Free HR Software For Startups: Best Tools To Manage Your Team Without the Cost

The best free HR software for startups includes Zoho People, Homebase, OrangeHRM Starter, and Factorial, each covering core needs like employee records, leave tracking, onboarding, and scheduling at no upfront cost.

Hiring your first few people is exciting. Sorting out their leave, documents, and payroll manually in a spreadsheet? Less so.

The good news is you do not need to spend hundreds a month on HR software before you hit your first funding round. Several solid tools offer free plans or free open-source versions that cover the basics most early-stage teams actually need.

This page lists the best free HR tools for startups, what each one covers, their real free plan limits, and when you will need to upgrade.

Best Free HR Software For Startups

The top free HR tools for startups are Zoho People, Homebase, OrangeHRM Starter, and Factorial, covering employee records, leave management, scheduling, and onboarding across their free or open-source plans.

Here is a quick comparison of what each tool actually offers for free.

Disclaimer: In the ever evolving saas industry things change over time. The information may change for the most accurate details visit the official website.

A few things worth knowing before you pick one.

Zoho People’s free plan covers micro-teams of under 5 people and includes a basic employee list and leave tracking. It is truly free with no credit card required, but it is limited to one admin and does not include document tracking or onboarding.

Homebase’s free plan covers scheduling and time tracking for up to 20 employees at a single location, making it a strong pick for early-stage teams managing shifts or hourly workers.

OrangeHRM Starter is a free, open-source version designed for small businesses looking to automate HR tasks like employee management, leave tracking, and reporting. It suits technical founders comfortable with self-hosting or cloud deployment.

Factorial’s free plan includes document management and digital signatures, though it operates on a trial basis rather than a permanent free tier.

Free HR Tools For Startups By Use Case

The right free HR tool depends on what your startup needs most right now, whether that is onboarding new hires, tracking leave, managing shifts, or running basic recruitment.

Most early-stage startups do not need a full HR suite on day one. Pick the tool that solves your immediate problem, then expand as your team grows.

Free Onboarding Software For Startups

Factorial is the strongest free option for onboarding, covering digital document signing, employee self-service profiles, and org chart creation within its trial period.

Getting a new hire set up without a paper trail scattered across email is a real problem at the five-to-ten employee stage. Factorial lets employees update their own information, download payslips, and manage documentation from anywhere, which reduces HR admin and empowers team members from day one.

OrangeHRM Starter also covers onboarding basics. Its HR Administration module includes admin and employee self-service roles, an employee database, and a corporate directory, giving new hires access to their own records without manual input from a founder.

Free Leave and Attendance Tracking

Zoho People’s free plan and OrangeHRM Starter both cover leave tracking at no cost, while Homebase handles attendance and shift-based time tracking on its free tier.

Zoho People’s free plan suits micro-teams under 5 people who need a basic employee list and leave tracking, with no credit card required.

For teams with more than 5 people, OrangeHRM Starter is worth considering. It includes PTO and leave management with advanced leave configuration, PTO request and approval workflows, time tracking, and reporting and analytics.

Homebase takes a slightly different angle. It focuses on shift-based attendance rather than policy-driven leave. Homebase monitors labour law requirements including breaks and overtime, and issues alerts when an employee is about to violate a mandated break period. Useful if your startup runs a physical operation with hourly staff.

Free Recruitment and Applicant Tracking

OrangeHRM Starter includes a built-in ATS on its free open-source plan, making it the only tool in this list that covers recruitment without a paid upgrade.

OrangeHRM Starter’s key features include a recruitment ATS alongside employee management, time tracking, performance reviews, and reporting.

If recruitment is a priority early on, OrangeHRM gives you candidate tracking, job posting management, and hiring workflows without paying for a separate tool like Greenhouse or Workable.

Free Payroll Tools For Startups

None of the permanent free HR plans in this list include full payroll processing. Homebase offers payroll as a paid add-on, while Zoho Payroll and Gusto both offer free trials before moving to paid plans.

This is worth stating clearly so you do not build your HR stack around a free tool and then get surprised at payday.

Homebase adds payroll as an optional paid module on top of its free scheduling plan. Homebase integrates with 25-plus software tools including payroll platforms, point-of-sale systems, and job boards. So if you already use a payroll provider, connecting it is straightforward.

For very early teams, Zoho Payroll and Gusto are both worth trialling. Both offer free trial periods so you can test the full payroll workflow before committing to a monthly cost.

Which Free HR Tool Is Right For Your Startup Stage?

The best free HR tool for your startup depends on your team size, whether you manage hourly or salaried staff, and how much technical setup you are willing to handle.

Not every free HR tool suits every stage. Here is a quick guide to help you match the right tool to where your startup actually is right now.

0 to 5 People

At this stage you need the basics. Employee records, leave tracking, and a place to store contracts without relying on a shared Google Drive folder.

Best pick: Zoho People free plan.

Zoho People’s free plan covers micro-teams of under 5 people and includes a basic employee list and leave tracking. It is truly free with no credit card required, but it is limited to one admin and does not include document tracking or onboarding. You can review all plan tiers on the Zoho People pricing page.

If you want more structure from day one, Factorial’s trial gives you document management, digital signatures, and org charts to set a clean foundation before your team grows.

6 to 20 People

You are past the “everyone knows everything” stage. You need scheduling, time tracking, and a proper leave approval process.

Best pick: Homebase free plan or OrangeHRM Starter.

Homebase’s free plan covers scheduling and time tracking for up to 20 employees at a single location, with no per-employee fee on the free tier. It works particularly well for startups with shift-based or hourly teams. You can check current plan details on the Homebase pricing page.

For office-based or remote teams at this stage, OrangeHRM Starter is the stronger option. OrangeHRM Starter provides core HR functions like leave, time, and employee management, and is designed for businesses that are new to HR software. The open-source version gives you full data control, which matters more as your team grows.

20 to 50 People

At this point the free plans start showing their limits. You will likely need onboarding workflows, performance tracking, and proper payroll integration.

Best pick: Upgrade to Zoho People Essential HR or Homebase Essentials.

Zoho People’s Essential HR plan at $1.25 per user per month adds onboarding workflows, document tracking, and basic shift creation, making it the minimum viable plan for most small teams.

Homebase scales by location rather than by employee count, so its paid tiers are transparently priced with no per-employee fee on core plans, which keeps costs predictable as headcount grows.

Here is a quick summary to help you decide fast.

Frequently Asked Questions