Best HR Tech Vendors for Small Businesses in 2025

If you’re trying to find the best HR tech vendors for your small business in 2025, you’re in the right place. 

With so many new options out there, it can be tricky to figure out which tools will actually help your business grow – without blowing the budget.

Here’s what you need to know about how to select the best HR technology for small businesses, and how SMBs ranked HR tech vendors in several categories.

Armed with this knowledge, you’ll be in a better position to ask HR tech vendors the right questions to help you select the best HR platform for your company.

The Role of HR Technology in Small Business

Look, it’s no secret that technology – including HR tech – is evolving at lightning speed right now. It seems like there’s a newer, faster, better product every day.

Eager to capitalize on these tech advancements, business leaders plan to invest in technology in 2025. 

How many companies are willing to put money on the table? A whopping 66% of senior finance leaders said they expect to increase their spending on technology and IT in the next year, according to Grant Thornton’s Q3 2024 CFO Survey.

How can small businesses benefit from HR technology? Since competitors plan to invest in tech tools, small and medium-sized businesses need to invest strategically in HR technology to stay competitive in 2025. Moreover, SMBs need optimized solutions specifically for small businesses from reliable HR tech vendors.

Why Small Businesses Need Specialized HR Tech

Whether you’re an HR department of one or part of a small People Ops team, you’re probably an adept multitasker, juggling operational tasks and strategic initiatives. Even so, you’d likely benefit from affordable HR software that maximizes your efficiency.

For example, an HR tech solution can help small businesses save time by automating administrative tasks, streamlining SMBs’ recruiting processes and using a data-driven approach to improve succession planning.

Plus, many HR tech companies offer self-service capabilities, allowing employees to manage their own benefits and info – significantly reducing the administrative burden on small HR teams.

Top HR Tech Trends for 2025

In 2025, HR tech will be focused on AI, automation and data-driven decision-making. These three tech features will help SMBs streamline HR processes, boost employee engagement and foster a more inclusive work environment. 

Specifically, what should you look for? When we’re talking about the future of HR technology, it’s hard to make predictions about emerging trends when the technology is advancing so rapidly. But generally, AI, employee engagement tools, cloud-based HR tools, automation capabilities and mobile-friendly solutions will be big in 2025. 

And don’t overlook cost-effective solutions. To get the most bang for your buck, SMBs may want to consider niche HR software innovations, such as:

• Benefit apps, like financial wellness apps and well-being apps
• LMS gamification, and
• Employee rewards and recognition software. 

Criteria for Choosing the Best HR Tech Tools

Some small businesses are just starting to implement HR technology solutions, so it’s common for first-time HR buyers to need help figuring out how to choose the right HR software. Many also need guidance on the specific HR software features that matter most to small businesses. 

Are you looking for tips to choose the best HR tech for small businesses?

When talking to HR tech vendors about products and services, keeping an eye on these important factors will help HR buyers shop with confidence: 

1. Cost considerations. Small businesses need affordable HR software, so price matters – and HR tech vendors understand that. Let vendors know you’re looking for HR software that fits small business budgets. Analyze and compare the pricing structures of potential providers. Some offer tiered pricing based on features, while others charge a flat fee. HR buyers need to be mindful of budget constraints while still getting the non-negotiable features the business needs.
2. Scalability. Assess your current and future business needs. Whatever type of HR tech you’re looking to invest in, you’ll want an HR system that can grow with your business, handle more employees and add new functionalities as needed. Tech scalability helps companies avoid problems like data bottlenecks, increased downtime, compliance risks and more. When you’re talking to HR tech vendors, use the word “scalability” when talking about the growth of your business. Express an interest in scalable HR solutions for growing businesses.
3. Integration capabilities. Whether you’re a first-time HR buyer or you’re looking to integrate a new tech solution with an existing system, it’s important to consider integration capabilities. What does that mean in plain English? If you’re adding to an existing system, you make sure the new tech will work with what you already have. And if you’re starting from scratch, ask the HR tech vendor about what integration capabilities are available so that you have options down the road. Disconnected systems can lead to manual data entry errors and inefficiencies. On the other hand, an effective HR tech stack can help you reduce costs and boost efficiency.
4. Ease of use. When it comes to technology, user experience matters – a lot. Remember, one of the goals of incorporating HR tech tools into your workspace is to make everyone’s job easier. So that means a platform’s navigation should be logical; the software should be user-friendly; and customer support should be available to troubleshoot problems.
5. Vendor satisfaction. As you’re narrowing down your potential HR tech vendors, don’t forget to check out customer reviews. Your peers provide valuable insight into what it’s like to use HR tech platforms in their daily work – and how well HR vendors provide high-quality customer service for their SMB clients. Check out vendor reviews on an unbiased source, such as BetterBuys.com, to learn how responsive HR tech companies are when customers need help.

Top-Rated HR Tech Vendors for Small Businesses in 2025

In its 27th Annual HR Systems Survey Report, Sapient Insights Group gathered data from more than 3,300 organizations.

The report shares the “Voice of the Customer” awards for the best HR tech vendors and provides valuable info about HR buyers’ spending plans – and their opinions on HR technology they’ve already invested in.

Here, we’re focusing on the responses from small- to medium-sized businesses to help SMBs find the best HR software solutions for small businesses.  (As an FYI, the study defines SMBs as companies with fewer than 500 employees.)

In the survey, HR professionals ranked HR tech vendors in two ways – by user experience and vendor satisfaction – which helps provide a well-rounded view of the best HR software companies.

The survey shares the top vendors for each category by user experience and vendor satisfaction. It also shares the HR tech companies that received high marks from survey participants and landed in the top five vendors in that category.

Importantly, these so-called “top five”  lists are alphabetical and should not be construed as second place through fifth place, Sapient Insights’ Chief Research Officer Stacey Harris recently clarified in a webinar.

If you’re interested in the best HR software for small businesses, check out how SMBs ranked HR tech vendors in a variety of categories, from payroll and HR software to benefits platforms and time management tools – and more.   

Core HR Technology

The core HR technology categories include payroll, HRMS and benefits.

Top HR Tech Vendors: Payroll Software

When it comes to HR technology, payroll systems are one of the most universally adopted tools, according to Sapient Insights Group. In fact, 93% of survey respondents this year reported that they use some type of payroll software platform. 

Even so, Sapient researchers say the payroll systems category has “the potential for significant customer churn in the next 12 to 36 months.” Translation: If things don’t change, HR pros will be shopping around for new payroll vendors. Why this prediction? 

In the payroll category, 48 total vendors were represented in the survey. Overall, ratings for payroll systems were down for the second year in a row, with user experience down 3.5% and vendor satisfaction dropping 6%. 

But it’s not all doom and gloom. If you’re in the market for a payroll software solution, SMBs gave high marks to several HR tech vendors in the payroll category.

Small and medium-sized businesses ranked Rippling as the No. 1 vendor for payroll systems.

In fact, Rippling earned the top spot for both user experience and vendor satisfaction.

“Most of the people in [Sapient Insight’s] data set had less than one year using Rippling,” Harris noted in a webinar. 

Even so, this showed Rippling was doing “a really good job of selling organizations and getting them up and running,” she said.

Here are some of the details you need to know about Rippling: lt’s ideal for SMBs because it combines HR, payroll and IT in one platform, making it scalable and easy to use. Other features include the ability to 1) automate HR tasks, 2) support compliance across locations, and 3) offer IT tools for managing remote work. Rippling also integrates with more than 500 apps – and if you don’t see what you’re looking for, you can request an integration.

If you need more info, don’t forget to check out customer reviews. Rippling has a 4.4 rating in the App Store and a 4.6 rating on Google Play.

Beyond Rippling, what other HR tech vendors ranked well among SMBs in the payroll space?

In the user experience category, small businesses ranked Dayforce, Intuit Quickbooks, isolved and Paycor well for their payroll platforms, putting these in the top five.

For vendor satisfaction, Dayforce, Intuit Quickbooks, isolved and Paychex were ranked in the top five vendors for payroll systems by SMBs.

Top HR Tech Vendors: HRMS Platforms

HRMS software platforms streamline HR processes like recruitment, payroll, performance management and employee data management. They help HR pros automate administrative tasks, improve efficiency, and enhance the employee experience.

In the HRMS category, 47 total vendors were represented in the survey.

For HRMS platforms, two different vendors took the top spots for user experience and vendor satisfaction.

In the user experience category, Employee Navigator took the top spot for HRMS platforms.

Employee Navigator is a new player in this HRMS space, according to Harris. Previously, it had shown up in the survey’s benefits section – but not the HRMS space. 

It was “really interesting to see how high Employee Navigator’s user experience and vendor satisfaction ratings were,” Harris said. 

Calling this “an upset” victory, Harris opined that Employee Navigator’s win may have been because it appears to be “cost-effective” and offers “a pretty wide suite for what they’re offering on the price side.”

Here are the details you need to know about Employee Navigator: It’s a valuable HR tech platform that’s highly regarded by SMBs, according to TrustRadius. Reviewers say Employee Navigator is a user-friendly system that has the ability to streamline processes. It has also earned positive reviews about its ability to manage employee benefits.

Check out the customer reviews for Employee Navigator on TrustRadius.

Rounding out the top five HRMS for user experience: Bamboo HR, HiBob, isolved and Rippling.

On the vendor satisfaction side, Rippling was ranked the No. 1 HRMS platform. (The details for Rippling are listed above.)

Other HRMS platforms that scored well on vendor satisfaction ratings in the HRMS space included: Bamboo HR, Employee Navigator, HiBob and isolved.

Top HR Tech Vendors: Benefits  

HR software benefits platforms help HR pros manage employee benefits enrollment, administration and communication. They simplify tasks like tracking eligibility, updating benefits selections, and ensuring compliance. In the benefits category, the survey ranked 43 vendors.

SMBs selected Rippling as the top choice for benefits platforms in terms of user experience and vendor satisfaction.

Rippling’s successful run continued in the benefits space. It also earns high marks for having the ability to handle enrollment, deductions and administration of benefits, including for part-time employees.

The other HR tech vendors ranked well among SMBs for user experience and vendor satisfaction were: Ease, Employee Navigator, Fidelity NetBenefits/PWF and isolved.

Talent Management Technology

There are plenty of HR tech tools to help small businesses in the talent management space. This broad category covers recruiting, onboarding, learning and development, performance management, compensation management and time management.

Top HR Tech Vendors: Recruiting  

Recruiting software allows HR to automate tasks like posting jobs, screening resumes and scheduling interviews. It improves candidate sourcing, boosts collaboration and reduces time-to-hire, making the recruitment process more efficient. In the recruiting category, 44 HR tech vendors were represented in the report. 

SMBs ranked two different platforms as the best recruiting systems for small businesses, depending on whether they prioritized user experience or vendor satisfaction.

In the user experience category, small businesses gave props to BambooHR for its recruiting features, which earned it the No. 1 spot. 

Here’s what you need to know about Bamboo HR: It offers a streamlined applicant tracking system (ATS) that simplifies job postings as well as stores resumes and applicant communications. It also provides hiring metrics to help recruiters make data-driven decisions.

Customer reviews give BambooHR an overall 4.6 rating on Software Advice. 

What other platforms landed in the top five recruiting platforms for small businesses? SMBs gave high marks for user experience to ADP, isolved, Paycor Newton and Workable.

As for vendor satisfaction, SMBs put Workable at the head of the pack as a recruiting platform for small businesses. 

What to know about Workable: SMBs praised Workable for prompt customer service, especially those that lack internal resources to troubleshoot. It also provides regular product updates and new feature rollouts that help the tool stay up to date on the latest recruiting trends.

Workable has an overall 4.6 rating from customer reviews on G2.

Small businesses also gave top ratings for vendor satisfaction to ADP, Bamboo HR, isolved and Paycor Newton.

Top HR Tech Vendors: Onboarding 

For SMBs, HR software simplifies the onboarding process by automating time-consuming tasks. It helps new employees feel at home quickly by providing a personalized experience that introduces them to both their role and the company culture. 

In the onboarding category, the report included 46 vendors.

Small- and medium-sized businesses ranked Rippling as the No. 1 vendor for onboarding systems for both user experience and vendor satisfaction.

SMBs also gave strong ratings to ADP, HiBob, isolved and Paycor, putting these vendors in the top five for user experience and vendor satisfaction.

Top HR Tech Vendors: Learning 

Learning software streamlines learning delivery, saving time and ensuring employees have access to the right resources when they need them. Learning platforms also promote employee engagement and retention. 

In the learning category, 48 vendors were represented in the survey.

As for the best learning platforms for small businesses, survey respondents ranked Microsoft LinkedIn Learning as the top choice for user experience.

What you need to know about Microsoft LinkedIn Learning: Customers appreciated the variety of courses and the ability to put together playlists and recommended courses to maximize learning and development opportunities.

Microsoft LinkedIn Learning has an overall 4.4 rating from customer reviews from Gartner.

SMBs also gave excellent ratings to isolved, KnowBe4, Mitratech Mineral and Paylocity for user experience in their learning platforms.

On the vendor satisfaction side of things for learning platforms, KnowBe4 earned the top ranking from small businesses. 

Relevant details to know about KnowBe4: This LMS platform has a vast training library, including a compliance and regulations section. It uses short, interactive modules to keep employees engaged and motivated.

Click here to check out case studies on KnowBe4 success stories.

SMBs also assigned high marks for vendor satisfaction to isolved, Microsoft LinkedIn Learning, Mitratech Mineral and Paylocity.

Top HR Tech Vendors: Performance Management 

Employers use performance management systems to track employees’ performance and ensure the workforce is aligned with the company’s business goals. In the survey, 48 performance management vendors were represented. 

Small- and medium-sized businesses ranked Lattice as the No. 1 vendor for performance management systems for both user experience and vendor satisfaction.

Here’s what you need to know: Lattice reduces manual work and keeps performance management processes organized. Among other things, it allows HR teams to set customizable review cycles, use preset or customized templates for 1:1 meetings and provide continuous feedback between employees and managers. 

Click here to check out customer reviews on the Lattice platform.

ADP, HiBob, isolved and Paycor rounded out the top five best learning platforms for small businesses, earning positive ratings for user experience and vendor satisfaction from SMBs.

Top HR Tech Vendors: Compensation Management 

Compensation management systems help HR pros handle all things related to employee compensation. Under the compensation management category, 35 HR tech vendors were included in the survey.

SMBs gave an excellent rating to ADP for user experience, landing it in the top spot for compensation management systems for small businesses.

Here’s what to know about ADP: It allows HR teams to create and manage salary structures, bonus programs and merit increases that align with the company’s budget. It also provides compliance support for federal, state and local laws on compensation, including minimum wage changes and pay transparency legislation. 

Customer reviews give ADP an overall 4.2 rating on Gartner.

Rounding out the top five for user experience, Payscale/Insight/Benchmark, Payscale Payfactors, Salary.com and UKG Pro also earned top marks from SMBs.

When asked about vendor satisfaction with compensation management systems, SMBs named Payscale Payfactors as the top choice.

Important details you need to know: Payscale Payfactors helps SMBs manage compensation more effectively by providing scalable tools, actionable insights and compliance support. For example, it gives HR pros real-time, industry-specific salary benchmarks to help SMBs set competitive pay rates. It also has tools to help identify and address pay gaps across roles or demographics.

Payscale Payfactors has a 4.2 overall rating based on customer reviews on Gartner.

ADP, Paylocity, Payscale/Insight/Benchmark and Salary.com also scored well on vendor satisfaction with SMBs, earning them spots in the top five compensation management vendors for small businesses.

Top HR Tech Vendors: Time Management  

Time management solutions help companies track employees’ hours and locations worked as well as their work schedules and approved time off. Under the time management category, 46 HR tech vendors were represented in the survey.

Two different vendors were the top-ranking time management solutions in the user experience and vendor satisfaction categories.

When asked about user experience, SMBs ranked Rippling as the best vendor for time management solutions. 

Rippling gets praise for its scheduling tools in the time management space. Among other things, it provides automatic conflict alerts for overlapping shifts and conflicting schedules. 

It has an overall 4.8 rating from customer reviews on G2.

Rounding out the top five time management vendors for small businesses in the user experience category: ADP Other, HiBob, isolved and Paycom.

But when it comes to vendor satisfaction, SMBs said HiBob was the No. 1 platform for time management solutions.

Key details about HiBob: HiBob – often called Bob – gets high marks for its time management features, such as allowing employees to log work hours directly through the platform or on a mobile device. It also supports employee shift swaps and schedule changes.

HiBob has an overall 4.6 rating from customer reviews on Gartner, where SMBs praise its “exceptional” support.

What other HR tech platforms did well in the vendor satisfaction category for their time management solutions? Small businesses also gave high marks to ADP Other, isolved, Paycom and Rippling. 

Other HR Tech Tools

SMBs also ranked other tech tools for HR service delivery and HR analytics. Here’s which HR tech companies stood out in the crowd.

Top HR Tech Vendors: HR Service Delivery

HR service delivery applications provide a wide range of HR services, according to Sapient Insights Group. This year, its survey included 39 HR tech vendors in the service delivery category.

Small- and medium-sized businesses ranked HiBob as the No. 1 HR vendor for HR Service Delivery solutions. In fact, HiBob earned the top spot for both user experience and vendor satisfaction.

Customer reviews say HiBob is well-suited for SMBs because it’s an intuitive HRIS that streamlines complex processes, improves efficiency and supports growing companies. They also say it is cost-effective and scalable.

In the user experience category, these vendors rounded out the top five vendors for HR Service delivery solutions: Docusign, isolved, Microsoft Sharepoint and Microsoft Viva/Teams.

For vendor satisfaction, Bamboo HR, Docusign, isolved and Mitratech Mineral were ranked in the top five for HR Service Delivery solutions.

Top HR Tech Vendors: HR Analytics 

HR analytics software helps HR teams make data-driven decisions by analyzing workforce trends and performance. It also identifies areas for improvement, which can help improve talent management and strategic planning. 

Under the analytics category, 48 HR tech vendors were represented in the study. 

SMBs ranked IBM Cognos as the best analytics tool for user experience. 

According to IBM Cognos reviews on Gartner, the platform is easy to use and offers mobile access to dashboards and reports, which allows users to make faster decisions – regardless of where they’re working. It has a 4.3 overall rating.

Other HR tech vendors that earned high marks for user experience in the analytics category include ADP, Microsoft Power BI, Paylocity and Tableau.

As for vendor satisfaction, small businesses ranked Paylocity as the best HR tech vendor for analytics. The platform includes pre-built reports and also allows users to create custom reports.

A Paylocity review on Forbes Advisor gives the platform a 4.1 overall rating. 

SMBs also gave high marks for vendor satisfaction in the analytics category to ADP, IBM Cognos, Microsoft Power BI and Tableau.

Comparative Table of Recommended HR Tech Vendors

Here’s an overview showing the top HR tech tools, by category, as ranked by SMBs.

Case Study: A Small Business HR Success Story

Rippling got a lot of accolades from SMBs in this study – but it’s important to highlight that this HR tech vendor has also received praise in the HRMorning community! 

For example, our HR expert contributor Mario Silva said Rippling’s HR automation capabilities “reshaped my day-to-day work experience and gave me a better seat at the table.”

Broadly, Silva shared how HR tech helps small businesses. And he outlined specifics, too, explaining how the benefits of HR automation helped him boost his efficiency and become a more valuable employee:

• Automating employee transition workflows streamlined the SMB’s internal communications for onboarding new hires and offboarding terminated employees, and
• Automating repetitive, manual tasks freed up time to concentrate on higher-level planning and analysis that shows the C-suite how HR can be a strategic business partner. Specifically, Silva had more bandwidth to identify where the company was able to hire successfully and ended up advising the C-suite on its regional talent strategy. To learn more, check out Silva’s full case study here.

How to Implement New HR Technology Successfully

Once you’ve decided which HR tech vendor you’re going with, you need a plan to successfully implement the new technology. 

Here are a few HR tech onboarding tips for a successful transition to your new software or platform.

• Start small. Roll out the new system in stages. A best practice is to start with a pilot group to troubleshoot any issues. Give the group time to work out the kinks before you introduce the new tools to everyone.
• Meanwhile, communicate the upcoming tech changes to the rest of the organization. Give them a heads up, and let them get used to the idea. It’s important to let employees know why changes are being made – and highlight the ways that it will benefit them. 
• Once you roll out the system to everyone, offer hands-on support. Lean on your experts from the pilot program. They will likely be able to help train other employees on the new software.
• And offer continuous learning. When it comes to learning new technology, it’s important to remember that everyone isn’t on the same timeline. Some people have a knack for all things tech, but other folks struggle to remember the basics. It’s a good idea to offer ongoing training to help employees get up to speed.