The Best HR Software for Startups in 2023

1. Conduct market research.

Before selecting an HR software solution, take time to do your own research. Most providers have a significant amount of information on their website. You want to take the time to learn about the available features, add-ons and integrations. You should also look to see if pricing is available online or if you will be required to contact a sales representative to get a quote.

In addition, we recommend searching for online reviews from other users. You can start with a website like Trustpilot to compare. Look for any trending pros or cons related to features, user experience and customer service. You can learn only so much from a sales professional and looking over the website. But if you notice an issue is consistently mentioned in various reviews, you can ask the company about it and see how they address your concerns.

We also recommend looking for reviews from other startup owners. Since startups offer a uniquely fast-paced and rapidly changing work environment, it will help to hear what other owners have to say about a particular product. Once you’ve done this, as well as all of the steps above, write down any questions you may have.

2. Contact vendors for demos.

Now that you’ve down your own research, reach out to the vendors you’re most interested in. Ideally, you want to schedule a demo so you can see the software working in real time. Make sure that any administrators who may regularly use the software are also able to speak with the vendors. They may come up with additional questions. As you go through the demos, ask everyone from your company who is participating to take notes. These will be helpful to refer to when it’s time to make a final decision.

While you have the opportunity to meet with a vendor contact in real time, be sure to ask if they offer any sort of free trial. If so, you’ll want to take advantage of the opportunity to gain hands-on experience with the product. In order to avoid any confusion between products, we don’t recommend completing all of your free demos at the same time. Completing them separately will give you more time to think through any pros, cons or additional questions. You can then address these when you touch base with each vendor again.

3. Evaluate pricing.

Now that you’ve had time to use each product (or at least discuss it in more detail with other users) you should feel equipped to determine what features you need the most. Since adding additional features is what typically increases the price of HR software, it’s important to know exactly what you need and what will best support your business. However, don’t forget to think about the future. As you add employees, will your solution still be cost-effective? Take the time to think this over and ask your vendor about what may cause a rate increase in the future.

You have many options when selecting HR software. Carefully reviewing features and pricing, as well as taking the time to ask questions, will help ensure you find the best solution for your startup.


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