HR today has evolved beyond merely recruiting. From employee recruitment to boomerang employees, there’s so much that needs to be done for modern-day HR. 

In today’s world, HR software can help them do away with tedious repetitive tasks and focus on strategic ones. HRM software is one such type that helps HR manage the workforce with ease. 

In this article, we will go through the definition of HRMS, its benefits, and some of the best HRM software that your organization can use. 

What is HRMS?

HRMS stands for the Human Resource Management System. It is software that helps HR professionals with many tasks like managing employee data, managing payroll, training employees, maintaining the database, recruitment, benefits management, employee attendance, etc.

The term HRMS is also used interchangeably with HRIS which is a human resource information system. Where in fact, HRIS is just a type of HRMS. Let’s go through the features of HRM software in detail.

Features of an HRM Software 


HRM software is designed to help employers with the recruitment process. Reporting, filtering resumes, applicant tracking and management, keeping records, managing onboarding tools are all part of the recruitment process. HRMS software helps HR professionals by managing these tasks efficiently.

Storing Employee Data

Back in the day, storing employee data was painstaking and involved a lot of paperwork. Today, HR professionals have help from software like human resource management systems and HRIS to store essential data on employees including their work history, their personal details, and salary details. 

Payroll Management

Managing employee hours and their wages is easier with HRM software. With such a system, you don’t need to worry about payroll management. HRMS software is designed to automate payroll and so much more to provide hassle-free invoice management. 

Time and Attendance Management

Gone are the days when manual punch cards were used to mark attendance in the workplace. With the advancement in HR technology, HRM software takes care of this issue with ease. Be it attendance or leave management, the software is designed to help you with that. Additionally, HR professionals can automate timesheet management and integrate with payroll software at the same time. 

Time and Attendance Tracking without the Long Email Threads

Employee Training

Another feature of HRM software is the development and training of the employees. The software helps you tailor-make training programs for each employee. Other than that they help you automate the entire training process by keeping track of the training progress and employees’ performance becomes easy. 

The 12 Best HRM Software for Small Businesses 

The following list is of the best HR software systems that you can use for your business:


With AttendanceBot, set up and manage approvals, work shifts, and leave policies like you want. It offers manual time mapping operations and billing to help you work without stress. 

Additionally, it helps you create employee schedules right inside your team collaboration software. AttendanceBot keeps your employees on track with reminders and notifications and eliminates the need for constant timesheet reminders ensures a smooth operation.

AttendanceBot dashboard is a center of all things for an admin to have a view of everything from shift rosters, personnel profiles to employee performance analytics.

Other features include:

Free trial: Free for teams that have 5 users

Starting price: Starts at $4 per user per month

Typing on laptop


Gusto is a powerful all-in-one HR platform that provides growing businesses with a single system of record. The features include full-service payroll management, employee benefits, time and attendance, hiring and onboarding, talent management, insights, and reporting. 

Gusto helps you automatically file your taxes, help with compliance, and identify tax credits to help save you money. 

Some financial benefits offered by Gusto include 401(k) retirement savings, workers’ comp, Gusto Wallet employee finance tools, and 529 college savings.

Pricing starts at $39 plus $6 per person per month.

You can even use the combined magic of AttendanceBot and Gusto payroll software on your favorite collaboration platform. 


BambooHR is one of the best HRM software made for small and medium businesses. Whether you’re hiring, onboarding, preparing compensation, or building culture, BambooHR gives you the time and insights to focus on your people. Some of their features include:

  • Tracking employee records
  • Custom workflows
  • Benefit and payroll administration.
  • Employee and manager self-service.
  • Global capabilities.
  • Applicant tracking system.
  • Time and attendance tracking.
  • Document storage and management.

BambooHR’s pricing starts at $99 per month for 12 employees.


From simple tools to full-service outsourcing ADP offers expert services to small, medium, and large businesses including:

  • Payroll services
  • HR services
  • Professional employer organization PEO
  • Retirement services, 
  • Benefits administration
  • Insurance services 

Pricing starts at $59 per month plus $4 per employee.


Manage all employee requests, IT tickets and workplace, service orders in one place. OfficeAmp is the hub for making any requests they have. It automatically assigns the issue to the right person and keeps you posted on your issue’s progress until it is resolved. 

OfficeAmp simply lets you log your issue anytime anywhere. It automatically assigns the issue to the right person and keeps you posted on your issue’s progress until it is resolved. Manage the tickets to their end and analyze key metrics from time to resolve to throughput on the dashboard.

Build a robust knowledge base of things around the office – guest wifi password,

what’s the travel policy, where to find the pay stubs, and so on.

Pricing starts at $1 USD per user, per month +$29 USD base fee per month when billed annually.


ExpenseTron offers you simple expense reporting on Slack. Some features include automated expense filings, approvals, and reimbursements. ExpenseTron takes care of everything including reporting, approvals, and alerts for both employees and managers. 

In addition, mileage expensing, receipt forwarding, and multiple currency support are other features. 

ExpenseTron is a super simple expense tracking solution for Slack. Just send messages like Spent $13 on airport parking and it will create an expense claim, categorize it and send it to your manager for approval. 

ExpenseTron can also scan receipts (it supports pdf, png, and jpeg formats) to create claims. 

Just add ExpenseTron to your Slack team and it will message you the instructions to get started. 

It integrates with all the accounting software of your choice, including Quickbooks, Freshbooks, Xero, etc. 

Some useful links:

Additional Details


Zenefits has all the HR tools that make managing your people easy, from streamlined onboarding and easy PTO tracking to org charts, performance reviews, and so much more.

It simplifies the process of curating and providing great benefits to your people from comprehensive healthcare plans to perks like commuter benefits. Additionally, It helps pay your people fast and easily.

Services include:

For their growth plan, pricing starts at $14 per month per employee. 


Paycor focuses on helping small-to-medium-sized businesses extend their reach and maximize their productivity. From the way you recruit people to the way you coach, develop, pay and retain them, Paycor helps leaders create great places to work. It offers users the most powerful payroll software on the market, backed by tax and compliance expertise. 

Other features include talent management, recruiting software, compensation planning, and more. 

Pricing starts at $5 per employee per month.


Rippling lets you effortlessly manage your employees’ payroll, benefits, devices, apps, and more in one place. It offers benefits including health insurance, 401(k), commuter, and more into one system and automates the busy work, like enrolling new hires, updating deductions, and administering COBRA.

In addition to payroll management, it offers users easy time and attendance tracking, learning management, and talent management. 

Pricing for Rippling starts at $8 a month, per user.

Oracle HCM

Natively built for the cloud, Oracle Fusion Cloud Human Capital Management is a complete solution connecting every human resource process from hire to retire. This provides a consistent experience across devices, enables one source of truth for HR data to improve decision-making, and empowers you with market-leading innovation to address your needs today and into the future.

Some of their features include talent management, learning management, workforce management, payroll, HCM analytics, recruiting, and more. 

Kronos Workforce Ready

Another HR software for small business and medium business, Kronos Workforce Ready suite combines the power of workforce management and human capital management (HCM) in one unified cloud platform to help you manage your entire workforce from pre-hire to retire whether they’re salaried, hourly, full time, or part-time. 

Work smarter with integrated HR, payroll, talent, workforce management, and more with real-time updates and people analytics for informed business decisions at the moment.

With this HRM software, work in the modern cloud with fast, efficient delivery without the installation, maintenance, and upgrade headaches allowing your IT staff to focus on a core business initiative.

Kronos workforce central is another HR software by them. They have a product to fit your needs regardless of your organization’s industry, size, or location. With this HRM software, help ensure compliance, keep accurate records of benefits partners and transactions, and provide employees with the consumer-grade shopping experience they demand and more. 

Pricing starts at around $40 + $4 per employee depending on business size and team size.


Benefits of a Human Resource Management System

There are many benefits of using an HR management system. Using the best HR software helps not only your organization but also makes work a lot easier for you and your employees. Some benefits are as follows:

Makes Work Easier

HRMS software is designed to make work easier for you. From the recruitment of an employee to their onboarding and training HRM software provides HR professionals with various features to assist them in work. In addition, an HRMS saves time by keeping all information in one secure place and by structuring all administrative tasks.

Reduces Paperwork

HR work required a lot of paperwork and enormous files. With HRM software you can easily eliminate paperwork and store all records in the system. Not only does this help reduce it but managers can easily access employee data, records, forms, certificates, and other files in a matter of seconds.

Makes Employee Management Easy

HRMS is designed to help you manage your employee’s data with ease. Moreover, It reduces repetitive manual tasks and automates most of your tasks so that you never have to worry about doing them manually. 

Time and Attendance Management

A few years ago managing the leaves an employee avails and the time they spend on various tasks was arduous and difficult to track. With the help of HRM software today, HR has it easy with leave management and time tracking of their employees. 

Makes Paying Your Employees Easier

Paying your employees can be a hard thing especially if you don’t have HRM software to automate the process. With the right HRMS, you can automate the entire payroll process and forget about manual payroll management. 

Offers Employee Self-Service

An automated HR management system provides better employee self-service and higher employee satisfaction. With an HRMS, if an employee wants to check how much paid time off is left available, or how much sick leave they’ve taken, they can do it on their own. HRMS software usually provides employees with their own accounts with all the relevant data on them. Moreover, employees can pull up their payslips and other data with ease.

Cuts Down the Risk of Errors

HRMS software helps you cut down human errors. Since they operate automatically and machines rarely make errors, this software helps you reduce the probability of adding data twice or making a wrong entry. 

Data Security

Another great benefit of using HRM software is that it offers you security. Your data is important and when it is in the form of paperwork, it’s vulnerable. An HRMS software makes sure it’s secure and is often password-protected to keep hackers at a bay. 

Additionally, an HRMS comes with payroll functionality, offering a more secure way to process the payroll by securing this kind of data with password authorization and storing information on internal hardware.

This was a list of some of the best HRMS software for small businesses. Using software that is designed to suit your unique needs is important. You should invest in software that helps you and your organization maximize potential and reach.