll, health benefits, financial benefits, and more. More than 680,000 businesses utilize Paychex’s cloud-based HR software. This makes it one of the most widely adopted tools in the market.

Paychex is unique among payroll services in that it can be used on both desktop computers and mobile devices. As an added bonus, the program does a fantastic job of supporting freelancing teams due to its mobile-friendly approach to HR management.

Once you’ve hired and onboarded your remote workers, Paychex’s talent management features can help you keep them around. Users can access retention data to determine which employees are at risk of leaving, check talent dashboards to compare employee salaries to national norms, and more.


  • Paychex is a popular option for distributed teams since it provides a one-stop shop for HR needs including payroll, benefits, and compliance monitoring, all of which can be accessed from any computer or mobile device.
  • Specialized, real-time statistics that allow you to maintain close tabs on your off-site workers.


  • When seeking to evaluate services, some business owners may be put off by the absence of clear pricing information.

#8. Bambee HR Software

Small firms can benefit from the Bambee HR solution. Actually, the service is limited to companies with fewer than 500 employees. Subscribers to Bambee HR are provided with a devoted HR manager who can address issues relating to compliance, terminations, and the development of corporate rules. Likewise, when it comes to payroll, Bambee HR also provides guided processing to aid small businesses in understanding and complying with employee categorization compliance and payroll taxes.

There is no cost per user, making this service very reasonable. The setup costs can be substantial, ranging from $500 to $1,000; this is more than double the average cost of the HR software we researched. Bambee HR is perfect for small firms and startups that aren’t ready to recruit a full-time HR manager yet since it offers a high degree of personalized support throughout the implementation process and places an emphasis on HR policy development.


  • Bambee HR caters to new and small enterprises by providing reasonably priced programs.
  • The software can aid in the refinement of HR procedures and company policy.


  • Some small firms may find the high initial cost of using Bambee HR to be too much to justify.

#9. Namely

Namely is an H.R. software solution designed specifically for mid-sized businesses. The firm claims that Namely reduces customer labor costs by an average of 11 hours per week by coordinating payroll, benefits, compliance needs, and other HR operations. The company also claims to be able to have your staff using the platform frequently. This will reduce the number of inquiries your HR department will have to answer. In addition, you and your HR team will have more time to analyze the platform’s reports and data to gain a deeper understanding of your workforce and make informed decisions.

Namely has three different bundle options. You will need to get in touch with Namely directly if you want to know how much their services cost.

The average time for implementation is between six and eight weeks. That’s a long time, but thanks to Namely’s open application programming interface (API), your company can integrate its HR software with every other system you use.


  • If this program can serve as your company’s single source of truth, it will greatly reduce the workload of upper-level management and IT personnel.
  • Namely provides resources to assist employees to feel more connected to the company, which in turn helps boost morale and decrease turnover.


  • Some companies won’t consider using Namely because of its lack of clear price.

#10. Zenefits

Zenefits HR

Zenefits is an intuitive human resources management system with several useful tools for managing employee benefits and other HR functions. It facilitates benefits package comparisons for companies and offers a pleasant interface for managing employees’ benefits.

The Zenefits platform lets you do things like pay employees, manage their performance, and keep track of their absences. The program makes it easier for employees to sign up for benefits and for HR departments to handle the process. Employees can sign their offer letters electronically, choose a benefits plan, and finish all the paperwork they need to do to start working from the site.

On the main page, Zenefits shows a new employee’s team and an organizational chart. This is especially helpful for remote workers who may have problems putting faces with names in their inbox or Slack channel.


  • Companies can either choose a plan from those offered by Zenefits, or they can bring in their own plans for more options.
  • The platform and its accompanying benefits tools are really well designed and straightforward to use.


  • Even if they have fewer than five workers at the time of enrollment, businesses are required to pay for at least five people.

What are the 3 HR systems?

The three basic HR systems are;

  1. Human Resources Information Systems (HRIS)
  2. Human Capital Management (HCM)
  3. Human Resources Management Systems (HRMS)

Free HR Management Tools

In order to free up HR professionals to focus on the people side of their jobs, excellent HR management tools are a must-have for all companies.

Human resources professionals in any industry are the frontline soldiers in the war for talent acquisition and retention. The correct human resources software can provide your HR department with all it needs to make the employees’ lives easier. If you pull this off successfully, your current staff will become more loyal, and you will become more attractive to new hires.

What to Look for When Hunting for a Free HR Management Tools

An efficient human resources management system will provide employees with resources that enhance their working conditions and output. In addition, it needs to be adaptable to the changing needs of your company.

The following criteria can help you locate such free HR management tools:

  • Friendly interface: a simple program that gets people excited about their work.
  • Scalability: the ability to expand in response to changing demands
  • Software that can be altered to suit your business’s specific needs is considered customizable.
  • HR tools with a timeline feature to monitor the growth, performance, and requirements of employees.
  • Software with training options. Investing in your staff’s education and development to ensure they have the skills necessary for success on the job.
  • Good communication: Collaboration is essential in a setting that emphasizes teamwork and collaboration requires communication.

The Best Free Tools for HR Management in 2023

We made a list of HR management tools that have a fully functional free version because we thought this might be the case for some businesses. Most of these management tools are not free trials, but rather free software that you can use for as long as you want and for a wide range of HR tasks. With that in mind, we can now look at five popular free HR management tools;

  1. Bamboo HR
  2. WebHR
  3. ZOHO
  4. Teamdeck
  5. Apptivo
  6. OrangeHRM
  7. HUMI
  8. Bitrix24
  9. Connecteam

HR Tools for Small Business

A full human resources department isn’t in the budget for every company, but HR software or service may often do the job for far less. The finest HR management tools for a small business will have the ability to manage a wide range of HR functions. This may include recruitment, payroll, benefits, and performance reviews. There are a variety of companies that can provide management tools or individual components to a small business in need of assistance with basic HR operations.

Here is a list of the top 10 human resources (HR) management tools for a small business;

#1. Gusto: best payroll software with basic HR management tools features for a small business

#2. Rippling: best all-around management software for rapidly growing tech enterprises and a small business in need of HR, payroll, and IT tools

#3. TriNet Zenefits: ideal for businesses operating in heavily regulated sectors

#4. Paychex: the most ideal for a small business and organization in need of adaptable payroll and HR management tools for one or two employees.

#5. BambooHR: the top choice for companies in need of effective performance and personnel management systems

#6. ADP Run: ideal for start-ups with ambitious expansion plans

#7. Freshteam: best for a small business that can benefit most from free candidate tracking and recruitment tools (HR software)

#8. Zoho: excellent for a small business that only need the most fundamental human resource (HR) management tools

#9. Paycor: the top choice for businesses that require highly flexible payroll and powerful HR features

#10. Homebase: best in infinite time tracking and scheduling options for businesses.

Which software is best for HR?

The best human resource (HR) tools of software for a small or mid-sized business;

  • ADP
  • Zoho People
  • Workday
  • Gusto


The appropriate HR management tools may make HR processes, such as hiring, onboarding, scheduling, compliance, and compensation, flow smoothly. However, without one, every individual involved in, everyone the software industry would be wasting their time and energy.

Ultimately, it comes down to the automation feature of HR tools, which gives them an edge over the competition by simplifying workforce management. This is basically through the existence of a central HR software platform that aids in a variety of manual tasks, administrative tasks, and daily HR tasks (like document management).

For the purpose of streamlining HR processes, cloud-based management software has become an integral part of any company.

HR management Tools FAQs

What are the top 3 HRM tools for small businesses?

The top three HR tools for a small business in 2022;

  • UKG Pro
  • Oracle Cloud
  • ADP Run

What are the benefits of HR Tools?

HR tools serve numerous benefits for a small business as well as other kinds of organizations among which are;

  • Enhancing communication
  • contributing to the development of the team
  • Increases employee loyalty and level of engagement
  • Boost productivity and improve the overall health of the workforce
  • workforce performance management

Why does small buinesses need HR tools?

Top HR tools can help a small business automate all time-consuming and repetitive HR tasks and procedures. Generally, this may include; data entry and spreadsheet reconciliation, tax, scheduling and approval of employee time-off requests, and much more.

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