Are you searching for HR software for small businesses UK? If yes, then you can read it till the end. Below we are going to tell you about free and paid HR software.

As your business grows, the priority of human resources also increases to a great extent. For this, whether you are hiring your first employees or rapidly increasing your new workforce, you must have a proper HR process.

Suppose you are a small business owner and cannot afford to get HR software for your business. In that case, there are many paid or free HR software companies available on the Internet, which provide you with complete HR management software.

There are many HR software available on the Internet, but their features and quality vary greatly. Below we have prepared a list of some paid or free HR software for you, which you can see according to your need.

What should you look for in HR software?

If you need excellent HR software to grow and manage your business well, we would advise you to choose HR software for yourself, keeping the following points in mind.

Employee Information Management

It would help if you always went towards an HR software providing fully Employee Information Management, in which the following features are available such as –

  •  Employee Records and Database
  •  Employee Self-Service Portal
  •  Job History
  •  Salary History
  •  Disciplinary History
  •  Insurance Plans
  •  Banking and Tax Details
  •  Time Off Used and Accrued

Financial Management

In good HR software, you are provided with the facility to manage all the information related to financial management, such as-.

  •  Payroll
  •  Compensation
  •  Rewards
  •  Salary Administration
  •  Employee Recognition

Time and Attendance Management

In good HR software, it is essential to have facilities like time scheduling and attendance to control your business in the best way. You should see the following features related to Time and Attendance.

  •  Clock In/Out
  •  Time Reporting
  •  Time Tracking
  •  Project Billing
  •  Overtime Tracking
  •  Workforce Scheduling
  •  Paid Time Off (PTO)
  •  Absence Management
  •  Biometrics
  •  Holidays Calendar

These are all the main features that you have to keep in mind while selecting HR software. Also, you can see Employee Performance, Behavioral Tests, Competency Tests, Key, Performance Indicators (KPI), and Reviews & Feedback Management features for good growth.

Cloud-based HR software

hr software for small businesses uk

Many businesses are using cloud storage in today’s time. This means that all of your information is stored on third-party servers instead of physically on the computer in your office.

It has many advantages; you can access it from anywhere through computer or phone. You don’t need to worry about any security or backup, and also, you don’t need to spend on expensive dedicated hardware.

Cloud storage is being used by much big business, which has many benefits. But if your business is related to finance service and health, you have to be a little careful from a protective point of view. Otherwise, for all other business, you can look at Cloud HR software.

5 best hr software for small businesses UK

Suppose the number of employees in your business is also increasing continuously, and you are facing a lot of difficulties managing them. In that case, you can go with the HR softwares mentioned below, which are a perfect and complete management system. Come along. You can view them according to your need.

Zoho People

Zoho People has been placed at number one in our list, which provides a tremendous management system. It’s part of the Zoho ecosystem, cloud-based software that can help you in almost every way you manage your business. In this, you get to see a straightforward and easy interface, which you can use without any training or expert knowledge. It provides essential functions with the free plan, whereas to use the full function, you can go with the paid £0.66/months plan.


WebHR is placed at number two in this list, which claims that more than 20,000 companies worldwide use their platform to grow their business. In this, you get to see all the functions, which you would expect from cloud HR software. It is famous for its ‘social’ functions, which provide employee messaging service.

In this, you get to see a wide range of integrations, which can easily fit in with the software you are already using, making it different from others.


Our list has been included at number three, which is a small company and a growing medium-sized company. It offers more advanced functions than its competition, which is why it has achieved such good growth quickly.

This primarily includes applicant tracking, which helps streamline recruiting new employees, a self-onboarding system for new employees, and custom workflows. To start using it, all you have to do is visit their website and fill out a form. check out BambooHR


CascadeGo is an HR software with a very advanced function that offers a vast array of employee self-service options to help address some of the HR management issues. It provides customizable work patterns for individual employees to scale your business to perform well, even if you have a part-time or flexible workforce.

It charges you a ‘system implementation’ fee in the initial period then sets you as an annual member.


CakeHR is the last HR software on our list, which is well known for its visualization features and continues to grow. You can use this software to create a range of visual reports and references, including organization charts and a wide range of employee reports.

Leave management systems function has also been given in this. Plus, it syncs in real-time with other valuable tools, including Outlook and Google Calendar. It starts with a £3.13/months plan for one employee, which keeps on increasing depending on the number of employees. It also offers 14 days free trial.

Free HR software for small businesses

Zoho People

It is part of the Zoho ecosystem, which continues to grow over time. Although it offers a paid service, it provides many basic functions for free, which is enough for a small business. It is free for up to 5 employees. If you, too, cannot spend much for your small business, then we would recommend that you go with its free plan and later upgrade with the paid plan. check out the free plan.


IceHRM is a wholly designed software keeping HR functions in mind, in which you get to see a lot of advanced functions. This includes automated leave management systems, making recruitment and onboarding more effortless, and heat rain delivery.

IceHRM lite is available for free, where you only get to use a few functions. But if you are a beginner, you can go towards it and move towards the paid version as your business grows.


Bitrix24 refers to itself as a ‘collaboration suite’. It comprises a series of interlocking tools to help with tasks like project management or CRM, which you can also use as HR software. It includes all the core functions that you would expect from good HR software. Along with this, some special functions can be seen, including employee satisfaction tracking and others. It is free for up to 12 employees, after that you have to pay for it.

Above we have told you in detail about paid and free hr software for small businesses UK, which you can see according to your requirement. If it has helped you in any way, then definitely share it with all your friends so that the correct information can reach them too.

FAQ about HR software for small businesses

What is the most popular HR software?

This is the most used and popular Gusto, Deputy, Freshteam and BambooHR software worldwide. But if you’re looking for the best in the UK, look above.

How much does an HR system cost?

The cost of an HR system varies from place to place, ranging from $300 per employee in the US to $7,000 per employee per year. You usually have to pay between 2 to 15% of your payroll to your HR firm.

Is Zoho free?

It provides you free service for up to five employees. It offers you flagship CRM software, where you can access functions like sales and marketing, robust integrations, and secure cloud storage for free.

How much does BambooHR cost?

Its cost depends on the number of employees in your company. Its Basic plan starts at $6.19 per employee per month, while the Essentials plan starts at $8.25 per employee per month. You can estimate the cost based on the number of employees in your company.

What are the 7 functions of HR?

7 functions of HR –

Recruitment & selection
performance management
Learning & development
Succession planning
Compensation and benefits
Human Resources Information Systems
HR data and analytics