Best HR software UK: What's the best for SMEs?

Comprehensive HR solutions can really make a difference - they can provide significant cost savings by centralising various HR functions, automating tasks, and enhancing the overall employee experience. 

These features, including onboarding, payroll management, self-service options, absence tracking, and attendance tracking, streamline HR processes and improve efficiency. 

We've done our best to put together a straightforward comparison (using info from the web and customers reviews) to help you busy SMEs make a decision faster. 

Introduction to HR management

What is an HRIS?

What is an HR system?

Comparing the top HR software tools for UK SMEs

Ideal functionality for SMEs

What's the best HR software in the UK?

Key features of HR software

Benefits of HR management

Benefits of HR software for SMEs

HR platforms for non-technical users

Implementation and onboarding 

The best HR software for your business

Breathe's affordable HR software 

Introduction to HR management 

Let's talk HR.  

It's what keeps everything running smoothly when it comes to your team. From hiring the right people, keeping their details safe, using payroll software, and making sure everyone gets their benefits.  

Good HR management is what makes a company a great place to work, where people are engaged and actually get things done.  

That's why loads of UK small businesses and SMEs are switching to HR software - it takes away the hassle, boosts employee happiness, and helps you make smart calls based on real data.  

What is an HRIS? 

An HRIS, or Human Resource Information System, is a comprehensive software solution that manages and automates a variety of HR processes within an organisation. 

Think of it as your HR team’s best friend – storing and managing employee data, streamlining HR tasks, and enhancing overall HR management.  

By integrating core HR functions like payroll, employee self-service, performance management, compliance tracking, and compliance documents, an HRIS helps businesses boost efficiency, lighten administrative loads, and ensure data accuracy.  

Custom reports also play a crucial role by helping make informed decisions through tracking various metrics. 

It’s a real game-changer for SMEs aiming to optimise their HR operations and nurture a more engaged and productive workforce. 

What is an HR system? 

Now, let’s talk about HR systems, also known as Human Resources Software. These cloud-based platforms are designed to make HR processes a breeze, helping organisations manage their employee data, payroll, and other HR-related tasks with ease. 

The best HR software offers a comprehensive and integrated solution for managing everything, from recruitment and onboarding to performance management and employee engagement.  

A knowledgeable customer success manager plays a crucial role in providing effective support and enhancing user experiences with the platform. The customer support team is also essential in ensuring a smooth experience, as they are praised for their willingness to go the extra mile in providing assistance. 

Employee management is a key feature of HR systems, streamlining various HR processes such as recruitment, performance management, and payroll.  

With an HR system, you can save time, cut down on admin headaches, and ramp up efficiency. By centralising HR functions, these systems help businesses keep accurate employee records, comply with regulations, and foster a more engaged and productive workforce. 

So, whether you’re a small business or an SME, these tools are here to make your HR life a lot easier. 

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 and BambooHR - 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. 

You’ve seen the highlights in the table - but here’s the detail to help you with your decision-making.

Breathe's functionality overview

✅  Pros  

• 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.  

• 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).   

• 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.   

• Breathe is simple to use, offering a straightforward, intuitive user experience. You'll also benefit from a free, flexible 14-day trial.   

• 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.”  

❌  Cons  

• 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.” 

• 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.   

BrightHR's functionality overview  

✅  Pros  

• 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).  
   

❌  Cons  

• 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  

✅  Pros   

• 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”.   
  
  

❌  Cons  

• 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 

✅  Pros 

• 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. 
  
  

❌  Cons  

• 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

Key features of HR software 

When you're choosing HR software, what do you actually need? Well, employee self-service is a big one, then there's leave management, payroll management, and performance management.  

A solid HR system will also include things like applicant tracking (for hiring), a dedicated account manager, and a way to store all your employee data.  

Plus, it's got to be easy to use, with those handy automated reminders and notifications to keep things ticking along. You'll find quite a few HR software choices that offer these kinds of features.

Benefits of HR management 

Let's be honest, you need good HR to run a company well.  

And that's where an HR system comes in. It can do wonders for things like keeping your employees engaged, boosting productivity, and making sure you're doing everything by the book.  

Onboarding new hires is a key feature – it really streamlines the whole hiring process and makes new starters feel welcome.  

HR software can also help you get your HR admin in order, cut costs, and make better decisions by helping you stay compliant with all the legal stuff and following best practices.  

When you automate those routine tasks, like payroll and leave, your HR team can focus on the stuff that really matters, like supporting and developing your employees. The result? A happier, more productive team. 

Benefits of HR software for SMEs 

HR software? It's a game-changer for SMEs.  

You can seriously save money, boost efficiency, and keep your employees happy.  

Think about it: by automating those boring HR tasks and having one place for all your employee info, you'll save tons of time and cut down on admin.  

Plus, HR software gives you real insights into how your team is doing – things like performance, attendance, and how engaged they are.  

This helps you make smarter decisions about your people. And the best part? You'll stay on the right side of HR regulations and avoid those costly mistakes or disagreements. 

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. 

"Before Breathe, HR was a total mess – spreadsheets, papers, word docs, everything everywhere. Now it's all in one place, secure, saving me loads of time and making life so much easier."

- Anne Wordsworth, Owner & Managing Director