Best HR Software List For 2025: A Small Business Guide

1. Breathe HR – Best overall
2. GoHire – Best for recruitment 
3. BrightHR – Best for compliance
4. Monday.com - best for integrations
5. Gusto - best for payroll
6. HR Software Comparison Table for UK Small Businesses
7. Why is HR software important for small businesses?

In this article, we will provide you with an unbiased and informative list of 5 HR Software companies. We’ll also highlight their core features and functionalities. 

Whether you're looking for software to streamline recruitment or manage payroll, we've got something for everyone. 

And the best part?

We've decided not to include ourselves in the list. So, you can read with confidence knowing that the recommendations provided are solely based on their merits and relevance to your business needs. 

So, let's dive into the best SME HR software for 2025 and find the perfect solution to help your business thrive.

Breathe HR is a go-to for small businesses, thanks to its clean interface and straightforward setup. It’s ideal for companies with fewer than 50 employees who need core HR functions without the complexity of enterprise-level tools.

Strengths:

• Easy-to-use dashboard for non-HR professionals
• Absence tracking, performance reviews, and document storage
• GDPR-compliant and cloud-based
• Affordable fixed pricing

Limitations:

• No AI features or automation tools
• Limited scalability for growing teams
• Reporting tools are basic compared to more advanced platforms

Verdict

If you're a small team just starting out, Breathe HR is like that reliable first car—simple, affordable, and gets the job done. It’s perfect for businesses that need basic HR functions without the bells and whistles. But as your team grows or your needs become more complex, you might find yourself outgrowing it. There's no AI, limited reporting, and not much room to customise. It’s great for now, but maybe not forever.

GoHire is built with small businesses in mind. It simplifies the hiring process from job posting to candidate management, all within a clean, user-friendly interface. Unlike larger, complex platforms, GoHire focuses on what SMEs actually need—speed, simplicity, and affordability.

Strengths:

• Post jobs to multiple boards with one click
• Centralised candidate dashboard
• Interview scheduling and feedback tools
• Customisable careers page
• UK-based support and complian

Limitations:

• Limited HR features beyond recruitment
• No advanced AI tools for candidate matching
• May not scale well for businesses hiring at high volume

Verdict:

GoHire is a great fit for small UK businesses that want to hire smarter without investing in a full HR suite. It’s intuitive, fast to set up, and focused on recruitment essentials. If you’re growing your team and want a tool that keeps things simple and compliant, GoHire is a solid choice. Just keep in mind, it’s a recruitment tool, not a full HR platform.

BrightHR is popular among UK SMEs in retail, hospitality, and services due to its built-in legal support and wellbeing tools. It’s especially useful for businesses that need help staying compliant with UK employment law.

Strengths:

• Employment law advice and document templates
• Mental health and wellbeing resources
• Mobile app for employee self-service
• Affordable per-employee pricing

Limitations:

• Limited AI capabilities, mostly manual workflows
• Interface can feel cluttered with too many features
• Some users report upselling pressure for add-ons
  

Monday.com is a flexible work management platform that doubles as a lightweight HR solution. What makes it especially appealing to small businesses is its ability to seamlessly integrate with everyday tools like Gmail, Outlook, Google Drive, Slack, and even Zoom. This means you can centralise your HR workflows without needing to overhaul your existing tech stack.

Its customisable dashboards and drag-and-drop interface make it easy for teams to build their own HR processes—from onboarding and leave tracking to performance reviews and recruitment pipelines. You don’t need to be a tech expert to get started, and that’s a big win for small teams with limited resources.

Strengths

• 40+ integrations with popular tools used by SMEs
• Customisable templates for HR workflows like onboarding, leave requests, and performance reviews
• Automation features to reduce repetitive tasks (available from Standard plan upwards)
• Visual dashboards for tracking employee data, tasks, and timelines
• Collaboration-friendly: real-time updates, notifications, and shared boards

Limitations

• Not a dedicated HR platform: lacks depth in areas like payroll, compliance, and advanced reporting
• Free plan is very limited, only suitable for solo users or very small teams
• Pricing can escalate quickly as you add users or need more advanced features
• No native payroll or benefits management, requires third-party integrations

Verdict

Monday.com is a great option for small businesses that want a flexible, visually intuitive platform to manage HR tasks alongside other workflows. It’s especially useful if your team already uses tools like Gmail or Slack and you want everything to work together smoothly. However, it’s not a full HR suite. If you need deeper functionality—like payroll, compliance, or advanced analytics—you’ll likely need to pair it with other tools.

Gusto is widely recognised as one of the most intuitive and comprehensive payroll platforms for small businesses. While it originated in the US, it’s increasingly used by UK-based companies, especially those with international contractors or hybrid teams. What sets Gusto apart is its automated payroll processing, tax filing, and benefits administration, all wrapped in a clean, user-friendly interface.

It’s ideal for small businesses that want to streamline payroll without needing a dedicated finance team. Gusto handles everything from onboarding and time tracking to pension contributions and contractor payments, making it a strong contender for SMEs that prioritise payroll accuracy and compliance.

Strengths

• Unlimited payroll runs across all plans
• Automated tax filing and compliance tools
• Contractor payments (including international)
• Employee financial wellness tools like savings and charitable giving
• Integration-ready with accounting platforms like Xero, QuickBooks, and FreshBooks

Limitations

• Not UK-native: lacks built-in UK compliance features like right-to-work checks or GDPR audit logs
• No free plan and pricing can escalate quickly with add-ons
• Limited mobile functionality compared to competitors
• Manual setup required for some features like benefits and time-off syncing

Verdict

Gusto is a powerful payroll solution for small businesses that want to automate and simplify their pay runs. It’s especially useful for companies with contractors or remote teams, thanks to its international capabilities. However, UK businesses should be aware that Gusto isn’t built with local compliance in mind. You may need to supplement it with other tools to cover HR essentials like rota planning or legal checks.

If payroll is your biggest pain point and you’re comfortable with a slightly higher price tag for ease of use and automation, Gusto is a solid choice. But for UK-specific needs, it’s worth comparing it with platforms that offer deeper local integration.

If you’re a small and/or medium-sized business, having a HR software is crucial to manage your HR processes effectively. 

And just because you may be small, it doesn't mean you are exempt from adhering to important HR processes such as recruitment, performance management, and employee engagement. 

Here are some reasons why HR software is crucial for small businesses:

• Extra resource. HR in a small business may not always be a dedicated role. HR software can keep all essential HR data in one place.
• Improved compliance. Small businesses need to ensure they are compliant with legal requirements and HR software can help manage this.
• Time saving. HR software can help automate repetitive HR tasks and free up time for the HR team to focus on strategic initiatives.
• Data. HR software can help businesses make data-driven decisions by providing insights and analytics.

“Choosing the right HR software isn’t just about ticking boxes, it’s about finding a solution that fits your business today and grows with you tomorrow.” — Matt Crook, General Manager at Access People SMB.

Researching and comparing different HR software options is a smart move, especially if you’re just starting your HR tech journey. While we haven’t included ourselves in the list above, Access PeopleHR is a comprehensive, all-in-one HR solution built specifically for SMBs. Watch our quick four-minute demo or contact us today to find out how PeopleHR can support your business.

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