search icon

Grow your small business with HR software from Sage

Effective management of the people in your company is crucial for success; using HR software can take the burden out of HR.

Importance of HR for small businesses

Human resources helps businesses hire the strongest talent and manage staff development so that your team is the strongest it can be. It will also offer more insight into your business and foster a positive company culture, as it shows your staff the commitment you have towards them. With innovative software solutions from Sage, setting up and managing HR processes has never been easier.

Develop staff to help your business grow

As a small business, you may struggle to compete with much larger organisations when it comes to attracting the top employees. Therefore, you may have to rely on developing your existing staff. Using HR software to set objectives and monitor performance as well as manage development plans and training can help you close the gap on larger companies. A workforce that has improved their skills will help you perform better and increase profits.

Managing the financial side

There’s no denying that investing in your staff can help you grow your business, retain staff, and reduce costly recruitment processes. If you don’t show effective leadership, you’ll have demotivated staff that are less productive. HR software for small businesses can help reduce the time required for effective people management, particularly when it comes to the administration side. Furthermore, the right systems will provide you with access to legal information, helping you stay compliant and avoid potential legal fees.

Benefits of using HR software for small business

Utilising HR systems helps to streamline your human resources processes and lets you focus on what’s most important to you - sustainably growing your company. Sage HR allows you to track, manage, and engage your employees and gives you access to people data to inform business decisions.

Stay up-to-date and organised

You will have all information easily available to you in one place. Quickly access the latest information on your employee performance and the legislation relevant to you.

Intuitive reporting

Using HR software helps you save significant amounts of time as it puts together and analyses reports automatically for you, giving you actionable insights. 

Identify and develop top talent

Step up your people management - track your employees’ achievements and provide them the incentives and encouragement to go the extra mile.

Access expert advice

Human resources software from Sage grants you access to an extensive library of guides and a selection of experts to help you get the most out of your HR tools.

Stay on top of attendance

Absence management software to monitor staff illness and manage holidays effectively to ensure you don't end up understaffed.

Our best HR management software for small businesses

Sage HR

For small to medium sized businesses that want a modular HR system that will simplify processes across the end-to-end employment journey.

  • Simplified end-to-end HR system that’s easy to administrate
  • Core HR and leave management with additional modules for performance, timesheets, shift scheduling, recruitment and expenses
  • Modular design, pricing and setup
  • Ready to go out of the box, no implementation required
  • Establish a single source of truth for all your employee data
  • Automate people processes to reduce admin and improve productivity
  • Easy to navigate employee self-serve for better employee experience

FAQs

Sage for Small Business is one platform that empowers small businesses to manage their business money, people and payroll all in one place. Sage has more than 40 years experience perfecting accounting, payroll and HR software, and makes running a small business easier for over 1 million customers. Sage has combined all of these elements into one platform so business owners can experience the benefits of an integrated solution. Get paid faster, get organised, and get your taxes right first time with Accounting features. Then add Payroll to calculate employee pay and deductions quickly and accurately and get your people management processes streamlined and compliant with the HR features that come automatically with Payroll.

Yes, you can get HR and skip payroll if you're a growing small business with over 25 employees. You can add Payroll and Accounting apps down the line, as and when you need them. If you're a business with less than 25 employees, you may want to consider Sage Payroll which includes essential HR capabilities which you can upgrade at any time.

Have questions about Sage human resources solutions?

24/7 online assistance

Get the answers you need, whenever you need them from our extensive online support area.

Human resources wisdom for smarter business

Find useful articles, tips and insights about hiring, onboarding, and people management.
Landlord tax calculator for rental income 

Landlord tax calculator for rental income 

Most landlords overpay tax or underpay without realising it. Use our free landlord tax calculator to estimate your bill, understand Section 24, and see what's changing from April 2027.

Read more
Read more
Closing the AI skills gap in your accountancy practice

Closing the AI skills gap in your accountancy practice

Nearly half of accountants cite a lack of skilled people as an AI barrier. Here's how to build capability, protect junior development, and bring your team with you.

Read more
Read more
How R Banks and Son Funerals Ltd supports its community

How R Banks and Son Funerals Ltd supports its community

Payroll used to take a full day at R Banks and Son Funerals. Now it takes hours. See how Sage gives Wigan's largest funeral director time back.

Read more
Read more
AI ethics and compliance: A practical guide for accountancy practices

AI ethics and compliance: A practical guide for accountancy practices

The PCRT bodies published AI guidance in January 2026, and CCAB has just opened an ethics hub. Here is what both mean for your practice in daily terms.

Read more
Read more
VAT Calculator: use now to add & remove VAT

VAT Calculator: use now to add & remove VAT

Use our free VAT calculator for UK rates. Learn how to add and remove VAT, apply it to invoices, and submit returns through Making Tax Digital.

Read more
Read more
Why UK finance teams can't close faster

Why UK finance teams can't close faster

Discover why UK finance teams struggle to close faster, and how AI-powered automation can cut days off your monthly close cycle.

Read more
Read more
The real cost of manual accounts payable

The real cost of manual accounts payable

The real cost of manual accounts payable, measured through the AP KPIs that reveal what it's actually costing your business.

Read more
Read more
AR Automation: How to reduce DSO

AR Automation: How to reduce DSO

Learn how AR automation helps UK finance teams reduce DSO, speed up collections, and free up working capital.

Read more
Read more