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HRM Case Studies With Solutions

Let’s study Human Resource Management Case Studies with solutions. HRM Case studies play a vital role in management education especially in subjects like Human Resource Management (HRM), Personnel Management, PAAP and related subjects.

It gives a clear picture of the concepts when you practise them through case studies. Here we have given some live HRM case studies that are short, useful & interesting. This will allow you to think beyond the theoretical part and make you capable to apply the concepts in real-time situations.

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We are also providing solutions which are free of cost. We welcome your feedback about these HRM case studies.

Below are short and simple Case Studies on HRM with Solutions, Questions, and Answers.

HRM Case Study 1

Harsha and Franklin both of them are postgraduates in management under different streams from the same B-School. Both of them are close to each other from the college days itself and the same friendship is continuing in the organization too as they are placed in the same company, Hy-tech technology solutions. Harsha placed in the HR department as employee counsellor and Franklin in the finance department as a key finance executive. As per the grade is concerned both are at the same level but when responsibility is concerned Franklin is holding more responsibility being in core finance.

By nature, Harsha is friendly in nature and ready to help the needy. Franklin is silent in nature ready to help if approached personally and always a bit egoistic in nature. They have successfully completed 4 years in the organization. And management is very much satisfied with both of them as they are equally talented and constant performers.

Harsha felt that now a day’s Franklin is not like as he uses to be in the past. She noticed some behavioural changes with him. During general conversations, she feels that Franklin is taunting her that she is famous among the employees in the organization, on the other hand, he is not even recognized by fellow employees.

One morning Mr. Mehta General Manager Hy-tech technology solutions shocked while going through the mail received from Franklin about his resignation. Mr. Mehta called Harsha immediately and discussed the same as she is close to Franklin. By hearing the news Harsha got stunned and said that she does not know this before she also revealed here current experience with him. Mr. Mehta who does not want to lose both of them promised her that he will handle this and he won’t allow Franklin to resign.

In the afternoon Mr. Metha took Franklin to Canteen to make him comfortable after some general discussion he starts on the issue. Franklin, after some hesitation, opened his thinking in front of Mr. Mehta. The problem of Franklin is

1) when he comes alone to canteen the people from others don’t even recognize him but if he accompanied by Harsha he gets well treated by others.

2) one day Both of them entered the company together the security in the gate wished them but the next day when he came alone the same security did not do so.

3) Even in meetings held in the office, the points raised by Harsha will get more value so many times he keeps silent in the meeting.

It happens to Franklin that he has to face such degradation in each day of work which totally disturbs him. Franklin also questioned that ” Harsha and myself have the same qualification, from the same institute, passed out in the same year both with first class. We have the same number of experiences in this organization. Moreover, the responsibilities with me are more valuable than those of Harsha. After all these things if I am been ignored or unrecognized by the fellow employees my ego does not allow me to continue here”.

By listening to this statement Mr.Metha felt that it is not going to be very difficult to stop his resignation. Mr. Mehta explained Franklin the reasons for such partial behaviour of the employees. After listening to Mr. Mehta Franklin said sorry for his reaction and ready to take back his resignation. And he called Harsha and spoke with like before.

Questions for HRM Case Studies: Case Study 1

Find the reason that Mr. Mehta would have given to Franklin.

Solution for HRM Case Study 1

Mr. Mehta listening to this case understood the situation and realized the reason behind the partial response given by the employees towards Franklin and Harsha. As Franklin said both Harsha and Franklin are passed out from the same college in the same year. Both of them joined the company together both have the same experience. Even in performance-wise, both stands in the same level i.e. both are constant performers and good performers.

Franklin analyzed all the above-said similarities between him and Harsha. He also stated that he holds more responsibility than that of Harsha. One thing Franklin did not notice or analyzed is the job profile of Harsha. It is true that Franklin holds more responsibility than that of Harsha but when it comes to direct interaction with employees Harsha wins the employees’ attention in this aspect. Harsha being a counsellor in HR she faces the employees every day. She developed good rapport among the employees due to her friendly nature. She is always remembered by the employees whenever they face any problem as she gives good counselling and most of the time she suggests the best solutions for such issues.

Franklin though holding a key position in finance his profile does not allow him to interact with the employees. Though he has a helping tendency he does only when someone approached him personally. As the employees of other departments do not have any relation with him they never approach him for help. Mr. Mehta having a good experience understood these things when Franklin explained his problems one by one. Later he relates each situation, explained by Franklin with the above said reasons and made Franklin understood the reality.

Mr. Mehta said that the security in the gate or the employees in the canteen who recognized Harsha and not Franklin would have interacted with her during counselling or approached her for any issues. And as usual, she would have counselled well or solved the issues of them that is the reason why they treat her and wish her whenever where ever they meet her. When it comes to the case of Franklin they would have hardly met him or interacted with him.

When it comes to the point that even in-office meetings Harsha, points are valued so Franklin keeps mum. For this, Mr. Mehta replied that the points put forward by her would be related to employees or from the employees’ point of view which actually the management wants to know so they give value to her points. And as quoted Fraklin after, one or two such incidents keep silent in the meeting. He never made an attempt to raise some suggestions so management does not have any option to listen to that suggestion.

After listening to all the explanations given by Mr. Mehta Franklin realized his mistake and felt proud of the Rapport developed by Harsha among the employees. He said to Mr. Mehta that he will take back his resignation. And rushed to Harsha to make an apology and to meet her as a friend as like his college days.

HRM Case Studies Part 2:

HRM Case Study 2

Watson Public Ltd Company is well known for its welfare activities and employee-oriented schemes in the manufacturing industry for more than ten decades. The company employs more than 800 workers and 150 administrative staff and 80 management-level employees. The Top-level management views all the employees at the same level. This can be clearly understood by seeing the uniform of the company which is the Same for all starting from MD to floor level workers. The company has 2 different cafeterias at different places one near the plant for workers and others near the Administration building. Though the place is different the amenities, infrastructure and the food provided are of the same quality. In short, the company stands by the rule of Employee Equality.

The company has one registered trade union. The relationship between the union and the management is very cordial. The company has not lost a single man day due to strike. The company is not a paymaster in that industry. The compensation policy of that company, when compared to other similar companies, is very less still the employees don’t have many grievances due to the other benefits provided by the company. But the company is facing a countable number of problems in supplying the materials in the recent past days. Problems like quality issues, mismatch in packing materials (placing material A in the box of material B) incorrect labelling of material, not dispatching the material on time, etc…

The management views the case as there are loopholes in the system of various departments and hand over the responsibility to the HR department to solve the issue. When the HR manager goes through the issues he realized that the issues are not relating to the system but it relates to the employees. When investigated he come to know that the reason behind the casual approach by employees in work is

• The company hired new employees for a higher-level post without considering the potential internal candidates.
• The newly hired employees are placed with higher packages than that of existing employees in the same cadre.
• Narrate the case with a suitable title for the case. Justify your title.

Solution for HRM Case Case Study 2

Employee Equality is not the need for every hour. In the above-said case, Watson Ltd had provided all facilities to employees at each grade in an equal manner. But still, the employees started creating certain issues like materials are meeting the quality supply schedule is not met etc. And the HR manager said that the policy of hiring new employees for the higher post without considering old potential employees is the major problem.

“Employee recognition VS Employee equality ”. As the HR manager states that employees are not been recognized for the potential rather the company has gone for new recruitment. Because of which the company faces problems.

• The points rose by the HR manager as the reason for the latest issues in the organization is justifiable or not. Support your answer with Human resource related concepts.

Yes, the points raised by the HR manager is justifiable because “Human beings are social Animals as popularly” said by many Human resources Scholars. So human minds demand social recognition, self-respect, consideration, etc for their work and performance.

In the above-said case, even the company provides and stands by the concept of employee equality when it fails to recognize the potential talents of existing employee they felt dissatisfaction towards the organization and they showed in the way of quality issues and slow down production.

Related HR concept.

Slow down Production:

The concept of slow down production is a type of employee’s strike. The Industrial Relations sates that when the employee wants to show their dissatisfaction to the management but don’t want to go for strike they follow slow down strike. The impact of which will be understood after a particular time period.

Employee Recognition:

Human beings can be easily motivated by Rewards and recognition than that of money. In this case, also the employee is not satisfied even after all facilities just because of the reason that they are not recognized.

Hawthrone Experiment:

In the four types of test conducted by Elton Mayo, the remarkable hike in production is recognized in the stage when they consulted the employees for the management decisions regarding them. The same thing was missing in Watson Ltd. Before the new hires if the management consulted the employees both management and employees would have avoided this issue

Hygiene Factor:

The theory of hygiene factors states that there are certain factors related to employees the presence of which will not create a major impact but the absence of such things will lead to a de motivation to the employees. Employee Recognition is one such factor when the management fails to do so it will Detroit the employees to a great extent.

• Help the organization to come out from this critical issue. If you are in the role of HR manager what will be your immediate step to solve this case.

If I was in the post of the HR manager I will try to discuss the issue and ask for the reason from the management for new recruiting rather than considering available potential talents. I will personally analyse the reasons provided by management and if acceptable I will discuss the same with the employees. Everything is possible with a discussion. So I will discuss and convince the employee that this won’t happen again in the organization. I will also initiate the collective bargaining process for reasonable salary hike for the existing employees.

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HR Training Resources

A Guide to Human Resources Management Case Studies

Human Resource Management case studies provide valuable insights into the challenges faced by HR professionals in diverse workplaces. In this comprehensive guide, we will explore real-life examples of HRM in action, showcasing the strategies and solutions implemented to tackle various HR challenges.

Key Takeaways:

• Human Resources Management Case Studies offer practical insights for HR professionals.
• Real-life examples highlight strategies and solutions for overcoming HR challenges.
• Case studies showcase the importance of effective HR strategies in organizational success.
• Diverse scenarios demonstrate the application of HRM practices in different workplaces.
• Continuous learning and adaptation are crucial for HR professionals to stay effective.

The Changing Landscape of HRM

In the rapidly evolving global business environment, Human Resources Management (HRM) is constantly adapting to new trends and challenges. From the emergence of emerging markets to the digitalization of workplaces, HR professionals have had to navigate through various obstacles to effectively manage their workforce. One of the most significant challenges in recent times has been the global COVID-19 pandemic, which has necessitated swift and innovative HR strategies.

To gain a deeper understanding of how organizations have successfully managed these changes and optimized their HR practices, we will delve into a range of case studies. These case studies provide valuable real-world examples that HR professionals can analyze and apply in their own organizations. By studying these HR case studies , professionals can learn from the experiences of others, gaining insights into successful strategies and approaches.

Utilizing HR case studies for analysis allows us to discover how organizations have leveraged HRM to overcome obstacles and adapt to new circumstances. These real-life examples showcase the diverse ways in which organizations have effectively managed HR challenges, providing valuable lessons and strategies for HR professionals across industries.

Company XYZ, a multinational technology firm, faced challenges in attracting and retaining top talent due to the fast-paced nature of the industry. To address this, they implemented a strategic HR initiative that focused on creating a flexible work environment, providing opportunities for professional development, and offering competitive compensation packages. As a result, the company experienced a significant reduction in employee turnover and an increase in employee satisfaction and productivity.

This case study highlights how HR professionals at Company XYZ were able to adapt to the changing landscape of HRM by implementing innovative strategies. By analyzing such success stories, HR professionals can gain valuable insights into the strategies and practices that drive organizational success.

• HRM is constantly evolving to respond to new trends and challenges in the business world.
• Case studies provide real-world examples of effective HR practices in managing change.
• Successful organizations leverage HRM strategies to optimize their workforce and drive organizational success.

The Importance of Effective HR Strategies

Effective HR strategies are crucial for organizations to attract, retain, and develop top talent. By implementing strategic HR practices, companies can create a positive work environment that fosters employee engagement, productivity, and overall organizational success. In this section, we will explore case studies that highlight successful HR strategies implemented by companies across different industries, providing valuable insights for research and inspiration.

Case Studies: Success Stories in HR Management

Case Study 1: Company X

“Our HR strategy of prioritizing employee well-being and work-life balance has had a significant impact on our organizational culture. Through flexible work arrangements, wellness programs, and regular communication channels, we have seen a remarkable increase in employee satisfaction and productivity.”

Case Study 2: Company Y

“By investing in employee development and career progression, we have been able to attract top talent and retain key employees. The implementation of mentorship programs, training initiatives, and performance feedback systems has led to higher employee engagement and a stronger talent pipeline.”

Case Study 3: Company Z

“Our HR strategy focuses on promoting a diverse and inclusive workforce. Through targeted recruitment efforts, diversity training programs, and inclusive policies, we have successfully created a culture that celebrates and values diversity, leading to improved employee satisfaction and innovation.”

The Impact of Strategic HR Practices

These success stories demonstrate the tangible benefits of strategic HR practices. Organizations that prioritize effective HR strategies are better equipped to attract and retain top talent, foster employee engagement and satisfaction, and drive overall organizational success. By studying these case studies, researchers and HR professionals can gain valuable insights and inspiration to enhance their own HR practices and achieve similar levels of success.

By examining these HRM case studies for research and guidance, organizations can adopt successful strategies and adapt them to their unique contexts. The implementation of effective HR strategies is key to creating a thriving workplace culture that empowers employees, maximizes productivity, and ultimately drives the success of the organization.

Fundamental Concepts of HR Management

Before diving into Human Resources Management Case Studies , it is essential to have a solid understanding of the fundamental concepts that underpin HR management. This section will explore key definitions and concepts to provide a strong foundation for in-depth analysis of the case studies.

Definitions and Clarifications

Let’s start by clarifying some key terms:

• Management : Refers to the process of coordinating and overseeing organizational resources to achieve specific goals and objectives.
• Resources : In the context of HR, resources refer to the individuals who contribute to the organization’s success, including employees, contractors, and other stakeholders.
• Role of a Manager : A manager is responsible for planning, organizing, directing, and controlling resources to achieve organizational goals and objectives. In the HR context, managers focus on effectively managing human resources.
• Difference between Management and Administration : While the terms management and administration are sometimes used interchangeably, it is important to note the subtle distinctions. Management is concerned with the implementation of strategies and the coordination of resources, whereas administration involves the overarching policies, procedures, and regulations that govern the organization.

By understanding these fundamental concepts, we can delve deeper into the case studies and gain valuable insights into the challenges and solutions faced by HR professionals.

Inspiring Quote

“Management is doing things right; leadership is doing the right things.” – Peter Drucker

Key Definitions

Management functions and responsibilities.

Effective management is essential for HR professionals in their role of overseeing an organization’s human capital. Understanding the four basic functions of management – planning, organizing, directing, and controlling – is critical for HRM success. Each function contributes to the efficient and effective management of human resources, ensuring organizational goals are met.

In addition to these management functions, HR managers have specific responsibilities that contribute to the overall success of the organization. These responsibilities include:

• Recruitment and selection of qualified candidates
• Employee onboarding, training, and development
• Creating and enforcing HR policies and procedures
• Ensuring legal compliance in all HR practices
• Managing employee relations and resolving conflicts
• Designing and administering compensation and benefits programs
• Developing and implementing employee engagement initiatives
• Overseeing performance management and evaluation processes

Furthermore, HR plays a vital role in the administrative cycle of an organization. HR professionals are responsible for managing and maintaining accurate HR records, handling payroll and benefits administration, and ensuring compliance with employment laws and regulations.

By effectively executing their management functions and fulfilling their responsibilities, HR professionals contribute to the development and success of an organization’s human resources, driving overall organizational performance and productivity.

Skills and Competencies in HR Management

The success of an HR manager relies on a combination of technical skills and personal qualities. Understanding and mastering these essential skills and competencies is crucial for effectively managing human resources in any organization. Here, we will explore the key characteristics that distinguish an effective HR manager and how they contribute to success in HR management.

1. Integrity

Integrity is the foundation of trust in any HR department. HR managers must demonstrate honesty, transparency, and ethical behavior in all aspects of their work. By upholding high ethical standards, HR managers cultivate a culture of integrity, ensuring fair and unbiased treatment of employees and fostering a positive work environment.

2. Flexibility

Flexibility is essential in an ever-changing business landscape. HR managers must adapt to evolving workplace dynamics, industry trends, and technological advancements. This includes being open to new ideas, embracing change, and continuously updating HR strategies to align with organizational goals and employee needs.

3. Resilience

HR managers often face challenging situations that require resilience and the ability to navigate complex issues. They must stay composed in difficult times, effectively manage conflicts, and find creative solutions to address HR challenges. Resilient HR managers are invaluable assets to organizations, as they can lead teams through change and uncertainty, ensuring continuity and stability.

4. Proactivity

Successful HR managers are proactive in identifying potential issues before they escalate. They anticipate future needs and create proactive strategies to address them. By staying ahead of the curve, HR managers can plan and implement initiatives that support employees’ growth, well-being, and overall job satisfaction.

“Proactive HR managers take a proactive approach to identify potential pitfalls early on, allowing organizations to prevent problems rather than just managing them when they arise.”

In addition to these personal qualities, HR managers must possess a range of technical skills to effectively manage human resources. Some of these skills include:

• Recruitment and selection
• Training and development
• Performance management
• Employee relations
• Compensation and benefits
• HR data analysis

To exemplify these skills and competencies, let’s take a look at a real-life HR case study:

By analyzing such HR case studies , aspiring HR professionals and organizations can gain valuable insights into the practical application of skills and competencies in HR management.

Now that we have explored the essential skills and competencies in HR management, it is clear that successful HR managers possess a unique blend of personal qualities and technical skills. These individuals play a vital role in driving organizational success by effectively managing human resources and fostering a positive work environment.

Employee Motivation and Engagement

Motivated and engaged employees are essential for organizational success. In this section, we will explore the crucial role of HR in motivating employees and fostering a culture of engagement. By examining real-life case studies, we will identify effective strategies and initiatives implemented by organizations to boost employee motivation and engagement.

Motivation through Recognition

Employee recognition is a powerful tool for motivating and engaging employees. Organizations that prioritize recognition programs create a culture of appreciation and reinforce desired behaviors. Case studies highlight the impact of tailored recognition programs on employee satisfaction, morale, and performance.

Professional Development and Growth

Providing opportunities for professional development and growth is another key driver of employee motivation and engagement. Organizations that invest in training, mentorship programs, and career advancement opportunities empower employees to enhance their skills and fulfill their potential. Real-life examples demonstrate how these initiatives contribute to higher employee satisfaction and loyalty.

Well-being Initiatives

Employee well-being initiatives play a vital role in nurturing a positive work environment and enhancing motivation. By offering wellness programs, flexible work arrangements, and promoting work-life balance, organizations prioritize the holistic well-being of their employees. Case studies highlight the positive impact of these initiatives on employee engagement, productivity, and overall satisfaction.

Effective Communication

Open and transparent communication is integral to fostering motivation and engagement among employees. Organizations that prioritize effective communication channels, including regular feedback, town hall meetings, and collaborative platforms, create an environment of trust and inclusion. Real-life examples demonstrate how improved communication positively influences employee engagement and overall organizational performance.

“Effective employee motivation and engagement are the cornerstones of a thriving organization. By examining real-life case studies, HR professionals and organizations can gain valuable insights into successful strategies and initiatives that fuel motivation and foster meaningful employee engagement.”

The case studies above demonstrate how organizations have successfully implemented strategies to motivate and engage their employees. By leveraging recognition, professional development, well-being initiatives, and effective communication, these organizations have created a positive work environment that drives employee satisfaction, productivity, and loyalty.

Strategies for Effective HR Management

HR professionals play a critical role in developing and implementing effective HR strategies. By analyzing real-life case studies, we can gain valuable insights into HR best practices. These case studies highlight successful strategies in key areas such as:

Recruitment and Selection

Training and development, performance management, compensation and benefits, labor relations.

Let’s explore how organizations have utilized these strategies to optimize their HR practices and achieve their business objectives.

“The key to effective HR management lies in understanding the unique needs and challenges of your organization. By analyzing case studies, we can gain valuable insights and tailor our strategies to drive employee engagement, productivity, and organizational success.”

Effective recruitment and selection processes are crucial for attracting and hiring top talent. Case studies in this area often showcase innovative methods used to identify and attract qualified candidates. From leveraging technology platforms for applicant screening to implementing targeted recruitment campaigns, organizations have successfully optimized their hiring processes.

Investing in employee training and development is essential for enhancing skills and fostering long-term growth. By examining case studies in this domain, we can learn from organizations that have successfully implemented comprehensive training programs, mentorship initiatives, and continuous learning platforms. These strategies contribute to a skilled and motivated workforce.

Effective performance management systems align individual and team goals with organizational objectives. Case studies in this area often highlight organizations that have implemented performance measurement frameworks, regular feedback systems, and performance-based incentives. This data-driven approach ensures transparency, fairness, and continuous improvement.

Strategic compensation and benefits programs attract, retain, and motivate talented employees. Case studies demonstrate how organizations have designed competitive salary structures, employee recognition programs, and comprehensive benefits packages. These initiatives contribute to higher employee satisfaction, engagement, and overall organizational performance.

Managing labor relations requires effective communication, negotiation, and conflict resolution skills. Case studies in this area offer insights into organizations that have successfully fostered positive relationships with unions, implemented fair labor practices, and resolved labor disputes amicably. These examples highlight the importance of proactive labor management strategies.

By learning from these case studies and applying the demonstrated strategies, HR professionals can optimize their HR management practices and create a positive impact on organizational success.

These case studies showcase the application of effective HR management strategies in different organizations. They provide practical examples of how organizations have achieved success by implementing various strategies tailored to their unique needs and challenges.

Leveraging HR Technology

HR technology has revolutionized HRM processes, enabling organizations to streamline operations and enhance efficiency. By leveraging the power of technology, HR professionals can optimize their strategic decision-making and ensure a seamless employee experience.

Let’s examine some insightful case studies that illustrate the successful implementation and utilization of HR technology. These examples demonstrate how organizations have harnessed the potential of HRIS (Human Resource Information System), talent management software, and data analytics tools to drive meaningful outcomes and achieve their HR objectives.

Case Study 1: Enhancing Recruitment with HRIS

In this case study, Company ABC implemented an HRIS software to streamline their recruitment process. The software automated job posting, applicant tracking, and resume screening, significantly reducing the time and effort spent on manual tasks. With the implementation of HRIS, the HR team at Company ABC experienced a 40% reduction in time-to-hire and an improvement in the quality of hires.

“The HRIS software has transformed our recruitment process, allowing us to focus on strategic talent acquisition. The automation and advanced analytics capabilities have enabled us to make data-driven decisions and hire top talent efficiently.” – Sarah Thompson, HR Manager, Company ABC

Case Study 2: Optimizing Performance Management with Talent Management Software

In this case study, Company XYZ adopted a talent management software platform to streamline their performance management process. The software offered features such as goal setting, continuous feedback, and performance analysis, empowering managers and employees to take a more proactive approach to performance improvement. As a result, Company XYZ experienced a significant increase in employee engagement and aligned performance goals across the organization.

“The talent management software has revolutionized our performance management process. It has fostered a culture of continuous feedback and empowered our employees to take ownership of their professional growth. The transparent performance analytics have enabled us to identify and reward top performers effectively.” – John Davis, HR Director, Company XYZ

Case Study 3: Leveraging Data Analytics for Strategic Decision-Making

In this case study, Company DEF implemented advanced data analytics tools to gain insights into their HR processes. By analyzing data related to employee engagement, turnover rates, and performance metrics, the HR team at Company DEF could identify trends, patterns, and areas for improvement. This strategic use of data analytics enabled Company DEF to make informed decisions and implement targeted HR interventions, resulting in improved retention rates and increased productivity.

“Data analytics has been a game-changer for our HR department. By leveraging actionable insights from our HR data, we have been able to proactively address employee concerns, enhance our talent acquisition strategies, and design targeted training programs. Our data-driven approach has significantly contributed to our overall organizational success.” – Lisa Johnson, HR Manager, Company DEF

These case studies demonstrate how organizations can harness the potential of HR technology to drive efficiency, improve decision-making, and enhance the employee experience. By leveraging the right combination of HRIS, talent management software, and data analytics tools, HR professionals can transform their HR practices and contribute to the strategic objectives of the organization.

Leveraging HR technology is essential in today’s digital era, where technology continues to shape the future of work. By staying informed about the latest HR technology trends and exploring case studies, HR professionals can identify opportunities for innovation and drive impactful HR initiatives.

Now, let’s explore another critical aspect of HR management – diversity and inclusion.

Diversity and Inclusion in HR Management

In today’s diverse workforce, creating an inclusive environment is essential for effective human resources management. Organizations that prioritize diversity and inclusion benefit from improved employee satisfaction, increased productivity, and enhanced innovation. Let’s explore some real-life examples of HRM case studies that highlight the successful efforts of organizations to foster diversity and inclusion within their workforce.

Case Study 1: XYZ Company

XYZ Company, a global technology firm, recognized the value of diversity and inclusion in driving organizational success. They implemented a comprehensive diversity program that focused on recruiting and retaining employees from diverse backgrounds. By promoting a culture of inclusion through training, mentorship, and employee resource groups, XYZ Company witnessed a significant increase in employee engagement and creativity. This case study demonstrates the positive impact of diversity and inclusion initiatives on overall organizational performance.

Case Study 2: ABC Corporation

ABC Corporation, a leading retail company, recognized the importance of diversity and inclusion in meeting the needs of their diverse customer base. They implemented unconscious bias training for their hiring managers and implemented policies to ensure equal opportunities for all employees. As a result, ABC Corporation experienced improved employee satisfaction, reduced turnover rates, and a boost in customer loyalty. This case study exemplifies the positive outcomes that can be achieved through a commitment to diversity and inclusion in HR management.

By analyzing these HRM case studies , organizations can gain valuable insights into successful diversity and inclusion initiatives. Implementing similar strategies, such as targeted recruitment efforts, inclusive policies, and diversity training programs, can help companies create a more inclusive and diverse workforce, fostering a culture of innovation and success.

Incorporating diversity and inclusion into HR management practices is not only a legal and moral imperative, but it also leads to tangible business benefits. Organizations that embrace diversity and create an inclusive workplace are better equipped to attract top talent, retain employees, and drive innovation. By learning from these HRM case studies , organizations can develop effective strategies to foster diversity and inclusion, ultimately contributing to their long-term success.

Adapting HR Practices in Times of Crisis

In times of crisis, such as economic downturns or natural disasters, HR professionals face unique challenges that require them to adapt their practices quickly and effectively. By analyzing HRM case studies that showcase organizations’ responses to crises, we can gain valuable insights into the strategies and approaches they employed to navigate through turbulent times and emerge stronger.

The Importance of Flexibility

One key lesson we can learn from HR case studies in times of crisis is the importance of flexibility. Organizations need to be agile and responsive to rapidly changing circumstances. HR professionals play a vital role in proactively adjusting HR practices, policies, and procedures to meet the immediate needs of employees and the organization as a whole.

“During the global financial crisis of 2008, XYZ Corporation faced severe economic challenges that threatened its survival. The HR team swiftly implemented cost-cutting measures, including a freeze on hiring and salary reductions, while carefully balancing employee morale and engagement. Through open communication and transparent decision-making, XYZ Corporation managed to weather the storm and emerge with a more resilient workforce.”

By adopting a flexible approach, HR professionals can help organizations navigate through turbulent times, mitigate the impact on employees, and position the company for recovery and future growth.

The Power of Resilience

Resilience is another critical factor in adapting HR practices during a crisis. HR professionals need to demonstrate resilience in the face of uncertainty and guide employees through challenging times. By instilling confidence, providing support systems, and fostering a sense of unity, HR managers can help organizations withstand the pressures of a crisis and emerge stronger.

Resilience can be seen in action through the implementation of employee assistance programs, mental health initiatives, and crisis communication plans. These measures help employees navigate the emotional and psychological challenges brought on by the crisis, ensuring their well-being and enabling them to contribute effectively to the organization’s recovery efforts.

Proactive Planning for Future Crises

The best HR case studies in times of crisis highlight the importance of proactive planning. While crises may be unexpected, organizations can anticipate potential challenges and develop contingency plans to address them swiftly and efficiently. By anticipating various scenarios and regularly reviewing and updating crisis response strategies, HR professionals can position their organizations for success even in the face of uncertainty.

In addition to crisis preparedness, proactive planning involves identifying key skills and competencies that will be crucial in future crises. By integrating training programs, succession planning, and talent management initiatives into their HR practices, organizations can ensure they have the capabilities necessary to navigate through any crisis that may arise.

Table: Strategies for Adapting HR Practices in Times of Crisis

Adapting HR practices in times of crisis requires a combination of flexibility, resilience, and proactive planning to ensure the well-being of employees, maintain productivity, and secure the organization’s long-term success.

Human Resources Management Case Studies provide HR professionals with valuable insights into real-world challenges and innovative solutions. By analyzing these examples, organizations can learn from best practices and optimize their own HR strategies. The showcased case studies highlight the diverse scenarios that HR professionals face and the creative approaches they employ to overcome obstacles.

Continuous learning from these experiences enables HR professionals to enhance their skills and contribute to the overall success of their organizations. These case studies serve as a source of inspiration, demonstrating the importance of adaptability, strategic thinking, and effective HR management.

By embracing the lessons learned from Human Resources Management Case Studies, HR professionals can strengthen their expertise, foster employee engagement, and drive organizational growth. These real-life examples reaffirm the significance of HRM for businesses in today’s dynamic and ever-evolving corporate landscape.

Source Links

• https://www.shrm.org/credentials/certification/educators/teaching-resources
• https://www.e-elgar.com/shop/usd/case-studies-in-work-employment-and-human-resource-management-9781788975582.html
• https://gfoundry.com/everything-you-need-to-know-about-human-resources-a-manual-for-managers-and-professionals/

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Building an effective recruitment strategy is essential for any organization looking to attract and hire top talent. The HR recruitment process plays a critical role in identifying and selecting the most qualified candidates for open positions. By implementing proven HR recruitment strategies, businesses can streamline their hiring process and ensure they are attracting the best…

A Guide to Human Resource Management Strategic Initiatives

Strategic human resource management (SHRM) is a vital process that organizations use to manage their employees and align HR programs and policies with the company’s business strategy. By creating programs and policies that support the company’s goals, such as performance management, training and development, compensation and benefits, and employee relations, SHRM improves employee performance, develops…

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• September 26, 2022

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HR as a function has undeniable importance from a business management perspective. With the advancement in technology, 2022 saw a huge technological shift in this aspect of business management as well. Apart from digitizing all other business aspects, organizations have begun to incorporate technology and data into HR practices as well.

HR Analytics Case Studies with Business Impact and its benefits are listed below:

An american mnc reduces attrition using people analytics and forecasting.

Case: This American MNC is a client of PeopleStrong and is suffering from a high turnover of employees at five locations. The company intended to install analytics in order to evaluate the main drivers of attrition and do forecasting for their occurrence at different business locations.

Solution: An integrated tool for workforce analytics was created and implemented. This tool could capture attrition results and their drivers and do a forecasting based on trends.

Also Read:  Executive Development Program In Human Resource Management From XLRI Jamshedpur

Result: The forecasting report predicted that 500 of the 5000 employees were going to quit in the next 6 months. Better employee retention policies were designed which included rewards and incentives apart from better people strategies. Even though 250 people still left, the figure was 50% lower than the prediction.

Under Armour digitized employee recruitment and enhanced employee experience

Case: Under Armour, an American organization dealing with the manufacture of sports and casual apparel and footwear, is a global company. With more than 130 global outlets and 8500 employees, their ATS system received more than 30,000 resumes in a month. Thus, hiring was a cumbersome process for them as well as candidates applying for a job.

Solution: They engaged in a digital recruitment system called Hirevue. With Hirevue, managers could create interviews with candidates with the help of pre-recorded questions. This screening process helped managers call in only employees who met their requirements for webcam or mobile recorded interviews.

Result: Managers could now hire new employees much more quickly. There was a 35% reduction in time in the overall interview to the hiring process. Talent quality also improved.

These above case studies show the emerging trend of incorporating analytics in the HR function of business management . This can also be seen to have positive results in the recruitment and retention processes. 

Human resource management is quite a recent term. Employees are treated with a lot of respect and regard nowadays compared to earlier. There were times when workers were considered to be expendable and they had few rights. Working conditions were miserable and people had no say in how organizations are operated or in the way they were treated. The industrial revolution is what brought changes. Companies started realizing that keeping employees loyal was essential for running businesses smoothly.  

Caring For Employees During The Industrial Revolution

Courses for human resources certification online teach that before the industrial revolution there were hardly any large industries and a need for managing workers was not felt. Working conditions were dangerous for them and pay was hardly commensurate with what work they did. In the late 1900s, companies like the UK-based Cadbury and Jacob from Ireland appointed welfare officers. These firms introduced a system of payment during sick leaves and cheap housing for employees.

Also Read:  Executive Development Program In HR Analytics From XLRI

It was F W Taylor during the early twentieth century who introduced a system for managing staff. He believed that people could be trained to become experts in certain jobs. The famous carmaker Ford adopted his methods. Tools in manpower management like job analysis, employee selection procedures, and training methods were introduced during this period. Certain fast food organizations also adopted Taylor’s theories. His mistake was that he did not think people can get bored with doing the same job.

Employee Management During The World Wars

Two events that changed many things for us are the first and second world wars. Employee unions had been formed during the first world war. As men went to fight wars, women came to be seen more in workplaces. In your HR training certification by IIM Raipur , you will learn how companies had to think about managing workers and form new rules. Recruitment, dismissal, bonus, and absence from work came under the scope of manpower management.

Researchers like Elton May opined that factors like motivation, job satisfaction, leadership skills, and group dynamics could influence performance. The improvement in the economy after the war saw many firms adopting a more flexible approach to staff members. Big companies used employee benefits to lure and retain people. Personnel and welfare work was in full swing during the second world war, but it was done in a bureaucratic style as government-run firms influenced law-making.

The Post-War Scenario

The 60s were not good times for industrial relations as it was found that none of the entities involved in negotiation had skills to discuss issues of employees. As the decade came to an end, employment opportunities improved, and along with this, people management techniques began to be used. When you study human resources certification online courses you will know that terms like motivation, organizational behavior, and management training were heard more commonly.

Also Read:  Executive Development Program In Talent Management

In the seventies, much was talked about rewarding employees. The next two decades saw economies sliding and companies becoming less profitable. But it was also then that many organizations realized the importance of retaining people. They began looking at workers as an asset that must be taken care of if the firm wants to have an edge over competitors. Humans started to be regarded as resources that need to be effectively managed. Human Resource Management was born.

The Nineties To Now

It is no more only personnel management and administrative tasks for workforce heads. The HR training certification by IIM Raipur will tell you that it is more about employee engagement and development that people managers are tasked with now. Human resource departments are strengthening the culture in an organization and finding people who can fit that environment. They are also tasked with ensuring that every employee gets an opportunity to use his or her talents for the benefit of their companies.

Also Read:  Why is it Important to Study Human Resource Management?

HR managers are more focused on workers than on processes. This department is also gaining more importance as management’s realize a need to attract and retain the best talents available in the market. HR leaders find themselves among the C-suite as their role in getting the best out of employees is increasing. They must understand the needs of a more diverse, multicultural, and multigenerational workforce and ensure to fulfill them. Retention of good hands has assumed much importance nowadays.

The Future Of HR Management

  The human resources certification online courses will teach that it is not just enough to employ and retain people, but they must also be trained and developed. The speed at which new technologies emerge, there is a need to keep employees abreast of modern developments. HR managers must continuously update themselves with modern technology and arrange training programs to empower workers with new skills. The journey of staff members in an enterprise will be that of continuous learning.

Acquiring best talents and retaining them will remain the focus of any progressive organization. People managers will have to find innovative means to attract those who are equipped with the latest skills required for a job. Engaging with prospective employees through social media platforms will be practiced by more HR heads. There will be increased use of automation for screening resumes and conducting initial interviews. This will speed up the process and reduce costs.

HR departments will be trying innovative methods to improve employee experience in the company. They will find out the requirements of the new breed of recruits. Learning opportunities will be improved. Promotions and salary hikes will no longer be based on experience or seniority. New procedures for evaluating employees will be used. Getting HR training certification by IIM Raipur will teach new methods that are used by global enterprises for appraisal and rewarding.

Looking at the evolution of human resource management can show you that there has been a shift from looking at employees as only a means to achieve company objectives, treating them as individuals, and satisfying their needs. There is a realization that it is equally important to ensure that their goals are achieved and these objectives are in line with that of the organization. HR departments will play a more important role as retaining good talent becomes crucial. Combining the human force with machines and using that synergy will be highly important in the future.

More Information:

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Cases in Human Resource Management

• David Kimball - Elms College
• Description

Cases in Human Resource Management provides students with insights into common challenges, dilemmas, and issues human resource managers face in the workplace. Using a wide variety of well-known companies and organizations, author David Kimball engages students with original, real-world cases that illustrate HRM topics and functions in action. Each case is designed to encourage students to find new solutions to human resource issues and to stimulate class discussion. Case questions challenge students to think critically, apply concepts, and develop their HRM skills. The contents are organized using the same topical coverage and structure as most HRM textbooks, making Kimball the ideal companion for any introductory HRM course.

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KEY FEATURES

• Original case studies bring concepts to life through a number of well-known organizations, including Apple, Amazon, Google, LinkedIn, and Zappos.
• Case questions require students to think critically about HR issues and apply HR concepts to each case.
• An emphasis on important issues and current trends in HRM brings up key topics in the field such as state and federal minimum wage, succession planning, executive compensation, mindfulness, cyber attacks, CSR, and managing a multigenerational workforce.
• A chapter on international HRM topics examines important issues like that of helping expatriates succeed.

Sample Materials & Chapters

Chapter 7: Training, Leading, Talent Management and Development

Chapter 16: Global Issues for Human Resource Managers

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What is an hcm case study.

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• Workforce management (e.g., resource identification and allocation, resource allocation & analysis, time & expense tracking, leave management, workforce planning & forecasting)

What’s Included in HCM Case Studies?

• Client profile— company type, industry, and brief history and description of the company
• The situation— the circumstances that initially caused the company to become interested in a new HCM solution
• The challenges— the problems and issues the company was facing that an HCM solution could solve
• The process— the heart of the case study, as it shows how the HCM vendor or service provider—or TEC—performed its services in a way that met or exceeded the client’s goals and expectations
• The results —the benefits to the client at the end of the day
• Vendor/service provider profile —brief description of the vendor or service provider including contact information

The Benefits of an HCM Case Study in the Selection Process

How tec's hcm case studies can help you to find the best-fit hcm system.

• provide expert assistance to ensure the client’s project stays on focus and on track,
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• negotiate with the vendor/partner(s) on behalf of the client for substantial cost savings
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TEC’s Software Selection Process

• Assess : Assess the client’s business processes and goals, gaps in key processes, and discover their functional requirements
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• Implementation : Perform oversight and monitor the implementation of the HCM application(s) to enable successful transformation and business growth

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Cases in Human Resource Management

• By: David Kimball
• Publisher: SAGE Publications, Inc.
• Publication year: 2017
• Online pub date: February 04, 2019
• Discipline: Business & Management
• Subject: Human Resource Management (general)
• DOI: https:// doi. org/10.4135/9781506332123
• Print ISBN: 9781506332147
• Online ISBN: 9781544360386
• Buy the book icon link

Cases in Human Resource Management provides students with insights into common challenges, dilemmas, and issues human resource managers face in the workplace. Using a wide variety of well-known companies and organizations, author David Kimball engages students with original, real-world cases that illustrate HRM topics and functions in action. Each case is designed to encourage students to find new solutions to human resource issues and to stimulate class discussion. Case questions challenge students to think critically, apply concepts, and develop their HRM skills. The contents are organized using the same topical coverage and structure as most HRM textbooks, making Kimball the ideal companion for any introductory HRM course.

Front Matter

• Acknowledgments
• About the Author

Part I: 21st-Century Human Resource Management Strategic Planning and Legal Issues

• Chapter 1: The New Human Resource Management Process
• Chapter 2: Strategy-Driven Human Resource Management
• Chapter 3: The Legal Environment and Diversity Management

Part II: Staffing

• Chapter 4: Matching Employees and Jobs: Job Analysis and Design
• Chapter 5: Recruiting Job Candidates
• Chapter 6: Selecting New Employees

Part III: Developing and Managing

• Chapter 7: Training, Learning, Talent Management, and Development
• Chapter 8: Performance Management and Appraisal
• Chapter 9: Rights and Employee Management
• Chapter 10: Employee and Labor Relations

Part IV: Compensating

• Chapter 11: Compensation Management
• Chapter 12: Incentive Pay
• Chapter 13: Employee Benefits

Part V: Protecting and Expanding Organizational Reach

• Chapter 14: Workplace Safety, Health, and Security
• Chapter 15: Organizational Ethics, Sustainability, and Social Responsibility
• Chapter 16: Global Issues for Human Resource Managers

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• Post author: myspeakhr
• Post category: Case Study
• Reading time: 7 mins read

The HRM case study with a solution which focuses on the importance of communication in the organization. This free case study on human resource management with answers elaborates the statement ‘Proper communication Channel a way to Effective Management’. This HR case study is related to how the communication channel is important to make effective management. The hierarchy and reporting system must be effective to avoid any demotivation among the employees.

HRM Case Study with solution

Title of case study: Proper communication Channel a way to Effective Management

Background of the case study

AutoSpare public Ltd is an Age-old automobile industry involves in the manufacturing of engine Spare parts. They are highly valued among the customers as they are a monopoly in some of their parts. Most of the Indian Automobile leaders are the customers of Auto Spare to name a few TATA, Force Motors, M&M and Cummins, etc.

Auto spare has 3 manufacturing Unit and all of them are situated in 3 various places in Southern India and the management is been done from one of the Manufacturing plants located in Chennai. As most of the customers are located in the Northern and western regions of the country the marketing managers are spread in those places convenient to meet the customer. Only the VP Marketing and GM Marketing are working from the head office. They act as a link between the company and the marketing people as they communicate the targets to the marketing people and submit the reports, send by those people, to the higher authorities.

Mr.More, Mr.Mehta, Mr.Rajesh are the marketing team looking after the western region, from where more number of customers are operating. The Job profile of these people includes getting monthly requirements from the clients, mailing the same to the respective departments, looking after the supply whether the goods are reaching the customers as per schedule, and attending the customers in case of any quality issue regarding auto spare parts. And sending the weekly report consists of reports in detail about all the above-said things to the VP & GM Marketing.

In recent days the western region of Autospare is facing a different problem. Even though there is a slag in the Automobile industry being a monopoly Autospare doesn’t face a problem as it gets a continuous schedule to supply from the customers. But the marketing department finds it very difficult to get the material from the plant and supply it to the needy customers. Most of the time it happens that the production itself was supposed to be stopped due to the non-availability of materials from Autospare.

The marketing team has to attend quality issues at least thrice a week. They have sent a number of reports regarding these issues but all at the vein, no improvement from the production side. The marketing executives were losing their good terms with the customers. Slowly the customers started to develop other sources for the parts manufactured by Autospare Pub Ltd. Still, they are finding it difficult to develop such sources as the raw material required is unique. In this situation, the CEO of Autospare visited the customers of the western region. Almost all the customers highlighted the quality as the main issue. And most of them also stated that Autospare fails to supply the products as per schedule most of the time.

As soon as he returned to head office he sent a mail to all the marketing executives in the western region claiming that:-

• “The executives failed to maintain their rapport with that of customers.
• The sales in the western region are not up to the mark due to the irresponsive nature of the marketing department.
• Failed to check out whether the schedule is met or not.
• All the employees in the marketing department of the Western region including the territory head, along with GM and VP must give a detailed explanation about the issue.”

He also demanded a detailed report, from Production VP, regarding Production and dispatch of products along with schedules received by the production department from the Marketing Department.

He also instructed HR Head to investigate the issue and submit the report and also suggest a reporting model that will avoid such an issue later.

Questions on this HRM case study

1. Who is at fault in this case CEO or VP GM Marketing or Production Department or marketing people in the western region. Justify your answer. ( can make necessary assumptions if required)

2. Consider yourself as one of the marketing executives from the western region and frame a report as demanded by the CEO ( can make necessary assumptions if required)

3. If you are the HR Head how will you proceed for the investigation? what will be the reporting model that you will suggest to the CEO?

By analyzing the case it is clearly given that the Marketing department of the western region has sent a number of reports all in vain. Hence the fault, in this case, is on the CEO only. we can quote two major reasons for this a) If the marketing department has sent a number of reports it is the duty of the CEO to take action against these reports and give directions for rectifying actions b) the customer has highlighted the quality issue as the main issue. Even after that, the CEO didn’t consider it as a problem.  Hence CEO is at fault (assumptions: VP GM has reported the reports sent from the western region to the CEO)

Considering myself as a marketing executive I will frame a report highting the following points:

• Number of earlier reports sent to the head office
• Number of quality issues faced during last month from each customer
• Number of times the company failed to supply the materials to the customers on time
• How frequently the western region keep updating the schedule to the production department

( You can add other details which you feel relevant to the case)

Being Head HR I will conduct the investigation in the following manner:

• with western region marketing people- To understand the real problem. Will intimate them to submit a report on the same
• With VP and GM Marketing: To understand their communication and reporting patterns. Whether they comminate with all departments and CEO properly and timely
• With the production department: How they process the communication received from the marketing department. Is there really a quality issue exist.

The report model will be like:

The communication flow needs to be regularised. Both the marketing department and Production department must submit a weekly report and monthly report and the same need to be addressed to CEO also. A review meeting must be kept specifically to address the quality and supply issues. The report of the same must be sent to the CEO.

The solution to this HRM case study will be published on 28 April 2020. Stay tuned.

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Human Resource Management in Context

A Case Study Approach

• © 2002
• Latest edition
• Helen Newell 0 ,
• Harry Scarbrough 1

Warwick Business School, University of Warwick, UK

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Leicester University Management Centre, UK

• Casestudy approach bringing HRM alive for students and demonstrating direct relevance to real business life Thematic rather than techniquesoriented approach taking students beyond simply learning best practice and techniques Makes students aware of the wider context of HRM helping students to evaluate and critique HR techniques and best practice

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10 Citations

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Table of contents (12 chapters)

Front matter, introduction.

• Helen Newell, Harry Scarbrough

Understanding Human Resource Management

Alcan: managing change.

• Paul Edwards, Martyn Wright

Buildsoc: Does Teamworking Mean Team Pay?

• Keith Sisson

Accountco: Small is Beautiful?

Helen Newell

Multico: New Technology and the Salesforce

• Helen Newell, Caroline Lloyd

London Borough: A Partnership Agreement?

Bankco: managerial and organisational learning.

• Elena Antonacopoulou

Pharmaco: Organisational Restructuring and Job Insecurity

Telco: managing a diverse workforce, engineering products: internationalising production.

• Tony Edwards

Conclusions: Developing the New Agenda for HRM

Back matter.

• human resource management
• organization

About this book

Authors and affiliations.

Harry Scarbrough

About the authors

Bibliographic information.

Book Title : Human Resource Management in Context

Book Subtitle : A Case Study Approach

Authors : Helen Newell, Harry Scarbrough

DOI : https://doi.org/10.1007/978-1-349-91364-0

Publisher : Red Globe Press London

eBook Packages : Palgrave History Collection , History (R0)

Copyright Information : The Editor(s) (if applicable) and The Author(s) 2002

Edition Number : 1

Number of Pages : 272

Additional Information : Previously published under the imprint Palgrave

Topics : Human Resource Management

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1.4 Cases and Problems

Chapter summary.

• Human resource management is the process of employing people, training them, compensating them, developing policies relating to the workplace, and developing strategies to retain employees. Three certification exams, which are offered by the Human Resource Certification Institute, can be taken to show HRM skills and become more marketable.
• Human resource management involves seven main areas: (1) staffing, (2) workplace policies, (3) benefits and compensation, (4) retention, (5) training, (6) employment laws, and (7) employee protection.
• Human resource managers need many different types of skills. Being able to organize, multitask, and communicate effectively, as well as having specific job skills, such as how to run a particular computer program, and a sense of fairness and ethics, is crucial to a successful career in HRM.
• There are many contemporary challenges associated with HRM. First, it is up to everyone in the organization to contain costs. HR managers need to look at their individual departments and demonstrate the necessity and value of their functions to the organization. HR managers can also help contain costs in several ways, such as managing benefits plans and compensation and providing training.
• The fast-changing nature of technology is also a challenge in HRM. As new technologies are developed, employees may be able to implement innovative ways of working such as flextime . HR managers are also responsible for developing policies dealing with cyberloafing and other workplace time wasters revolving around technology. Employee stress and lack of work-life balance are also greatly influenced by technology.
• Awareness of the changes in the economy allows the human resource manager to adequately plan for reductions and additions to the workforce.
• The aging and changing workforce is our final factor. As baby boomers retire, there likely will not be enough people to replace them, and many of the skills the baby boomers have may be lost. In addition, having to work with multiple generations at once can create challenges as different expectations and needs arise from multigenerational workforces.

Chapter Case

Changes, Changes

Jennifer, the owner and manager of a company with ten employees, has hired you to take over the HRM function so she can focus on other areas of her business. During your first two weeks, you find out that the company has been greatly affected by the up economy and is expected to experience overall revenue growth by 10 percent over the next three years, with some quarters seeing growth as high as 30 percent. However, five of the ten workers are expected to retire within three years. These workers have been with the organization since the beginning and provide a unique historical perspective of the company. The other five workers are of diverse ages.

In addition to these changes, Jennifer believes they may be able to save costs by allowing employees to telecommute one to two days per week. She has some concerns about productivity if she allows employees to work from home. Despite these concerns, Jennifer has even considered closing down the physical office and making her company a virtual organization, but she wonders how such a major change will affect the ability to communicate and worker motivation.

Jennifer shares with you her thoughts about the costs of health care on the organization. She has considered cutting benefits entirely and having her employees work for her on a contract basis, instead of being full-time employees. She isn’t sure if this would be a good choice.

Jennifer schedules a meeting with you to discuss some of her thoughts. To prepare for the meeting, you perform research so you can impress your new boss with recommendations on the challenges presented.

• Point out which changes are occurring in the business that affect HRM.
• What are some considerations the company and HR should be aware of when making changes related to this case study?
• What would the initial steps be to start planning for these changes?
• What would your role be in implementing these changes? What would Jennifer’s role be?

Team Activities

• In a group of two to three people, research possible career paths in HRM and prepare a PowerPoint presentation to discuss your findings.
• Interview an HR manager and discuss his or her career path, skills, and daily tasks. Present your findings to your class.

Human Resource Management Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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• Rippling : Best for payroll automations

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Read More: How We Evaluate Payroll Services

• 23 payroll providers evaluated
• 34 scoring criteria applied to each provider
• Five weighted scoring categories
• 782 data points collected
• Five levels of fact-checking

Best All-in-One Payroll and HR Solution

Base monthly price

$40 plus $6 per employee

Automated payroll

Tax filing support

OnPay is a straightforward, all-in-one payroll and HR solution for small businesses. It comes with just one competitive price—$40 plus $6 per employee per month—that includes all services. It offers payroll tools for W-2 and 1099 workers and automatic tax payments and filing (with an error-free guarantee) and more.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, shared her thoughts on OnPay: “Any system that combines functions is always a win for a small business. In addition, OnPay is affordable and doesn’t require being locked into a long-term contract, making this system an adaptable and cost-effective choice.”

Key Features

• Unlimited payroll runs: OnPay includes as many unlimited payroll runs per month as you wish.
• Various pay schedules and rates: OnPay enables various pay schedules and rates for part-time, full-time and U.S.-based contract workers, so it’s capable of handling complex payroll structures.
• Payment methods: You also have the freedom to choose how you pay your employees, whether via direct deposit, paper checks or prepaid debit cards. Additionally, you may opt for pay-as-you-go workers’ comp plans and avoid large upfront payments.
• Automated tax filing with error-free guarantee: OnPay automates much of the tax process. It automatically deducts what’s necessary, and at the end of the tax year, it files taxes for your company. Tax documents are available to employees in the portal. You can easily view previous years’ tax filings under the “filings” tab of the main menu.
• Onboarding tools: OnPay allows you to send onboarding documents—such as offer letters—from the app. In turn, employees can complete some onboarding tasks themselves, such as e-signing documents and setting up direct deposit. It also gives you a platform to create and assign onboarding tasks so everyone knows their part.
• Paid time off management: OnPay’s PTO management tools include the ability to create customized accrual policies and receive time-off requests from employees from within the software. Approved PTO requests automatically sync with OnPay’s payroll software to reduce manual tasks and errors come payday.
• After-hire tasks: OnPay helps you by reporting new hires to your state as required and offering audits and guidance on workers’ compensation, employee training and employee benefits.

There are plan tiers with OnPay—you pay one base monthly rate and then a flat fee per person per month. The base rate is $40 per month, and then you pay $6 per person per month, so, for a company with 100 employees, OnPay would cost $640 per month. As you lose or gain employees, the price adjusts to reflect the new user number.

OnPay has an average rating of 4.8 from nearly 300 user reviews on G2. On Capterra, users give it an average score of 4.9 from over 400 reviews. Common themes in positive reviews include ease of use and satisfaction with customer service.

In my experience, some parts of OnPay were easy to use while others were not. Customizing the dashboard and viewing employee benefits was easy, while payroll and onboarding posed some challenges. I discuss my specific obstacles with payroll in the next section.

I was impressed with OnPay’s customer service, particularly over the phone. While it took longer to hear back through the chat function, I was able to reach someone in just a few minutes over the phone. The OnPay representative provided a clear answer to my question and asked if I needed anything else. I felt like the company was genuinely interested in helping me rather than selling anything.

Our Experience

To conduct my test-drive of OnPay’s platform, I used the Google Chrome browser on a Windows laptop and an Android mobile device.

OnPay’s interface is clean and straightforward, making it easy to navigate. After logging in, I landed at the user dashboard that includes at-a-glance information, such as team members, upcoming payroll runs, recent runs and whatever other tiles I chose to have displayed on my main dashboard. Both the main dashboard and the HR dashboard were easy to customize.

Payroll information is front and center on your dashboard when you log in to your account. I like the easy, three-step process to run payroll but found it difficult to get around the warnings. Also, time off data doesn’t necessarily sync with payroll or an employee’s time off information in their profile.

Here’s what I mean: When you’re ready to process payroll, you simply click “Start Run.” The system takes you to a screen to review all paychecks to submit. Little orange icons indicate something that needs your attention. However, I found it difficult to figure out how to resolve these warnings.

For instance, one employee needed vacation time approved. However, the system showed it had already been approved. Seeing this conflicting information was confusing. When I asked a customer service representative about this, they said that this simply shows that the vacation time is already included in the payroll run. Yet, at other times, when clicking on the time-off icon next to an employee’s name, the system would show “Approve & Include.” Then it was easy to click that button and get rid of the warning.

In addition, sometimes you have to choose whom to include in the payroll run. For example, when running biweekly payroll, not all employees were selected, so you have to be sure to check that all the right people are included for each payroll run. Or, you can click on the “select all” checkbox to include everyone.

Once payroll is submitted, you receive an email confirmation to confirm a completed payroll run.

Who Should Use It?

OnPay caters to small businesses that need a full-featured payroll and HR solution with a straightforward and affordable pricing structure.

Learn more: Read the full OnPay review .

• Straightforward, comprehensive pricing
• Employee and U.S.-based contractor payroll
• HR and benefits included
• Easily customizable dashboard
• No free trial
• Plans aren’t customizable
• Trouble with payroll and time-off syncing

Best for Contractor Payroll

$40 plus $6 per person

Gusto is designed with dynamic startups and small businesses in mind, and it specifically targets the solutions these types of companies need that weren’t previously available on other platforms, such as payroll on AutoPilot, contractor payments, automated employee time tracking and the versatile Gusto Wallet app.

The platform provides automated, full-service through its AutoPilot payroll software for both employees and contractors—and even offers a low-cost contractor-only plan. It facilitates employee benefits including health care, employee financial wellness, retirement plans and more.

Gusto includes features that might appeal particularly to modern startup workers, including automated charitable donations. Plus Gusto’s Wallet app gives employees greater control of and access to their money.

Key features you can expect with Gusto include its automated payroll and tax filing for employees and contractors; the Gusto Wallet app for employees and employee time tracking tools for remote, on-premises and field employees.

• Automated, Full-Service Payroll for Employees and Contractors. The platform provides an automated, full-service payroll through its AutoPilot payroll software for both employees and contractors—and even offers a low-cost contractor-only plan. You can even auto-pay employees and contractors across the globe in their own currencies without worrying about labor compliance violations. Gusto takes care of all of it through a global team of local experts who support local employees in over 75 countries.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, also noted how easy Gusto is to use: “Gusto makes it easy to pay all of your people, whether they are employees or contractors. New joiners receive an invitation to set themselves up in the system and once that is done and verified, you are able to set your payroll and forget it. Busy solopreneurs can find real value in using a system like this.”

• Automated Tax Filing. Gusto offers tools to help you store and organize employees’ I-9 and W-2 forms. Gusto then calculates your payroll taxes, deducts them and pays and files tax documents with the correct government entities. It operates in all 50 U.S. states, so you can register your company using Gusto in any state where you do business.
• Gusto Wallet App. Gusto Wallet is a payment system that allows employees to receive their pay within the app or via a Gusto debit card. It gives employees greater control of their money by, for example, enabling them to split up their paychecks into various accounts as they wish or receive their pay up to two days earlier than a bank-based direct deposit. Within the app, employees also receive pay insights that show month-over-month income patterns. And, it includes other features employees would find convenient to have at their fingertips, such as tools to request time off and view their tax documents.
• Time Tracking. Team members can use a web browser or the Gusto Wallet app to clock in and out of work on their Android or Apple mobile devices. Geofencing ensures employees are where they need to be when clocking in on their mobile devices. Or, employers can turn a tablet into a time clock for on-premises attendance and time-tracking. And, if a team member accidentally clocks in or forgets to clock out, they can manually correct their hours for always-correct payroll runs.

Gusto offers three plans for companies looking to manage payroll for both full-time employees and contractors.

• Simple: The Simple plan is $40 per month, plus $6 per employee per month. It’s ideal for startups and small businesses that operate in one state and just need to cover basic HR functions. It offers single-state payroll services, an employee self-service portal, Gusto-brokered health insurance and payroll and time-off requests.
• Plus: Gusto’s Plus package costs $80 per month, plus $12 per employee per month. This plan is a great choice if you need to run multistate payroll and desire more dedicated support to manage HR effectively. Next-day direct deposit is also available in this plan in addition to PTO management and policies, project tracking, a time kiosk, workforce costing and reporting and team management tools.
• Premium: Gusto’s top tier offers the most support and automation to keep HR running efficiently for your small to midsized business. The pricing is customized to your specific needs. The biggest payroll draw in this plan is that Gusto sets up your account for you and migrates your payroll data from your current software provider, which gets you started with the software more quickly and easily. It also offers compliance alerts and an R&D tax credit discount.
• Contractor Only plan: For companies that only manage contractor payments domestically or abroad, Gusto has a Contractor Only plan that costs $6 per month per person. It offers four-day direct deposit, unlimited contractor payments within the U.S., yearly 1099-NECs and the option to add an international contractor payments add-on.

Gusto enjoys favorable user reviews. It boasts a score of 4.5 from 1,900 reviews on G2 and a score of 4.7 from over 3,800 reviews on Capterra. Users mostly mention Gusto’s easy-to-use interface, which we can attest to, given our hands-on experience with its payroll process and its excellent customer service.

I tested Gusto’s Simple plan features using the Google Chrome browser on a Windows laptop and the Gusto Wallet app on an Android mobile device. Our ability to test the features was limited, as they required entering real bank account information and signing into external accounts.

I found the process of setting up a payroll schedule pretty easy. You simply choose a schedule—Gusto automatically suggests one for you—and confirm state tax details based on where employees are located.

When running payroll manually, Gusto takes you through three steps. First, you check hours and earnings for all employees. The next step prompts you to enter any paid time off that employees took during the pay period. This is also where you can approve or deny pending time-off requests. From there, Gusto lets you preview the payroll run in the third step before submitting payroll. Upon submitting, Gusto confirms that you’ve successfully submitted payroll.

For contractor payments, whether domestic or international, the pay rates and pay amounts don’t automatically populate as they do with W-2 workers, so it’s a bit more time-consuming, as you have to enter this information manually. Otherwise, it’s quite simple. Just click “submit,” and that’s it.

It was easy to manually add an employee or independent contractor by entering their name, email address and other crucial information. The platform offers a checkbox option to invite the added employee or contractor to fill out the rest of the information themselves. Though this process was straightforward, manually entering several people could get tedious for companies with high hiring volumes.

Based on what I was able to play with in the platform, Gusto guides you through payroll and benefits management in a way that makes these processes less overwhelming. You can be sure you’re completing tasks in the right order without missing a step.

However, I noticed that payroll and adding new team members, in particular, require a lot of manual data entry upfront. In addition, customization of reporting, templates and the dashboard is limited.

Gusto is made for startups and growing small businesses with a mix of employee- and contractor-based workforces. It is best for businesses that expect to eventually expand across state lines or even globally using a workforce with a mix of contractors and employees.

Learn more: Read the full Gusto review .

• Easy employee payroll
• Automatic tax filing and compliance guidance
• Integrated free checking and high-yield savings accounts with paycheck advance for employees
• Transparent pricing
• Per-person pricing gets costly at scale
• No invoicing or accounts receivable features
• Contractor payroll is more cumbersome
• Limited mobile app availability

Best for Professional Employer Organization (PEO) Services

$59 per month per employee

or $49 per month after 50-plus employees

Justworks is a professional employer organization (PEO) that appeals to remote teams. The company engages client companies in a co-employment relationship, serving as an employer of record for your employees.

The co-employment relationship also means Justworks takes on some legal employer liabilities so you don’t have to, which isn’t the case for software-based payroll services. In exchange, you hand over control of some key employer processes, such as workers compensation.

Lisa Lindsey, PHR, SHRM-CP, an HR professional with over 20 years of experience, adds: “Justworks is great for helping small businesses offer benefits to its employees, something most small businesses are not able to do easily or inexpensively, which is a great attraction and retention tool.”

Justworks’ standout feature is its professional employer organization (PEO) services, allowing businesses to outsource some HR and payroll tasks. Here is a closer look at this service.

Professional Employer Organization Services

Justworks is a professional employer organization designed for remote teams. The company engages user companies in a co-employment relationship so it can handle HR and payroll on your behalf. For example, it will handle the following payroll processes and tasks for you:

• Off-cycle payments
• Vendor and contractor payments
• Employer payroll tax filings
• W-2 and 1099 filings
• Payroll reporting
• Worker time tracking

Justworks offers two PEO plans, plus a couple of add-ons to expand your chosen plan’s functionality. Here are your choices.

This plan is $59 per employee per month and offers:

• Full payroll management for all employees in 27 states
• The ability to pay up to 30 employees or contractors
• HR consulting
• 24/7 support
• Commuter benefits
• Time tracking
• PTO management
• An applicant tracking system
• Employee onboarding
• An employee mobile app

This plan is $99 per employee per month and includes:

• Everything in the Basic plan
• The ability to pay up to 200 W-2 employees in multiple states
• Medical insurance
• HSA/FSA accounts
• Health advocacy services
• One Medical (in locations where it is available)
• COBRA administration
• A company benefits overview for prospective hires or new employees

Justworks offers two add-ons that can be used alongside both the Basic and Plus plans:

• Justworks Time Tracking: This add-on is an additional $8 per employee per month and includes geofencing capabilities, shift management tools, overtime and break rules, time tracking, payroll and time tracking reporting and payroll syncing.
• Justworks International Contractor Payments: This add-on is $39 per contractor per month and offers onboarding and payment services for contract workers in over 30 countries.

At a starting PEO service price of $59 per employee per month, its monthly per-employee fee looks high at first glance, but it could be well below the cost of an HR hire and goes lower the more employees you have.

Justworks earns 4.6 out of five stars on G2 from 458 user reviews. In addition, it earns 4.6 stars from 718 user reviews on Capterra. Users say the service is easy to set up and use for both employers and employees and is easily scalable as a company grows. They do wish that Justworks offered more in the way of integrations with popular accounting and other software and some express the need for more customizable platform features.

PEOs like Justworks are a good fit for small businesses with complex hiring and potential business liability—for example, if you hire international employees or have a lot of turnover. It is also great for small businesses without in-house payroll or HR departments.

Learn more: Read the full Justworks review .

• Hand over 100% of your HR duties
• Smooth employee self-service interface
• PEO (co-employment) relationship gives you tools to reduce liability as an employer
• High cost compared to software-based solutions
• PEO (co-employment) relationship reduces your control over HR policies
• Tax support in only 27 U.S. states

Best for Simplicity

Paychex flex.

$39 per month plus $5 per employee per month

Paychex is a payroll and HR service provider for businesses of all sizes. Paychex Flex is its simplified payroll platform designed for small businesses with fewer than 50 employees.

The platform offers an easy-to-use basic payroll processing platform to pay employees and contractors, but no HR and benefits administration in its basic Essentials plan. You must upgrade for these complementary features. It strips away the complex features of the broader Paychex platform to stand out as a provider of easy employee payroll.

However, Paychex Flex does integrate with other Paychex products and offers higher-tiered plans to meet your payroll and HR needs, as well as with third-party accounting systems to automatically keep your bookkeeping updated with payroll data.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, also likes Paychex Flex: “Paychex Flex is another great option for small startups that intend to grow over time. The system is customizable with lots of robust features.”

Paychex Flex offers bare-bones features to help you manage your payroll runs, such as automated tax filings, payments and calculations; a self-service mobile app for employees; and customizable payroll reporting.

• Automated Tax Calculations, Payments and Filings. When you sign up to process your payroll using Paychex Flex, you also access the platform’s Taxpay service. With this service, Paychex Flex calculates, pays and files your taxes with government agencies as necessary to keep you compliant with tax law. In addition, Paychex Flex looks for tax credits that may save your company funding each year, such as the employee retention tax credit, and even helps you file amended returns to claim past credits.
• Paychex Flex App. This app is available for both employees and employers who use Paychex Flex. Employers can use the app to enter and run payroll, access employees’ payroll data and view payroll reports. In turn, employees use the app to access and update their personal data and tax documentation. The app also offers Touch ID and Face ID authentication to ensure only authorized access.
• Payroll Reporting. Using Paychex Flex, you can access the Paychex Preview Preprocessing Report, which allows you to review your payroll before it runs to remove any errors. You can also create custom reports, such as reports showing your cash requirements, job costing, tax deposit notices, W-2s and more in real time.

Paychex Flex starts at $39 per month plus $5 per employee per month. It offers three plans, including its Essentials, Select and Pro plans. However, its Select and Pro plans require a custom quote for pricing details. Here is an overview of the features each plan offers:

The Essentials plan starts at $39 per month plus $5 per employee. It services businesses with up to 19 employees and offers:

• Payroll processing for W-2 and 1099 workers
• Tax filing and administration
• Direct deposit, pay cards and on-site check printing options
• An employee self-serve mobile app
• Financial wellness and cash flow assistance for employees
• Employee onboarding tools
• Analytics and reporting
• 24/7 customer support

The Select plan requires a custom quote to learn pricing details. It offers all the features included in the Essentials plan, plus:

• An employee training and development system
• Online payroll processing and tax filing tools
• 24/7 dedicated support
• One-on-one support to handle all business needs
• An HR library with key HR documents
• Labor posters

The Pro plan also requires a custom quote to learn about pricing. It is a full-service payroll and HR plan that offers all the features included in the Select plan, plus:

• Full-service account setup, payroll management and tax filing services with dedicated specialist or online options
• A full HR software
• An employee handbook builder
• A personal HR consultation
• Pay garnishment services
• General ledger services
• Pre-employment screening
• State unemployment insurance services
• Workers’ compensation payment services
• General ledger integrations

Add-On Options

For an additional cost, you can further customize plans with add-ons. Available add-ons with features not already included in any of the plans include:

• Job costing and labor distribution
• Time and attendance tracking and reporting
• Voice assistant integrations
• Paychex integrations
• Retirement services
• Business insurance
• Employee benefits
• Document management
• Performance management
• Recruiting and applicant tracking
• Job posting website integrations
• Paycheck preview and approval tools

Paychex Flex earns a 4.2 out of five stars on G2 with 1,485 user reviews and a 4.1 out of five stars on Capterra with 1,547 user reviews. Users say the platform is easy to use both on the employer and employee end. They also praise Paychex Flex’s customer support for being responsive, patient, supportive and knowledgeable.

However, they say that they sometimes experience frustrating glitches within the system, such as being locked out of their accounts, updates during which users cannot access their accounts and the inability to access some features.

In my testing, I found that Paychex Flex offers a clean interface. Interface designers clearly worked hard to ensure that data is not overwhelming but is at your fingertips at all times in intuitive-to-find locations.

For example, you will find a company directory on the upper right-hand corner of the software that includes a list of all employees. Simply click on a name to see all of their payroll information, such as their gross and net pay, deductions, pay period and preferred payment method.

Detailed analytics are also offered in color-coded pie and bar charts for a straightforward interpretation of data. When I clicked on an element of the pie chart, a screen popped up to show more granular data regarding the broader data point represented in the graph.

The employee app offers a robust self-serve interface that is efficient and not overwhelming. The initial dashboard offers key summary information and links, such as time-off and sick-day calculations, paycheck stub links, a task list and a time tracker.

Employees can then use a left-hand menu to find more detailed information, such as their health benefits options and performance reviews. Simple forms and digital signing tools allow employees to complete documents and reviews in a fully digital format, even on a small screen.

Paychex Flex is made specifically for small businesses that need a quick and simple payroll system. It’s stripped down for businesses that just need easy payroll, with flexibility to add on services as you grow.

Learn more: Read the full Paychex Flex review .

• The ability to pay 1099 and W-2 workers
• Customizable plans
• Extra fee for payroll tax filing
• Extra fee for W-2 and 1099 filing
• No HR features in basic plan
• Little pricing transparency

Best for Payroll Tax Compliance

$79+ per month plus $4 per employee per month

ADP is the largest and one of the most trusted payroll providers in the world. RUN is its small business solution and a good place to start if you’re a small business expecting to grow into a large enterprise. ADP RUN is a simple payroll and benefits administration platform with room to grow into enterprise plans with the main ADP platform.

Its standout feature is its tax compliance support. RUN by ADP automatically calculates, deposits and files all taxes for you. It also sends W-2 and 1099 forms to your respective workers each year. It even keeps track of payroll law changes by state and adjusts your withholdings and payments accordingly to ensure you are in compliance. And, if the IRS has any questions and sends you an inquiry, RUN by ADP will handle this communication on your behalf.

In addition, ADP RUN offers all the features you’d expect in a payroll service. It has tiered plans with payroll by direct deposit, a self-service employee platform, new hire onboarding and optional benefits administration for additional fees. More advanced plans include a robust HR platform, including an employee handbook, document management, training programs and employee toolkits.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, added her thoughts on ADP RUN: “ADP has been around for a long time and is a well-known name in payroll and a favorite for many financial folks because of their robust reporting features.”

RUN by ADP offers advanced features for automated payroll processing, tax payments and filing and time tracking. Here is a closer look at each of these key features.

• Payroll AutoPilot. RUN by ADP offers full-service payroll, allowing you several options to pay employees, including by check, direct deposit or pay card and processed by phone, web or mobile app. If you opt for paper checks, they will be delivered to your company before payday. You can also set recurring payroll runs on AutoPilot for a hands-off approach or set up off-cycle payroll runs when needed. RUN by ADP offers 24/7 payroll support from ADP experts in case you run into any issues paying your employees.
• Automated Tax Payments and Filings. The software automates your tax calculations and deductions. From there, it pays your taxes for you and even creates and sends W-2 and 1099 forms to your employees and contractors automatically. Because the system keeps up with tax laws and regulations in all 50 U.S. states, the system automatically helps you stay compliant and flags any errors that need your attention. And, if the IRS contacts you with inquiries about your filings or payments, RUN will handle those communications for you. Unlike some competitors on this list that make you pay for for multi-state services, RUN by ADP offers multi-jurisdictional payments. When you pay employees in different states, RUN by ADP handles all the tax filings for you in each respective state.
• Time Tracking. Available as an add-on in the RUN by ADP’s payroll plans, the software offers time and attendance tracking with advanced features. Employees can clock in using their mobile devices, computers or an on-premise kiosk. They can also request time off and monitor their requests for approval. Further, biometric and geo-fencing features ensure the right person is clocking in or out at the right time and location. It even offers geo-pinning to mark the exact employee location when clocking in or out.Employees can track time by job or department and switch between them when necessary. These hours are then synced to the RUN by ADP payroll software for accurate tracking and payments based on time worked by project. This feature is great for companies that perform work for clients, as labor costs can be easily separated and billed to the client upon project completion.

RUN by ADP has four small business plans for up to 49 employees. The most basic plan offers payroll tools, while subsequent plans offer more in-depth HR tools. All plans require a custom quote to learn about pricing details. You can do so by clicking “get pricing” on the RUN by ADP pricing page and filling out the questionnaire as prompted.

Essentials Payroll

The Essentials Payroll plan is the most basic plan RUN by ADP offers and it is for companies that need basic payroll tools. It includes the following payroll features, plus some basic HR features:

• Payroll runs processed via computer, mobile app or phone
• Direct deposit
• A general ledger
• W-2 and 1099 forms
• Tax calculations, payments and filings done for you according to current state and federal laws
• Multi-company and multi-jurisdiction management
• The Wisely Direct Debit card to pay employees
• Employee access

Enhanced Payroll

The Enhanced RUN by ADP plan offers more HR features, such as access to ZipRecruiter for hiring. In terms of payroll-specific tools, it includes everything in the Essentials Payroll plan, plus:

• Job costing
• Check signing security

Complete Payroll and HR Plus

This plan adds more HR features while offering all the payroll tools of the first two plans. Added HR features include:

• HR helpdesk
• An employee handbook wizard
• HR forms and documents
• HR training
• An HR toolkit

HR Pro Payroll and HR

This plan offers a comprehensive toolkit of HR and payroll features. In addition to the tools offered in all other plans, it adds:

• Enhanced HR and helpdesk support
• A learning management system
• Sexual harassment prevention training

RUN by ADP has a 4.5 rating on Capterra and G2 with a total of 2,075 user reviews. Users love that the software has lots of self-service and automation features to save companies time and money. However, customer service is often unresponsive and they wish the time keeping app were included in RUN by ADP’s plans.

I accessed the guided demo to learn more about this product. The dashboard felt cluttered when I landed, but it did offer many tools that I needed at my fingertips. By clicking “run payroll” from the dashboard, I completed a payroll run in just a few clicks.

On the “payroll” page, I viewed a spreadsheet of payments earned by employees. I could then fill in any missing data as needed. From there, I clicked “next” and was taken to a page that flagged all issues that may hinder a successful payroll run. I could click “resolve exceptions” to work out these issues before running payroll.

From this screen, I was also given the option to import time tracking data from ADP’s time and attendance add-on or another time keeping software. When I clicked “next,” I accessed an overview of payroll as it currently stood, including who would be paid, when, and how much they’d be paid broken down into gross pay, taxes, deductions, net pay and employer taxes. From there, I clicked “approve” to run payroll. A confirmation page prompted me to approve the run once again.

Once payroll was run, the software summarized how much was paid out and when. I was also asked if I wanted a reminder of when payroll should be run again. Overall, this process was self-explanatory and required no learning curve.

Adding employees to the system was an easy process. I simply clicked “add employee” from the header menu. From there, I could either send the employee an invite to input their own information (which I could then review for accuracy and approve) or manually enter the data myself.

I found the invite option to be more labor-intensive than I would like; I still had to enter the employee’s full name, Social Security number (twice to confirm accuracy), phone number, date of birth, hire date and more. It would have been far easier to just input a name and have an email be sent to the employee to do all of this work, leaving me to only approve its accuracy.

Overall, though the interface is cluttered, everything I needed was easy to find. Nothing I experienced was particularly confusing, but some tasks were a bit more labor-intensive than I preferred.

ADP RUN is a good choice for businesses that need highly supported payroll tax compliance features in payroll software. It’s designed for companies with fewer than 50 employees, but is a good fit if you expect to grow beyond that because you could upgrade to ADP Workforce now or ADP’s enterprise platform. Read more about the top ADP competitors .

Learn more: Read the full ADP Run review .

• Automatic tax filing and reports
• Add-on for time and attendance tracking
• Customizable reporting
• Six months free payroll
• Requires an additional product to track time and attendance
• Somewhat cluttered interface
• No pricing transparency
• Pricing quotes are hard to get
• No free version

Best for Controlling Payroll Costs

$16 per employee per month

TriNet is a professional employer organization (PEO) offering the option of payroll and HR outsourcing. Your company leases employees to TriNet—TriNet becomes an employer of record—and it takes care of HR and payroll for you.

It also offers plenty of features that help you understand and control your payroll costs. They include:

• Benchmarking tools that keep you from overpaying employees even while offering competitive pay rates to attract top talent
• Time tracking tools that alert you if an employee is working overtime or approaching the need to do so
• Compliance management tools that help you follow state labor laws to avoid payroll non-compliance penalties
• Payroll error detection tools to keep you from paying more than you owe
• Warnings and alerts for unauthorized off-site employee clock-ins
• Reporting that predicts operational needs so you can compile schedules to reduce the need for overtime pay

TriNet’s standout features include automated tax and filing support, unlimited payroll runs, a mobile app and time and attendance tracking. Here is a look at each of them.

Automated Taxes and Filing

TriNet can handle all payroll tax administration for you, offering the option to outsource your payroll function to its PEO service. When you do, its team of HR experts not only manage your payroll and tax administration for you but is available to your company for consulting and problem resolution.

When you hire a new employee, its team of tax experts notifies the correct state entity as required by law. The platform also calculates, withholds and remits payments, then files your taxes on the federal, state and local level. Then, it prepares and delivers W-2 forms to your employees when needed. Finally, for employees, it will manage your unemployment taxes and claims on your behalf.

For managing contract employees, the platform auto-generates Form 1099 when needed and grants contractors self-serve access to key tax documents. It also allows you to customize how you pay contracts with multiple pay options.

TriNet helps small businesses save money by looking for tax credits for each company. For example, it allows you to input tax credit information into the payroll system and then prepares forms 8974 and 941 for you to claim those credits.

Unlimited Payroll Runs

Offered as an add-on in HR plans, TriNet’s payroll processing system has advanced payroll management features. They include:

• Unlimited automated payroll runs
• Direct deposit payments
• The ability to manage multiple pay schedules and rates
• Contractor payment processing
• Tips reporting
• General ledger reporting
• Garnishments support

Through TriNet’s PEO, you can outsource all of your HR and payroll functions or you can choose which functions you want to outsource and which you’d like to keep in-house.

The TriNet mobile app offers convenient features for both employers and their employees. Employers and permissioned personnel can view employee profiles, hire and termination data, benefits and payroll information and access reporting. They can also search a knowledge base for answers to their questions or open a support case or live chat session to access TriNet customer support.

Employees access the mobile app to view their paychecks, review and manage their benefits and access their tax documents. In addition, they can track their vacation days and request time off using the mobile app. Finally, as an added perk, employees can use the app to access TriNet-offered discounts on technology, groceries and other products.

Time and Attendance Tracking

TriNet’s time and attendance tracking tools provide companies with the ability to meticulously monitor worked hours, allowing them to effectively control payroll expenses. These savings may take the form of minimizing excessive costs, such as unapproved overtime, or avoiding compliance penalties. To this end, with TriNet time and attendance tools, you can:

• Create a clear work schedule for employers and employees to know who is working when (and who is not)
• Allow employees to clock in and out
• Track employees clock-in times to ensure compliance with schedules and control costs
• Access a reporting dashboard that displays metrics such as which employees are approaching overtime
• Schedule employee rest and meal breaks to remain compliant with labor laws and avoid related penalties
• View timecard errors to ensure accurate payroll processing
• Receive alerts and warnings pertaining to unauthorized offsite clock-ins to avoid overpaying employees

TriNet offers three plans ranging from $8 per employee per month to $33 per user per month when billed monthly. However, unlike many competitors on this list, only the most expensive plan offers payroll features. To access payroll features in the first two tiers, you have to first purchase the core plan and then pay $6 per employee per month more to access the payroll add-on. When I contacted customer support, I was told that this payroll add-on is typically only sold as an add-on and not as a standalone product.

The Essentials plan is a basic HR platform costing $10 per employee per month when paid monthly and $8 per employee per month when billed annually. It includes:

• Access to the TriNet payroll processing add-on
• Automated employee onboarding
• Employee management tools
• Employee time-off tracking tools
• Employee scheduling tools
• An employer and employee mobile app
• An analytics dashboard
• Access to over 50 pre-built integration options such as G-suite, Slack, Zapier, Asana and Salesforce

TriNet’s Growth plan is $20 per employee per month when billed monthly and $16 per employee per month when billed annually. This plan offers tools for ensuring you are paying your employees fairly without overpaying them, allowing you to save costs while attracting top talent. It includes everything in the Essentials plan, plus:

• People analytics
• Custom and workforce salary benchmarking visibility
• Comparison salary data
• Employee performance management tools

The Zen plan is $33 per user per month when billed monthly and $27 per user per month when billed annually. While the Essentials and Growth plans require you to pay more to access the payroll add-on, this plan includes TriNet’s payroll processing system. Here is an overview of the inclusions in this plan:

• Customizable, filterable and anonymized employee engagement surveys
• A team communication platform with a company feed, a task manager and the option to create department-specific communication feeds
• TriNet’s payroll software with unlimited and automated payroll runs and tax management and filing tools

While the above plans are TriNet’s core small business plans, it offers add-on options as a way to customize the plans to your needs. Its add-on options include:

• Payroll processing for $6 per employee per month
• Benefits administration for $5 per employee per month or free when you go through a TriNet-preferred benefits broker
• Recruiting and applicant tracking software through JazzHR starting at $35 per month
• TriNet HR and payroll processing advisory services for $8 per employee per month

Dylan Cleppe, co-founder and CEO of OneStop Northwest LLC, uses TriNet’s benefits administration for his business: “One aspect of TriNet that I found particularly beneficial is its comprehensive approach to benefits management. For a small business like mine, being able to offer competitive benefits is crucial for attracting and retaining top talent. TriNet provides a streamlined platform where I can manage payroll, HR tasks and employee benefits all in one place, which not only saves time but also reduces the potential for errors.”

TriNet has a 3.8 and 4.0 star review on Capterra and G2 respectively, with 649 user reviews total. Users say the software is extremely easy to use and has comprehensive features. They also say TriNet’s customer support is responsive (responding within just minutes of inquiry submission) and knowledgeable. However, they do not like that the platform experiences frequent reporting glitches and they wish it offered more integration options.

PEOs like TriNet are a good fit for small businesses with complex hiring and potential business liability—for example, if you hire international employees or have a lot of turnover. It is also a great option for companies that need tools to pay employees fairly while keeping payroll costs to a minimum.

Learn more: Read the full TriNet review .

• Payroll cost control tools
• Hands-off payroll and HR
• PEO (co-employment) relationship reduces your liability as an employer
• Responsive and knowledgeable customer support
• Robust time and attendance tracking tools to control payroll costs
• Expensive per-employee monthly rate compared to software-based payroll offerings

Best for Seasonal Businesses

Wave payroll.

$20 per month plus $6 per employee per month

Tax services

Yes, in 14 states

Toronto-based Wave is a relatively new player in small business financial services, and it’s making its name by building a user-friendly and affordable platform that addresses the unique needs of freelancers, contractors and small business owners.

Payroll is Wave’s latest feature. It comes to the platform along with accounting, invoicing and payment processing for small businesses—replacing a laundry list of tools for many entrepreneurs.

Through Wave Payroll, you can pay employees and contractors via direct deposit and automatically generate W-2 and 1099 forms for tax season. It takes care of payroll tax payment and filing in 14 states (and growing), and offers a self-service employee portal for easy access to tax documents and banking and contact updates.

In addition, if you own a seasonal business and only need payroll software during parts of the year, you can deactivate your subscription for off-seasons and avoid paying Wave during that time. Then, when your business season kicks back in, simply reactivate your subscription and account. This capability, coupled with its contract payment options, makes Wave an ideal option for seasonal businesses such as garden centers and landscaping companies.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, appreciates that you can use the system with its accounting software: “Wave’s payroll system integrates with its free accounting system, making it a good choice for businesses that handle all of their finance processes internally.”

Wave doesn’t offer benefits administration, a major drawback, but its recent purchases of companies across the financial sector and its 2019 acquisition by H&R Block promise more capabilities and features to come.

Wave Payroll’s standout features include employee and contractor payroll tools, tax services, an employee self-service portal and invoicing tools. Here is a closer look at each of them.

• Employee and Contractor Payroll. Using Wave Payroll, you can pay both employees and independent contractors with one click come payday. Once you’ve paid your employees, you can access a report of all payroll expenses broken down by employee. The platform also generates W-2 and 1099 forms, so they’re always at your fingertips. And if you own a seasonal business where you only have to pay contractors or employees during certain times of the year, you can pause your payroll subscription during off-seasons to avoid paying the base monthly rate.
• Tax Services. Wave Payroll offers tax payment and filing services in 14 states and is continually adding more states. Using this service, you can automate your payment and filing of state and federal payroll taxes. Its current tax service states include: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin. In states where Wave Payroll does not offer tax filing and payment services, the software indicates what paperwork you must file on the state and federal level and how much you need to pay from each payroll run.
• Self-Service Portal. Wave Payroll offers employees a self-service portal that allows them to access their pay stubs and W-2 forms without HR involvement. They can also use the platform to update their contact and banking information.
• 2.9% plus $0.60 per Visa, Mastercard or Discover transaction
• 3.4% plus $0.60 per Amex transaction
• 1% of your invoice amount per ACH/EFT transaction

Wave offers two plans based on the state in which you operate your business. If you operate in one of the 14 states in which Wave offers tax services, you will pay a higher base monthly rate to take advantage of these services. All other states must remit payment and file their taxes themselves and so will pay a lower monthly base rate for Wave’s payroll solution. Both plans come with a 30-day free trial.

Tax Service States

Most businesses using Wave Payroll will need to pay a $20 monthly base fee, plus $6 per active employee or contractor paid per month to use Wave’s payroll solution. This is because Wave does not offer tax payment and filing services in 37 U.S. states (see next plan for states that are excluded from this plan.). Payroll tools offered in this plan include:

• Employee and independent contractor payments
• An employee self-service portal
• Workers’ compensation
• Accounting records
• Tax filing documents for employees and contractors
• Payroll expense reporting
• Leave time tracking and accruals
• Integrations with Wave Accounting, Invoicing and Payments
• Live chat customer support Monday through Friday
• Email support
• The ability to pause your subscription during off-seasons

Self-Serve States

In addition to all the features in the Tax Service plan, Wave offers automated payroll tax services in 14 U.S. states. If your business operates in any of these states, you must choose this plan. The Self-Serve States plan costs $40 per month plus $6 per contractor paid and active employee. It offers automatic calculations, remittance and filing of payroll taxes. The states in which this plan applies are: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin.

Wave Payroll earns four out of five stars on Capterra with 61 reviews and 4.1 out of five stars on G2 with 31 user ratings. Users like that the software is extremely easy to use and set up, is affordable and has free features such as invoicing.

However, they say that the software does not offer enough customization options, nor does it offer detailed reporting to meet their needs. They also say its customer support is unhelpful; the chat bot does not offer relevant solutions and when they email customer support, it often doesn’t, either. They say the limited features the platform offers makes it a good option for companies with five to 10 employees but no more.

I tested Wave Payroll on a Mac computer and a Safari browser. Signing up for the free trial was simple, taking only a couple of minutes. I simply had to input my name, email address and phone number. I was sent a code to my phone to verify my identity. After inputting the code, I was asked simple questions about how I wanted to use the account, such as if I wanted to invoice clients or run payroll.

Once set up, the account brought me to an initial reporting dashboard. The dashboard had a handful of reports and optional action items but didn’t feel cluttered or overwhelming. Reports I could access right away included a cash flow analysis for my business, a list of outstanding invoices, bills my company owes, an income and expense statement by fiscal year and an expense breakdown pie chart with percentages for each expense category.

Adding an employee could not have been simpler in my case, though there was more manual data entry than I preferred. I clicked “add an employee” from the initial dashboard and was taken to a form to fill in information on my employee. Information I had to enter included the employee’s full name and Social Security number, their home address, a work location, the type of wage they would receive (salary or hourly, for example), their email address and how I wanted to pay them (direct deposit, for example).

Since I was given the option to send them an invite to input their own information, I would have preferred to only input about half of this data before sending the invite. However, I only had to click a box and click “submit” to send an invite to my employee. Still, the process did not require any technical knowledge and each step was intuitive to complete.

Some features I wish were better include its automation options, customization options and chat support. There are almost no automation options and you cannot customize the dashboard at all. Reporting also did not offer customization options. In addition, when I contacted the chat support to ask if I had missed any customization options, I was given irrelevant responses and prompted to contact customer support via email. All in all, the chat support feature was unhelpful.

In addition, when trying to access tax services, I was simply upsold by a partner company that wanted $500 plus $150 to do my taxes. In other screens, I was prompted to buy more products from Wave Payroll. I would have preferred to be contacted some other way to be asked to buy more products from Wave or its partners.

Wave is a unique fit for microbusinesses and solopreneurs who pay a small team heavy in contractors and part-timers, and frequently invoice clients or customers for online payment. And, with the ability to pause the subscription, it is great for service companies such as landscapers who hire contractors often and endure off-seasons.

Learn more: Read the full Wave Payroll review.

• One platform for payroll, accounting and invoicing
• Clean user interface for employers and employees
• Easy payroll for employees and contractors
• An option to pause your subscription during off-seasons
• No benefits administration
• Automatic payroll taxes only available in 14 state
• Limited customer support
• Almost no customization options

Best for Growing Enterprises

$99 plus $5 per employee

Tax filing services

Paycor is a full-service HR platform that supports companies from recruiting to termination.

It offers an employee portal online and through the Paycor mobile app, so employees can access pay stubs, documents, time-off requests, performance evaluations and employee development all from their phones.

You can add on benefits administration for an extra fee and let employees manage and enroll in benefits through the self-service portal, as well.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, also likes the full-service aspect of Paycor: “Growing companies can find value in the full suite of HR tools in addition to payroll processing.”

Key Paycor features include its payroll processing tools, tax compliance services, mobile wallet (complete with a self-serve mobile portal) and expense tracking and reimbursement tools. Here is a closer look at each.

• Payroll Processing. Paycor offers automated payroll processing with the option to pay using direct deposit, check (either in-person or online) or card payments. When running payroll, it allows you to take into account wage garnishments and time-off requests. You can also integrate the payroll feature with Paycor’s time and attendance tool to track employee hours and pay them accurately. In addition, it offers a couple of unique features. First, its Paycor Visa card offers an alternative avenue to pay employees. It also offers an OnDemand Pay option that allows you to pay employees early as needed.
• Tax Compliance Services. Paycor offers hands-off tax filing services with W-2 and 1099 processing. It also offers constant tax-compliance guidance, alerts and warnings (if, for example, you entered an invalid tax ID number) and tax setup guidance for each employee you add to the system based on their work and home addresses.
• Mobile Wallet and Self-Serve App. Using Paycor’s mobile wallet, employees can access their wages from the app and even use up to 50% of their earned wages before payday. It also offers a Paycor Visa card where employees can receive direct deposit payments up to two days sooner than a direct deposit into a personal bank account. In addition, the wallet comes with tools to help employees manage their finances, access discounts and their bills. Finally, as with most mobile payroll apps, employees can view their earnings, deductions and tax withholdings using the wallet.
• Expense Tracking and Reimbursement. An ideal tool for remote employees who have travel, Wi-Fi bills or office supply expenses, Paycor’s mobile app offers expense tracking and reimbursement tools. Employees can enter expenses from the app, where managers can then approve them. From there, approved reimbursements are automatically calculated and paid as part of Paycor’s payroll processes. Other relevant expense tracking and reimbursement tools within the app include: expense reporting, receipt capture, mileage tracking, alerts, and customizable categories (such as airfare or meals).

Paycor offers four payroll plans, including its Basic, Essential, Core and Complete plans. Pricing for them is not publicly available. You must request a quote to get pricing details. However, you can expect a 50% discount for the first six months of your chosen plan subscription as part of Paycor’s current promotion. Here is a look at the features offered in each plan:

The Basic plan offers features you need to pay employees and manage tax compliance. Its payroll processing features include:

• Automated pay runs
• Basic tax services
• Wage garnishments
• Pay options
• Off-cycle pay runs
• Check stuffing
• Online check stubs
• Online payroll reporting
• Local and state tax filing and payments

Paycor’s Essential plan offers new hire productivity tools in addition to payroll and tax compliance features, such as:

• All the features listed in the Basic plan
• Reporting options and a report builder
• A general ledger report
• A month-end accounting package
• 401(k) processing
• Paycor recruit and hire
• Basic Analytics
• An HR support center

The Core plan offers all the features in the Basic and Essential plans, plus:

• An HR platform
• Employee engagement tools

Finally, Paycor’s most feature-rich plan is its Complete plan. It offers the features of the first three tiers plus the following tools:

• Employee career management
• Employee compensation planning
• Talent development

Paycor has a 4.4 rating on Capterra with over 2,700 reviews. However, it only has a 3.9 rating on G2 with five user reviews. Users say the software’s customer support representatives are friendly but sometimes slow to respond. They also say the software is pricey compared to other payroll software options. However, they like that the platform is easy to use, offers guided setup and training and all the basic features most businesses need to manage their payroll and HR needs.

I tested Paycor using a Mac laptop computer. Paycor offers a testing account with sandbox data, and I found the system interface to be clean and intuitive to navigate. All features are clearly listed in the right-hand menu.

Reviewing and managing payroll was a familiar process because of its intuitive grid or spreadsheet-like layout. For those who have managed payroll through Excel or Google Sheets, this system will make sense to you.

I could process payroll in two clicks. To change pay rates or correct time worked, I only had to click on a cell to input the new data point. Filters along the top of the spreadsheet allowed me to easily add or remove columns of information I needed, such as bonuses, holidays, paid time off, overtime premium and overtime hours. Once I’ve reviewed the pay run, I simply had to click “approve payroll” to run my payroll for that pay period.

The reporting feature is robust and customizable. Paycor offers a report builder tool that allows you to select a report you want to run, then customize it by selecting available options. For example, you can choose from a selection of onboarding, time, payroll, HR or security reports. Once I chose my report, it offered a list of columns I could include or exclude. I simply had to check the corresponding boxes to add or remove columns, such as:

• Current annual hours
• Benefit base salary
• Work location

I could also use filters to group data by department or pay type, for example.

The home also had a familiar newsletter-like layout. It offered easy customizations by allowing me to add or remove modules. For example, when I signed into my account, I clicked “customize homepage” from the top menu and was presented with a list of available modules. From there, I clicked the corresponding X or “activate” link next to a module to add or remove it from my homepage. I could choose from the following modules to include:

• My paycheck
• Leader insights
• Time insights
• My notifications
• Tax documents creation status

Overall, in my experience, Paycor’s user experience required no learning curve. Task workflows were self-explanatory and required minimal effort on my part. However, the system seemed a bit glitchy. It kept signing me out and requiring me to sign back in in the middle of tasks. This was a minimal disturbance but still a disturbance that cost me time and effort to handle.

Paycor offers plans for businesses of all sizes, but the software is best for medium and large businesses with more complex HR needs than smaller companies.

Learn more: Read the full Paycor review .

• Robust mobile app with mobile wallet and debit card
• Time and attendance tracking
• Expense tracking and reimbursements
• Automated tax filings and payments
• Two-click payroll runs
• High cost relative to competitors
• Clunky employee portal interface
• Glitchy sign-in/sign-out process

Best for Payroll Automations

$8 per month per user

Rippling offers all the tools you’d expect in a small business payroll software, including automated payroll, tax filing support, direct deposit payments and reporting. And, notably, it makes running and managing payroll extra intuitive by offering automations that ripple across the system so all parts of the software, from its IT and Financial Cloud to its HR and payroll features, are always in sync.

Lisa Lindsey, PHR, SHRM-CP, our advisory board member, sees a lot of value in Rippling: ”Rippling is an exciting product for startups where a single person is often performing the HR, finance and IT functions.  These functions are intertwined, and the simplicity of a single system to manage the overlapping tasks is heaven-sent.”

Rippling stands out with its automated payroll tools. True to its name, one change in the payroll system creates an automated ripple effect, updating all aspects of payroll that are impacted. For example, if an employee moves to begin a new role after being promoted, the hiring manager may change that employee’s compensation. This change initiates changes in tax withholdings, tax filings, payroll calculations, healthcare deductions and more, all without the manager having to lift a finger.

Here are some standout features included in Rippling’s automated payroll features:

• Automated payroll in 50 states and internationally
• Garnishments
• Time tracking sync with payroll
• Direct deposit or check options for employees
• Job costing and multiple pay rate management
• W-2, W-4, 1099 and new hire filing
• Updates to compliance laws
• 90-second payroll runs

To access Rippling payroll, you must subscribe to two of the Rippling modules, including its Unity and HR modules. The Unity module is responsible for uniting any other modules you select into the core Rippling platform, including its IT Cloud, Finance Cloud and HR Cloud. Specifically, its HR Cloud offers domestic and global payroll services. In the end, this means you must pay for two modules for each employee to get started with Rippling payroll tools, including its:

• Unity Core tier license: This system is $8 per month per employee. It offers a unified workforce directory, workflow automations, analytics, approval management, groups and permissions, document management and custom fields and mapping.
• HR Cloud: Rippling’s HR Cloudcloud must be used in conjunction with its Unity platform. It is $8 per employee per month and offers employee onboarding and offboarding tools, global payroll, benefits management, learning management, talent recruiting tools, time and attendance and optional professional employer organization (PEO) services. With its PEO services, you can opt to have Rippling handle your HR processes.

Rippling earns a 4.8 star rating on G2 with 2,2802,800 user reviews and a 4.9 rating on Capterra with more than 3,000 user reviews. Its users praise the platform for its user-friendliness and clean user interface. They say the Rippling customer support is overall responsive and helpful and they haven’t experienced an overly steep learning curve with the platform. Any time they have a question, they rarely have to reach out for live support because Rippling’s troubleshooting articles help them easily resolve the issue themselves.

However, they report that there are a lot of features to consider when setting up the platform. Adding helpful features such as the IT or workflow modules can get pricey. In addition, there may be a lot of features small businesses may not need.

In my experience, setting up automations was as intuitive as possible, given the large ripple effect each automation produces. I had to first set up people groups within the platform, including their permission levels and other specifications. Once I did so, it was easy to add people to those groups with just a few clicks and trust the system to update their access levels, applicable policies, tax filing workflows, hierarchical protocols, communication channels and devices.

Running payroll happens using a simple spreadsheet interface. I could change payment details, approve payments and run payroll right from the spreadsheet. The spreadsheet automatically calculates all related expenses, including:

• Employer and employee taxes
• Blended rates
• Salaries and hourly rates
• Hours worked

Any systems that must sync to derive this data, such as time clock software or systems, happen automatically, so I didn’t have to worry about any of those processes.

Rippling is best for small businesses that hire talent internationally and need an automated way to handle payroll runs, compliance and tax filings across the globe. It is also best for growing businesses that need automation tools to scale their payroll and compliance efforts as they grow.

Learn more: Read the full Rippling review .

• Easy to use
• Lots of automations
• Global payroll
• Automated tax filings
• Pricey compared to some competitors
• Lots of features may be overwhelming for small businesses

To determine the best payroll services for small businesses, Forbes Advisor researched the industry and analyzed 23 different companies and their plans. We then scored these contenders across 34 metrics in five categories weighted to favor features that small business owners find valuable in a payroll provider. Here’s a breakdown of the categories we used to rank the providers that made the top of the list.

Read More:  How We Evaluate Payroll Services

Payroll refers to the total compensation a company pays employees for their work. Payroll also refers to the process of calculating employees’ net pay and initiating payment to them. Whether you have one employee or 100, you’ll need to process payroll to ensure they get paid correctly and that proper records are kept.

Although each has a unique design with varied features, most online payroll services work basically the same way. They typically include a cloud-based portal for both employers and employees. Employers—or your accountant, bookkeeper or HR employee—set up benefits and salaries for employees and, on some platforms, contractors.

When you hire a new worker, you can invite them to self-onboard through the employee portal, so you’ll easily gather their W-4 or W-9 form and contact information, and they can sign up for relevant benefits.

Some payroll services offer automated payroll, so you can set worker pay and employees can track their time (if necessary) and the service runs payroll on schedule. The services let workers enter direct deposit information, and you connect a business bank account on the employer end, so payroll runs without you having to print and deliver checks.

If payroll isn’t automated, you have to run it manually on schedule a couple of days before payday, entering worker pay amounts and scheduling paydays.

Many online payroll services include features that help you administer benefits in the same platform, as well as integrations for accounting software . Many offer workers the option to get a payment card, so they can receive money before payday and use the card directly to make purchases.

Some payroll services are part of comprehensive HR platforms that include not only pay and benefits but also employee development, education and coaching programs.

How your team uses an online payroll system will vary depending on the size of your team, the expertise of your employees and the system you use. Most services come with excellent sales and customer service reps who can help you get set up and answer questions you have along the way.

A basic payroll solution helps you pay employees and, on some platforms, contractors. Use it to facilitate direct deposit as well as to manage payroll checks, taxes and reporting.

Most payroll services also include benefits administration, so you can use the platform to set up paid time off, retirement plans, insurance and other benefits for employees and integrate benefits with payroll.

The best payroll services offer core capabilities, ample software integrations and other key features that may or may not match your company’s current size and payroll needs.

Ask an expert

How do I find the best payroll service?

Lisa Lindsey

Forbes Business Advisory Board Member

Alana Rudder

Staff Reviewer

Rachel Williams

Small Business Editor

You want to ensure that you have a reliable professional preview your system implementation to ensure that your payroll is set up completely and in a way that positions you to grow effectively. Additionally, make sure you have support with processing the first few payrolls via your new system to identify and fix any errors.

Start by pinpointing your biggest payroll challenges. For example, is your biggest challenge time? If so, choose a payroll software with automation features such as autopilot payroll runs and automated tax filing. Or, are payroll labor costs mounting up? Then, look for a software with a free version or one with enough features to replace some of your labor needs, such as a PEO that will handle your payroll management.

Look for a service that offers essential features like accurate payroll processing, tax compliance and employee self-service options. Make sure it aligns with your business’s growth plans. For example, maybe you have only a handful of employees now but want to grow in the future and will need more bells and whistles.

Essential Features

These features make payroll tools a step up from running payroll manually with a spreadsheet.

• Variety of payment methods: Payroll software should provide a range of ways to pay your employees, whether through paper checks, direct deposit or via prepaid debit card.
• Payroll tax filing and payment: Payroll software and services should automatically prepare, file and pay taxes based on where your employees live. This feature is all the more important for companies that hire employees in multiple U.S. states and in other countries.
• Unlimited payroll runs: If you have employees and contractors that get paid on different schedules, you’ll want a payroll solution that allows unlimited payroll runs for flexibility.
• Self-service: An advantage of payroll software and services is that they provide an online portal for HR staff, payroll administrators and employees to view and sometimes make changes to payroll-related data.
• Basic reports: Payroll software runs a variety of reports on company-wide or individual levels for metrics such as total compensation, deductions or taxes paid in a given quarter or tax year.
• Automatic compliance updates: Payroll software and services stay up to date with the latest payroll and tax regulations, so you don’t have to.
• Mobile access: HR staff, payroll administrators and employees should be able to access payroll tools on the go. Employees especially should have access to their pay history and pay stubs through the mobile app.

Software Integrations

The payroll software you use should integrate with QuickBooks or whichever accounting software you use to keep an accurate record of payroll history in the event of an audit. Payroll software should also integrate with benefits administration software for accurate deductions and with time tracking software .

Other Important Considerations

To further evaluate your payroll needs, answer these ten questions about your business and its payroll system.

• What is the size of my business? Christine Stolpe, CPP, president and CEO of Wages Creek Consulting , notes this as a key factor that small businesses must consider when choosing a payroll platform so that they don’t outgrow the system too quickly. When considering outsourcing payroll, you don’t need to think about the size of your business in terms of its turnover or number of customers. You need to take into account just two things: how many employees do you have currently and how many more are you likely to add in the near one to two years?
• What types of employees do I have? You can have both regular employees and independent contractors on your payroll. Additionally, you might pay your employees a fixed monthly salary, hourly wages or a base wage plus commissions or tips. Payment structure and taxation requirements for each of them differ and you need to know these numbers to evaluate your payroll needs. If you have only independent contractors, you might be able to meet your needs using an online payroll system, which is usually cheaper.
• How do I pay my employees? Do you need to make direct deposits or handle check payments? Do you need to make international payments via platforms like Stripe and PayPal? Think about how you will get money from your bank account to your employees and make it as painless as possible.
• How often do I pay my employees? Do you pay all your employees at one time, or do you have different schedules for different categories? For instance, you might be paying them weekly or biweekly. In the case of independent contractors, you might be paying them anytime they invoice you. The payroll system should be able to handle these payouts in addition to off-cycle payments like expense reimbursements, bonuses, commissions, etc.
• Are all employees based out of the same location? If you have employees spread across different states or around the globe, you will need to meet more regulations. With hybrid and remote work becoming commonplace as a result of the pandemic, you must consider if you might have people working from different locations in the future.
• Who is responsible for processing payroll? If you have a dedicated person or team for processing payroll, you will likely be able to manage with a DIY payroll solution, which could be cheaper. Otherwise, you should consider investing in an outsourced payroll service even if it is more expensive. This will help ensure that payments are processed accurately and on time.Lisa Lindsey, PHR, SHRM-CP, an HR professional with over 20 years of experience, says, “In either case, you want to ensure that you have a reliable professional preview your system implementation to ensure that your payroll is set up completely and in a way that positions you to grow effectively.  Additionally, make sure you have support with processing the first few payrolls via your new system to identify and fix any errors.”
• What are my local/state payroll laws? The payroll laws depend upon the locality, state and countries where your employees reside. You must know what city, state, federal or international payroll laws you need to comply with. If you’re not sure, contact a payroll professional in your area to get some guidance.
• How do I want payroll taxes handled? Payroll taxes can get complex and tedious as your business grows. You need to decide if you want the new payroll solution to handle taxes or not. If the answer is yes, look closely at the cost for year-end calculations because that usually comes with an extra price tag. If you don’t, make sure to hire a reliable tax professional to handle this process for you.
• What deductions do I need to plan for? Before disbursing payments, you need to withhold deductions for taxes, such as income tax and Social Security tax; wage garnishments, such as unpaid loans, alimony, and child support; and benefits, such as health insurance.
• What is my budget? Cost is an important factor when choosing a payroll company. You must have an estimate in mind that you are willing to pay monthly or annually to meet your payroll needs. This will help ensure that you don’t overextend yourself when you are tempted to pay extra for à la carte features.

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“Cost is always an issue for small business but a cheap system costs more in bad press when the payroll system fails and employees go unpaid,” Stolpe says. “Remember that employees are the greatest resource and the expectation is that they will be paid timely and accurately.”

Besides a fixed monthly cost, online payroll services often charge per transaction or employee payment. This implies that the larger the number of employees, the greater the transaction fee. If you are planning to expand your workforce, carefully consider how your payroll service cost will change while you are growing. Most payroll providers have a tiered payment structure to cater to businesses of different sizes. Evaluate which tier would be least expensive for you in the long run before signing up.

You might need to opt for paid add-ons to ensure you have all the “must have” features in your payroll service. Be mindful of how much they cost. If you can squeeze some “good to have” features as well, do so but don’t overextend yourself.

To sum up, these are some of the costs you need to look at before you make a final decision:

• Base subscription fee
• Setup and support fees
• Taxes and compliance fees
• Per-employee fees
• Add-on fees

Payroll Solutions Tailored To Your Business Goals

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What are payroll services?

What is the best payroll company.

The best payroll software for your company depends on your business size and needs. Top payroll services for small businesses include OnPay, Gusto and ADP RUN. Traditional companies offer customizable plans to fit your needs while platforms tailored for startups offer straightforward pricing and all-inclusive packages you can get up and running in minutes.

What type of HR features should a payroll system have?

A payroll system should have these features:

• Data sync with time tracking, benefits administration and employee data
• A variety of payment methods, including direct deposit and prepaid debit cards
• Payroll tax filing and payment
• Unlimited payroll runs
• Self-service
• Basic payroll reports
• Automatic compliance updates
• Mobile access

What are the benefits of payroll software?

The benefits of payroll software are payroll accuracy, timeliness and compliance . Plus, due to automations, payroll software saves HR staff time.

How do you set up payroll?

Here’s how to get your payroll started :

• Set a pay cycle
• Collect employee information and tax documents
• Calculate gross pay
• Determine net pay
• Initiate payment
• Pay taxes and keep records of payment

What is a PEO payroll service?

A PEO payroll service is a co-employer that manages your employee data and other core HR activities for your company, including payroll. It’s essentially a way to outsource your payroll .

How long does payroll take to process?

It typically takes five business days between finalizing internal payroll processes and employees receiving the check in their bank account through direct deposit. It takes longer if employees receive mailed checks.

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• Namely Payroll Review
• Best Payroll Solutions For Recruitment Agencies

With over a decade of experience as a small business technology consultant, Alana breaks down technical concepts to help small businesses take advantage of the tools available to them to create internal efficiencies and compete in their markets. Her work has been featured by business brands such as Adobe, WorkFusion, AT&T, SEMRush, Fit Small Business, USA Today Blueprint, Content Marketing Institute, Towards Data Science and Business2Community.

Lauren (Hansen) Holznienkemper is a staff writer and deputy editor for the small business vertical at Forbes Advisor, specializing in reviewing and testing HR, payroll and recruiting solutions for small businesses. Using research and writing skills from her academic background, Lauren prioritizes accuracy and delivering the best answer to the audience. She has over 13 years of writing and editing experience, including 2.5 years producing content about HR software and HR-related topics.

Rachel Williams has been an editor for nearly two decades. She has spent the last five years working on small business content to help entrepreneurs start and grow their businesses. She’s well-versed in the intricacies of LLC formation, business taxes, business loans, registered agents, business licenses and more.

Lisa Lindsey is a seasoned HR consultant and coach and the founder of Peale Piper , a boutique human resources consulting firm. She helps small to mid-size businesses transform their culture, move their human resources practices from transactional to strategic, as well as develop and retain their employees.   Lisa has over 20 years of corporate human resources, legal operations and start-up experience, including executive roles in cybersecurity and building services industries. As the chief people officer of SkOUT Cybersecurity, Lisa was a member of the Executive Leadership Team. During her tenure, she collaborated with senior leadership to develop the company’s culture. She built the entire human resources infrastructure for the organization, cultivated the employer brand, and developed and executed all people management strategies, including performance management and learning and development programs. These activities improved business operations and culture, leading to a successful $25 million capital raise. She also served as an internal coach to the executive leadership team through significant growth and high-stress situations.   Prior to SkOUT, Lisa worked in various human resources leadership roles where she improved workplace culture, coached and mentored staff, and implemented innovative cost-saving human resources strategies and programs.   Lisa received both her Bachelor of Arts in Social Sciences with a focus on Organizational Behavior and Change and Master of Science in Human Resources Management and Development, Organizational Effectiveness from New York University. She is certified by both the Human Resources Certification Institute (HRCI) and the Society for Human Resources Management (SHRM).   Lisa is also a trainer and speaker. She draws on her experience and expertise to develop and deliver leadership workshops and training programs to help teams and individuals understand their strengths, recognize the behaviors that hold them back and improve their personal effectiveness.

Event Management

Must-have platform features for unified events management.

5 Jun 2024 | Heather Pryor | 3 minutes

The events channel is much less likely than other marketing channels to have its own platform. Instead, organizations often purchase two or more solutions to deliver all of their events. 

Combining the management of all events into a single event management platform offers several advantages and allows organizations to consolidate their event tech spend. But it’s important to make sure the chosen platform can meet all requirements for virtual and in-person events of all sizes and in all different formats. 

When evaluating all-in-one event platforms, first consider compatibility with your other marketing and sales technologies. For example, does the platform meet your organization’s security standards? Can it be repurposed for different types of events? How will your event data be integrated into the customer journey? 

Reports evaluating the event tech landscape, such as the recent Gartner® Magic Quadrant™ for Event Technology Platforms , can help organizations find a platform suitable for all use cases. These reports cover platform capabilities, customer feedback, company details, and other important facets. 

Having delivered thousands of events over the years, we’ve also distilled the most important platform features to keep in mind during your research: 

1. Flexibility

A true all-in-one solution should be flexible enough to deliver virtual, in-person, and hybrid events. Does the platform have streaming capabilities and on-site technologies? Does it come with a mobile app? Does it leverage rules-based automation to guide attendees to the right experience?  

2. Reusable Components 

There’s no sense in purchasing an all-in-one platform if it requires duplicating work for each event. Look for a platform that enables you to copy registration, branding, emails, and more from one event to the next. Event templates can save your team hundreds of hours of work.  

3. Universal Reporting 

A critical component of unified event management is consistent reporting. An all-in-one platform should include multi-event and single-event reporting for identifying trends and areas of opportunity. Industry benchmarks for events similar to your own in size and format also provide guidance. Look for a platform vendor that offers a range of reporting options and benchmarks to support goal-setting.  

4. Single Integration Point for Marketing and Sales Tech

Multiple integration points with the marketing and sales tech stack can impair the ability to compare data from event to event. Instead, a single integration point with popular platforms from leaders like Salesforce and Adobe provides a cross-functional view of customer engagement over time. Each team can drive more business through events. 

5. Top-Notch Security 

Finally, because all-in-one platforms capture so much information about attendees, they require the highest standards of security . Finding a platform with industry-standard certifications and other security features keeps everyone safe, shielding you from potential lawsuits, fees, and other consequences. 

6. Dedicated Support

Finally, the event platform provider should have the bandwidth and expertise to support your complete event portfolio. A partner with proven implementation processes, complete training, and a team to assist as needed will help your events succeed and increase your team’s efficiency.  

Request a demo to learn how RainFocus unified event management.

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