Written by Matt Reed Published on 22 January 2025 On this page Key Takeaways What Is HR Software? Why HR Software Matters for Startups How To Choose the Right HR Software for Your Startup Top 10 Picks for the Best HR Software for Startups in 2025 Stay Lean, Scalable, and Compliant With the Right HR Software FAQs Expand Running a startup means wearing multiple hats and juggling endless tasks. But when it comes to human resources (HR)—arguably one of the most critical components of your business—manual processes can become overwhelming.The consequences of a disorganised HR system can be disastrous: delayed hiring, payroll errors, and dissatisfied employees. That’s where proper HR software comes in. The right solution automates tedious tasks, improves compliance, and buys you time to focus on what matters most: growing your business.Whether you’re managing an early-stage startup, scaling rapidly, or leading a remote workforce, this guide has you covered. Let’s dive into the best HR software for startups! Key TakeawaysSimple, effective HR tools like BambooHR and HiBob help startups thrive by eliminating manual tasks, streamlining hiring, and enhancing team satisfaction with minimal fuss.Growth-ready software like Deel and Workday can handle global compliance and workforce planning, ensuring you expand without growing pains.Payroll and compliance can be made easy with the help of Employment Hero or BrightPay. The platforms tackle payroll accuracy, compliance risks, and admin overload.Build happier, more motivated, and connected teams using HiBob, Lattice, or Sage HR. These include engagement surveys, performance tracking, and tailored benefits management to boost morale. What Is HR Software?HR software refers to digital platforms that simplify and automate HR functions. It helps businesses manage tasks such as recruitment, employee onboarding, payroll, benefits administration, and performance tracking in one centralised system. For example, many HR platforms include applicant tracking systems (ATS), automated payroll, and self-service portals to streamline workflows.The best HR software also integrates with other essential business tools like accounting systems and communication platforms, which means better data sharing and higher-quality decisions. It also means effortless scalability—perfect for startups aiming to expand into bigger organisations. Why HR Software Matters for StartupsManually managing HR processes can cause errors, create compliance risks, and drain employees when they need their energy most. For startups—which often have fewer resources—this is kryptonite. The knock-on effects can hinder growth and damage company reputation.As a startup, you need good HR software to:Automate repetitive administrative tasks, freeing up valuable time for strategic activities.Comply with labour laws and regulations, reducing the risk of fines or legal issues.Scale and grow your business responsibly so you can manage an expanding workforce without disrupting operations.Provide tools for better communication, engagement, and career development, which can enhance workplace culture.Investing in the best HR software can help you build a solid foundation for long-term success, focusing your energy on innovation and growth rather than HR headaches. How To Choose the Right HR Software for Your StartupChoosing the right HR software for your startup means considering your needs, budget, and growth plans. Here are five steps to guide your decision:1. Define your prioritiesStart by identifying your most pressing HR challenges. Are you struggling with recruitment, payroll management, or employee engagement? Knowing your priorities will help you focus on software that aligns with your specific needs.2. Consider scalabilityWhatever growth stage you’re at, look for software that can scale with your business. Features such as customisable workflows, multi-location support, and integration capabilities are essential when you’re looking to expand.3. Evaluate user-friendlinessThe software should be intuitive and easy for you and your team to use, even without technical expertise. Opt for platforms with a clean interface, accessible support, and training resources.4. Compare pricing modelsExamine pricing structures to find a solution that fits your budget. Many providers offer tiered pricing based on features or the number of employees, allowing you to scale up as needed.5. Prioritise security and complianceThis is critical for startups managing sensitive employee data. Ensure the software adheres to data protection regulations and provides tools for compliance with labour laws. Top 10 Picks for the Best HR Software for Startups in 20251. BambooHRBest for all-round HR managementBambooHR is an intuitive, versatile HR platform perfect for startups aiming to streamline their HR operations. Its applicant tracking system (ATS) and time-off tracking tools save founders valuable time by automating repetitive tasks like hiring, onboarding, and payroll.Designed to grow with your business, BambooHR also integrates seamlessly with popular tools like Slack and Xero, ensuring your HR processes remain connected to daily operations.Startups benefit from BambooHR’s robust onboarding process, which creates a positive first impression for new hires. Its simple interface means you can get started quickly, even without prior technical expertise.Key featuresApplicant tracking system (ATS) for job postings and moreCentralised employee database for easy information accessTime-off tracking and payroll management capabilitiesAdvanced features like e-signatures for onboarding documentsIntegrationsSlackGoogle SuiteMicrosoft TeamsQuickBooks (for accounting)Xero (for accounting)SAP (for resource planning)ADP (for payroll processing)Pricing: BambooHR doesn’t publicly provide pricing information. You must contact the company for a quote.2. HiBobBest for employee engagement and scalingHiBob is designed to help startups grow while keeping employee satisfaction at the forefront. With tools like pulse surveys and performance tracking, it fosters strong team connections, even in hybrid and remote setups. Customisable workflows and advanced reporting enable startups to maintain flexibility as they scale.HiBob also stands out for its focus on collaboration, integrating smoothly with popular communication platforms like Slack and Microsoft Teams.Key featuresCustomisable onboarding workflows to match your startup’s cultureTools for tracking employee benefits and payroll managementIntegration with popular communication platforms for hybrid and remote teamsAdvanced reporting to support informed decisions on HR strategyIntegrationsSlackMicrosoft TeamsGoogle WorkspaceGreenhouse (for ATS)Okta (for identity management)Pricing: HiBob doesn’t publicly provide pricing information. You must contact the company for a quote.3. Employment HeroBest for payroll managementEmployment Hero is a complete HR and payroll solution that can help simplify compliance and reduce admin overhead for startups. Its automated payroll processing ensures accuracy, while its compliance tools help you meet local labour laws effortlessly.But the platform goes beyond payroll with its employee benefits administration and well-being tools to attract and retain top talent. This makes it a go-to solution for early-stage startups aiming to build a solid foundation for HR management.Key featuresAutomated payroll processing with Real Time Information (RTI) submissions to His Majesty’s Revenue & Customs (HMRC)Employee benefits administration, including pension contributionsSelf-service portal for employees to manage payslips and leaveIntegrated compliance alerts for UK labour lawsIntegrationsXeroQuickBooksMYOB (for payroll management)KeyPay (for payroll and compliance)SEEK (for job postings)PricingEmployment Hero Lite: From £9 per employee per monthEmployment Hero Plus: From £14 per employee per monthEmployment Hero Unlimited: From £19 per employee per month4. DeelBest for managing remote and global teamsDeel is built for startups managing distributed teams across borders. It simplifies global payroll, tax compliance, and contractor management, allowing startups to hire talent from anywhere without worrying about legal complexities.The intuitive platform automates international tax filings and supports payments in multiple currencies, including crypto. Deel empowers startups to scale globally with confidence, ensuring smooth onboarding and compliance for remote teams.Key featuresInternational payroll and contractor managementCompliance support for global hiringAutomated tax filings, tax compliance, benefits administration, and tax reportingAutomated global payroll and flexible payment options in multiple currencies, including cryptoIntegrationsSlackQuickBooksXeroNetSuiteSAPPricingDeel HR: FreeDeel Engage: Contact Deel for UK-specific pricing5. WorkdayBest for fast-expanding startupsWorkday offers enterprise-grade HR tools tailored for startups with ambitious growth plans. Its advanced analytics and workforce planning tools make it easier to manage larger teams while staying data-driven.With seamless integrations and modular add-ons, Workday adapts to your evolving needs, making it a smart choice for startups looking to future-proof their HR operations.Key featuresWorkforce analytics for data-driven decision-makingIntegrated talent acquisition toolsComprehensive benefits and payroll managementMobile-first design for hybrid and remote teamsIntegrationsSalesforceSlackGoogle WorkspaceMicrosoft Office 365ServiceNowPricing: Workday provides custom pricing based on features and team size. Contact Workday directly for a quote.6. Breezy HRBest for recruitment and hiringBreezy HR streamlines recruitment workflows with drag-and-drop pipeline management and automated email workflows. This enables startups to handle higher candidate volumes effortlessly, making it ideal for scaling hiring efforts.Additionally, BreezyHR’s built-in ATS and integrated employer branding tools make for a seamless and professional hiring experience. Not only does this help you save time customising each element of your recruitment process, but it also helps engage candidates and give them a strong impression of your business—which is great for growth and word-of-mouth recommendations.Key featuresDrag-and-drop candidate pipeline managementAutomated email workflows and interview schedulingIntegrated employer branding toolsBuilt-in ATS functionalityIntegrationsLinkedInIndeedGoogle for JobsSlackZoom (for interview scheduling)Pricing: Breezy doesn’t list pricing online, but you can request a 14-day trial with no credit card required. Contact the company for more information.7. LatticeBest for performance management and developmentLattice helps startups maintain a high-performance culture during rapid growth. Its tools for goal alignment, employee feedback, and performance reviews keep teams focused and motivated. In addition, the platform’s analytics-driven approach allows startups to identify improvement areas, which can keep productivity steady while scaling operations.Key featuresGoal alignment, goal-setting, and tracking dashboardsCustomisable performance review templatesReal-time employee feedback and engagement surveysAnalytics to identify areas for improvementIntegrationsSlackMicrosoft TeamsAsanaBambooHR (for HR data sync)Pricing: Lattice offers pricing in USD. On its site, plans include:Lattice Talent Management, which features a Foundation bundle and the optional add-ons Engagement, Grow, and Compensation. This starts at $11 USD per user per month.Lattice HRIS, which features a Core HRIS bundle and the optional add-ons Payroll and Time Tracking. This starts at $10 USD per user per month.Contact Lattice directly for UK-based pricing.8. OysterBest for global hiringOyster simplifies global hiring, with tools for payroll in various currencies, international tax compliance, and employee benefits administration tailored to local needs. This means startups can confidently tap into global talent without legal hassles.Just as Oyster is an excellent choice for businesses hiring worldwide, it’s also a natural choice for remote and hybrid teams that are scattered across various countries.Key featuresInternational tax complianceEmployee benefits administration for global teams, tailored to local needsContract and document managementCompliance tools for international hiringAutomated payroll in multiple currenciesIntegrationsQuickBooksXeroBambooHR (for HR data sync)DeelPricingOyster Contractor: Free for 30 days, then £25 per contractor per monthOyster Global Payroll: From £20 per employee per monthOyster Employer of Record: From £499 per employee per month billed annually or £599 per employee per month billed monthlyOyster Scale: Custom pricing9. Sage HRBest for benefits managementSage HR is a trusted platform for startups aiming to offer competitive benefits while reducing administrative burdens. Its time-off tracking and compliance tools ensure smooth operations as teams grow.There’s also a self-service portal for employees to view information about their benefits, plus time-off tracking and absence management features for managers.Key featuresFlexible benefits management tailored to UK employeesAutomated compliance with employment lawsTime-off tracking and absence managementSelf-service portal for employees to access benefits informationIntegrationsXeroQuickBooksZapier (for workflow automation)Sage Payroll (for payroll processing)Microsoft TeamsPricingSage HR (includes Core HR and Leave Management modules): From £4.40 per employee per month, with a 30-day free trial.Optional add-ons include:Performance: £2.20 per employee per monthTimesheets: £2.20 per employee per monthShift Scheduling: £2.20 per employee per monthExpenses: £1.10 per employee per monthRecruitment: £165 per month10. BrightPayBest for time and attendance tracking and payrollBrightPay is an award-winning payroll software solution tailored to UK startups. It simplifies payroll processing, compliance, and time tracking, ensuring startups stay on top of all their obligations. Its auto-enrollment pension management and robust reporting tools are perfect for growing teams, too.Key featuresAutomated payroll processing with HMRC and pension integrationTime-tracking and scheduling tools for employee managementCustomisable payroll reports and dashboardsAuto-enrollment pension managementIntegrationsXeroQuickBooksNest (for pensions and auto-enrollment)The People’s Pension (for auto-enrollment)HMRC (for payroll submissions)PricingBrightPay Cloud Version: From £8.25 per employee + VAT per month or £84 + VAT per yearBrightPay Desktop Version – Standard (for individual employers): From £84 + VAT per tax year for up to three employees to £339 + VAT per tax year for unlimited employees Stay Lean, Scalable, and Compliant With the Right HR SoftwareEfficient HR management can be the difference between success and stagnation for startups. Solid HR software helps you streamline the hiring process, administrative tasks, and payroll management—all while remaining compliant.From BambooHR’s all-rounder capabilities to Deel’s global payroll expertise, you should be able to find the ideal fit—whatever your budget and requirements. Make a strategic investment in your business’s future and build a more efficient and engaged team today. FAQs What does a startup need for HR? Startups should establish an HR department structure with a strategic leader to input company policies and ensure compliance. No matter how small, most companies—even those using HR software or with bare-bones HR—typically handle core functions like compensation, incentives, and employee communication plans in-house. What types of HRM practices are being used in startups? Key roles of HR in startups include candidate recruitment and new employee onboarding, employee relations and handling employee concerns, and compliance with employment laws and regulations. Written by: Matt Reed Senior Writer Matt Reed is a Senior Writer at Expert Market. Adept at evaluating products, he focuses mainly on assessing fleet management and business communication software. Matt began his career in technology publishing with Expert Reviews, where he spent several years putting the latest audio-related products and releases through their paces, revealing his findings in transparent, in-depth articles and guides. Holding a Master’s degree in Journalism from City, University of London, Matt is no stranger to diving into challenging topics and summarising them into practical, helpful information.