Small companies under 50 employees rarely need enterprise HR platforms like Workday or BambooHR paid plans. What they need is simple employee record management, time-off tracking, and basic onboarding - and several platforms offer this for free. We tested free HR tools with real small-company workflows to find the best options that actually work without paying.
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1. Zoho
Zoho People Free Best Overall Free
Free for up to 5 employees. Core HR, attendance, time off tracking, and employee self-service portal. Part of the Zoho ecosystem. Paid plans from $1.50/employee/month add payroll and performance.
- Up to 5 employees on free plan
- Attendance and time-off tracking
- Employee self-service portal
- Custom forms and fields
- Mobile app included
2. OrangeHRM
OrangeHRM Open Source Best Self-Hosted
Free and open source with unlimited employees. Self-hosted on your server. Core HR, leave management, time tracking, and recruitment. Active community with regular updates.
- Unlimited employees
- Leave management system
- Time and attendance tracking
- Recruitment module
- Custom reports and dashboards
3. Bitrix24
Bitrix24 Free Best All-in-One
Free for unlimited users. HR features alongside CRM, project management, and communication. Employee directory, absence chart, work reports, and time tracking in one platform.
- Unlimited users on free plan
- Employee directory and profiles
- Absence chart and time tracking
- Work reports and tasks
- CRM and PM included
4. Homebase
Homebase Free Best for Hourly Teams
Free for one location and up to 20 employees. Scheduling, time clock, team messaging, and basic hiring tools. Built specifically for hourly workers in retail, food service, and healthcare.
- Free for 1 location, 20 employees
- Employee scheduling
- Time clock with GPS tracking
- Team messaging built in
- Basic hiring and onboarding
5. Freshteam
Freshteam Free Best for Hiring
Free for up to 50 employees. Focused on recruitment and onboarding. Job posting to multiple boards, applicant tracking, offer letters, and employee onboarding checklists.
- Free up to 50 employees
- Multi-board job posting
- Applicant tracking system
- Offer letter templates
- Onboarding checklists
Quick Comparison
| Tool | Best For | Key Limit |
|---|---|---|
| Zoho People Free | Best Overall Free | Up to 5 employees on free plan |
| OrangeHRM Open Source | Best Self-Hosted | Unlimited employees |
| Bitrix24 Free | Best All-in-One | Unlimited users on free plan |
| Homebase Free | Best for Hourly Teams | Free for 1 location, 20 employees |
| Freshteam Free | Best for Hiring | Free up to 50 employees |
How We Tested
We signed up for each free plan and used it for real work over two weeks. We evaluated ease of setup, daily usability, feature completeness on the free tier, and the upgrade path when free limits are reached. Our recommendations prioritize tools where the free plan is genuinely useful, not just a demo.
Frequently Asked Questions
Is there free HR software for small businesses?
Yes. Zoho People Free supports up to 5 employees with attendance, time off, and employee self-service. OrangeHRM Open Source is free for unlimited employees if you can self-host. Bitrix24 Free includes basic HR features alongside its CRM and project management.
What HR tasks can free software handle?
Free HR software typically covers employee records, time-off requests, attendance tracking, and basic onboarding. Paid features usually include payroll, benefits administration, performance reviews, and advanced compliance reporting.
When should a small company switch to paid HR software?
Consider paid HR software when you pass 20 employees, need integrated payroll, want automated compliance reporting, or require performance management. Under 20 employees with simple needs, free tools handle the basics well.