In 2024, about 49 startups raised USD$100 million, which is a clear indication of the growth of small businesses. But still, many startups struggle with their HR management. Properly managing your human capital ensures you get the best out of your hiring process, onboarding, scheduling, and time tracking. But how do you get your HR management right? (1)
The best way to manage your employees is by having HR software that suits your business needs. Choosing the right HR software helps early-stage teams stay focused and compliant as they grow.
This guide will discuss the top HR software for startups in 2025. But first, what are the factors you should consider when choosing one?
What to Look for in Startup-Friendly HR Software
When looking for the right HR software for startups, there are some features to prioritize. They include the following:
Easy to Implement
Startups often lack a dedicated HR team to handle all their needs. Therefore, you need software with an intuitive interface that’s easy to set up and use. Look for solutions with user-friendly interfaces, clear instructions, and accessible customer support to ensure a smooth onboarding process.
Affordable and Scalable
Due to budget constraints, startups should look for affordable and scalable software. They should be able to scale up or down based on their seasonal HR demands. The software should also come with flexible payment plans that don’t lock you down on fixed payments for features you don’t need.
Covers Core Needs
Before settling on a decision, ensure it can address your core needs, such as onboarding, leave management, and employee record-keeping. This ensures that your business remains compliant and organized from the start. You can also look for additional features like performance tracking and employee self-service portals.
Top 10 HR Software for Startups (2025 Edition)
There are several HR solutions that you can pick from to manage your employees. Here’s a list of the top 10 to consider:
TalentHR
TalentHR is an excellent HR management solution that centralizes all your needs in one place. It comes packed with people analytics, time off tracking, file management, applicant tracking, and asset management. It also has an employee surveys tool and a safe tool feature that allows employees to provide feedback and raise concerns.
What makes TalentHR a good tool is its straightforward pricing. You can enjoy a 14-day trial, after which they charge using a per-user pricing model, which is flexible and ideal for many small businesses.
Gusto
Gusto is simplified software that combines payroll and HR benefits for small and medium-sized businesses. This solution easily links working hours with payroll to ensure that employees are paid accurately.
Additionally, it has features for compensation, tax registration in different states, and team member benefits such as health and 401(k)s. It’s also known for its excellent customer support, which is invaluable for early-stage teams.
BambooHR
BambooHR is an easy-to-use platform for all your HR needs. It offers a free demo, making it suitable for startups to test the features before purchasing it. Its features include hiring and onboarding, payroll, time management, HR data and analytics, compensation, and performance management.
One standout feature is the team member self-service portal, which allows team members to manage their information and improve their experience. This is crucial, considering 47% of HR professionals prioritize employee experience. (2)
Freshteam
Freshteam by Freshworks is an all-in-one HR and applicant tracking system (ATS). It’s perfect for startups actively hiring and needing help managing candidates and employee data.
Some of the top features offered include compliance automation, onboarding and recruitment, and offboarding. Considering 86% of new hires reported that onboarding will speed up their feeling of ease with a company, this software makes it ideal for startups looking to bring new employees.
Zoho People
Zoho People is a cloud-based HR system that is mobile-friendly, intuitive, and agile, making it suitable for startups with remote teams. It has all the core HR management features, such as time tracking, hiring and onboarding, HR chatbots, automation, and payroll tracking.
This tool can automate repetitive tasks, freeing up time and HR resources. Its mobile app and integration with other Zoho products make HR processes more accessible and streamlined.
Rippling
Rippling is a versatile platform that combines HR, IT, and payroll management. It’s ideal for startups thanks to the demo feature, which allows businesses to test any features. The HR management tool includes many tools, such as compliance, talent management, time tracking, scheduling, and employee benefits.
Its modular design allows you to add features as your business grows. Rippling’s automation tools also save time by syncing team member data across all your systems.
Deel
Deel is suitable for startups with global teams as it integrates compliance standards from over 150 countries. With this one platform, businesses can manage their HR needs, such as localized contract generation, tax document management, employee self-service access, and integrated analytics.
The pricing structure is also startup-friendly, as you can access some features in a per-employee-per-month model. You can also employ contractors from other countries at a low monthly cost.
Bob (HiBob)
HiBob is a modern and engaging platform that prioritizes company culture. It has employee self-service, time tracking, leave booking, performance tracking, team member surveys, and customizable workflows.
It can also integrate with leading payroll providers, making employee compensation seamless and easy to manage. This makes it ideal for startups that want to foster employee collaboration and management.
Namely
An HR solution can improve startups’ core HR functions by offering seamless HR management, time tracking, payroll, and employee management. It can also provide extended modules such as scheduling, talent management, and compliance.
It offers a free demo so startups can test out the features. It’s a scalable option for startups with ambitious growth plans.
OrangeHRM (Open Source Option)
OrangeHRM is an open-source HR platform that offers complete customization. It’s perfect for tech-savvy startups looking to tailor their HR software to specific needs.
While it requires some technical expertise to set up, OrangeHRM’s flexibility and cost-effectiveness make it a standout option. Its core features include leave management, recruitment, and employee records.
Final Thoughts
Startups can use HR software to automate their employee management and other administrative tasks. Thankfully, these solutions don’t need to be expensive or complex to support startups. Pick the tools that match your needs and use trials to test UX, support, and workflows before committing.
References:
- Here are the 19 US AI startups that have raised $100M or more in 2025: https://techcrunch.com/2025/04/23/here-are-the-19-us-ai-startups-that-have-raised-100m-or-more-in-2025/#:~:text=There%20were%2049%20startups%20that%20raised%20funding%20rounds%20worth%20%24100%20million%20or%20more%20in%202024%2C%20per%20our%20count%20at%20TechCrunch%3B%20three%20companies%20raised%20more%20than%20one%20%E2%80%9Cmegaround%2C%E2%80%9D%20and%20seven%20companies%20raised%20rounds%20%241%20billion%20in%20size%20or%20larger
- Key HR Statistics And Trends: https://www.forbes.com/advisor/business/hr-statistics-trends/#:~:text=47%25%20of%20HR,company.%5B2%5D
