Comparing HR Management Options for Startups and Small Businesses: PEO & SaaS
This is the second in a series of posts about HR management options. For an overview of the three types (PEO, SaaS, and Offline) see our first post: 3 Options for HR Management for Startups, Small Businesses, and Distributed Teams
Jump to section:
SaaS (Software as a Service) HR
PEO (Professional Employer Organization)
SaaS (Software as a Service) HR
While we are evaluating SaaS offerings for HR management, these are some of the reviews from the market.
GigaOM‘s Amber Singleton Riviere compares SaaS options targeted specifically at startups and small businesses. She offers a side-by-side view of TribeHR, BambooHR, EffortlessHR, and iEmployee. Below is an abridged version of the review along with available pricing information:
TribeHR
- Employee records
- Vacation/leave tracking
- Employee development tracking
- Employee notes and feedback
- Shared resources (including tracking of document views)
- Job postings
- Reports
Price: from $19/mo [15 users] to $399/mo [unlimited]
BambooHR
- Employee records
- Vacation/leave tracking
- Training time tracking
- Benefit tracking
- Online document storage
- Reports
Price: from $79/mo [50 users] to $599/mo [1000]
EffortlessHR
- Employee records
- Employee portal (employees can update information, request time off, clock in and out)
- Employee email
- Time tracking
- Shared resources
- Reports
Price: from $29.95/mo [19 users] to $99.95/mo [1000]
iEmployee
- Online pay stubs
- Time tracking
- Vacation/leave tracking
- Employee portal (employees can clock in and out)
Price: available by request on their website
In addition, Start2Cloud‘s Michal Pulda offers a comparison of TribeHR and OrangeHRM Live in the categories of functionality, customization, look and feel, browser, language & general support, and price.
While Orange is found to be more customizable and Tribe more intuitive, ultimately Michal recommends Orange for larger companies that need the flexibility of options like descriptive fields and custom report structure in addition to training courses that outline the features of the software. On the other hand, he prefers TribeHR for small companies that don’t need advanced features like employee time monitoring or time allocation among projects.
TribeHR is quoted at $19/month for up to 15 employees ($1.27/employee) with the most expensive option being $399/month for an unlimited number of users. OrangeHRM’s pricing is not publicly available, but Michal was quoted at an initial price of $6.25/employee/month with larger companies being able to access rates as low as $0.25/employee/month.
A more expensive and a more comprehensive alternative to HR Management are Professional Employer Organizations.
PEO (Professional Employer Organization)
A PEO is a third party company that acts as your company’s HR department in place of a part- or full-time employee. Not only will a PEO provide an ‘one stop’ branded HR portal for your employees, they will manage your benefit plans, FSA, and health insurance, and will search for the best health insurance plans to suit the scale of your business and needs of your employees.
Competitors in the field include TriNet, ADP, StaffOne, and Oasis Outsourcing though a search of ESAC-certified PEOs in your state will provide many more options.
Pros:
- No time is spent on managing HR internally
- Employees often have a choice of multiple healthcare plans
- Rates may be comparable or even lower than hiring a part- or full-time employee to manage HR functions
Cons:
- The onus is on employees to check benefits, change preferences, and research healthcare
- The company must rely on the customer service of the PEO to update or make changes to employee information/benefit plans. For a first-hand account, read Ed Shull’s experience with TriNet.
- Employees may feel a “chasm” between themselves and their management since they must contact the PEO to discuss all HR matters
Disclaimer: We have no first-hand experience with any of the tools discussed in this post. All references to services, pricing, or experience are cited.





















