Four HR Management Systems For Your Small Business (think Cloud)
Send to KindleHR in small businesses has for years been relegated to managing spreadsheets, paper forms and an endless number of filing cabinets with employee records.
As many can attest, such systems are chaotic, inefficient, and difficult to train new employees on.
The emergence of web-based HRIS, however, has bridged the gap, and now small-to-mid-sized businesses (SMB) have a more cost-effective way to access the HR technology that was once only available to big-budget enterprise businesses.
The number of vendors offering HRMS solutions to small businesses continues to grow, and finding the system that’s right for your organization can be a serious challenge.
To get you started, I’ve put together a list of a few of the more popular HR systems for small businesses.
I tried to include a good representation of market veterans and newcomers, but this is in no way an exhaustive list.
When it comes to automating your broad range of HR functions, ActionHRM delivers a powerful punch in its web-based HRMS.
What we like best about this system is its intuitive interface.
It’s easy to learn and easy to implement, so automating your HR department is a cakewalk.

Let’s face it: HR professionals have been traditionally better known for their people skills than technology know-how.
BambooHR is changing this with its web-based HRMS that can automate your most essential HR functions (i.e., personnel tracking with customized reporting).
It also offers scalable functionality through partner providers for deeper integration.
Sage Abra is a widely popular solution for HR management.
Their HRMS solution offers a full suite of applications users can choose from – personnel tracking, onboarding, benefits, performance management, and more – to automate any number of HR processes.
Sage Abra can support organizations with 50 to 5,000+ employees, making it a great choice for organizations planning for growth.
At the 25 to 100 employee level, HR managers are often wearing many hats (office manager, accounts payable/receivable, etc).
EffortlessHR’s web-based HRMS offers the basic functionality you need to automate your core functions, so you can focus on getting your job(s) done.
Beyond the basics, this system has an application for employee time tracking and offers an employee self-service portal.
EffortlessHR also includes tools, such as a comprehensive list of federal and state laws, as well as a how-to guide and required posters.
Comparing Systems: From Basic Needs to Bells and Whistles
When comparing HR systems for your small business, there are a few key items that you should take into consideration.
| ActionHRM HRMS | BambooHR | Sage Abra HRMS | EffortlessHR | |
| Size | 1-2,500 | 50-1,000 | 50-5,000+ | 1-250+ |
| Pricing Model | Subscription fee + per employee | per employee | per employee + applications | flat subscription + 3 differnet plans based on amt of managers/storage space needed |
| Deployment | Web-based SaaS | Web-based SaaS | Installed on site or hosted | Web-based SaaS |
| Operating System | Mac OS, Windows | Mac OS, Windows | Windows | Mac OS, Windows |
Of course, every system offers different applications and modules to meet your various needs for process automation.
Although some HR systems boast across-the-board functionality, it’s important to keep in mind just what your organization really needs.
All the bells and whistles look great, sure, but you probably don’t need a succession planning application when you have 20 employees.
That said, here are a few of the core functions most small business HR departments are looking for, as well as a breakdown of who offers what.

*BambooHR and ActionHRM partner with 3rd-party HR technology providers, integrating their best-of-breed applications to offer extended funtionality to their users.
Of course, this is nowhere near a comprehensive list of HRMS options for the SMB market, but it’s a good start.
What other systems are you using?
Any pro tips for your fellow HR professionals?
More articles by Kyle Lagunas...
- 3 Reasons You Should Develop Your Leadership Talent Pool - 26-July-2012
- Gathering Hard Data on Soft Skills Training Programs - 1-December-2011
- Performance Reviews: Thoughts from Gen Y - 14-September-2011
- A Beginner's Guide to Cloud Applicant Tracking Systems - 27-July-2011
- Is Your HR Management Strategizing for Success? - 25-July-2011
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