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Best HR Software for Start-Ups

Best HR Software for Start-Ups

Start-ups constantly suffer growing pains that, if not correctly addressed, may become their demise. According to a 2022 report, 90% of startups fail. While there are endless reasons for this, many issues can be mitigated by HR tools for start-ups. Unfortunately, these solutions are often not even considered due to limited budgets, more significant priorities, short-sightedness, fears about the service being too complex, and more.

HR software for start-ups can help build a robust foundation for a company by providing access to top talent, proper onboarding, legal compliance, payroll automation, and many other features. Since every company’s needs vary, the appropriate solution may differ. Making an educated choice can help cut costs and avoid paying for unnecessary features.

Best HR software for start-ups

Best HR software for start-ups

Gusto logo

Gusto

Editor's rating:
Plenty of extra functionalities
User-friendly interface
Tax solutions
Payout customization
Deputy logo

Deputy

Editor's rating:
Easy shift management
Remarkable mobile apps
Intuitive interface
Free version
Remote logo

Remote

Editor's rating:
Available in +170 countries
Quick and simple enrollment
Expert support
User-friendly interface
OnPay logo

OnPay

Editor's rating:
Unlimited payroll runs
In-depth reporting
Error-free guarantee
HR resources
Zenefits logo

Zenefits

Editor's rating:
Large number of integrations
Feature-filled apps
Useful for businesses of any size
International employees included

Gusto

Editor's rating:
Starting price: $6/mo
Main features
  • Plenty of extra functionalities
  • User-friendly interface
  • Tax solutions
  • Payout customization
  • Plenty of extra functionalities
  • User-friendly interface
  • Tax solutions
  • Payout customization
  • Could have more accounting software integrations
  • Healthcare not available in all states
  • Not possible to use with international workers
Summary
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W2s, 1099 forms, 940 forms… so many fun things to think about when you own a company! If you run a business that operates with employees, then you and them probably have very different ideas of what payday means. For them, payday may be one of the best days of the month, while for you, the reality of it may be more of a tedious, stressful, and even chaotic frenzy. Given that we live in a time of convenience and instant solutions, when it comes to payroll woes, the situation is no different – luckily this administrative pain can be alleviated with the aid of a payroll software like Gusto that specializes in helping small to medium-sized businesses in the U.S. Beyond being a payroll solution, Gusto assists with other HR areas like health insurance and retirement management, as well as offering integrations with third-party tools.

Special offers
View offers
$100 discount for yourself and a friend with the Gusto referral program
Free 30-day trial of Gusto without prior payment
Deputy logo

Deputy

Editor's rating:
Main features
  • Easy shift management
  • Remarkable mobile apps
  • Intuitive interface
  • Free version
  • Easy shift management
  • Remarkable mobile apps
  • Intuitive interface
  • Free version
  • Limited customer support options

Remote

Editor's rating:
Main features
  • Available in +170 countries
  • Quick and simple enrollment
  • Expert support
  • User-friendly interface
  • Available in +170 countries
  • Quick and simple enrollment
  • Expert support
  • User-friendly interface
  • Limited customization

OnPay

Editor's rating:
Starting price: $36/mo
Main features
  • Unlimited payroll runs
  • In-depth reporting
  • Error-free guarantee
  • HR resources
  • Unlimited payroll runs
  • In-depth reporting
  • Error-free guarantee
  • HR resources
  • No dedicated mobile app
  • Can't access outside the U.S.
Summary
View summary

When it comes to payroll your business needs software that fits like a glove, integrating seamlessly with your company’s needs. For many small and medium-sized American businesses, Atlanta’s OnPay is the perfect solution. Available in every state since 2011, cloud-based service OnPay has gone beyond payroll to help businesses with some key integrations, free HR services, and tax calculations. In fact, the service is so confident of its tax calculations that it provides an error-free guarantee and will pay any penalties that may occur from mistakes. OnPay is reasonably priced compared to its competitors, with a crystal-clear pricing structure – it even gives away the first month for free. Additionally, the service offers potential users a 30-day free trial to thoroughly test it out first.

Special offers
View offers
Free first month of OnPay
Free 30-day trial of OnPay

Zenefits

Editor's rating:
Starting price: $8/mo
Main features
  • Large number of integrations
  • Feature-filled apps
  • Useful for businesses of any size
  • International employees included
  • Large number of integrations
  • Feature-filled apps
  • Useful for businesses of any size
  • International employees included
  • No 24/7 support
  • Payroll only sold as an add-on
Summary
View summary

Good payroll software should save you time so you can get more done in your day. Ideally, it should also be as simple to use as possible. Since 2013, San Francisco company Zenefits has aimed to do just that with its payroll solution. Now serving over ten thousand companies, Zenefits gains from the vast number of integrations it offers that not only streamline the payroll experience but can enhance just about every aspect of a business. For example, the comprehensive Zenefits mobile app allows employees to access every bit of payroll information they need, clock in and out, request holiday time, and so on. It also serves as an all-round work hub to keep everyone connected. The payroll software is also very reasonably priced, but it’s only available as a $6-per-month-per-employee add-on to any other Zenefits subscription. You can test it out first though: Zenefits provides a 14-day demo version so you can take a look at everything it has to offer.

Special offers
View offers
Up to 29% on your Zenefits subscription
Free 14-day trial of Zenefits

Why start-ups need HR software

The best HR software for start-ups can simplify, streamline, and automate a myriad of tasks, therefore freeing up time to spend on other core initiatives. Business owners spend up to 40% of their time on automatable tasks, making HR software an invaluable solution.

Start-ups often begin with small teams that require employees to be a jack-of-all-trades. HR software not only puts a stop to this potentially stressful multitasking but also makes it possible to successfully manage a team without a dedicated HR department.

 

Benefits of implementing HR software in your start-up

Small businesses and start-ups should see HR software as an asset, particularly if they seek rapid growth or have complex HR requirements like international hiring or regulatory compliance. There are many ways in which HR software can help:

  • Hiring: From sourcing to onboarding, HR software can untangle the complexity of recruiting top talent by providing a candidate database, automated job postings, applicant tracking, screening, digital onboarding, and other helpful tools.
  • Control and Transparency: Tools like staff feedback tracking, goal setting, performance reports, and self-service platforms help boost not only employee engagement but also reduce administrative burdens.
  • Gaining Time: Automation tools help streamline and reduce time-consuming tasks like payroll, accounting, and onboarding.
  • Streamlining Processes: HR solutions allow you to streamline payroll while ensuring all taxes and benefits are correct. Some even process all this automatically.
  • Remote Work Support: HR software provides simplified ways to manage a remote workforce through support, resources, and communication tools, helping keep the team engaged and productive.

How to choose the best HR software for your start-up

HR departments are usually responsible for various tasks, and HR software aims to cater to them all. As such, providers of this software typically offer various pricing models, tiers, add-ons, and more. This can be confusing and overwhelming for newcomers, resulting in them signing up for unnecessary tools. It’s worth researching what your company needs explicitly before acquiring software to avoid this.

 

Nonetheless, there are prominent features that every kind of start-up should be on the look-out for:

  • Payroll Processing: For payroll, tax, and benefits calculations.
  • Recruitment Tools: Helping to streamline the sourcing, hiring, and onboarding of employees.
  • Compliance Management: Ensuring adherence to country-specific labor laws and regulations.
  • Performance Management: Supporting employee development with goal-setting tools, progress tracking, and feedback.
  • Integrations: This service is often compatible with existing software, such as accounting and payroll apps.
  • In-depth Customer Support: Providing broad access to customer support, training resources, HR advisors, and more.

Creating an HR plan for a start-up company

When starting up, it’s crucial to create a steadfast plan for your HR operations, and this applies to a business of any size. This builds the strong foundations to help you stay on point and organized, making your company successful.

 

To ensure your start-up is heading in the right direction, it’s worth laying out your vision:

  1. Goals and Objectives
  2. Recruitment Requirements
  3. Budget
  4. Policies and Procedures
  5. Software and Tools
  6. Compliance and Legal Matters
  7. Hiring Strategy
  8. Performance Monitoring
  9. Sustainability

How to create an HR plan for a start-up company

1

Goals and objectives

  • Define the short and long-term HR objectives of the company.
  • HR goals should work hand-in-hand with business goals.
2

Recruitment requirements

  • Pinpoint what types of employee skills the start-up requires.
  • Calculate how many employees are necessary to meet the company’s short- and long-term goals.
3

Budget

  • Determine a budget allocation for HR software, hardware, recruitment, onboarding, offboarding, etc.
  • Account for salaries, benefits, compliance, and legal expenses.
  • Estimate future cost of recruitment based on growth predictions.
  • Make sure the overall financial plan includes all expenses regarding HR requirements.

HR checklist for start-ups

A start-up should see HR as an equally crucial segment of the company as any other if it wants to be one of the few to survive. This ensures employees are onboarded well, feel appreciated and well looked after, and avoids the headache of compliance or tax issues. However, the management of a start-up HR department requires some specific considerations, so it helps to have a checklist:

  • HR Software: Use a well-suited HR software to maximize return on investment.
  • Hiring and Onboarding: Recruit the right talent for each role within the business and provide a smooth onboarding experience.
  • Performance Management: Have a robust framework with goals, evaluations, and feedback.
  • Compensation: Have an attractive compensation package to attract and retain top talent.
  • Compliance: Ensure the business complies with local (and international, where necessary) laws and regulations.
  • Continuous Improvement: Follow the changes and trends of the industry.
  • Budget: Be budget-conscious and keep the HR plan aligned with business goals.
  • Employee Development: Provide development opportunities, promotions, and programs to improve and engage the workforce.

There’s a common misconception that an HR department deals with just paperwork or administrative tasks, but this isn’t true. HR is one of the foundations of a company, and using appropriate software tailored to a start-up will set it firmly on the road to success.

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