Ideal HR functionality for SMEs
SMEs have a unique set of challenges that require a unique HR solution.
Essentially, an ideal HR management software for SMEs should include:
- employee database
- self-service
- commitement-free plan
- reporting
- unlimited document storage
- integration with your payroll software
- easy to use
- easy to tailor to your business
- super-quick set-up time
- free trial/demo
- cloud-based
- ISO-27001 accreditation
- automating HR admin tasks to save time and streamline processes
- comprehensive HR data management to make data-driven decisions and improve overall efficiency
"I absolutely love Breathe. If I had to narrow it down, the time savings and having everything in one place would be my top two benefits. For a small business owner like me, it's the perfect solution.”
- Anne Wordsworth, Owner & Managing Director
What's the best HR software in the UK?
If you need a new HR tool to help manage your people admin and are weighing up which HR software is right for your SME, you’re in the right place.
We’ve collated top-level information around different HR software options on the market for SME businesses - covering the main features, functionality & customer service you might be considering. An efficient hiring process is crucial, and many HR software options streamline various stages of hiring with technology-driven insights and customisable templates.
Take a look at these highlights from Bright HR, Charlie HR, BambooHR, Sense HR, People HR, Employment Hero and HiBob - along with how Breathe measures up. We’ve based this on what matters most to SMEs, including managing payroll and how different platforms simplify the overall management of payroll processes.
When evaluating the best HR systems for your organisation, it's essential to consider both functionality and ease of use.
You’ve seen the highlights in the table - but here’s the detail to help you with your decision-making.
Breathe's functionality overview
✅ The good bits
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Along with holiday management functionality, you can also track absences within Breathe. Employees can view holiday in a centralised calendar, and HR documents can also be securely stored.
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Breathe also offers the ability to manage your team's performance and view your data in detailed reports. There's also the Kudos employee recognition tool, if you want to thank your team for their hard work (supporting people-first company cultures).
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At a low additional cost, you'll have the option to utilise our Rota, Time & Attendance module to help with rota creating & time tracking. Breathe's additional Learn and Recruitment modules can help you to easily upskill your team & streamline recruitment, too.
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Breathe is simple to use, offering a straightforward, intuitive user experience. You'll also benefit from a free, flexible 14-day trial.
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Implementation is easy with a quick data import to get you up & running (using your own information, so you can start saving time immediately).
- Breathe has been designed to be user-friendly for SMEs – so there's no need to waste time training your team on how to use Breathe. One reviewer says that Breathe is “easy to use with everything in one place. The HR dashboard is really useful and I like the extra features like upcoming birthdays.”
❌ Things to keep in mind
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In the interest of fairness, we've also included what customers don't like about Breathe's functionality. One G2 reviewer notes that “the performance section could be improved by having more fields and areas for comments, etc.”
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Another customer would like it if Breathe's mobile app “had more capabilities, like letting users update personal information, emergency contacts etc.” (Currently, this can only be done on a web browser.)
- Breathe's HR software is optimised for SMEs with less than 250 employees – meaning if you're expanding beyond this, a mid-market HR software may be more suited to your needs.
Overall, Breathe's customer testimonials speak for its streamlined functionality:
“A must-have for all SMEs – I have used Breathe across multiple organisations and roles. The software is just incredible, and the user experience is intuitive and straightforward. They have now expanded out the product which means I can see even more value being had from such an easy-to-use and cost-effective software. I'd be lost without it as it helps me manage my teams across the business and have the visibility I need when planning.”
- Sarah M, Account Director
Read more Breathe reviews captured from G2, Capterra, Google and Software Advice here.
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BrightHR's functionality overview
✅ The good bits
- BrightHR offer a holiday and absence management system, alongside rota planning & custom reporting. They also include time & expense tracking, and an LMS with CPD-accredited learning.
- At an additional cost, BrightHR offer support around health and safety, and an Employee Assistance Programme.
- As an additional service, they also offer 24/7 employment law & HR advice line.
- They offer a mobile app – but reviewers report the app isn't very user-friendly (and not all features are available on the app).
❌ Things to keep in mind
- BrightHR's system is more difficult to use compared to Breathe's – a reviewer says “the payroll section is not easy to use. I have avoided setting it up.”
- BrightHR don't seem to offer a free trial that you can run with and explore at your own leisure – they offer a free demo instead.
- According to multiple reviews, BrightHR tie you into long, expensive contracts that are difficult to get out of once you sign up (which isn't ideal if you're an SME looking for flexibility).
- One G2 reviewer notes that “it's difficult to keep a track record of employees' overtime” with BrightHR. They don't offer any form of employee recognition tool, either.
BrightHR vs Breathe: What you need to know
CharlieHR's functionality overview
✅ The good bits
- CharlieHR offer holiday & absence management functionality, alongside performance management, engagement surveys and support for onboarding new hires.
- They offer a free 7-day trial, and customers appear to like their HR advice service.
- Charlie's software is simple and easy to use – one reviewer calls it a “straightforward platform” that's “easy to set up and operate”.
❌ Things to keep in mind
- If you're looking for a rota scheduling tool, CharlieHR don't offer this option.
- A G2 reviewer stated that some elements on the platform can be “a bit clunky” and they would find the option to download things as CSV files really helpful, as CharlieHR don't offer this.
- One reviewer notes that whilst CharlieHR's platform is easy to understand, “the reporting was incredibly basic” and “[the homepage was basically restructured every few months], which is super annoying as just when you get used to it again, it all gets moved about!”
CharlieHR vs Breathe: What you need to know
BambooHR's functionality overview
✅ The good bits
- You can record e-signatures and access custom templates, streamlining document processes.
- Custom tabs and fields allow you to collect information specific to each employee, providing tailored data capture.
- BambooHR offer customer reporting, to create your own reports is enhanced by "Point-in-Time Reporting" for historical and future data analysis on compensation and job information.
- The onboarding view enables HR to build comprehensive task lists for new hires, a G2 reviewer shared "Onboarding is very easy using this."
- There are employee wellbeing insights available, using a survey and keyword analysis feature helps gauge employee sentiment by categorising feedback.
- Employee community (only on Pro Package), which offers a community feed, employee polls, Slack integration, and an event calendar, features beyond Breathe's core offering.
- Live chat support with real-time assistance is available during business hours.
❌ Things to keep in mind
- If you're looking for e-learning or expense management features, you won't find it with BambooHR.
- They offer a separate mobile app specifically for new hire management adds unnecessary complexity to the user experience.
- The absence of dedicated Kudos functionality and a Burnout Monitor report means BambooHR lacks specific tools for boosting employee recognition and proactively identifying potential burnout.
- Unlike Breathe's round-the-clock 24/7 support, BambooHR's live chat assistance is restricted to specific weekday business hours.
- A notable drawback is that performance management, often considered an essential HR function, it's only available as an add-on within BambooHR's Pro package, not included in their core offering. One reviewer shared "we have had to buy an additional ATS, an engagement and pulse survey tool, and a performance management tool."
- Even with the Time Tracking add-on in the Pro package, BambooHR doesn't provide a collaborative rota view that teams can use together for scheduling.
BambooHR vs Breathe: What you need to know
Comparing even more of the best HR software tools
Sense HR's functionality overview
✅ The good bits
- Sense HR gives users lots of flexibility to shape their HR system their way. You can customise workflows, templates, and forms to fit how your business works. Great for companies who want full control.
- The system is adaptable across industries, letting you build and adjust HR processes from scratch. That includes onboarding journeys, absence types, or policy checks.
- Features like automated document sharing, e-signatures, and reminders help things run smoothly throughout the employee lifecycle.
- You can set up dashboards and reports to track trends like absences or engagement, giving you useful insight to guide your people strategy.
- There's a self-service portal too, where employees and managers can book leave, update personal info, and access documents, helping everyone stay informed and in control.
- Built-in automation helps cut manual tasks by sending alerts, approvals and deadline reminders.
❌ Things to keep in mind
- The flexibility might take some getting used to. Smaller teams after a plug-and-play option may find the custom set-up a bit much.
- Some advanced tools, like the automation builder, are only available on higher pricing tiers. This means extra steps and extra costs.
- There's also no built-in wellbeing or employee recognition toolkit, which means you'll need external tools to support your culture.
- Some of the more useful features are only available on higher pricing tiers. And if employee wellbeing matters to you, you'll need to look elsewhere.
Sense HR vs Breathe: What you need to know
People HR's functionality overview
✅ The good bits
- People HR (also known as Access People HR), covers the essentials in one place, like holidays, timesheets, performance reviews and employee records.
- There's a drag-and-drop builder so you can automate tasks like onboarding or absence approvals.
- It includes a performance suite with tools for goals, feedback and 360 reviews.
- The system comes with a built-in Applicant Tracking System.
- The mobile app lets you manage HR tasks on the go.
- People HR also links up with other tools, like payroll providers, Microsoft Teams, Slack and other tools to help things run smoothly.
❌ Things to keep in mind
- The interface isn't the easiest to navigate.
- Custom reporting is limited on lower plans, so you'll need to upgrade for full visibility.
- Support levels vary by pricing tier, which might mean slower replies or fewer help channels for smaller customers.
- While there's a performance module, it doesn't include wellbeing or engagement tools like surveys.
People HR vs Breathe: What you need to know
Employment Hero's functionality overview
✅ The good bits
- Employment Hero brings HR, payroll and employee benefits into one platform. If you're looking for an all-in-one soltuion for big teams, this could tick a lot of boxes.
- It includes a recruitment module with job board posting, which can support you from initial hiring through onboarding.
- Their performance tools offer support for 1:1 meetings, goal setting and regular feedback.
- Payroll is integrated through KeyPay in the UK, which can help make pay runs feel more seamless.
❌ Things to keep in mind
- With so many features, some organisations find the platform more complex than they need - especially if their HR needs are on the simpler side.
- Many tools around benefits and learning are only available on higher-tier plans, which might not suit every budget.
- Some users mention that switching between payroll and HR tools can sometimes feel clunky.
- While the reporting tools are detailed, they take some getting used to and could require training.
- And although support is available, UK-based help is more limited, compared to Breathe HR - something worth bearing in mind when time is tight.
Employment Hero vs Breathe: What you need to know
HiBob's (Bob) functionality overview
✅ The good bits
- HiBob offers a powerful HR platform built for scaling and international teams, with advanced analytics, custom workflows, and a rich set of features.
- It’s ideal for companies managing global compliance, multiple locations, and complex payroll needs.
- Includes built-in engagement tools such as surveys, to help drive company culture.
- Flexible permissions, custom fields, and deep integration options make it easy to connect HiBob with other HR and business tools.
- Its advanced ATS streamlines hiring with scorecards, job board integrations, and AI-powered recruitment tools.
❌ Things to keep in mind
- HiBob’s extensive feature set can feel overwhelming for smaller UK teams, especially if they don’t need global-scale capabilities.
- Pricing is only available via a sales call, so it’s harder to compare costs upfront.
- Requires more onboarding and system configuration time, often needing dedicated HR or IT support.
- Some UK SMEs may find they’re paying for more functionality than they’ll actually use, especially compared to UK-focused options like Breathe HR.
- Support is global rather than UK-based, which may be a drawback for businesses that value local assistance.
HiBob (Bob) vs Breathe: What you need to know
HR platform for non-technical users
When it comes to an HR platform, it should be as user-friendly as possible, so everyone can use it, no matter their tech skills.
The best HR software is designed with an intuitive interface that makes it easy to navigate. A helpful support team enhances customer satisfaction and usability of the platform by providing timely and comprehensive assistance.
Features like self-service portals and automated workflows mean that anyone can update their own details, request leave, or access company documents without needing to call in the tech squad.
Many HR systems offer free training and support to help everyone get up to speed. This means that all employees, regardless of their technical skills, can jump right in and use the HR platform, leading to higher adoption rates and a smoother, more efficient workplace.
Additionally, these platforms facilitate HR compliance by providing tools for document tracking, handling grievance events, and managing employee data in accordance with legal obligations and best practices.
Implementation and onboarding
Implementing new HR software can seem like a big deal, but honestly, it's quite straightforward with the right support.
Many providers of HR software offer free trials, free training, and customer support to guide you through the setup. It's crucial to choose HR software that's easy to get the hang of, even if you're not particularly technical, and that includes a comprehensive onboarding process for a smooth transition.
To help SMEs get the best results from their HR software, some providers also offer customised implementation plans, data migration services, and ongoing support.
The best HR software for your business
It comes down to what’s right for your business. HR software solutions are designed to cater to the needs of all different business sizes - but not all specifically focus on SMEs in the UK. With any comparisons, we would advise you to do your own research into what’s the best option for you.
Don’t forget to look at reviews such as G2 and Trustpilot for independent reviews from real-life customers – to make sure you know what you’re signing up for.
HR compliance is another critical factor to consider, as different HR software options help organisations meet legal obligations and best practices.
Case studies can also be a good thing to explore, too – what have customers got to say about how the software has helped them?
It’s also important to weigh up the different customer support options & how effective they are, should you need them. A responsive customer support team can ensure a smooth experience with the platform.
Breathe's affordable HR software, just for SMEs
Designed just for SMEs, Breathe offers cost-effective, affordable pricing & a flexible free trial. Over half of UK businesses have recently incorporated HR software, making Breathe an ideal choice for these companies.
Breathe's features also ensure HR compliance, helping organisations meet legal obligations and best practices.
- Anne Wordsworth, Owner & Managing Director
Read the full comparison blogs
