HR Software for Small Business in 2026: Records, Leave, Payroll and Free Options

The right HR software for a small business with no HR department starts with one question: which HR job do you most want out of spreadsheets? Sage HR, CitoHR and Zoho People cover employee records, leave and onboarding, Gusto and Eddy add payroll for US employers, and Frappe HR is the open-source system you run yourself.

Enlisted lists many HR products, but only some are written for owners rather than dedicated HR teams. This guide covers twelve that are, grouped by job: records and leave, payroll and benefits, hourly scheduling, and open-source suites. It closes with the two checks that decide most small-business purchases. Payroll and tax rules differ by country, so the guide only repeats what vendors state about where their products work. It is not legal or tax advice.

How we picked

Each product has an Enlisted listing in the HR category, and its description names small or mid-sized businesses, startups or hourly teams as the audience. Enlisted's data shows whether a hosted product has a free plan or a free trial, how it charges, and whether an open-source project has a licence you can use, a self-hosting route and recent activity on GitHub. Enterprise suites and applicant-tracking-only tools are left out. For a wider list, see the general best HR software roundup, and read how Enlisted ranks tools for the method behind the labels. Browse everything in the HR category.

Best for employee records, leave and onboarding

These five are hosted HR information systems (HRIS). They hold people data, time off and new-hire paperwork, and some of them offer payroll as an extra module.

1. Sage HR: best for owners who want the everyday basics in one hosted app

Sage HR is a hosted HR product from Sage for small and growing businesses that covers employee records, leave and absence, time tracking, onboarding and performance reviews. Sage's own pages describe leave requests and approvals handled in a mobile app, clock-in and clock-out from a phone, and onboarding workflows where new hires enter their own details and sign documents.

Enlisted lists it as paid with no free plan. The Sage HR listing has the current data, and Sage HR alternatives shows comparable products if it does not fit.

• Best for: a first HR system that replaces spreadsheets for leave, onboarding and basic performance reviews.
• Watch out for: closed source and hosted only, with no free plan. Check on Sage's site which modules, such as time tracking and performance, come with which plan.

2. CitoHR: best low-cost start with a free plan

CitoHR is a cloud HR information system for small and midsize businesses and startups that pitches setup in minutes instead of a long implementation. Its feature list covers holiday planning, leave and sickness tracking, document management, onboarding with automated document generation, equipment tracking, policies and expenses, plus an AI assistant that answers employee questions about policies and leave.

Enlisted lists a free plan and a paid Pro plan, with a free trial. Prices on the vendor site are shown in pounds, which is worth knowing if you pay in another currency. Payroll, recruitment, training and scheduling also appear on the feature list, so ask what each plan includes before you count on them. More detail is on the CitoHR listing.

• Best for: very small teams and startups that want leave, documents and onboarding without a large bill.
• Watch out for: the free plan is capped by team size, and the long feature list does not tell you which modules sit in the free tier.

3. Zoho People: best free edition for a small team already near Zoho

Zoho People is a cloud HR information system from Zoho for employee records, leave, attendance and performance. Zoho's pricing page describes a free edition that covers an employee database, time-off management, vacation planning and document management for a small team.

Paid editions add more. Essential HR brings onboarding and offboarding workflows and HR reporting, Professional adds attendance, timesheets and shift rosters, Premium adds performance, compensation and engagement surveys, and Enterprise adds an HR help desk and a learning module. It is built to connect with other Zoho apps. Read the Zoho People pricing page for current limits, and see Zoho People alternatives to compare.

• Best for: small teams that want a free place to start and may add other Zoho apps later.
• Watch out for: onboarding workflows are not in the free edition, and the free edition is aimed at a small team with basic functions.

4. BambooHR: best for companies that want a polished, paid HRIS

BambooHR is a hosted HR platform that keeps employee records, hiring, onboarding, time off and performance reviews in one system. Its site lists payroll and time, benefits administration, performance management and compensation, and custom dashboards among its product areas.

It is priced per employee per month in tiers named Core, Pro and Elite, and Enlisted's pricing data notes flat monthly rates for companies below a set headcount. There is no free plan. The BambooHR pricing page shows what each tier includes, and the BambooHR alternatives page lists other options.

• Best for: owners who want a mature, paid system and expect to grow into hiring and performance tools.
• Watch out for: no free plan or trial in Enlisted's data, and per-employee pricing rises as you hire.

5. Factorial: best for HR, time tracking and payroll sold as add-on modules

Factorial is a hosted HR platform for small and mid-sized companies that combines employee management, time tracking and payroll. Its site lists modules for HR and payroll, time management (time off, time tracking and shift management), talent management (performance, recruiting and onboarding), expenses, IT management and document storage with e-signature.

Pricing is tailored: you pick modules on top of Factorial Core and request a quote through sales. The site refers to local rules in places such as Spain and Germany, but Enlisted does not list country coverage, so confirm that payroll is available where your staff are. Check the Factorial pricing page and the Factorial alternatives page.

• Best for: small and mid-sized teams that want to start with HR and add time tracking, payroll or other modules over time.
• Watch out for: no fixed public price list and no free plan, so budget comparison needs a quote.

Best when payroll and benefits come with the HR

In the United States, many owners start with payroll and let HR follow. These three are built around that order.

6. Gusto: best payroll-first platform for small US employers

Gusto is a hosted payroll, benefits and HR administration platform for small US businesses. Its site describes paying employees and contractors, automatic payroll tax filing, benefits administration, job postings, applicant tracking, new-hire onboarding, and time tracking with approved hours syncing into payroll.

The product is for US employers, so it is not a fit for payroll outside the United States. Enlisted lists it as paid with no free plan. See the Gusto pricing page for the current tiers and Gusto alternatives for similar products.

• Best for: US owners who want payroll, benefits and basic HR in one account.
• Watch out for: US-only focus and no free plan, so check which HR tools sit in which tier before you commit.

7. Eddy: best for small businesses that want payroll, hiring and records together

Eddy is a cloud HR and payroll platform for small and midsize businesses that replaces spreadsheets and separate apps with one system. Its payroll imports hours, time off and deductions, calculates taxes and withholdings, and the vendor says it handles quarterly and annual filings, including W-2 and 1099-NEC preparation. Other modules cover worker documents, hiring, onboarding, and time and attendance.

Eddy's pricing combines a per-person fee with a base fee, and payroll and hiring are priced as add-ons, with a free trial available. Check the Eddy pricing page and see Eddy alternatives.

• Best for: US small businesses that want hiring, onboarding and payroll in one place.
• Watch out for: a base fee plus add-ons means the total depends on which modules you switch on.

8. Justworks: best if you would rather outsource than operate software

Justworks is a professional employer organization, or PEO, for small US businesses. Under a PEO arrangement the provider becomes a co-employer for certain legal and administrative purposes, which gives small companies access to group benefits and moves payroll, tax filings and compliance support to the provider. Staff and administrators use an online platform for payroll, benefits enrollment, HR records and time off.

This is a different buying decision from software: you are choosing a service relationship, and the fees and the services depend on the provider. Enlisted could not read the vendor site when the listing was written, so confirm current services, plans and fees with Justworks before you shortlist it. TriNet and Zenefits sit in the same part of the market.

• Best for: small US teams without an HR department that want payroll, benefits and compliance support handled by a provider.
• Watch out for: you are handing part of the employer role to a third party, and it is US-only.

OnPay is another small-business payroll product in the catalogue, known for flat-rate pricing and full-service payroll for US employers. Its OnPay listing and OnPay alternatives pages show the details, and its site should be checked for current features and states served. For payroll-only needs, see the planned guide to free payroll software for small business.

Best for hourly teams that need schedules and time clocks

If most of your staff are hourly, the first HR job is often getting hours right, not keeping profiles.

9. Homebase: best for small hourly teams that start with scheduling

Homebase is a hosted app for small businesses with hourly employees that puts scheduling, time tracking, payroll, hiring and basic HR in one place. Its site describes a time clock with PIN, photo and GPS verification, hours that flow from the time clock into payroll, and tools for job posts, screening and interview booking.

The Basic plan is free for scheduling and time tracking at a single location, with limits on team size, and payroll is sold as an add-on rather than included in the base plans. Paid plans are priced per location. See the Homebase pricing page and Homebase alternatives. Findmyshift is another scheduling tool with a free plan for small teams and time-off tracking.

• Best for: restaurants, shops and similar businesses where hours and shifts are the main HR headache.
• Watch out for: it is a scheduling-first product, so employee records and performance tools are lighter than in a full HRIS.

Best open-source HR software to self-host

Open-source HR systems are free to download and run, and they keep staff records on your own server. The cost moves to setup, backups, updates and security, so they suit owners with technical help.

10. Frappe HR: best open-source suite for payroll, leave and appraisals

Frappe HR is open-source HR and payroll software from the team behind the Frappe framework and ERPNext. It is licensed under GPL-3.0 and covers onboarding, transfers and exit management, leave policies and attendance with geolocation check-in, expense claims with approvals, goals and appraisal cycles, and payroll with salary structures, tax slabs and salary slips. A mobile app handles leave requests and check-ins.

Self-hosting is free, and Frappe Cloud offers managed hosting billed per site rather than per user. Read the Frappe HR site for current hosting options, and note that payroll rules and tax settings need checking for your country. The Frappe HR listing shows its GitHub activity.

• Best for: growing teams that want leave, attendance, expenses and payroll in one open-source system.
• Watch out for: a broad system takes setup time, and you must confirm its payroll and tax rules match where your staff work.

11. OrangeHRM: best long-running open-source HR system for core records and leave

OrangeHRM is an open-source human resource management system built with PHP and MySQL under GPL-3.0 or later, covering core HR functions and leave management. Its repository includes installation guides for Linux and Windows and a web installer, there is a REST API for integrations, and a live demo and a mobile app are available.

It is a simpler starting point than Frappe HR if your needs are records and leave. See the OrangeHRM listing for release and commit dates.

• Best for: small and midsize companies that want self-hosted employee records and leave tracking.
• Watch out for: Enlisted's last-commit date for the open-source repository is older than for the other two open-source picks, so check recent activity before you commit.

12. Horilla: best open-source suite with recruitment, assets and an HR help desk

Horilla is an open-source human resource management system built with Python and Django under LGPL-2.1. Its modules include employee management with LDAP integration, recruitment, onboarding and offboarding, attendance with biometric integration, leave management, payroll, performance reviews and goals, asset management and a help desk for HR requests.

That mix suits teams that want one self-hosted application for the whole employee lifecycle and track company equipment alongside people. See the Horilla listing for GitHub activity.

• Best for: small and mid-sized organizations that want recruitment, attendance, payroll and assets in one self-hosted app.
• Watch out for: you run the server yourself, and payroll and tax calculations need a check against your country's rules.

What should a small business check before buying HR software?

Two questions decide most small-business purchases, and both come from how vendors sell their products.

First, which HR job are you replacing, and does payroll live in the same product? Sage HR, CitoHR and Zoho People focus on records, leave and onboarding. Gusto, Eddy and Homebase run payroll for US employers, Justworks outsources it, and Frappe HR and Horilla list payroll modules you configure yourself. Ask where payroll is supported and whether you would still need a separate payroll provider.

Second, what is the pricing unit? The picks in this guide charge in different ways: per employee per month for BambooHR, per seat for CitoHR, a per-person fee plus a base fee for Eddy, per location for Homebase, per module on top of a core product for Factorial, and per site for Frappe Cloud hosting. A system that is cheap at five employees can behave differently at twenty, so work out your cost at your current headcount and at the size you expect to reach. Where a vendor publishes no price, you will need a quote.

For open-source options, add the time to install, back up and secure the server to your estimate. For the broader field, including recruiting and performance tools, the general best HR software guide covers more ground, and a planned guide covers HR software for startups.

Which HR software should you choose?

Before you buy, pick two shortlisted products and walk through leave requests and onboarding on the vendor's free plan or trial if one exists. The data on each listing is a starting point, and vendors change plans and limits.