HR software for UK SMEs: Why Breathe HR beats BambooHR on features, compliance and cost

26 min read  |   6 June, 2025   By Amy Rosoman

Confused young woman in a yellow shirt holding a smartphone, raising her hand in uncertainty against a bright green background.
    

Choosing the right HR software for your organisation is critical to ensuring smooth business operations, compliance, and employee engagement. With so many providers available, the decision can feel overwhelming.  

Two of the most popular options, BambooHR and Breathe HR, might seem similar at first glance. But when you scratch beneath the surface, you’ll find significant differences, particularly if your business operates in the UK.

Benefits such as efficient employee onboarding and the ability to save money make these tools invaluable. 

In this comparative guide, we explore the key differences between BambooHR and Breathe, focusing on HR functionality, pricing transparency, regional fit, and long-term value to help you select the right HR software for your needs.

 

Let's compare the highlights: Breathe HR vs BambooHR

Key differentiators between Breathe HR and BambooHR

Enhancing employee satisfaction with Breathe HR software

Pricing transparency: No hidden costs, no hassle

Feature comparisons: Addressing BambooHR's advantages

The final verdict: Breathe is the best 'all-in-one' HR software for UK organisations

 

Let's compare the highlights: Breathe HR vs BambooHR

While both Breathe HR software and BambooHR offer essential HR software features, Breathe takes it a step further by tailoring its offering specifically for UK businesses. Here's how Breathe stands out: 

Feature Breathe BambooHR
Target audience (1–250+ employees) UK SMEs, all industries US Businesses (limited support for UK compliance)
Language and compliance UK-specific workflows and employment law US-centric (uses US forms like I-9s, W-4s)
E-learning courses In a variety of subject matters (4 free, 35+ with Breathe Learn add-on) Not available to UK
Expense management Available Available via third party integration
Burnout monitor reporting Included Not available
Performance management Available as standard, no extra cost Available only in 'Pro' package (extra cost)
Pricing transparency Transparent on website Must contact sales
Minimum contract Monthly, no long-term contract 12 months minimum
Setup/implementation fees None Approx. $1,000
Employee engagement features Kudos and company announcements (no extra cost) Includes polls, feed, Slack integration (Pro only)
AI assistant integration AI support linked to Slack, Teams, WhatsApp, Messenger, etc. Not available
Custom fields and reporting Ready to go dashboards and enhanced reporting capability Advanced custom fields, point-in-time reporting

 

Key differentiators between Breathe HR and BambooHR

1. Built for UK businesses, not US markets 

BambooHR is a US-born platform designed around American HR processes, compliance, and documentation 

It uses US-centric terminology and includes forms like I-9s and W-4s, which are irrelevant for UK businesses. Even key add-ons like Benefits Administration and Payroll are exclusively for US-based companies. 

In contrast, Breathe is built specifically for UK organisations. The platform reflects UK employment laws, workflows, and language, ensuring your HR operations are compliant, relevant, and user-friendly.  

Breathe HR helps streamline hiring processes and is supported by a responsive customer support team.

2. Comprehensive e-learning and compliance tools

Unlike BambooHR, which lacks integrated e-learning entirely, Breathe offers a built-in e-learning platform, including four free courses and an optional upgrade to Breathe Learn.

This upgrade provides 35+ compliance and leadership courses (with more to come), all managed within the Breathe HR system — no juggling third-party platforms.

Breathe HR software also ensures HR compliance by offering features like compliance tracking and audit-trails, which helps organisations meet legal obligations and streamline HR tasks.

 

3. Expense management and employee wellbeing

Breathe offers integrated expense management and a burnout monitor report, enabling businesses to manage employee wellbeing and financial processes efficiently, without the need for third-party tools — both missing from BambooHR.  

With Breathe’s compensation management tool, businesses can keep an eye on pay budgets and adjust how they manage employee pay to work better. 

4. Inclusive performance management tools

While BambooHR locks performance management behind its ‘Pro’ package, Breathe includes it as standard.  

This means UK organisations can use performance reviews, book one-to-ones, set goals, track updates and give feedback without any extra fees.  

This makes Breathe a more affordable and flexible solution for employee management, helping to streamline HR processes and improve employee satisfaction. 

 

 

Enhancing employee satisfaction with Breathe HR software

Breathe HR helps manage employee data, streamline HR processes, and enhance the employee experience.  

With its intuitive interface, customisable reports, and a dedicated UK-based support team, Breathe enables businesses to improve employee satisfaction, reduce turnover, and drive business growth. 

Key Breathe advantages: 


  • Performance management included as standard: Unlike BambooHR, where performance management is an expensive add-on only available in the 'Pro' package, Breathe includes this in its Essentials package, offering more value and ensuring all businesses can support their employees' development journey from day one. 
  • Integrated e-learning and compliance support: Breathe includes 4 free e-learning courses with options to upgrade to 35+ courses. BambooHR doesn't currently offer e-learning, making Breathe more suitable for UK businesses that need to support mandatory training and development seamlessly. 
  • Kudos and burnout monitoring tools: Breathe offers employee recognition through its Kudos feature and wellbeing monitoring with burnout reports. These features are not available within BambooHR, giving Breathe a stronger focus on proactive employee engagement. 
  • Harriet AI integration: Breathe integrates with the Harriet AI assistant, connecting your HR software with platforms like Slack and Teams for instant HR support. BambooHR differs in this level of integration, meaning HR teams may face more queries and admin. 
  • Data residency and compliance built for the UK: Breathe stores data in the UK or EU, adhering to GDPR. In contrast, BambooHR stores data in the US, which may raise data protection concerns for UK businesses. 

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Pricing transparency (2025): No hidden costs, no hassle 

Another key difference is pricing transparency. BambooHR pricing is not publicly available and requires a conversation with a sales rep, a process that can delay decision-making. The minimum term is 12 months, with additional fees such as a $1,000 setup fee. 

Breathe HR keeps things simple and affordable for UK businesses and organisations: 

  • No setup or implementation fees 
  • Flexible monthly payments with no long-term lock-in, helping you save money. Most HR software is priced on a monthly subscription basis that scales with functionality and employee count, making it adaptable to the needs of businesses of varying sizes. 

There’s also the option to save more money with Breathe, if you would like to commit to an annual 12-month plan. 

Estimated monthly savings by using Breathe compared to BambooHR: 

Number of employeesMonthly savings
10£31
20£65
50£170
100£355

By choosing Breathe HR, you can save money but also avoid unexpected charges for product updates — unlike some BambooHR users still paying legacy fees. 

 

Feature comparisons: Addressing BambooHR's advantages

Yes, BambooHR offers features such as digital e-signatures, custom tabs, and ‘point-in-time reporting’, which allow users to report on employee data at any future or historical point. However, Breathe is closing this gap: 

  • E-signatures are on the Breathe roadmap (coming soon) 
  • Enhanced reporting dashboards including headcount, turnover, retention, and absenteeism reports.  
  • Breathe’s integration with Harriet AI Assistant streamlines HR queries across platforms like Slack, Teams, WhatsApp, and even SMS 
  • Custom reports and reporting capabilities are being enhanced to provide comprehensive and customisable reporting features, meeting organisational needs for effective data management and decision-making 

Though BambooHR has a community feed and polls, Breathe offers ‘Kudos’ and idea voting, enabling teams to celebrate achievements and crowdsource suggestions without extra costs or complexity. 

 

Mobile phone showing Breathe's mobile app interface on the company's kudos page showing all previous kudos to employees

The final verdict: Breathe is the best ‘all-in-one’ HR Software for UK organisations

 

While BambooHR is a strong contender for US businesses, it doesn’t necessarily meet the specific needs of UK businesses. From language and legislation mismatches to unnecessary complexity and costs, BambooHR can create friction for UK teams. 

Breathe HR software is the smarter choice for UK small businesses and medium organisations, offering: 

  • UK-focused HR software features and compliance tools 
  • Transparent, affordable pricing without hidden fees 
  • Extensive HR solutions that centralise HR functions and automate processes 
  • All-in-one functionality built for UK workflows and employees 
  • No costly extras for features like performance management 

 

Before committing to a 12-month BambooHR contract, ask yourself: 

Do you want to pay more for an HR system that doesn’t meet your full needs?  

When it comes to HR software for UK SMEs and businesses, Breathe HR stands out as the clear choice over BambooHR.  

While BambooHR is a popular US-based solution, it falls short in areas that matter most to UK businesses — from compliance and employee experience to support and cost transparency. 

Breathe HR offers an all-in-one, UK-focused platform that simplifies HR tasks, supports employee wellbeing, and helps businesses stay compliant and efficient without hidden costs or complex add-ons.  

Breathe HR is designed to meet the unique needs of UK organisations today and as they grow. 

Before committing to a long-term contract with a US-centric platform, UK businesses should consider whether their HR software truly speaks their language — with Breathe HR, the answer is a resounding yes. 

 

FAQs

Is BambooHR suitable for UK businesses? 

BambooHR is primarily designed for US businesses, using American employment law and terminology, such as I-9s and W-4s.  

Key features like Benefits Administration and Payroll are only available to US-based companies.  

While it can technically be used by UK SMEs, the lack of UK-specific workflows, language, and compliance tools can create friction and inefficiencies. 

Why is Breathe HR a better choice for UK businesses?

Breathe HR is built specifically for UK businesses, reflecting local employment laws, workflows, and cultural nuances.  

From built-in e-learning for compliance to localised employee recognition and burnout monitoring tools, Breathe provides an intuitive, all-in-one HR solution tailored to the UK workforce — without costly add-ons or hidden fees. 

Does Breathe HR offer performance management tools?

Yes, performance management is included as standard in Breathe HR's Essentials package.  

This includes tools for setting objectives, conducting reviews, and gathering feedback. BambooHR, by comparison, requires users to upgrade to its 'Pro' package to access these features, adding to the overall cost. 

Does BambooHR offer e-learning or compliance courses?

No, BambooHR doesn’t offer built-in e-learning or compliance courses, which could leave UK businesses seeking separate platforms to manage mandatory training. Breathe HR includes four free courses, with the option to upgrade to over 35 courses via the Breathe Learn add-on, all managed within the same platform. 

What about pricing and hidden fees?

Breathe HR provides transparent pricing directly on its website with no setup fees and flexible monthly payments.  

BambooHR requires direct engagement with a sales team to receive pricing information, includes a $1,000 setup fee, and locks customers into a 12-month minimum contract. Some customers have also reported additional charges for platform updates. 

Are there any features BambooHR offers that Breathe HR doesn’t?

BambooHR does provide some features like digital e-signatures, point-in-time reporting, and a community feed with polls.  

However, Breathe HR is closing these gaps, with e-signatures coming soon and new reporting dashboards already launched in 2025.  

Additionally, Breathe offers ‘Kudos’ for recognition, idea voting — features not available within BambooHR. 

Is there a risk to data privacy using BambooHR in the UK?

BambooHR stores data in the US, which could pose data privacy and compliance concerns for UK businesses under GDPR. Breathe HR stores data within the UK or EU, ensuring data security and compliance with UK data protection laws. 

Amy

Author: Amy Rosoman

Amy is Breathe’s Content and Insights Strategist, combining creative storytelling with data-driven thinking to shape content that resonates and informs. With over 9 years’ experience in content marketing and a BA in English Literature and Journalism (Upper Second-Class Honours), she brings sharp editorial instincts and a strategic mindset to every project. Amy leads on insight-led campaigns, trend storytelling, and thought leadership, as well as being Breathe’s go-to voice for webinars, video and copy. Amy's a passionate advocate for healthy, happy company cultures where people do their best work.

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