In today’s fast-moving business environment, small companies in London are increasingly relying on HR software to manage their teams efficiently. From onboarding and payroll to performance reviews and leave tracking, these tools help businesses save time, reduce errors, and stay compliant with ever-evolving UK employment laws.
With so many platforms available, choosing the right one can feel overwhelming. That’s why we’ve curated a list of the top HR software solutions specifically suited for small businesses in London each with its own strengths and tailored features.
Why Do Small Companies in London Need HR Software?
For small businesses, managing HR manually can quickly become a burden. It often leads to disorganisation, data loss, compliance risks, and employee dissatisfaction. In contrast, HR software simplifies and automates many of these processes, helping companies create a professional work environment even with limited internal HR resources.
In a city like London, where business regulations are strict and competition is fierce, being efficient matters. HR software not only helps with legal compliance such as GDPR and UK-specific employment laws but also provides insights that support smarter decision-making, like tracking employee performance or planning growth.
What Features Should You Look for in HR Software for Small Businesses?
Choosing the right HR software isn’t just about price. it’s about functionality. Small companies should look for systems that are easy to use, don’t require IT support, and can grow with the business.
Key features that make a difference include a self-service portal for employees, streamlined time-off requests, onboarding tools, and performance tracking. Integration with payroll systems and the ability to handle compliance documentation are also critical. For London-based businesses, it’s especially important to ensure that the system is GDPR-compliant and tailored for UK law.
What Are the Top 10 HR Software Options for Small Companies in London?
1. Breathe HR – “Simple HR Software for UK SMEs”
Breathe HR is purpose-built for small UK businesses that need to manage HR processes without a large team. The software offers tools to track employee absences, store documents securely, and manage employee data all in one place. Its user-friendly interface is ideal for business owners and office managers without HR training.
Breathe is fully GDPR-compliant and is constantly updated to align with UK employment legislation. One of its biggest strengths is its simplicity it’s quick to set up and doesn’t overwhelm with unnecessary features. For London-based SMEs, having access to a cloud-based platform with UK support is a major advantage. It’s a solid starting point for any company digitising HR for the first time.
Focus Area
Employee data and absence management made effortless
Ideal Match
Small UK-based businesses needing a compliance-ready HR solution
Pricing: Starts from £18/month for up to 10 employees
- Website: https://www.breathehr.com
- Phone: 01403 288700
- Address: Unit 7 and Unit 6 Foundry Court, Foundry Lane, Horsham, West Sussex, RH13 5PY
- Email: culture@breathehr.com
Review: ★★★★☆
“As a growing business, Breathe has helped us ditch spreadsheets and stay compliant — everything is where we need it.”
2. CharlieHR – “The HR Platform for Forward-Thinking Startups”
CharlieHR is designed with UK startups and small teams in mind, especially those without a dedicated HR department. It simplifies tasks like onboarding, time-off tracking, and document storage, while also offering legal templates tailored to UK employment law. The platform has a clean, modern interface that’s easy for founders and small teams to adopt.
It also includes customisable workflows, allowing companies to shape the system around their internal processes. CharlieHR’s built-in compliance tools are incredibly helpful for avoiding legal pitfalls. With both free and premium plans available, it’s flexible enough for teams at different growth stages. London-based startups love it for how quickly it integrates into fast-paced environments.
Key Strength
Clean design with powerful automation features
Perfect Fit
Startups and digital-first teams seeking streamlined HR management
Pricing: Free plan available; Premium from £4 per employee/month
- Website: https://www.charliehr.com
- Phone: +44 (0) 20 3868 2070
- Address: 20-22 Wenlock Road, London, England, N1 7GU
- Email: help@charliehr.com
Review: ★★★★☆
“We love how CharlieHR fits into our remote team culture — the interface is clean and onboarding new hires is a breeze.”
3. PeopleHR – “All-in-One HR Software with Powerful Automation”
PeopleHR is a UK-focused HR software offering comprehensive features for growing companies. Its tools cover applicant tracking, holiday planning, employee data, and performance reviews, all within a sleek digital environment. Businesses in London particularly appreciate its automation repetitive HR tasks like approving holidays or scheduling reviews are handled with minimal input.
The platform supports role-based access and includes detailed analytics to help decision-makers monitor staff trends. There’s also a mobile app for HR on-the-go, ideal for distributed teams. It integrates easily with payroll and recruitment tools, making it a strong solution for businesses scaling beyond 10+ employees. It’s powerful without being overly complex.
Core Feature
Robust automation tools for everyday HR tasks
Best Use Case
Growing teams seeking to streamline recruitment and performance processes
Pricing: From £5 per employee/month
- Website: https://www.peoplehr.com
- Phone: +44 (0) 333 016 5101
- Address: 42 Tyndall Court, Commerce Road, Lynch Wood, Peterborough, PE2 6LR, England
- Email: info@peoplehr.com
Review: ★★★★☆
“It’s helped us cut down on paperwork, automate tasks, and focus on strategic hiring.”
4. Moorepay – “Complete HR & Payroll Solutions for UK SMEs”
Moorepay is a well-established UK-based provider offering a powerful combination of HR software and managed payroll services. It’s tailored for small and medium-sized businesses needing a dependable, all-in-one platform for compliance, employee management, and payroll accuracy.
The cloud-based HR system includes features like employee records, holiday tracking, performance management, and document storage. What makes Moorepay stand out is its fully managed payroll service and expert support that ensures businesses stay aligned with the latest UK employment law.
Their dedicated consultancy helps businesses handle everything from onboarding to disciplinary procedures. For London SMEs looking for both technology and hands-on guidance, Moorepay delivers a complete solution.
Core Strength
Combines automated HR tools with fully managed UK payroll services
Best Fit
SMEs looking for compliant, end-to-end HR and payroll support
Pricing: Custom quote based on company size and services
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Website: https://www.moorepay.co.uk
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Phone: 0345 184 4615
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Address: Lowry Mill, Lees Street, Swinton, Manchester M27 6DB
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Email: info@moorepay.co.uk
Review: ★★★★☆
“We moved to Moorepay for peace of mind with payroll and HR compliance — their support is excellent.”
5. BambooHR – “Global HR Tools with a Human Touch”
BambooHR is an international favourite with a strong reputation for user-friendly HR management. While not specifically built for the UK market, it still offers significant value for London SMEs. Features include onboarding checklists, time-off tracking, and employee self-service tools. The platform’s design is visually appealing, making HR less intimidating for small teams.
Though payroll integration in the UK requires additional configuration, the system’s overall flexibility is worth the effort. BambooHR is ideal for small companies with global aspirations or remote team members. With its extensive documentation and live support, even first-time users find it easy to master.
Notable Feature
Customisable onboarding workflows with strong analytics
Best Applied To
Small businesses that plan to scale internationally or work with remote teams
Pricing: Custom quote required
- Website: https://www.bamboohr.com
- Phone: +44 20 3393 9913
- Address: 142 Cromwell Rd, London SW7 4EF
- Email: info@bamboohr.com
Review: ★★★★☆
“It brings everything together beautifully — our HR processes are now more structured and insightful.”
6. Zoho People – “Flexible HR Software at an Affordable Price”
Zoho People is a powerful and cost-effective HR solution that fits well with startups and small businesses. It offers everything from attendance tracking to performance appraisals, and the system is highly configurable. Although not developed specifically for the UK, it can be tailored to meet local legal and compliance needs.
Its interface is clean and functional, and it integrates seamlessly with the broader Zoho suite, including CRM, Finance, and Projects. Zoho People is especially helpful for teams already operating in the Zoho ecosystem or looking for scalable automation. The pricing model is accessible, even for very small teams, which adds to its appeal in London’s competitive startup landscape.
Key Capability
Highly configurable modules that fit unique workflows
Great Match
Price-sensitive businesses needing feature-rich software
Pricing: From £0.70 per employee/month
- Website: https://www.zoho.com/people
- Phone: +44 (0) 20 3564 7891
- Address: 1 Canal Reach, London N1C 4DB
- Email: support@zohopeople.com
Review: ★★★★☆
“A great tool for what we pay — handles time-off, records, and reviews seamlessly.”
7. HiBob (Bob) – “Culture-First HR for Modern Teams”
HiBob often just called “Bob” is tailored for forward-thinking companies that prioritise culture and engagement alongside HR operations. The platform includes features like surveys, recognition tools, feedback loops, and performance tracking. It’s ideal for London’s hybrid and remote teams where keeping people connected is as important as staying compliant.
HiBob’s modern interface makes it easy for employees to interact with HR data in real-time. While it does have core HR features like time-off management and compensation tracking, its main value lies in boosting team morale and transparency. It’s a standout option for startups scaling in size and sophistication.
Main Focus
Enhancing company culture and employee engagement
Recommended For
Scale-ups with remote or hybrid workforces
Pricing: Custom quote based on company size
- Website: https://www.hibob.com
- Phone: +44 (0) 20 3318 5757
- Address: 1 Bartholomew Close, London EC1A 7BL
- Email: hello@hibob.com
Review: ★★★★★
“Bob has redefined how we engage with our team more connected, more feedback-driven.”
8. Monday.com HR – “Visual Workflows Built for People Management”
Monday.com isn’t built solely for HR, but it can be transformed into a powerful HR tool using custom templates. From onboarding pipelines and applicant tracking to leave approval workflows, it allows full flexibility. Teams in creative and tech industries particularly love its visual boards and task management capabilities.
For businesses wanting to shape their HR processes around their culture rather than adopting rigid tools, Monday.com provides that freedom. Its automation features save time, and its integrations with other tools like Slack, Zoom, and Gmail make it easy to stay productive. It’s perfect for those who think outside the traditional HR box.
Standout Function
Visual task management tailored for HR operations
Best Choice For
Businesses that want to build their own HR system from the ground up
Pricing: Starts at £7 per user/month
- Website: https://www.monday.com
- Phone: +44 (0) 20 3868 9192
- Address: Labs House, 15-19 Bloomsbury Way, London WC1A 2TH
- Email: support@monday.com
Review: ★★★★☆
“It’s flexible, powerful, and perfect for our unique HR workflows — no templates needed.”
9. Gusto – “Payroll and HR for Global Teams”
Gusto began as a payroll tool in the US but has expanded to support global contractor payments and onboarding. It offers a clean dashboard and powerful automation, making it easy for teams to manage international employees. For London companies hiring freelancers abroad or scaling globally, Gusto provides a way to pay staff while remaining compliant with international tax rules.
Although UK-specific payroll features are limited, its contractor capabilities are strong. Gusto also includes onboarding checklists and employee self-service tools, which work well for distributed teams. It’s a great tool for businesses working beyond borders.
Primary Feature
Simplified international payroll and contractor onboarding
Target Audience
Small businesses hiring global or remote workers
Pricing: From $6 per person/month
- Website: https://www.gusto.com
- Phone: +1 800-936-0383
- Address: 525 20th St, San Francisco, CA 94107, USA
- Email: support@gusto.com
Review: ★★★★☆
“A game-changer for paying international freelancers — fast, simple, and affordable.”
10. Personio – “European HR Suite Built to Scale”
Personio is a comprehensive HR software designed for European SMEs and increasingly adopted by London companies. It covers the full employee lifecycle from hiring to payroll, with compliance tools tailored to EU and UK regulations. The system is known for its clean interface, automated workflows, and reliable customer support.
Personio is ideal for businesses that are growing and need structure without sacrificing flexibility. Its recruitment module is particularly helpful for scaling teams, and its onboarding process ensures new hires feel supported. With a growing presence in the UK, it’s becoming a go-to solution for small businesses planning long-term expansion.
Core Benefit
End-to-end HR solution for compliance and scaling
Most Applicable To
SMEs planning structured growth within the UK and EU
Pricing: Custom quote available upon demo
- Website: https://www.personio.com
- Phone: +44 20 3314 4377
- Address: 151 Shaftesbury Ave, London WC2H 8AL
- Email: sales@personio.com
Review: ★★★★☆
“Personio brought consistency and structure to our HR processes a perfect fit for scaling.”
How Do the HR Platforms Compare for London-Based Businesses?
To help you make a quick decision, here’s a side-by-side comparison of the platforms:
| Software | Best For | Starting Price | UK-Specific Support | Key Focus Area |
| Breathe HR | Local SMEs | £18/month | Yes | HR compliance & absence |
| CharlieHR | Startups | Free / £4 per user | Yes | Admin automation |
| PeopleHR | Growing teams | £5 per user | Yes | Recruitment & analytics |
| citrusHR | HR without HR team | £7/user + £50 base | Yes | Software + HR consultancy |
| BambooHR | User-friendly global HR | Custom pricing | Partial | Scalable onboarding |
| Zoho People | Tech-savvy small teams | £0.70 per user | Partial | Affordable customisation |
| HiBob | Remote/hybrid teams | Custom pricing | Yes | Culture & engagement |
| Monday.com HR | Custom workflows | £7 per user | Partial | Visual HR boards |
| Gusto | Global payroll & contractors | $6 per user | Partial | International team mgmt |
| Personio | UK/EU scaling companies | Custom pricing | Yes | Full HR lifecycle |
Are Cloud-Based HR Systems Better for London Startups?
Cloud-based platforms are ideal for London-based startups and SMEs. They eliminate the need for on-premise infrastructure and offer instant access from anywhere especially beneficial for hybrid or remote teams. Updates happen automatically, data is encrypted, and employees can access their own information at any time, freeing up time for managers.
How Can London SMEs Maximise the Value of HR Software?
To get the most from HR software, small companies should treat it as a strategic tool not just admin automation. Setting up regular performance reviews, keeping documentation current, and using data insights to inform decisions can transform how a business operates. Choosing software that scales with the company also helps reduce transition costs as the team grows.
Which HR Platform is Right for Your Business?
There’s no one-size-fits-all answer. A startup with a tight budget might begin with CharlieHR, while a company with complex compliance needs may benefit from citrusHR’s consultancy model. If company culture is central to your identity, HiBob is worth exploring. For those eyeing global expansion, Personio or Gusto offer the right mix of features.
Conclusion
Absolutely. Whether you’re managing five people or fifty, having a centralised system to track data, streamline admin, and ensure compliance is a game-changer. With affordable, flexible tools now widely available, investing in HR software is no longer a luxury. it’s a necessity for small businesses that want to grow confidently and sustainably in London’s competitive market.
FAQs about HR Software for Small Companies in London
What’s the best HR software with UK compliance features?
Breathe HR and citrusHR are both excellent choices for their UK-centric features and local support.
Do these platforms support payroll for UK companies?
Some, like citrusHR and PeopleHR, integrate directly with UK payroll systems. Others may require third-party solutions.
Is it easy to switch HR software later?
Yes. Most platforms offer data export features and onboarding assistance when migrating.
Are there hidden fees in HR software pricing?
Most platforms are transparent, but some may charge for add-ons like consultancy or advanced integrations. Always review the pricing page carefully.
Which tool is easiest to use for beginners?
CharlieHR and Breathe HR are both highly rated for their clean interface and ease of use.
Can I use HR software without a dedicated HR manager?
Definitely. These tools are built for small teams and can be managed by business owners or office managers.
How quickly can HR software be implemented?
Most systems can be up and running within a few hours to a few days, depending on team size and features.