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The Best Free HR Tools for Small Businesses in 2024

Managing human resources can be a daunting task for small businesses, especially when budgets are tight. Fortunately, there’s a wealth of free HR tools available that can streamline your processes without straining your finances. At freetrials.co.uk, we’ve tested and reviewed a range of HR solutions to bring you the cream of the crop. From applicant tracking systems to employee onboarding platforms, we’ve got you covered. Read on to discover our top picks that will help you efficiently manage your workforce and foster a productive work environment.

Zoho People

Zoho People offers a powerful free HR management solution tailored for small businesses. This user-friendly platform streamlines essential HR processes, allowing teams to focus on growth and productivity. With Zoho People’s free plan, small businesses can efficiently manage employee information, track attendance, and handle basic leave management.

The intuitive interface makes it easy for both HR professionals and employees to navigate the system, reducing administrative burdens. Additionally, Zoho People integrates seamlessly with other Zoho applications, creating a cohesive ecosystem for business operations. This free plan serves as an excellent starting point for businesses looking to digitalise their HR processes without incurring costs.

Key Features

  • Employee database management
  • Attendance tracking
  • Basic leave management
  • Employee self-service portal
  • Mobile app access
  • Integration with other Zoho apps

Zoho People’s free plan is available for up to five employees, making it ideal for micro-businesses or startups. For growing companies needing more advanced features or additional user capacity, paid plans start at £0.83 per user per month when billed annually.

Freshteam

Freshteam, part of the Freshworks suite, provides a generous free HR solution for small businesses. This platform excels in applicant tracking and recruitment processes, making it particularly valuable for companies in growth phases. The free plan, suitable for up to 50 employees, offers a range of features that cover the basics of HR management and recruitment.

Freshteam’s user-friendly interface ensures that even those without extensive HR experience can effectively manage employee data, job postings, and candidate communications. The platform’s modern design and intuitive workflows significantly reduce the time spent on administrative tasks, allowing small business owners and HR managers to focus on strategic aspects of people management.

Key Features

  • Employee information management
  • Job posting to free job boards
  • Applicant tracking system
  • Basic onboarding tools
  • Time-off management
  • Employee self-service portal

Freshteam’s free plan is available for up to 50 employees, offering a substantial toolset for small businesses. For those requiring additional features or larger employee counts, paid plans begin at £1.20 per employee per month when billed annually.

Bitrix24

Bitrix24 offers a versatile free plan that extends beyond traditional HR functions, providing a comprehensive suite of business tools. This platform is particularly beneficial for small businesses seeking an all-in-one solution for HR, communication, and project management. The free HR tools within Bitrix24 cover essential aspects of employee management, including time tracking, leave management, and a basic employee directory.

What sets Bitrix24 apart is its integration of HR functions with collaboration tools, creating a unified workspace for teams. This approach helps small businesses streamline their operations and improve overall efficiency. The platform’s user-friendly interface and customisable features allow businesses to tailor the system to their specific needs without requiring extensive technical knowledge.

Key Features

  • Employee directory and org chart
  • Time and attendance tracking
  • Basic leave management
  • Task and project management
  • Internal communication tools
  • Document management

Bitrix24’s free plan is available for unlimited users, making it an excellent choice for growing small businesses. For access to more advanced HR features and increased storage, paid plans start at £18.66 per month for up to 5 users.

HR.my

HR.my stands out as a completely free, cloud-based HR management system designed with small businesses in mind. This platform offers a surprisingly extensive range of features without any cost, making it an attractive option for startups and small enterprises operating on tight budgets. HR.my covers core HR functions including employee data management, leave tracking, and payroll processing.

The system’s strength lies in its simplicity and ease of use, allowing businesses to quickly implement and benefit from digital HR processes. Despite being free, HR.my maintains a commitment to data security and regular updates, ensuring that users have access to a reliable and current HR tool. The platform’s community-driven approach also means that it’s continually evolving based on user feedback and needs.

Key Features

  • Employee information management
  • Leave and attendance tracking
  • Basic payroll processing
  • Expense claims management
  • Performance appraisal tools
  • Document storage and sharing

HR.my is completely free for all users, with no restrictions on the number of employees or hidden costs. This makes it an ideal solution for small businesses looking to digitalise their HR processes without any financial investment.

Homebase

Homebase offers a robust free plan tailored specifically for small businesses, particularly those in the retail and service industries. This platform excels in scheduling and time tracking functionalities, addressing key pain points for businesses with hourly workers. The free version of Homebase provides an impressive array of features that go beyond basic HR management, including employee scheduling, time clocks, and basic hiring tools.

What makes Homebase particularly valuable is its focus on compliance, helping small businesses navigate labour laws and regulations. The platform’s user-friendly mobile app ensures that both managers and employees can access important information on the go, enhancing communication and operational efficiency.

Key Features

  • Employee scheduling
  • Time tracking and attendance
  • Basic hiring and onboarding tools
  • Team communication features
  • Labor cost reporting
  • Mobile app for managers and employees

Homebase’s free plan is available for businesses with a single location and unlimited employees. For multi-location businesses or those needing advanced features, paid plans start at £16.63 per location per month.

OpenHR

OpenHR is a free, open-source HR management solution that offers small businesses a customisable platform for managing their human resources needs. This software stands out for its flexibility and the ability for businesses to modify the code to suit their specific requirements. OpenHR covers a wide range of HR functions, from employee data management to leave tracking and performance evaluations.

Its open-source nature means that businesses with technical expertise can adapt and extend the system’s capabilities. While it may require more initial setup and potentially some technical knowledge compared to cloud-based solutions, OpenHR provides a cost-effective way for small businesses to implement a fully-featured HR system. The active community of developers and users also ensures ongoing improvements and support.

Key Features

  • Employee database management
  • Leave and absence tracking
  • Performance management tools
  • Training and development tracking
  • Recruitment and applicant tracking
  • Customisable reports and analytics

OpenHR is completely free to use and modify, with no limitations on the number of employees or features. However, businesses should consider the potential costs of hosting and maintaining the system themselves.

OrangeHRM

OrangeHRM offers a comprehensive open-source HR management solution that caters to the diverse needs of small businesses. This platform provides a wide array of HR functionalities, from core employee data management to more advanced features like performance tracking and recruitment. The open-source version of OrangeHRM allows businesses to deploy a fully-functional HR system without any licensing costs. Its modular structure enables companies to activate only the features they need, creating a tailored HR solution.

While the open-source version requires self-hosting and potentially more technical setup, it offers unparalleled flexibility for businesses with specific HR process requirements. OrangeHRM’s active community contributes to regular updates and improvements, ensuring the system evolves with changing HR practices and technologies.

Key Features

  • Employee information management
  • Leave management system
  • Time and attendance tracking
  • Performance management tools
  • Recruitment and onboarding
  • Reporting and analytics

The open-source version of OrangeHRM is free to download, use, and modify. For businesses preferring a hosted solution with additional support, OrangeHRM also offers cloud-based paid plans starting from £0.83 per employee per month.

Jorani

Jorani is a free, open-source leave management system that offers small businesses a straightforward solution for handling employee time off and absences. While more focused in scope compared to full-scale HR systems, Jorani excels in its specific domain, providing a user-friendly interface for both employees and managers to request, approve, and track leave. The system’s simplicity makes it an excellent choice for small businesses looking to digitalise their leave management process without the complexity of a larger HR suite.

Jorani’s open-source nature allows for customisation and integration with other systems, making it adaptable to various business needs. The platform supports multiple languages and can be configured to accommodate different leave policies, making it suitable for businesses operating across different regions.

Key Features

  • Leave request and approval workflow
  • Calendar views for team absences
  • Reporting tools for leave balances and usage
  • Multi-language support
  • Customisable leave types and policies
  • Export functionality for data analysis

Jorani is completely free to use and modify, with no restrictions on the number of employees. However, businesses need to consider the costs and technical requirements of hosting and maintaining the system themselves.

Teamdeck

Teamdeck offers a free plan that combines resource management, time tracking, and leave management, making it an excellent choice for small businesses, particularly those in project-based industries. This platform stands out for its focus on optimising team utilisation and project planning alongside basic HR functions.

The free version of Teamdeck allows small teams to efficiently manage their resources, track time spent on projects, and handle leave requests. Its intuitive interface and visual scheduling tools make it easy for managers to allocate resources and plan projects effectively. While not a comprehensive HR system, Teamdeck’s combination of features addresses key operational needs for small businesses, helping them improve productivity and resource allocation.

Key Features

  • Resource scheduling and allocation
  • Time tracking for projects and tasks
  • Leave management system
  • Project planning tools
  • Basic reporting and analytics
  • Team availability overview

Teamdeck’s free plan is available for up to 6 team members, making it suitable for very small businesses or startups. For larger teams or those needing more advanced features, paid plans start at £2.49 per user per month.

WebHR

WebHR provides a cloud-based HR management solution with a generous free plan tailored for small businesses. This platform offers a wide range of HR functionalities, covering everything from basic employee data management to more advanced features like performance management and social collaboration. The free version of WebHR is particularly notable for its comprehensive feature set, allowing small businesses to access professional-grade HR tools without any cost.

Its user-friendly interface makes it easy for both HR professionals and employees to navigate and use the system effectively. WebHR’s approach to combining traditional HR functions with modern collaboration tools creates an engaging employee experience, which can be particularly beneficial for small businesses looking to build a strong company culture.

Key Features

  • Employee database management
  • Leave and attendance tracking
  • Performance management tools
  • Basic recruitment and onboarding
  • Employee self-service portal
  • Social collaboration features

WebHR’s free plan is available for up to 5 employees, offering a substantial set of features for very small businesses. For growing companies or those needing additional functionalities, paid plans start at £1.66 per employee per month when billed annually.

How to choose the best free HR tools for your small business

Assess your specific HR needs

Begin by evaluating your company’s unique HR requirements. Consider factors such as the size of your workforce, growth projections, and industry-specific regulations. Identify which HR functions are most critical for your business, whether it’s recruitment, employee onboarding, performance management, or payroll processing. This assessment will help you prioritise features when selecting free HR tools.

Compare features and limitations

Once you’ve identified your needs, examine the features offered by various free HR tools. Pay close attention to any limitations on the number of employees or functionality in free versions. Look for tools that provide essential features without hidden costs. Consider aspects like user-friendliness, mobile accessibility, and integration capabilities with your existing software. Remember that while a tool is free, it should still meet your business’s core HR requirements.

Consider scalability and support

Although you’re starting with free tools, it’s wise to think about future growth. Choose HR software that offers scalable options, allowing you to upgrade to paid versions as your business expands. Additionally, evaluate the level of customer support provided, even for free users. Look for resources such as tutorials, knowledge bases, and community forums. Reliable support can be invaluable when implementing and using new HR tools, ensuring you can make the most of their features without costly delays or errors.

Which Free HR Tool Is Best?

Zoho People’s free plan is perfect for small teams seeking essential HR management tools. It covers core functions like leave management, time tracking, and employee self-service, making it a solid choice for growing companies. We recommend Zoho People for its user-friendly interface and basic HR features.

For recruitment-focused businesses, Freshteam offers a free plan that supports up to 50 employees. It includes tools for applicant tracking, job posting, and interview scheduling, making it ideal for companies looking to streamline their hiring process. Freshteam is a great choice if talent acquisition is your priority.

Bitrix24 provides an all-in-one solution, with its free plan offering HR tools alongside project management, CRM, and communication features. This makes it a versatile option for businesses aiming to unify multiple functions under one platform. We recommend Bitrix24 for organisations looking to integrate HR, project management, and more into a single system.

Frequently Asked Questions about Free HR Tools for Small Businesses

What features are typically included in free HR tools?

Free HR tools often include basic features such as employee information management, time and attendance tracking, leave management, and simple reporting. Some may also offer limited recruitment tools, performance management, or basic payroll functions. However, advanced features are usually reserved for paid plans.

Are free HR tools suitable for all small businesses?

Free HR tools can be suitable for many small businesses, especially those just starting out or with limited HR needs. They’re particularly useful for businesses with small teams, typically under 50 employees. However, as a business grows or requires more complex HR processes, upgrading to a paid solution might become necessary.

How secure are free HR tools?

Reputable free HR tools generally prioritise data security and comply with basic data protection regulations. However, paid versions often offer enhanced security features. It’s crucial to review each tool’s security measures and ensure they meet your business’s data protection requirements before implementation.

Can I upgrade from a free HR tool to a paid version easily?

Most HR software providers offer smooth transitions from free to paid plans. This usually involves upgrading within the same platform, allowing you to retain your data and settings. However, it’s wise to check the upgrade process for your chosen tool before committing to ensure it aligns with your future needs.

What’s the difference between free and open-source HR tools?

Free HR tools are typically cloud-based solutions offered by companies with limited features, while open-source HR tools provide full access to the software’s source code. Open-source options like OpenHR and OrangeHRM allow for customisation but may require technical expertise to set up and maintain. Free cloud-based tools are generally easier to use but less flexible.

Do free HR tools offer customer support?

Customer support for free HR tools is often limited. Many providers offer community forums, FAQs, or basic email support for free users. More comprehensive support, including phone or chat assistance, is typically reserved for paid plans. It’s important to consider your support needs when choosing a free HR tool.

How do free HR tools handle data privacy and GDPR compliance?

Most reputable HR tools, including free versions, are designed with data privacy in mind and offer basic GDPR compliance features. However, the extent of compliance tools may be limited in free versions. It’s essential to review each tool’s privacy policy and compliance features to ensure they meet your specific regulatory requirements.

Can free HR tools integrate with other business software?

Integration capabilities in free HR tools are often limited compared to their paid counterparts. Some may offer basic integrations with popular tools like Google Workspace or Microsoft 365. For more extensive integration options, particularly with accounting or payroll software, you might need to consider paid versions or more advanced HR systems.

How often are free HR tools updated?

Update frequency can vary among free HR tools. Cloud-based solutions like Zoho People or Freshteam typically receive regular updates automatically. Open-source options may have less frequent updates, depending on the community’s activity. It’s worth checking the update history and roadmap of your chosen tool to ensure it’s actively maintained.

Is it possible to export data from free HR tools if I decide to switch providers?

Most free HR tools allow basic data export, typically in CSV or Excel format. However, the extent of data you can export might be limited compared to paid versions. Before committing to a free tool, it’s advisable to check their data export capabilities to ensure you can retrieve your information if you decide to switch providers in the future.

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Author

Matt is an expert in uncovering the best products and services that offer free trials or cost nothing at all. He dives deep into the value of software, tools, and subscriptions, ensuring that you get the most out of every free offering. From streaming services to productivity apps, Matt tests, reviews, and reveals which options are truly worth your time, so you can enjoy quality without breaking the bank.