Best Free HR Software 2026

The Truth About Free HR Software

Let's cut through the noise: truly free HR software exists, but it comes with real limitations. The question isn't whether free HR software is "good enough"—it's whether the limitations align with your needs.

We tested 20+ free HR platforms, and here's what we found:

• 9 platforms offer genuinely useful free tiers—not just 14-day trials disguised as "free"
• Most cap at 10-50 employees—perfect for startups, limiting for growing companies
• None include payroll processing—payroll has real costs vendors can't absorb
• Support is limited—expect self-service help docs, not phone support
• Advanced features are locked—performance management, advanced reporting, premium integrations require paid plans

The good news? For very small teams (under 20 employees) with straightforward HR needs, free software can genuinely work for years. You're not settling for mediocrity—you're matching your solution to your scale.

What We Tested

We spent 90+ hours testing free HR software, evaluating:

• Setup time: How long to get basic employee records imported?
• Daily usability: Can non-technical HR people actually use it?
• Employee experience: Will employees find self-service intuitive?
• Hidden limitations: What breaks when you try to do real work?
• Upgrade pressure: How aggressively does it push you to paid plans?
• Data export: Can you leave cleanly if you outgrow it?

The 9 Best Free HR Software Options

Why Freshteam Wins Best Free HR Software

Freshteam offers the most generous free tier we tested—up to 50 employees permanently free with surprisingly robust features. Most "free" HR platforms cap at 10-20 users, making Freshteam's 50-user limit exceptional.

What's Included in Freshteam Free:

• Employee database: Store unlimited employee records, contact info, emergency contacts, documents
• Org chart: Visual organizational structure with reporting lines
• Time-off tracking: PTO, sick days, vacation—employees request, managers approve
• Applicant tracking: Post jobs, track candidates, schedule interviews—full ATS functionality
• Onboarding: Basic onboarding workflows and document collection
• Employee self-service: Employees update info, request time off, view org chart
• Mobile app: iOS and Android apps for employee self-service
• Integrations: Connect with Google Workspace, Slack, other Freshworks products

What's NOT Included (Paid Features):

• ❌ Payroll processing (requires integration)
• ❌ Benefits administration
• ❌ Performance management and reviews
• ❌ Advanced reporting and analytics
• ❌ Custom workflows beyond basic onboarding
• ❌ Priority customer support (email only on free tier)
• ❌ Advanced integrations (limited on free tier)

The Real-World Experience:

Setup took about 2 hours to import employee data and configure time-off policies. The interface is clean and intuitive—our test users (non-technical HR admins) navigated it confidently within 30 minutes. The ATS features are surprisingly complete for free software, comparable to paid entry-level recruiting tools.

Limitations to Know:

• Storage cap of 100MB (about 5,000 documents)
• Email support only (no phone or chat on free tier)
• Freshteam branding on career pages
• Limited custom fields (10 max)
• Basic reporting only

Best for: Startups and small companies (5-50 employees) who need core HR + recruiting without paying anything.

Upgrade when: You exceed 50 employees ($1.20/employee/month after that) or need performance management and advanced reporting.

The Micro-Business Champion

Zoho People's free tier is limited to just 5 employees, but within that constraint, it's remarkably full-featured. If you're a tiny team, this is one of the most capable free options.

What's Included Free:

• Employee database: Complete employee records with custom fields
• Attendance tracking: Clock in/out, track work hours (great for remote teams)
• Time-off management: Leave tracking with approval workflows
• Employee self-service: Portal for employees to update info and request time off
• Mobile apps: iOS and Android with offline access
• Basic performance: Simple goal tracking (limited)
• Integrations: Connects with other Zoho products (Zoho CRM, Books, Projects)

What Costs Extra:

• More than 5 employees ($1.50/employee/month for Essential plan)
• Advanced performance management
• Learning management system
• Advanced reporting
• Shift scheduling

Limitations:

• Hard cap at 5 employees (must upgrade to add more)
• Limited storage (1GB)
• No ATS/recruiting features
• Email support only

Best for: Micro-businesses with 2-5 employees, especially if already using Zoho ecosystem.

Skip if: You have more than 5 employees or plan to hire soon (better free options exist at that scale).

3. Bitrix24

Free for: Unlimited users (with feature limitations)

Best for: Teams wanting project management + basic HR in one platform

Bitrix24 is unique—it's primarily a collaboration and project management platform that includes HR features. The free tier has unlimited users but significant feature restrictions.

What's Included Free:

• Unlimited users (no employee cap!)
• Employee directory and profiles
• Time tracking and attendance
• Task and project management
• Internal communication (chat, video calls)
• Document storage (5GB free)
• Basic CRM
• Calendar and scheduling

HR Limitations on Free Tier:

• No dedicated time-off management module
• Very basic employee records
• No performance management
• Limited workflow automation
• 5GB storage cap (shared across all features)

Best for: Teams (any size) who want project collaboration + lightweight employee directory, not comprehensive HR.

Skip if: You need proper time-off tracking, performance reviews, or dedicated HR workflows.

4. OrangeHRM

Free for: Unlimited users (open-source, self-hosted)

Best for: Tech-savvy teams comfortable with self-hosting

OrangeHRM offers two models: free open-source (self-hosted) or paid cloud. The open-source version is genuinely free forever but requires you to host and maintain it yourself.

Open-Source Features (Free):

• Complete employee database
• Time-off and leave management
• Attendance tracking
• Performance management
• Recruitment/ATS module
• Training/learning module
• Customizable reports
• No employee limits

The Catch:

• Self-hosting required: You need a server (AWS, DigitalOcean, etc.) and technical skills to set up and maintain
• No support: Community forums only, no official support
• Updates manual: You're responsible for security patches and updates
• Time investment: Setup can take days, not hours

Hosting Costs: While software is free, expect $10-50/month for basic hosting on services like DigitalOcean or AWS.

Best for: Tech companies with in-house IT/DevOps resources who want maximum customization and data control.

Skip if: You lack technical expertise or want a managed, cloud solution.

5. Agendrix

Free for: Up to 20 employees

Best for: Shift-based businesses (retail, hospitality, healthcare)

Agendrix focuses on employee scheduling but includes lightweight HR features. Great for businesses where shift management is more critical than traditional HR.

Free Features:

• Employee scheduling (up to 20 employees)
• Shift templates and rotation
• Employee availability tracking
• Time clock with mobile punch
• Basic time-off requests
• Employee directory
• Mobile app for shift swaps

What Costs Extra:

• More than 20 employees
• Advanced HR features (performance, onboarding)
• Payroll integration
• Labor cost forecasting

Best for: Retail, restaurants, and hourly workforce businesses under 20 employees.

Skip if: You need comprehensive HR features beyond scheduling.

6. CakeHR

Free for: Up to 5 employees

Best for: European small businesses needing GDPR compliance

CakeHR (by Sage) offers a limited but clean free tier focused on time-off management and basic employee records.

Free Features:

• Employee database (up to 5)
• Time-off and leave management
• Employee self-service portal
• Document storage
• GDPR-compliant data handling
• Mobile apps

Limitations:

• Only 5 employees max
• No performance management
• No recruiting/ATS
• Limited reporting
• Basic support

Best for: Very small European teams (2-5 people) prioritizing data privacy and simple time-off tracking.

7. Buddy Punch

Free for: 14-day trial only (not permanently free)

Note: Not truly free, but worth mentioning for completeness

Buddy Punch focuses on time tracking and scheduling. While not permanently free, their trial is generous and the paid plan is affordable ($3.99/user/month).

Trial Features:

• Time clock with GPS tracking
• Employee scheduling
• PTO tracking
• Payroll integration prep
• Mobile punch in/out

Best for: Companies needing time tracking who can budget $4/person/month after trial.

8. Factorial (Limited Free Tier)

Free for: 1 employee only

Best for: Solo entrepreneurs testing before scaling

Factorial technically offers a free tier for single-person businesses. It's a great way to test the platform before you grow.

Free Features (1 employee):

• Employee profile
• Document storage
• Time-off tracking
• Time tracking

Paid Pricing: Very reasonable at $5/employee/month once you add team members.

Best for: Solo founders planning to hire soon who want to get familiar with the system.

9. Homebase

Free for: Unlimited employees (basic features)

Best for: Hourly workforce businesses (restaurants, retail)

Homebase offers genuinely free tools for shift scheduling and time tracking—perfect for hourly workforce businesses.

Free Features:

• Unlimited employees
• Employee scheduling
• Time clock with mobile punch
• Team messaging
• Shift notifications
• Basic hiring/onboarding

Paid Features:

• Payroll processing
• HR compliance tools
• Advanced reporting
• PTO tracking

Best for: Restaurants, cafes, retail stores with hourly workers.

Skip if: You need salaried employee management or comprehensive HR features.

Free HR Software Comparison Table

What Free HR Software Can't Do

❌ Payroll Processing

No free HR software includes payroll processing. Payroll involves real costs (tax filing, direct deposits, compliance) that vendors can't absorb. You'll need to either:

• Use a separate payroll service like Gusto ($40/month + $6/person)
• Integrate with payroll providers (many free HR tools offer integrations)
• Handle payroll manually (not recommended beyond 5 employees)

❌ Benefits Administration

Free tiers typically don't include health insurance, 401(k), FSA, or other benefits administration. This requires broker relationships and ongoing management that free software can't support.

❌ Advanced Performance Management

While some free tools offer basic goal tracking, sophisticated performance management (360 reviews, competency frameworks, calibration sessions) requires paid plans.

❌ Comprehensive Reporting & Analytics

Expect basic reports only. Advanced analytics (turnover prediction, diversity metrics, compensation analysis) are premium features.

❌ Premium Integrations

Free tiers often limit integrations to basic options (Google Calendar, Slack). Advanced integrations (QuickBooks, NetSuite, sophisticated ATS tools) usually require paid plans.

❌ Priority Support

Free users get email support and help docs—not phone support, chat support, or dedicated account managers. Expect 24-48 hour response times instead of instant help.

❌ Custom Workflows & Automation

Advanced workflow automation, custom approval chains, and sophisticated business rules are typically paid features.

❌ White Labeling

Free tiers usually include vendor branding on employee-facing pages (career sites, self-service portals). Removing branding requires paid plans.

When to Upgrade from Free HR Software

Clear Signs It's Time to Pay

1. You Hit Employee Limits

If you're at 48/50 employees on Freshteam free tier and hiring, upgrade before you can't add new hires. Most free tools offer affordable paid plans once you exceed limits.

2. You Need Payroll Integration

When manually syncing employee data to your payroll provider becomes painful, integrated payroll (Gusto, ADP) saves hours monthly and reduces errors.

3. Support Becomes Critical

If an HR issue is blocking work and email support won't cut it, paid plans with phone/chat support ($50-100/month more) become worth it.

4. You Need Real Reporting

When leadership asks for turnover analysis, diversity metrics, or compensation insights, basic free reports won't suffice.

5. Performance Management Matters

If you're growing beyond 25 employees and need structured performance reviews, goal tracking, and feedback systems, paid performance modules deliver ROI.

6. Compliance Gets Complex

Multi-state operations, international employees, or regulated industries (healthcare, finance) require compliance features free software doesn't offer.

7. The Free Version Slows You Down

If limitations cause workarounds that waste more time than the software costs, upgrade. A 5-hour monthly time savings at $50/hour = $250 value from software costing $100.

Affordable Upgrade Paths

• Freshteam: $1.20/employee/month after 50 employees (very affordable)
• Zoho People: $1.50/employee/month for Essential plan
• Factorial: $5/employee/month (excellent value)
• Gusto: $40/month + $6/person (includes payroll)
• BambooHR: ~$8/employee/month (comprehensive features)

Budget reality: Most companies should plan for $5-15/employee/month once they exceed free tier limits.

How to Choose Your Free HR Software

Step 1: Check Employee Count

• 1-5 employees: Zoho People, CakeHR, Factorial, or Freshteam
• 5-20 employees: Freshteam (best option), Agendrix (if shift-based)
• 20-50 employees: Freshteam is your only real free option
• 50+ employees: No viable free options—budget for paid software

Step 2: Identify Must-Have Features

Need recruiting/ATS? → Freshteam or OrangeHRM (self-hosted)

Need shift scheduling? → Homebase or Agendrix

Need performance management? → OrangeHRM (self-hosted) or upgrade to paid

Just need employee database + time-off? → Most free options work

Step 3: Assess Technical Capability

Non-technical team: Freshteam, Zoho People, CakeHR (cloud, easy setup)

Tech-savvy team: OrangeHRM (maximum features, requires self-hosting)

Step 4: Consider Growth Plans

If you plan to hire 10+ people in the next year, choose software with affordable upgrade paths (Freshteam $1.20/person, Zoho $1.50/person) rather than tools with expensive paid tiers.

Step 5: Test During Setup

Spend 2-3 hours setting up your top 2 choices with real data. Which one feels intuitive? Which one has the features you actually use? Don't decide based on feature lists—decide based on real usability.

Frequently Asked Questions

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