The 5 best HR software systems for small businesses in 2026 Today’s SMEs have more HR responsibilities than ever before. Here are the top five small business HR software systems to help you stay in charge. Written by Helena Young Updated on 27 November 2025 Our experts We are a team of writers, experimenters and researchers providing you with the best advice with zero bias or partiality. Written and reviewed by: Helena Young Deputy Editor Robyn Summers-Emler Digital Growth Editor Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. 1 of 3 Breathe HR: Low cost all-in-one software Visit 2 of 3 BrightHR: Streamline people management Get a Free Demo 3 of 3 Compare all our best value deals Compare I’ve researched and tested the best HR software systems on the UK market, and rank BambooHR, Rippling, Breathe HR, BrightHR, and Deel as the top five. In this article, I’ll compare them on pricing, features, integrations, and user support. I’ll also explain how each platform differs, and whether it’s the right choice for your small business. The best HR software: BambooHR – Great customisation for larger teams with complex HR structuresRippling – An all-in-one platform for growing businessesBreathe HR – A simple and cost-effective HR software for startupsBrightHR – An easy-to-use platform for small bricks-and-mortar businessesDeel – Useful tools to help tech businesses hiring global talentClick the links above to compare or check out pricing for the above HR software platforms. A new set of HR laws will come into effect in the UK in 2026, off the back of the Employment Rights Bill. It’s becoming trickier every year for small business owners to stay on top of the ever-shifting legislation, which is why it’s crucial find the best HR and payroll software to help.The choices can feel overwhelming, but Startups has been helping small businesses for over two decades. In this article, I’ll help you choose the right HRMS (human resource management system) software for your company’s needs. Key takeaways The best HR software will depend on your business’s size and needs: microbusinesses will benefit from the cost-effective pricing of Breathe, but more complex companies will need to pay more for an advanced platform like BambooHR.You’ll need to consider setup and onboarding: will your staff be able to learn the software quickly? And can it integrate with your current workflow, and your existing accounting and payroll software?To simplify your workflow, you could consider all-in-one software that combines HR and payroll, such as Rippling. This article will cover: BambooHR: great customisation for larger teams with complex HR structures Rippling: an all-in-one platform for growing businesses Breathe HR: a simple and cost-effective HR software for startups BrightHR: an easy-to-use platform for small bricks-and-mortar businesses Deel: useful tools to help tech businesses hiring global talent What to look for in HR software The top HR systems at a glance: 0 out of 0 backward forward Verdict Pricing BambooHR Rippling Breathe HR BrightHR Deel BambooHR is a customisable HR platform for larger businesses with unique HR processes An all-in-one solution with great integrations, this platform is tailor-made for HR teams who prioritise convenience and efficiency Breathe HR is a simple and affordable HR software with a very low entry price-point; ideal for startups BrightHR is a user-friendly system that’s ideal for day-to-day HR needs. I recommend it for retail and hospitality businesses Deel‘s international payroll services makes it a great fit for companies with a global workforce Quote-based Quote-based From £22/month, + VAT Calculated on the number of your employees (four employees equates to £20.84/employee/month + VAT) From $20/employee/month Get Quotes Get Quotes Get Quotes Get Quotes Get Quotes Why should you trust our list of the best HR systems? SME owners usually start small, working on their own, or with one or two employees. As you scale, your HR needs will become more complex, but you may not have the budget to outsource your HR duties.Which is why you also need a software tool that can meet the needs of your growing team, while still being easy-to-use. Here are five features I prioritised in my hunt to find the best small business HR software:Pricing – you will have a software budget that determines how affordable each option is. I reviewed each HR system for its pricing, billing model and ability to scale, if a user wants to add more team members to the platform in the future.Features – SMEs need a tool that can take care of all core HR functions (such as booking holidays or submitting appraisals) before they search for sophisticated functions, such as payroll.Usability – transparency is the most important word in HR. I looked for platforms that offer employee self-service portals, empowering staff to complete their own HR tasks, input data and read company updates.Help and support – I prioritised software products with accessible helplines and a friendly customer support team you can contact in case of an issue.Customisation – no two workforces are the same, which is why finding a tailorable product that reflects your unique people process and company culture is key. We last updated this article on 27 November 2025 As of 27/11/2025, all the pricing and information in this article was verified as accurate. However, as the HR software industry can change quickly, we would recommend confirming any pricing or features directly with the providers before making any purchasing decisions for your company. BambooHR: great customisation for larger teams with complex HR structuresThis view of the BambooHR portal demonstrates how customisable the platform is – you’re invited to ‘add your own’ logo to the top left corner. Source: bamboohr.comWho should use BambooHR?I’d recommend BambooHR to more complex firms that need a lot of control and customisation, such as professional services. It has lots of ready-made integrations, so it can be fully embedded within your organisation, which is helpful if you’re an established business with lots of set processes and tools in place. Suitable if: You want a platform that can be fully customised to your business You'd like to be able to measure and improve employee satisfaction You want support via email, call or chat (available Monday to Friday between 8am and 5pm) Not suitable if: You're a businesses with limited IT resources (it can be complicated to setup) You want a transparent pricing structure You don't want to have to install a separate payroll system (its payroll tools are exclusive to US customers) What are BambooHR’s key strengths and features?BambooHR users have full control over their HR processes, allowing you to edit access levels, approvals, email alerts and holidays. This is particularly beneficial for teams with complex HR processes, such as financial teams with lengthier onboarding and vetting needs. You can even add your own brand logo and colour scheme to the portal.BambooHR also has its own AI-powered assistant: Ask BambooHR. This is designed to be used by your employees to get quick answers to HR queries. It can be used anytime, freeing up your HR staff.BambooHR also has an open API (Application Programming Interface), so you won’t need to worry about whether it can seamlessly connect with your payroll software; it can link with any API, plus over 150 specialist partners (although this is not as many as Rippling’s 600).Are there any limitations?While the complexity is great for large outfits, if you just want something that can manage basic HR tasks, BambooHR could quickly become confusing. My research suggests that BambooHR is not a low budget option. So, for those wanting a more basic, user-friendly option, I’d recommend Rippling or BrightHR instead.How much does BambooHR cost?Startups with fewer than 25 employees will pay a flat starting rate of £200 per month for BambooHR.Other businesses will pay a monthly per-employee fee to access BambooHR. Pricing is not published online, but we’re aware from current SME users that it sits at the more expensive end of the spectrum. However, there are volume discounts the more employees you add to the system.There are three different cost tiers: Core, Pro and Elite. It’s important to keep in mind that you’ll need to upgrade to Bamboo Pro for performance management features. What's new for BambooHR? BambooHR has announced BambooHR Employer of Record, powered by Remote, which allows employers to compliantly hire talent globally. Initially only available in the US, BambooHR Employer of Record is coming soon to the UK, and you can currently join the waitlist. Rippling: an all-in-one platform for growing businessesThis screenshot of the Rippling dashboard illustrates the range of modules available in Rippling’s vast library of add-ons. Source: rippling.comWho should use Rippling?I’d recommend Rippling for scaling businesses that want to be able to manage everything relating to people in one easy-to-use HR app. Particularly if you don’t yet have a designated HR manager and you’re a CEO (or other C-suite executive) who needs to take care of HR yourself through the software platform while the company scales up. Suitable if: You want a simple, easy-to-use layout You want to integrate with common business tools such as Slack, Zoom and Google Workspace You want to manage payroll for employees in multiple countries (making Rippling a good option if you're hiring contractors from abroad) Not suitable if: You want quick support from an actual human (when I tested the live chat function myself, I wasn't able to speak to a person) You want extensive customisation (its Core plan does not allow you to create custom fields on employee profiles) You want transparent pricing What are Rippling’s key strengths and features?Rippling Core spans essential HR tasks like workforce management and workflows for automations, which is useful if you don’t have a specialist people team in place yet. The basic software package is affordable, but if you need advanced features in the future such as payroll, you’ll have the option to pay extra for Rippling’s add-ons, making it a scalable platform for SMEs.An organised dashboard is critical for effectively managing payroll, employee benefits and IT under one roof. While ‘all-in-one’ tools can sometimes suffer from overwhelming interfaces, I found Rippling easy to navigate, and its layout was amongst the simplest to use.Rippling is a user-friendly platform, but for those who may be lacking in confidence it offers Rippling University. This is a catalogue of online resources, where you can learn about functions of its products through modular courses. It even has simulators so you can perform actions in a no-risk environment, to test things out.Are there any limitations?Users have reported frustrations with Rippling’s customer service team, which can be slow to respond. It also doesn’t offer much help with onboarding.It’s also worth noting that Deel has more advanced compliance and assessment features for new hires than Rippling, which would make it a more suitable tool for those businesses that expect to undergo a big recruitment drive this year.How much does Rippling cost?Rippling doesn’t publicly list its pricing, instead it can provide you directly with a quote. It also has multiple add-ons that you can use to concentrate on a particular area of HR (similar to BambooHR’s customisable tools, but a bit easier to install). What's new for Rippling? In September 2025, Rippling rolled out a software update that included a new module for one-to-ones in Performance Management, allowing for more structured meetings between managers and their employees. There’s also a new Budgeting feature in Headcount Planning, allowing you to set spending limits and track a hiring plan against budget in real-time. Breathe HR: a simple and cost-effective HR software for startupsBreathe HR says there’s more to life than admin. Its dashboard layout is designed to relay HR information at a glance to save time. Source: breathehr.comWho should use Breathe HR?Breathe HR is a strong online HRMS software system for cash-strapped startups, aimed at small firms with basic HR needs at an entry level price point. Pricing starts from £22 per month for a team of 10. Suitable if: You're looking for a budget-friendly solution You want to give your employees access to a self-service portal You want a free trial before you buy Not suitable if: You're looking to scale beyond an SME in the future (Breathe caters to a maximum of 200 employees) You want a range of customisable features (particularly when it comes to performance reviews) You want phone support (Breathe is limited to a webform, chatbot and knowledge centre) What are Breathe HR’s key strengths and features?Despite being on the cheaper side of things, Breathe HR still comes with a pretty decent amount of features. It provides all the essential performance management tools – including organising appraisals and setting objectives. Even on the Micro tier, users can enter custom fields to build bespoke HR reports that reflect your unique processes. Let’s say a business has an Employee of the Month policy: managers could enter this column into their Breathe HR annual report to be shown the 12 winning employee profiles at the end of the year.Breathe HR is the most cost-effective HR software system for startups, and additional modules (optional extras on top of the basic software) can be added on if you want more than just basic HR capabilities. I’ll explain more about this in the pricing section below.Are there any limitations?Thanks to its pricing structure, some of BreatheHR’s features are only available to teams of certain sizes. For example, Time Logs can only be accessed on the Starter plan — which is for 11 to 20 people — or higher, which will be an issue for microbusinesses that rely on time-based billing, like creative agencies.How much does Breathe HR cost?Interestingly, Breathe HR’s software packages are calculated per business, not per employee, so larger teams aren’t penalised with higher costs. However, its tiers are capped with user limits, so you will need to upgrade at a certain point:Teams with 1-10 employees will pay £22 plus VAT per month (Breathe HR Micro)Teams with 11-20 employees will pay £39 plus VAT per month (Breathe HR Starter)Teams with 21-50 employees will pay £89 plus VAT per month (Breathe HR Regular)Teams with 51-100 employees will pay £159 plus VAT per month (Breathe HR Pro)Teams with 101-150 employees will pay £369 plus VAT per month (Breathe HR Premium)Teams with 151-200 employees will pay £525 plus VAT per month (Breathe HR Plus)Similar to Rippling, you can purchase add-ons like Rota, Time & Attendance (an additional £120 per month), or Recruitment Tracking (an extra £21 per month) to build the perfect platform for your HR operations. This means you don’t have to pay for functionality you don’t need, keeping costs down in the early stages. What's new for Breathe HR? In early 2025, Breathe announced an integration with Harriet, an AI-powered assistant. Harriet connects your Breathe HR platform with other software like Slack, Teams, WhatsApp, and Google Chat, so your staff can ask questions 24/7 and Harriet will provide a tailored response, relieving you of the burden of answering questions. BrightHR: an easy-to-use platform for small bricks-and-mortar businessesBrightHR gives managers real-time updates on employees, offering an at-a-glance view of the workforce. Source: brighthr.comWho should use BrightHR?BrightHR excels as a user-friendly system that prioritises staff management above all else, which crucially can save managers and admin staff at shops, bars, pubs and restaurants a huge amount of time each week. Suitable if: You want onboarding support to help with set-up You want an app that offers real-time updates on who’s in, off or on a break You want a mobile app that employees can use to log in and see next week's rota from anywhere Not suitable if: You're a smaller team trying to keep costs as low as possible You have complex HR needs (Limited customisation available compared with BambooHR) You want help via live chat What are BrightHR’s key strengths and features?When you need to train a large team of staff to use an HRMS platform, an easy-to-use app is the most important factor. This is where BrightHR shines. For retail and hospitality firms, sophisticated interfaces and big feature libraries can be more of a hindrance than a help, but BrightHR keeps things streamlined.The rota planner is a standout feature for retail and hospitality firms, as it offers preset tables to populate with shifts for the upcoming week or month. When managers add staff to a timeslot, they will be notified and are able to accept or decline the proposed shift.Through the platform, staff can claim ‘open shifts’ if they’re on a zero-hours contract. Workers also have access to the Blip App on both desktop and mobile, which they can use to clock in and out of a shift. Managers can then view this information to track performance and monitor sickness and lateness.Are there any limitations?BrightHR doesn’t perform brilliantly for benefit management, so I don’t recommend it to firms with a focus on improving employee engagement; BambooHR would be the better option. There’s also no live chat support from BrightHR, so if you want quick answers to HR questions, Deel’s AI agent is a better bet.How much does BrightHR cost?BrightHR Core’s pricing depends on your number of employees. As your team grows, the per-employee charge drops. To give you an example:Teams with four employees will pay £20.84 plus VAT per employee, per monthTeams with 10 employees will pay £10.70 plus VAT per employee, per monthTeams with 40 employees will pay £6.30 plus VAT per employee, per monthTeams with 60 employees will pay £4.80 plus VAT per employee, per monthCore isn’t the only HR software package on offer, though. There’s also the “Enhanced HR support” option, which is slightly more expensive than Core, but will unlock 24/7 HR advice and document templates. To give you an idea of pricing:Teams with four employees will pay £21.20 plus VAT per employee, per monthTeams with 10 employees will pay £20.30 plus VAT per employee, per monthTeams with 40 employees will pay £11.80 plus VAT per employee, per monthTeams with 60 employees will pay £9.00 plus VAT per employee, per monthThere’s also the option to add on BrightHR’s Health and Safety module, which offers access to risk assessment and accident reporting (as well as everything included in the “Enchanced” package). As an example of what you can expect to pay:Teams with four employees will pay £28.20 plus VAT per employee, per monthTeams with 10 employees will pay £27.10 plus VAT per employee, per monthTeams with 40 employees will pay £15.60 plus VAT per employee, per monthTeams with 60 employees will pay £12.00 plus VAT per employee, per month What's new for BrightHR? In June 2025, BrightHR upgraded its performance management features, adding ready-made one-to-one review forms and pre-built agendas, to make performance reviews even simpler.In August 2025, it also rolled out new timesheet reports, allowing all timesheet data to be seen from one view.Most recently, in September 2025, BrightHR enhanced its permission-level settings, so you can now give specific permissions to specific people to check things like emergency contact details or probation periods. Deel: useful tools to help tech businesses hiring global talentDeel lays out all the important information you need to know about your employees, as well as useful extras, like what equipment they’re using and which office they are based in. Source: deel.comWho should use Deel?Deel’s international payroll services make it a simple fit for businesses that hire remote workers or contractors from abroad. IT businesses or SaaS providers often boast a global presence, and so they need a HR platform with a focus on payroll and compliance, which is Deel’s strong suit. Suitable if: You want support from 24/7 live chat You want virtually boundaryless HR management (Deel can be run in 150+ countries) You want reassurance from excellent security Not suitable if: You want a quick sign-up process (you need to book a demo before you can purchase the software) You want to keep spending low (its best features are paid add-ons) You need specialist HR tools (for example, applicant tracking or other recruitment features) What are Deel’s key strengths and features?Tech firms will get the most out of Deel’s premium add-on services, such as Deel EoR (Employer of Record) for remote work contracts, and Deel Contractor for employing local workers. They’re costly but, for specific uses, they’re invaluable.The platform’s strong data security measures, including 24/7 SIEM SOC monitoring, are also a significant advantage for handling sensitive employee data. These features make Deel a valuable tool for tech businesses looking to ensure compliance with international regulations.You’ll also be able to take advantage of Deel’s AI Support Agent. This is available to answer questions 24/7, so if you operate around the clock, you’ll be able to get all-hours support.Are there any limitations?Deel isn’t the most cost-effective solution for microbusinesses. Local businesses that don’t need the globally-focused tools or additional payroll features will be better suited to a UK-based software platform like Breathe HR.How much does Deel cost?Deel HR’s core plan, Deel Engage, is $20 per employee, per month (Deel’s prices are only given in USD). As explained above, SMEs will be best off upgrading to Deel Global Payroll. Although this isn’t cheap – pricing starts from $29 per employee, per month – it’s worth the investment for tech firms that want to offer attractive compensation and hire global talent. What's new for Deel? In October 2025, Deel announced a host of new HR software features as part of the Deel Drop Fall Edition 2025. This included three new AI agents that can answer questions and execute workflows. There’s also an enhanced performance review experience, and a new planning cycles feature that ensures a smoother workflow. What to look for in HR softwareOnce you know the best software options out there, it’s time to judge how well they align with your specific business needs – and I don’t just mean budget. Here are six things to think about before you buy HR software:1. Does it fit in with your company targets?If you’ll be going through the recruitment process this year, a scalable platform such as Breathe HR is suitable. Are you planning to expand abroad? Deel can support international payroll. Ask yourself: do you think you’ll be using the system in 12 months’ time?2. How easily could your HR team use it?Think about how intuitive the software is, whether it is easy to navigate and if the provider offers adequate training. Without a helping hand, your people team might come unstuck.3. Will it integrate with your existing tools?If your firm is reliant on one business tool, find HR software that integrates with it. This will save time and money, plus make data migration much simpler. Another area to consider here is customisation. Can the platform be tailored to match your unique HR processes?4. Can you commit to it long-term?Consider the total cost of ownership, including licensing fees, maintenance costs and potential upgrades. Are the contract terms reasonable and flexible? If your cash flow is unpredictable, locking yourself into a £500-a-month contract is not the savviest move.5. What support is there?Given how important HR is, a system glitch or error could be catastrophic. Vendors should provide support channels, such as live chat and phone support. This is also vital for onboarding and implementation. A friendly help desk can eliminate bumps in the roadmap.6. How easily could your employees use it?Self-service features, such as updating information or requesting time off, have saved HR teams hours in admin. An easy-to-use employee portal also ensures a positive experience for staff, which can have a direct impact on how they view the company as a whole.7. Does the software package include an HR mobile app?HR software is mostly used via a desktop app, but you should also look out for software packages that include mobile apps. These are generally used by your staff for basic HR tasks, like requesting annual leave or accessing payroll information, but can include more advanced features, like time tracking.Read next: how to pay your employees correctly Jump back up to read our HR software reviews: BambooHR: great customisation for larger teams with complex HR structures Rippling: an all-in-one platform for growing businesses Breathe HR: a simple and cost-effective HR software for startups BrightHR: an easy-to-use platform for small bricks-and-mortar businesses Deel: useful tools to help tech businesses hiring global talent What to look for in HR software Use our form for a quicker, simpler way to finding the right HR software. Have you used HR service providers before? Yes No It only takes a minute, Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.