Workday has a favorable reputation in the HR world, but for many small businesses, it feels like more than they really need. The platform is built for complex organizations, which means higher costs, longer setup times, and advanced features that smaller teams may never fully use.
Small and growing companies often have different priorities, like affordable pricing, simple tools their team can pick up quickly, and the flexibility to grow without extra complexity. It’s no surprise, then, that more small to medium-sized businesses are considering alternatives to Workday that better match their size and pace.
We’ll walk through the top Workday alternatives for small businesses. We’ll focus on the features that matter most, how the pricing compares, and how each option can support your entire organization as it scales.
Why Small Businesses Seek Workday Alternatives
Workday is noted for its reliable HR and finance capabilities, but it was built with large enterprises in mind. Many SMBs find that the platform asks too much (whether in terms of budget, time, or day-to-day usability) compared to what they truly need from HR software. The main challenges usually come down to four areas:
- High cost and enterprise focus: Workday’s pricing and licensing model can quickly become prohibitive for SMBs. The platform is designed to serve global corporations, which means many features are out of scope for smaller teams that just need the essentials.
- Steep learning curve: Workday’s depth comes with complexity. Implementing and learning the system takes time and resources that smaller HR teams (or sometimes a single HR manager or a business owner) may not have. Workday is a tool for HR, and business owners who need to oversee HR will be find it is too excessive for them.
- Not much agility at all: Enterprise platforms often move slower when it comes to rolling out updates or adjusting to new ways of working. Even setting it up for the first time might mean a significant implementation time. By contrast, SMB-friendly HR platforms are built to integrate quickly with common tools like Slack or Google Workspace, and adapt to remote, hybrid, or fast-scaling environments.
- SMB priorities: What small businesses actually look for is different: affordability, ease of use, and the ability to scale gradually as the company grows. Increasingly, AI capabilities like automated workflows or smart recommendations are also high on the list, which helps small teams do more with less.
These are must-have features in HR software for SMBs.
Key Features to Look for in a Workday Alternative
Choosing the right HR platform depends on making sure the software matches the way small businesses actually work. Here are the features that matter most when evaluating alternatives:
- Employee self-service portals: Give employees direct access to update their information, request time off, and view pay details without going through HR. This cuts down on admin work and helps improve employee experience.
- AI-powered automation: Modern HR tools increasingly use AI to handle repetitive tasks, like scheduling interviews, sending reminders, or generating reports. An HR system with AI capabilities helps lean teams save time and focus on higher-value work.
- Integrations with everyday tools: Look for systems that connect smoothly with apps you already use, such as Slack, Google Workspace, or Microsoft Teams. This makes adoption easier and keeps processes centralized.
- Mobile access: HR software should work wherever your team does. A strong mobile app lets employees clock hours, approve requests, or check schedules on the go (which is specifically important for remote teams or frontline staff).
- Transparent pricing: Unlike enterprise solutions that require custom quotes, SMB-friendly platforms typically offer clear, tiered pricing. This makes it easier to plan budgets and scale without hidden fees.
5 Best Workday Alternatives for Small Businesses
Here are some of the top HR platforms that small businesses often turn to instead of Workday. Each one offers a different balance of features, pricing, and usability that make them better suited for SMBs with leaner teams and budgets.
TalentHR: Best all-in-one HR platform for small teams
TalentHR is a comprehensive solution designed for startups and small businesses that want essential HR tools without enterprise complexity. Its free plan for up to 10 users makes it an ideal option for early-stage teams that need structure without stretching their budgets. Core features include workforce management, time-off tracking, document management with e-signatures, onboarding workflows, performance reviews, and advanced analytics (capabilities that are typically add-ons elsewhere).
The platform is quick to set up, integrates with tools like Slack and Google Calendar, and includes an AI-powered applicant tracking system that helps write job descriptions, run the job ads on a Careers page, and assess candidates (among others AI capabilities like surveys generator to measure employee engagement). It also offers a mobile app for HR tasks on the go.
- Pricing: Free for up to 10 users; paid plans start at $2/user/month.
- Best for: Startups and small teams looking for an affordable but still comprehensive, all-in-one HR platform.
BambooHR: Familiar and user-friendly
BambooHR is one of the most recognized names in SMB HR software, largely due to its intuitive design and ability to centralize employee records, onboarding, workforce planning, employee performance reviews, and reporting. Its easy-to-use interface has helped it become widely used by both employees and HR staff.
Of course, BambooHR has its drawbacks. Some users find its payroll integration limited, particularly for global or international employees, which can make updates feel manual and less automated than expected. Another concern is pricing. BambooHR does not list its costs publicly, and there’s no free plan. Businesses must contact sales for a quote, and expenses tend to increase once optional features like payroll, regulatory compliance, or advanced reporting are added.
- Pricing: Quote-based; no free plan. "Plans start at just $10 USD/mo per employee," as per their website, but their pricing is somewhat confusing.
- Best for: SMBs that value a widely-adopted, easy-to-use HR system.
Gusto: Payroll-first HRMS
Gusto is often chosen by small businesses because of its payroll and compliance capabilities. It automates tax filing, handles state regulations, and includes employee onboarding and benefits administration, making it a practical choice for companies where a payroll solution is the central HR priority.
Users frequently highlight Gusto’s simplicity, especially for routine tasks like onboarding or running payroll. On the downside, some reviewers mention limited customization in areas like tax settings and time tracking, and note that certain features are only available on higher-tier plans. Occasional bugs and gaps in customer support are also reported, which can be sometimes frustrating for small businesses relying on the system day-to-day.
- Pricing: Simple: $49/month + $6/employee, Plus: $80/month + $12/employee, Premium: $180/month + $22/employee.
- Best for: SMBs that prioritize tax and payroll compliance.
Deel: International hiring and compliance
Deel is built for companies managing global or remote teams. It makes available international payroll, contractor payments, compliance tools, and Employer of Record (EOR) services in over 100 countries. This makes it possible for small businesses to hire talent abroad without setting up local entities (a significant advantage for distributed teams).
Its compliance features, including localized contracts and contractor classification, are particularly valued by startups operating across borders. Integrations with accounting and HR tools like Xero and QuickBooks add to its utility.
The downsides are mainly cost and structure. Deel prices start $49 (per contractor per month), and its Employer of Record (EOR) service reaches $599 (per employee per month), which can be difficult for smaller businesses to sustain (actually, smaller businesses might not even need an EOR service.) However, Deel also offers a PEO service that’s free for the first three months in the U.S. On top of this, some users also note that the HR modules feel fragmented, since performance reviews, surveys, and other features are sold as separate add-ons.
- Pricing: Contractor management from $49/contractor/month; Contractor of Record from $325/contractor/month; Global Payroll from $29/employee/month; EOR from $599/employee/month.
- Best for: Startups or SMBs hiring across multiple countries that need strong compliance and payroll support.
HiBob: Configurable and modern
HiBob, often branded as “Bob,” is a flexible HR platform designed for mid-sized companies and fast-growing startups. It covers the employee lifecycle with modules for onboarding, data management, performance reviews, compensation planning, surveys, and people analytics. Its modern interface and adaptable configuration are often praised, especially by distributed teams that need workflows adjusted to their structure.
At the same time, HiBob’s modular structure can be a drawback. While users appreciate its robust reporting features and generally find the interface intuitive for core HR tasks like requesting holidays or checking benefits, some point out that the platform feels fragmented with separate tabs for different products. Pricing is also not transparent. It requires businesses to request a quote, which makes it harder for SMBs to compare against other options directly.
- Pricing: Quote-based, varies by modules and team size.
- Best for: Scaling startups and mid-sized businesses that want a configurable HR solution and are comfortable with custom pricing.
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How to Choose the Right Workday Alternative for Your Business
With so many HR tools available, the best choice depends on how well a platform matches your company’s current setup and long-term goals. When comparing options, keep these factors in mind:
- Budget considerations: Beyond the base subscription, check how pricing scales with headcount and whether key features (like payroll, performance, or integrations) are included or sold as add-ons. Transparent pricing is often a good sign for SMB-friendly platforms.
- Company size and growth plans: A system that works well for a 10-person startup might not be enough once you hit 50 or 100 employees. Look for software that can scale gradually and add features or users without forcing a costly migration.
- Remote-first vs. office-based needs: If your team is distributed, prioritize platforms with strong mobile apps, self-service portals, and integrations with collaboration tools like Slack or Google Workspace. For office-based companies, features like attendance tracking or shift scheduling may carry more weight.
- AI adoption readiness: Many newer HR systems now include AI to automate tasks like job description writing, candidate screening, or policy reminders. Think about whether your team is ready to adopt these tools and how they could reduce manual admin.
- Customer support availability: For small businesses without dedicated HR or IT staff, responsive support can make a big difference. Check whether the platform offers live chat, onboarding help, or dedicated account management, and not just a knowledge base.
Workday Alternative: Try TalentHR
Workday remains one of the most reliable HR platforms on the market, but its enterprise focus means it often isn’t the best fit for small businesses. SMBs typically need an integrated HR system with tools that are leaner, easier to use, and more cost-effective, without losing sight of scalability as they grow.
When choosing a Workday alternative, focus on the balance of features, pricing, and future flexibility. The right platform should meet your team’s needs today (whether that’s payroll, onboarding, or performance management) while still being able to scale as your company expands.
If you are looking for a modern HRMS designed with small businesses in mind, TalentHR’s comprehensive platform is worth exploring. With a free plan for small teams, built-in automation, and an intuitive interface, it offers a practical way to manage HR without enterprise-level overhead.
Try TalentHR for free, no credit card required.
Workday Alternatives FAQs
Q: What is the best alternative to Workday for small businesses?
A: The best HR management platform alternative depends on your priorities. If you want a free, easy-to-use option, TalentHR is a strong choice for small teams. For payroll-focused businesses, Gusto stands out, while Deel is ideal for managing global or remote teams.
Q: Is Workday too expensive for startups and SMBs?
A:Yes, in many cases. Workday is priced and structured for enterprises, which means costs can be high and the setup complex for smaller teams. Most startups and SMBs prefer talent management platforms with transparent, tiered pricing and features that can be scaled gradually, like TalentHR.
Q: What features should SMBs look for in an HRMS alternative?
A: Key features include employee self-service portals, payroll and compliance management tools, onboarding workflows, performance tracking, and integrations with tools like Slack or Google Workspace. Mobile access and transparent pricing are also important. Increasingly, SMBs are looking for AI-driven automation to save time on repetitive tasks.