The best HR software for startups makes managing your new team easier while staying organized and compliant. When you’re running a startup, every minute and every dollar counts. Managing HR tasks like hiring, payroll, and compliance can quickly become overwhelming, especially as your team grows. The best HR software for startups simplifies these processes, saves time, and helps you focus on growing your business. 

After testing dozens of tools, we’ve narrowed it down to the 17 Best HR Software for Startups. If you’re in a hurry and just want the best of the best, BambooHR stands out for its ease of use, affordable pricing, and ability to scale with your company. Whether you’re a team of five or fifty, this software has everything you need to handle employee management, payroll, and onboarding all in one place.

In this guide, we’ll share the top HR tools we’ve tested, focusing on affordability, scalability, and usability, so you can find the perfect fit for your startup.

The 17 Best HR Software for Startups

1. BambooHR

BambooHR is one of the most popular HR software options for startups. It offers an intuitive platform designed to streamline employee management, onboarding, and performance tracking. Known for its simplicity and scalability, BambooHR is a go-to for startups looking to grow without overcomplicating their HR processes.

Pricing: Starts at $6.19 per monthly employee (custom quotes available).

Best For: Startups needing a scalable, all-in-one HR platform to manage their growing teams.

Key Features:

• Centralized employee database for easy management.
• Smooth onboarding workflows and e-signature capabilities.
• Performance management tools to track employee growth.
• Integration with payroll providers for seamless payroll processing.

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2. Gusto

 Gusto is a payroll-focused HR software with added benefits management and compliance features. It’s ideal for startups that need to handle payroll and tax filing with minimal hassle while offering perks to employees.

Pricing: Starts at $40 per month + $6 per employee.

Best For: Startups focused on payroll accuracy and offering competitive benefits to employees.

Key Features:

• Automated payroll with tax filing in all 50 U.S. states.
• Benefits management, including health insurance and 401(k).
• Employee self-service portal for easy access to pay stubs and benefits.
• Compliance tools to handle legal requirements like I-9s and W-2s.

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3. Zoho People

 Zoho People is a budget-friendly HR software that doesn’t skimp on features. It’s part of the larger Zoho ecosystem, making it a great choice for startups already using Zoho tools. Its flexibility and affordability make it stand out.

Pricing: Free plan for up to 5 users; paid plans start at $1 per employee per month.

Best For: Startups looking for an affordable and flexible HR solution, especially those already using Zoho tools.

Key Features:

• Employee attendance tracking and shift scheduling.
• Recruitment and onboarding workflows to streamline hiring.
• Performance management and skill assessments.
• Integration with Zoho’s suite of business tools for added convenience.

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4. Keka HR

 Keka HR is an excellent choice for Indian startups, particularly those looking for strong payroll and compliance tools. It also offers great options for employee engagement and performance tracking.

Pricing: Starts at ₹6999 per month for up to 100 employees.

Best For: Indian startups that need payroll automation and tools tailored to local compliance requirements.

Key Features:

• Payroll processing tailored to Indian laws and regulations.
• Employee attendance tracking with biometric integration.
• Performance reviews and goal-setting tools.
• Employee engagement features like rewards and surveys.

5. Freshteam by Freshworks

 Freshteam, from the Freshworks suite, is recruitment-focused HR software with added features for employee management. It’s a great choice for startups prioritizing hiring while needing lightweight HR management tools.

Pricing: Free plan available for up to 50 employees; paid plans start at $1 per employee per month.

Best For: Startups focused on hiring and recruitment with additional HR needs on the side.

Key Features:

• Applicant tracking system (ATS) to manage recruitment.
• Onboarding checklists and document storage.
• Time-off tracking and employee database management.
• Integrations with popular tools like Slack and G Suite.

6. Zenefits

 Zenefits is an all-in-one HR platform built specifically to simplify HR tasks for startups. It combines payroll, benefits administration, and compliance tools into a single, easy-to-use solution. Zenefits is especially valuable for startups that want to manage benefits effectively while staying on top of legal requirements.

Pricing: Starts at $8 per monthly employee (Essentials plan).

Best For: Startups looking for a complete HR solution to manage payroll, benefits, and compliance seamlessly.

Key Features:

• Automated payroll processing and tax filing.
• Employee benefits administration, including health insurance and 401(k).
• Time tracking and PTO management.
• Compliance tools to handle ACA, FLSA, and other legal requirements.

7. Rippling

 Rippling is a unified platform that goes beyond just HR. It combines payroll, employee management, and IT tools, making it ideal for tech-forward startups. Rippling can handle everything from onboarding to device management, making it a powerful tool for growing teams.

Pricing: Starts at $8 per user per month (custom pricing for advanced features).

Best For: Startups wanting an all-in-one solution for payroll, HR, and IT management, particularly if they employ remote or tech-heavy teams.

Key Features:

• Automated payroll and tax filings in multiple countries.
• Onboarding workflows, including provisioning of devices and software.
• Benefits administration with easy enrollment options.
• IT management tools for setting up and managing employee devices and software access.

8. Workable

 Workable is a recruitment-focused HR software that helps startups find, attract, and hire top talent. Its powerful applicant tracking system (ATS) and recruiting tools make it a great option for startups looking to build strong teams quickly and efficiently.

Pricing: Starts at $149 per job per month (custom plans available for larger hiring needs).

Best For: Startups prioritizing recruitment and talent acquisition to build their teams.

Key Features:

• AI-powered candidate sourcing and job posting across multiple platforms.
• Applicant tracking system to streamline recruitment workflows.
• Pre-screening tools, including customizable interview kits and assessments.
• Built-in collaboration tools for hiring managers and teams.

9. Deel

 Deel is designed for startups hiring global remote teams. It simplifies the complexities of international payroll, contracts, and compliance, making it easier to onboard and manage talent from anywhere in the world.

Pricing: Starts at $49 per contractor per month (custom pricing for employee payroll).

Best For: Startups hiring international talent or managing a fully remote workforce.

Key Features:

• Global payroll in 150+ countries, with local tax compliance handled.
• Legally compliant contract generation for remote workers and contractors.
• Automated invoicing and payment processing for freelancers and employees.
• Integrated benefits for international employees, like health insurance.

10. Justworks

 Justworks is a Professional Employer Organization (PEO) platform that handles payroll, benefits, and compliance for startups. By acting as your co-employer, Justworks simplifies HR tasks and helps ensure compliance with legal requirements, while offering affordable benefits packages to employees.

Pricing: Starts at $49 per monthly employee (Basic plan).

Best For: Startups needing affordable payroll and benefits management with compliance support, especially if they’re new to HR processes.

Key Features:

• Automated payroll, including direct deposit and tax filings.
• Access to group health insurance, 401(k), and other employee benefits.
• Compliance support for labor laws, tax filings, and reporting.
• Dedicated support and resources for small businesses.

11. HiBob

 HiBob is a modern HR platform designed to help startups and growing businesses foster better employee engagement and collaboration. With a user-friendly interface and a strong focus on company culture, HiBob makes it easy to manage core HR functions while keeping employees connected and engaged.

Pricing: Custom pricing based on team size and features.

Best For: Startups that prioritize employee engagement and want an HR platform that helps build a strong company culture.

Key Features:

• Employee engagement tools like surveys and feedback loops.
• Onboarding workflows to help new hires feel welcome and supported.
• Performance management tools for tracking goals and career development.
• Advanced analytics to track employee satisfaction and retention metrics.

12. Namely

 Namely is an all-in-one HR solution tailored for midsize startups that are growing rapidly. It offers comprehensive features for payroll, benefits, and performance management, making it ideal for businesses ready to scale their HR operations. 

Pricing: Starts at $12 per employee per month (custom quotes available).

Best For: Midsize startups looking for a comprehensive HR platform that grows with their team.

Key Features:

• Payroll and tax management with built-in compliance support.
• Customizable onboarding workflows and employee self-service portals.
• Integrated benefits administration with seamless enrollment options.
• Performance management tools, including goal setting and reviews.

13. Paycor

 Paycor is a scalable HR and payroll solution perfect for startups planning for growth. Its intuitive platform combines HR, payroll, and time tracking, with features that can adapt as your business expands.

Pricing: Custom pricing based on team size and features required.

Best For: Startups looking for a flexible and scalable HR platform that can handle payroll, recruiting, and more as they grow.

Key Features:

• Automated payroll and tax filing with easy reporting.
• Time tracking and attendance management for hourly and salaried employees.
• Recruiting and onboarding tools to simplify hiring.
• Analytics and reporting to help you track employee performance and HR costs.

14. Personio

 Personio is an excellent HR software choice for European startups, offering a simple and automated platform to manage all core HR tasks. With a focus on compliance and efficiency, Personio is designed to help businesses stay organized and streamline operations.

Pricing: Starts at €4.99 per employee per month (custom quotes available).

Best For: European startups looking for an easy-to-use HR platform with strong compliance and automation features.

Key Features:

• Recruitment tools, including applicant tracking and job posting management.
• Automated payroll and compliance tailored to European regulations.
• Time tracking and absence management for employees.
• Employee self-service portal for document storage and updates.

15. OnPay

 OnPay is an easy-to-use HR software designed for small teams that need a reliable solution for payroll, tax filing, and benefits management. Its simplicity and affordability make it an excellent choice for startups managing tight budgets while ensuring compliance and smooth payroll operations.

Pricing: Starts at $40 per month + $6 per employee.

Best For: Small startups needing an affordable and efficient payroll solution with added benefits management

Key Features:

• Full-service payroll, including automated tax filings in all 50 U.S. states.
• Benefits management, including health insurance and 401(k) options.
• Employee self-service portal for accessing pay stubs and tax forms.
• Compliance tools for labor laws and IRS reporting.

16. Monday.com HR

 While known for its project management capabilities, Monday.com has evolved into a customizable HR solution. With its flexible workflows, it’s a great choice for startups that want to create tailored systems for recruitment, onboarding, and team management.

Pricing: Starts at $8 per seat per month (Basic plan).

Best For: Startups looking for highly customizable HR workflows and tools for managing recruitment and team collaboration.

Key Features:

• Customizable workflows for hiring, employee onboarding, and performance tracking.
• Recruitment pipelines with real-time collaboration tools.
• Centralized dashboard for tracking employee data and HR tasks.
• Integration with tools like Slack, Google Workspace, and Outlook.

17. ADP Run

 ADP Run is a trusted and robust HR software solution built for small businesses and startups. With a strong focus on payroll and compliance, it’s a reliable choice for startups looking for an established provider with decades of experience in HR services.

Pricing: Custom pricing based on business size and needs.

Best For: Startups looking for a well-established and reliable HR platform with strong payroll and compliance tools.

Key Features:

• Automated payroll processing with tax compliance and filings.
• Employee benefits administration, including retirement plans and insurance.
• Time tracking and PTO management tools.
• Compliance tools for labor laws, tax regulations, and reporting.

Frequently Asked Questions (FAQs)

1. What are the best free HR software options for startups?

• Zoho People: Free for up to 5 users, with features like time tracking and leave management.
• Freshteam by Freshworks: Free for up to 50 employees, ideal for recruitment and basic HR needs.
• Bitrix24: Includes free tools for employee management and collaboration.
  These free options are great for startups just getting started, but as you grow, you may need to upgrade to paid plans for additional features.

2. Can I integrate HR software with other tools my startup uses?

Yes, most HR software can integrate with other tools your startup relies on. For example:

• Payroll platforms like Gusto or ADP Run can sync with accounting tools like QuickBooks or Xero.
• Tools like BambooHR or Rippling integrate with project management platforms (e.g., Slack, Trello) and productivity apps (e.g., Google Workspace, Microsoft Teams).
• Customizable platforms like Monday.com HR allow you to create workflows that fit seamlessly with your existing tools.
  Integration ensures that all your systems work together efficiently, eliminating duplicate tasks and streamlining processes.

3. What is the average cost of HR software for startups?

The cost of HR software varies depending on the features and team size, but here’s a general idea:

• Basic plans often start at $4–$10 per employee per month (e.g., Zoho People, Personio).
• Comprehensive platforms like Gusto or BambooHR start at $6–$12 per employee per month, plus a base fee.
• High-end or enterprise-level software, like Rippling or ADP Run, may charge $10–$20 per employee per month with additional fees for advanced features.
  Many platforms offer free trials or scaled-down versions, so you can test them before committing.

What Startups Should Look for in the Best HR Software for them

Employee Management

 Keep all your employee data—like contact info, job roles, and performance reviews—in one centralized platform. This makes it easier to track everything and eliminates the need for endless spreadsheets.

Payroll Processing

 Automating payroll ensures employees get paid on time and accurately. Look for tools that handle taxes, deductions, and direct deposits seamlessly.

Recruitment and Onboarding

 As your startup grows, hiring becomes a constant task. Good HR software should help you post job listings, track applicants, and make the onboarding process smooth and organized.

Time Tracking and Leave Management

 Whether it’s tracking hours worked or approving time off, having an easy way to manage schedules and vacations is crucial to avoid bottlenecks and confusion.

Compliance and Benefits Administration

 Startups can’t afford to mess up legal requirements or employee benefits. Look for a tool that simplifies tax compliance, labor laws, and benefits enrollment to avoid unnecessary risks.

Budget-Friendly Options

 Startups often operate on tight budgets, so it’s important to find HR software that offers great value without breaking the bank. Many tools offer tiered pricing or even free versions for small teams.

Scalable Platforms for Growth

 Your team might be small now, but the right HR software should grow with you. Look for platforms that can handle increasing employees and more complex needs as your startup expands.

Intuitive and Easy-to-Use Tools

 Startups don’t always have dedicated HR experts, so the software should be simple enough for non-HR team members to use without constant support or training.