Best Human Resources Software of 2026

Here's what we'll cover:

What you need to know about HR software

What is HR software?

Essential features of HR software

Benefits and competitive advantages of using HR software

How to choose the best HR software for your business

Software related to HR software

More resources for your HR software journey

What you need to know about HR software

HR software helps businesses hire, manage, and optimize their workforce. Though the name suggests it’s only intended for human resources departments, the reality is businesses of all sizes—even those too small to have their own dedicated HR department—use HR software. In fact, our advisors hear more from small business owners about buying HR software than anyone else. [1]

From simple payroll systems to comprehensive talent management suites, HR software represents one of the largest software markets on our site. We have over 1,000 different HR software products listed on our site with nearly 15,000 verified user reviews of those products published in the last year alone. With so many options, how do you find the right HR software for your business?

Pricing is one of the biggest factors you have to consider. For a more advanced HR system, you can expect to spend upwards of $15 per employee per month, while a more basic system can cost as little as $3 per employee per month. [2] Some vendors offer free versions of their product as well.

But buyers also need to consider a number of other factors when purchasing HR software; things like features, integrations, usability, and support. Some critical questions to answer as you consult with stakeholders and evaluate different systems are:

• What are our biggest workforce priorities as we grow our business?

• Which HR tasks should workers handle themselves through self-service?

• Is the system easy to use for all employees?

• Where does this new system fit into our existing HR software stack?

• What analytics features do we need to identify bottlenecks and improve HR processes?

Finding the right HR software can be a long and daunting process. In this guide, you’ll learn about the essential components of HR software and get step-by-step guidance on how to choose the right solution for your organization. To help, we’ll tap into the expertise of one of our software advisors, Daniel Harvey, who has been leading buyers to the right HR software for over five years. If you’re ready, you can schedule a consultation with them or any of our other advisors right now.

What is HR software?

Human resources (HR) software is designed to help business leaders and human resource personnel recruit, hire, manage, and develop employees. Harvey describes HR software as an “umbrella category” because within it there are standalone tools that focus on one HR need, like payroll, alongside more comprehensive software suites that can handle multiple HR functions.

In addition to making life easier and processes faster for HR departments, HR software also provides a more streamlined experience for managers and their employees to handle their own HR-related processes, like requesting time off or carrying out performance reviews.

Essential features of HR software

When researching different HR software systems to choose the best one for your organization, it's important to know what features you can expect to see. Core features, like an employee database or reporting and analytics, are central to nearly every HR system. Other features, like applicant tracking, payroll, and time and attendance, are fairly common as well.

Based on analysis of thousands of reviews, here are what we believe to be the essential features of HR software. [3]

Core HR software features

Common HR software features

For context on what features you may want to prioritize with your purchase, here are the most requested HR software applications from our interactions with over 8,000 buyers in the past year:

As businesses learn ways to improve HR processes, HR software features have updated to keep pace. One example that Harvey gives is performance management systems moving from only supporting annual performance reviews to aiding in more frequent performance check-ins so employees get more timely feedback.

Artificial intelligence (AI) is also being integrated more and more into HR software systems to help automate processes even further. In applicant tracking systems and other recruiting software tools, for example, Gartner predicts that 80% of vendors will embed AI capabilities by 2027. [4]

If you’d like to know more about HR software features and get recommendations for your business, schedule a call with Harvey or one of our other HR software advisors to discuss your options.

Benefits and competitive advantages of using HR software

Based on Harvey’s conversations with buyers, he says two of the biggest benefits with adopting HR software are visibility and efficiency.

Having a centralized HR software system with all of your important employee data in one place allows you to get more visibility into where your company is doing well with talent management, and where it needs to improve. “Your HR system is like your central hub,” Harvey says. “It’s very easy for multiple types of users to gain access to information, and it's a lot better from a visual standpoint.”

Going from manual methods, like spreadsheets or paper files, to dedicated software also makes HR processes go much faster and smoother. For example, instead of having to do the math and cut checks manually, payroll software can directly deposit accurate paychecks into employee bank accounts at the push of a button. This ends up being a major time saver for company leaders and HR workers alike.

Some other benefits that reviewers say HR software has include:

• Supports small business growth: Hiring and managing employees quickly gets out of hand with manual methods if you’re a growing business. With HR software, you can stay on top of your growth.

• Better security: Data encryption and other security features ensure that confidential employee information (Social Security numbers, bank accounts, etc.) is kept safe.

• Improved HR task delegation: Employee self-services features found in a lot of HR software systems let employees take care of some HR-related tasks themselves, allowing HR departments to focus on other priorities.

The culmination of all these benefits is that companies with the right HR software are able to hire better workers, keep them at their most productive, and retain them for longer.

How to choose the best HR software for your business

Step 1. Define your requirements

With so many options to choose from, it can be easy for HR software buyers to make the wrong purchase decision. In fact, we found that HR software represents the third most common source of purchase regret among B2B software categories, according to our 2025 Tech Trends Survey. [5]

We find that one of the best ways to help avoid a regretful purchase is to clearly define your goals and desired outcomes from the outset. Not only will this align all stakeholders on what things they need to prioritize during your software search, but it will also give you a way to measure, after your purchase, if the software met your needs or not. Here are some things to keep in mind.

Know how much HR software really costs

While the license itself is the biggest component baked into the HR software price, it’s not the only one. Buyers that don’t realize this can be in for a rude awakening if they didn’t budget properly. Other factors that can impact the cost of HR software include:

• The level of functionality

• Implementation or data migration costs

• How much technical support or user training you need

Based on our interactions with buyers in the past year, we find that most businesses with 250 employees or fewer budget between $5-10 per employee per month for their HR software. Buyers with more than 250 employees may want to budget as much as $15 per employee per month.

However, Harvey says you should be flexible with your budget at first. “Don't limit yourself too much on budget initially until you know all the features that you need, because you may pigeonhole yourself.”

Separate feature “needs” from feature “wants”

Being too stringent with your budget can limit your options, but buyers can run into the opposite problem where they overpay for a big HR software system, use only half of the features, then replace it with something smaller down the line.

To avoid this, it’s important to figure out which features you really need vs. the ones you merely want. If enough “wants” become a need later, you can always upgrade.

Get ahead of potential HR software challenges

No HR system is perfect, so you can expect to run into some challenges. According to reviewers of HR software on Software Advice, some of the most common challenges with this type of software include putting in custom employee leave management rules, generating reports with the right filters and data, and organizing massive amounts of documents.

Knowing these are common issues, you can keep them in mind when researching products or talking to vendors.

Understand how any new HR system will fit into your existing technology stack

It’s important to understand how any new products will fit into your current software ecosystem. 

For example, if you’re buying a talent management suite that has applicant tracking functionality, but already have a standalone applicant tracking system (ATS), you need to decide if you’re going to abandon your current ATS or integrate it into your new suite.

Even non-HR software can be a factor. If you have collaboration software, for example, you can integrate a new employee engagement tool with it to boost adoption and make it easier for employees to access and use during their day-to-day work.

Step 2. Make your HR software shortlist

With over 1,000 different HR software options to choose from on Software Advice alone, it can be daunting to try and make a shortlist of options that fit your needs and budget. But with the right resources and support, it doesn’t have to be.

Get qualified help from an advisor

At Software Advice, our advisors like Daniel Harvey have experience helping organizations identify HR solutions that match their needs and budgets.

If you need help, you can either schedule a phone call with an advisor or chat online with one right now. In just a few minutes, your advisor will help you identify a shortlist of HR software options that best align with your requirements.

Explore our list of HR FrontRunners

If you’re not ready to speak to an advisor, or simply want to do the research yourself, we recommend starting with our HR FrontRunners report. Only products that are rated highly by verified users qualify to make this list, so you can use it to learn what the most sought-after HR products are on the market.

Step 3. Pick the best option for your business

After you’ve made your shortlist, it’s time to engage with vendors, take part in demos, and get your hands on some products through free trial periods. Here’s our advice at this stage.

Ask important questions during demos

Demos can often feel like a one-sided affair, with vendors only showing their product in the best light possible to secure a sale. To ensure you’re getting a full picture of how a given HR software system works—warts and all—here are some questions you should ask:

• What security features do you have in place to protect our data?

• How often do you update your software and what updates are you planning for your next release?

• How do the analytics and reporting functions work?

• What kind of customer support do you offer during implementation?

To help you keep track of how vendors answered these questions and how you rate different products, make use of our ultimate software vendor evaluation guide.

Take your time with the trial period

The free trial period is the only time you get to actually use a software product before buying it, so it’s important to make the most of it. Harvey says a lot of HR vendors offer “a couple of weeks, even a month’s worth” of free trial period for their products, so you have time to make sure all types of users (HR workers, managers, employees) try out a system and give their feedback.

Don’t hesitate to make a decision

According to our 2025 Tech Trends Survey, most successful buyers (57%) take three months or less to evaluate software options, while most regretful buyers (54%) take five months or more. Once you’ve done your due diligence and evaluated each of your shortlist options thoroughly, make a purchase decision quickly.

Step 4. Make the most of your HR software

Once you’ve purchased your HR software, you’ll begin the implementation process. Whether you’re switching from one product to another or going from manual methods to your first electronic system, here are some important considerations you’ll want to pay attention to during this process:

• Data migration: If you’re migrating employee data from one system to another, make sure you communicate with both your old and new providers to ensure nothing falls through the cracks.

• Integration: By integrating your new HR system with existing software, you achieve more efficiency through automation. Whether it’s an accounting system, a collaboration tool, a company intranet, or some other type of software, map out all of the important integrations you need and work closely with your IT personnel and vendor to ensure that everything runs smoothly.

• Training: Harvey says user training is critical to getting workers up-to-speed on the new system and fully utilizing it as intended. Lean on your new vendor to run staff training sessions and provide training materials, and be patient as you ramp up to full productivity.

For more information, read our five critical steps to a successful software implementation.

Software related to HR software

HR software is a large market that covers a wide variety of employee needs. Here are some examples of sub-categories related to HR software:

Core HR systems

• Applicant tracking software: Also called applicant tracking systems, or ATSs, these are platforms that support critical recruiting functions to help companies find and hire talent.

• Onboarding software: Onboarding software helps companies turn new hires into legal employees, automating them through the proper paperwork and training modules.

• Payroll software: As the name suggests, payroll software helps businesses calculate their payroll and perform payroll runs.

• Benefits administration software: Benefits administration software helps companies enroll employees in benefits and track their usage.

Strategic HR systems

• Performance management software: These systems support performance review processes, allowing managers to rate employee performance and give feedback.

• Compensation management software: These are HR software systems dedicated to helping companies optimize employee compensation packages and analyze compensation trends over time.

• Succession planning software: Succession planning software helps businesses identify and upskill potential employees to replace leaders that quit or retire from the company.

HR software suites

• Workforce management software: Workforce management software suites include all the functions needed to schedule employees, track workforce time and attendance, and manage absences.

• Talent management software: These are HR software suites designed to help businesses pretty much do everything from recruiting, onboarding and payroll, to performance and learning management.

More resources for your HR software journey

• AI in HR: 4 Use Cases for SMBs

• 5 Key Leave Management System Features and Top Products That Offer Them

• A Guide to Payroll Software Pricing Models

• 7 Top-Rated Affordable Recruiting Software

About our contributors

Author

Brian Westfall is an associate principal analyst at Software Advice, covering human resources, with a focus on recruiting, talent management, and employee engagement. Over the past decade, Brian’s research on the intersection of talent and technology has been featured in Bloomberg, Fortune, SHRM, TIME, and The Wall Street Journal.

Brian’s research and analysis is informed by more than 250,000 authentic user reviews on Software Advice and over 20,000 interactions between [Brand] software advisors and HR software buyers. Brian also regularly analyzes market sentiment by conducting surveys of HR leaders and practitioners so he can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

Editor

Kathryn Todd is a senior editor at Software Advice. She specializes in editing data-driven research reports that cover the latest technology trends. She has almost a decade of experience writing and editing content to help small businesses stay ahead of trends and find the best tech solutions for their needs.

Kathryn holds a bachelor's degree in English Language and Linguistics from Sheffield Hallam University in the U.K. When not editing content herself, she enjoys reading content other people have edited and can usually be found with her head in a fiction book and a cup of tea in hand.

Advisor

Daniel Harvey is a software advisor. He joined Software Advisor in 2015, and he is based in Austin, TX. Daniel works directly with small business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking HR and learning management software through one-to-one conversations and provides a short list of potential matches.

Daniel's favorite part of being a software advisor is providing insight and information to individuals who are typically very busy and crunched on resources and time.

Sources

1. Software Advice advisor call notes: Findings are based on data from telephonic conversations that Software Advice’s advisor team had with small-to-midsize businesses seeking HR software. For this report, we analyzed phone interactions from the past year as of the production date. Read the complete methodology.

2. Software Advice software pricing data: Only products with publicly available pricing information and qualified software products within the category, as of the production date, are included in the pricing analysis. Read the complete methodology.

3. Software Advice reviews data: Software Advice reviews are collected from verified users for individual software products. For this report, we analyzed reviews from the past year as of the production date. Read the complete methodology.

4. Market Guide for Talent Acquisition (Recruiting) Technologies, Gartner

5. Software Advice’s 2025 Tech Trends Survey was conducted online in August 2024 among 3,500 respondents in the U.S. (n=700), U.K. (n=350), Canada (n=350), Australia (n=350), France (n=350), India (n=350), Germany (n=350), Brazil (n=350), and Japan (n=350), at businesses across multiple industries and company sizes (five or more employees). The survey was designed to understand the timeline, organizational challenges, adoption & budget, vendor research behaviors, ROI expectations and satisfaction levels for software buyers. Respondents were screened to ensure their involvement in business software purchasing decisions.