Most Useful HR Tools for Startups


Human capital is the most valuable asset in any company, whether a small startup or a large corporation. However, managing human resources is an uphill task for most companies, especially in the early years.

Fortunately, there are many HR tools available to help human resource departments effectively manage a workforce.

While HR tools are often designed to streamline processes, eradicate errors and risks, and help in increasing the bottom line, all HR software solutions are not created equal. Some are more suitable for larger companies, while others are best suited for startups.

This article explores the six most helpful HR tools for startups.

1) Buddy Punch

Buddy Punch is one of the best timesheet apps that help HR managers track when employees punch in/out of work. The app also has GPS tracking that enables you to know the location of employees when they punch in and out of work. The best thing about this tool is that it allows integration with your payroll tools to help streamline your HR processes.

2) Justworks

Another great HR platform for startups is Justworks. As a human resource tool, Justworks will streamline processes involved in onboarding new employees, managing paid time off, tracking key business metrics, and storing important documents.

Justworks also offers 24/7 support, meaning you will always get help with everything, especially if you’re starting a firm for the first time and your HR staff is inexperienced.

3) Paylocity

If you are looking for a great cloud-based HR tool, Paylocity is your best option. It’s an excellent choice for small and medium-sized businesses that require advanced workforce management capabilities.

Paylocity is effective in employee management, payroll integrations, labor management, interactive reporting, and financial analysis. The tool is also highly scalable, meaning you can extend your resources as your startup grows.

The best thing about this tool is that you can always get help from the Paylocity community if you need additional information about using this software.

4) ADP

ADP is simple but popular HR software with close to a million customers in more than 140 countries. What makes this tool one of a kind is that it helps small businesses automate online payroll, calculate and pay payroll taxes, and integrate with time-tracking and HR.

ADP is also highly scalable. In other words, you can find an ideal package for startups with less than 50 employees and get packages suitable for over 50 employees as your company grows.

Other notable features in ADP include flexible human resource administration, employee management, and outsourcing.

5) Gusto

Gusto is one of the widely used all-in-one HR solutions. This HR tool helps in the preparation of payroll, the tracking of working hours, and the entry of information about newly employed personnel.

Gusto also helps companies incorporate employee benefits like vision, dental, and medical insurance into payrolls to help you incentivize and retain top talents. With a tax filing service, you can use Gusto to automatically file all local, state, and federal tax forms for your small business.

Gusto is also highly scalable, meaning you can find subscription plans to match your budget and business needs, whether a startup or an enterprise-level company.

6) Zenefits

Last in our rundown for HR tools for startups is Zenefits. This tool helps users manage hiring, employee records, and onboarding efficiently. The application also features mobile clock-in/clock-out to help employees accurately report their work hours, time card fraud safeguards, and pre-configured overtime calculations to ensure proper compensation.

As a payroll management tool, Zenefits helps users stay up to date on earnings, taxes, and deductions easily. The tool also allows convenient online tracking and managing of vacation, personal leave, and sick leave – requests.

7) Factorial

Factorial is all-in-one human resources software. It enables better workflow while streamlining and automating time-consuming, repetitive tasks. It fully automates every aspect of your business, from routine tasks like employee registration, holidays, and absences, to document storage, electronic signatures, and even the possibility of team performance reviews. Overall, the software is user-friendly and has excellent customer support.

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Hi, I'm James George, the founder of Mind My Business NYC and author of this blog. I am an entrepreneur and internet marketer. My wish is that this website helps you to grow your business and achieve your goals.


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