Running a business and managing employees is not an easy part for a successful business, but hiring a good team and managing employees are also very important. Small businesses often face struggles in managing HR tasks, and buying expensive HR tools can be difficult to resolve this problem for small businesses. Some free HR tool options can help you easily manage tasks like attendance, payroll, and employee data.
In this blog, we’ll discuss what HR software is, how to choose the best one, and the best free HR software for small businesses in 2025.
What is HR Software?
HR software is a tool that helps businesses manage human resources (HR) tasks, which include things like:
- Storing employee information
- Tracking attendance and leaves
- Managing payroll and salaries
- Posting jobs and hiring new employees
- Employee performance tracking
HR software saves a lot of time, reduces paperwork and manual work, and helps to make better decisions about managing your team.
How to Select the Best HR Software?
When you choose HR software for small businesses, you should look at the following things:
- Features: The most important thing to look for in HR software is its features. Before purchasing the HR software, first know whether the software actually fits your needs or not, and does it offers the tools you need (e.g., attendance, payroll, hiring)?
- Ease of use: The HR software must be easy to handle so even beginners can use the tool. It is most important to check if it is user-friendly.
- Free plan or trial: Always go for free HR software first and check the software, does it offer a free version or a free trial?
- Scalability: It is also important to check will the HR tool will help your business to grow, or as you hire more people?
- Customer support: HR software provides service 24/7, and that the question you check, is it available when you face issues?
Benefits of HR Software
Using HR software provides many benefits, such as:
- Time-saving: HR software saves a lot of time and reduces manual or repetitive HR tasks.
- Better accuracy: HR software reduces errors in payroll and leave tracking.
- Improved employee experience: HR software makes it easy for employees to check whether their data is accurate or not.
- Data security: It keeps employee records safe and organized.
- Remote access: You manage HR tasks from anywhere, and you can perform the tasks from anywhere.
Types of HR Software
Free HR Software for Small Businesses in 2025
Managing human resources is essential for any business, big or small. However, small businesses often lack the budget to invest in expensive HR systems. Here’s a breakdown of the top free HR tools, along with what makes each one unique.
1. Zoho People (Free Plan)
Zoho People is part of the Zoho suite, it is designed for managing core HR activities like employee data, attendance, and leave tracking.
Features
- Time and attendance tracking
- Leave management
- Employee database
- Basic workflows
Zoho people are best for startups, IT, service-based companies, and remote teams under 5 employees.
Pros
- Clean and user-friendly interface
- Integrates with other Zoho apps
- Free for up to 5 users
Cons
- Advanced HR features (like performance management) require a paid plan.
2. Freshteam by Freshworks (Free Plan)
Freshteam is a smart HR software mainly focused on recruitment and the onboarding process, especially useful for companies actively hiring.
Features
- Applicant tracking system (ATS)
- Employee directory
- Job posting on free job boards
- Onboarding checklists
Freshteam is good for recruitment agencies, fast-growing startups, tech, and e-commerce companies.
Pros
- Excellent for managing hiring processes
- Free for up to 50 employees
- Built-in applicant tracking
Cons
- Limited features beyond hiring and onboarding in the free plan.
3. Bitrix24 (Free Plan)
Bitrix24 is a comprehensive tool offering HR features along with communication and project management tools.
Features
- Employee directory and time management
- Task management
- Built-in chat and collaboration tools
It is best for small businesses, agencies, and project-based teams.
Pros
- Combines HR and productivity tools
- Free for unlimited users (with limits on storage and features)
- Cloud-based
Cons
- It can feel overwhelming due to too many features
- Some features are limited unless upgraded
4. OrangeHRM (Open Source Version)
OrangeHRM is an open-source HR software that can be customized and hosted by the business itself.
Features
- Leave and time tracking
- Recruitment module
- Employee information system
- Performance tracking
OrangeHRM is good for tech-savvy companies and medium-sized businesses with an IT team.
Pros
- Fully customizable
- No subscription cost
- Strong community support
Cons
- Requires technical skills for setup.
- No cloud hosting in the free version.
5. Teamdeck (Free for Small Teams)
Teamdeck is designed for resource management, helping small teams to schedule work and track time effectively.
Features
- Team availability tracking
- Time tracking and scheduling
- Calendar integrations
Teamdeck is best for creative agencies, freelance teams, and remote project-based businesses.
Pros
- Easy scheduling interface
- Free for teams up to 6 people
- Focuses on productivity and time management
Cons
- Limited HR functionalities (no payroll or recruitment tools)
- A paid plan is needed for more users.
A Quick Comparison table of Free Best HR Software:
| HR Software | Best For | Free User Limit | Main Strength |
|---|---|---|---|
| Zoho People | Startups, remote teams | 5 users | Time & leave tracking |
| Freshteam | Hiring teams | 50 employees | Recruitment & onboarding |
| Bitrix24 | Project-based teams | Unlimited | All-in-one platform |
| OrangeHRM | Tech-savvy teams | Unlimited | Customization |
| Teamdeck | Creative agencies | 6 users | Scheduling & time tracking |
Conclusion
Choosing the right HR software depends on your business size, scale, industry, and specific needs. For small businesses in 2025, several free HR tool options also have good features. Whether you need something for hiring, time tracking, this tool can help you to complete HR management tasks. HR software is a powerful tool that helps small businesses save time, stay organized, and manage their employees better. Whether you’re just starting or looking to improve your current HR process, trying out a free HR tool can be a smart decision.
FAQs
1. What is the best free HR software for a team under 10 people?
For small teams, you can try Zoho People and Teamdeck are great options as they offer free plans for limited users.
2. Can I manage payroll with free HR software?
Some tools offer basic payroll features in free plans, but for full payroll management, you may need a paid version or a separate payroll tool for more features.
3. Is free HR software secure?
Yes, trusted HR software providers use security measures to protect data, but it’s always good to check privacy policies.
4. Do I need technical knowledge to use free HR software?
Most free HR tools have a user-friendly feature. Some like OrangeHRM require setup, but others like Freshteam or Bitrix24 are ready to use.
5. Can I upgrade to paid plans later?
Yes, most free HR software comes with optional paid plans if you need more users or features in the future, then you can shift to paid versions.
6. How do I know if I need HR software?
If you are spending too much time on manual HR tasks like tracking leaves, payroll, or hiring, it’s time to use HR software, which reduces a lot of your work, saves time, and helps you in decision making.
