Best HR Software for Tech Startups

Why Tech Startups Need Different HR Software

Tech startups are not normal small businesses. You are not running a 10-person accounting firm that will stay 10 people for a decade. You are building something that might be 5 people today and 50 people in 18 months. Your HR software needs to handle that reality.

Here is what makes tech startups different:

• Hyper-growth: You might 3x headcount in a year. Your software needs to scale without switching platforms mid-growth.
• Remote and distributed: Your team is probably not in one office. You need multi-state (or multi-country) payroll, async onboarding, and digital-first everything.
• Technical employees: Engineers expect modern, well-designed tools. A clunky HR system reflects poorly on your company.
• Equity compensation: Stock options, RSUs, ISOs, NSOs. Your HR system needs to integrate with cap table tools like Carta or Pulley.
• Compliance complexity: You are hiring in California, New York, Texas, and maybe Europe. Multi-jurisdiction compliance is table stakes.

The Top 5 HR Platforms for Tech Startups

1. Rippling — Best Overall for Scaling Startups

Best for: Series A and beyond, 15-500 employees, companies that want unified HR/IT

Price: Starting at $8/employee/month (base) + modules

Rippling is the platform most tech startups graduate to after Gusto. It does everything: payroll, benefits, HRIS, device management, app provisioning, and even corporate cards. The killer feature is automation. When you hire someone, Rippling can automatically provision their laptop, set up email, add them to Slack channels, enroll them in benefits, and start payroll—all from one workflow.

Why startups love it:

• One platform for HR, IT, and finance eliminates tool sprawl
• Automatic device provisioning for remote employees
• Deep integrations with 500+ apps (Slack, GitHub, AWS, etc.)
• Global payroll for international teams
• Beautiful, modern interface that engineers appreciate

Downsides: Can be expensive if you use all modules. Overkill for very early stage startups. Implementation takes longer than Gusto.

2. Gusto — Best for Early-Stage (Pre-Seed to Series A)

Best for: Pre-seed through early Series A, 1-50 employees, US-focused teams

Price: $40/month + $6-12/employee depending on plan

Gusto is where most tech startups begin. It handles payroll, benefits, and basic HR for small teams without complexity. You can sign up today and run payroll tomorrow. The interface is clean and modern, employees love the self-service portal, and it integrates with everything from QuickBooks to Slack.

Why startups love it:

• Get started in minutes, not weeks
• Transparent, affordable pricing
• Excellent benefits administration (they broker health insurance)
• Great employee experience with modern self-service
• Integrates with cap table tools (Carta, Pulley)

Downsides: Not ideal past 100 employees. Limited IT/device management. No global payroll (US only, though they now offer international contractor payments).

3. BambooHR — Best for HR-Focused Teams

Best for: Series A and beyond, 25-500 employees, companies prioritizing HR experience

Price: Custom pricing, typically $6-12/employee/month

BambooHR is the HRIS-first platform. If your priority is creating an amazing employee experience—great onboarding, performance reviews, employee engagement—BambooHR excels. It is less about unified HR/IT (that is Rippling) and more about being the best pure HR platform.

Why startups love it:

• Best-in-class onboarding workflows
• Built-in ATS for recruiting
• Performance management and reviews
• Employee self-service with excellent mobile app
• Strong reporting and analytics

Downsides: Payroll is an add-on (or you integrate with Gusto). No IT/device management. Pricing is not transparent.

4. Deel — Best for Remote-First and Global Teams

Best for: Remote-first startups with international contractors or employees, any stage

Price: $49/contractor/month, $599/EOR employee/month, $29/direct employee/month

If you are building a distributed team across multiple countries, Deel is purpose-built for this. They handle contractor payments in 150+ countries, offer Employer of Record (EOR) services so you can hire full-time employees without setting up foreign entities, and manage international compliance.

Why startups love it:

• Pay contractors in any currency, anywhere
• Hire full-time employees in countries where you have no entity
• Compliance handled automatically (contracts, taxes, benefits)
• Visa and immigration support
• Clean, contractor-friendly interface

Downsides: EOR pricing is expensive (but cheaper than setting up foreign entities). US payroll is basic compared to Gusto. Not a full HRIS.

5. Justworks — Best for Startups Wanting PEO Simplicity

Best for: Early to mid-stage startups that want HR managed, 5-200 employees

Price: $59-99/employee/month (includes benefits, HR support, compliance)

Justworks is a PEO (Professional Employer Organization), meaning they co-employ your workers and handle all HR administration. It is more expensive per employee, but you get big-company benefits (health insurance at Fortune 500 rates), HR experts on call, and compliance handled for you.

Why startups love it:

• Access to enterprise-level benefits plans
• HR experts available for guidance
• Compliance handled (they take on liability)
• Simple, predictable per-employee pricing
• Good for startups without HR staff

Downsides: More expensive than DIY solutions. Less control over HR processes. You are sharing an employer relationship.

By Stage: What to Use When

Pre-Seed / Bootstrapping (1-10 employees)

Recommendation: Gusto Simple ($40/mo + $6/employee)

At this stage, you need payroll that works and does not require thought. Gusto Simple handles payroll, tax filing, and basic HR for around $100/month for a 10-person team. That is it. Do not overthink it.

Add benefits when you hit 5-10 employees and start competing for talent. Gusto can broker health insurance and set up a 401(k) through partners like Guideline.

Seed / Early Series A (10-30 employees)

Recommendation: Gusto Plus ($80/mo + $12/employee) or start evaluating Rippling

At this stage, you are probably still fine on Gusto. The Plus plan adds better HR tools, time tracking, and compliance features. You might also start needing an ATS for recruiting (check out Manatal or Greenhouse/Lever).

If you are hiring engineers who need laptops provisioned and apps set up, start looking at Rippling. The IT management features become valuable as you scale.

Series A (30-75 employees)

Recommendation: Rippling or BambooHR + Gusto

This is the inflection point. Most startups either migrate to Rippling (unified HR/IT) or add BambooHR for HRIS while keeping Gusto for payroll. The choice depends on your priorities:

• Choose Rippling if: You want one platform, you have remote employees needing device management, you value automation and workflows.
• Choose BambooHR + Gusto if: You prioritize employee experience, need strong performance management, and are okay managing two systems.

Series B and Beyond (75-200+ employees)

Recommendation: Rippling, BambooHR, or start looking at enterprise (Workday, HiBob)

At this scale, you need a real HRIS with robust reporting, performance management, and compliance tools. Rippling and BambooHR both handle this well. If you are approaching 500+ employees and raising a big Series C, you might start evaluating enterprise platforms like Workday or HiBob.

Special Considerations for Tech Startups

Equity Compensation

Your HR system needs to play nice with your cap table. Gusto, Rippling, and BambooHR all integrate with Carta (the dominant cap table platform). This means equity grants flow through properly, employees can see their holdings, and you are not manually reconciling spreadsheets.

Multi-State Compliance

Tech startups hire remotely, which means employees in multiple states. California alone has unique requirements (meal breaks, overtime rules, expense reimbursement). Make sure your platform handles multi-state tax filing and compliance. Gusto, Rippling, and BambooHR all do this well.

International Teams

If you are hiring internationally, you need either:

• EOR (Employer of Record): Deel or Remote.com to hire employees in countries where you have no entity
• Contractor management: Deel for paying international contractors compliantly
• Global payroll: Rippling or Deel if you have entities in multiple countries

SOC 2 and Security

If you are selling to enterprises, they will ask about your vendors security posture. Gusto, Rippling, BambooHR, and Deel are all SOC 2 compliant. Make sure whatever you choose can provide compliance documentation for your sales process.

Migration Path: How Startups Typically Evolve

Based on patterns we see repeatedly:

1. Day 1: Gusto Simple (just need payroll)
2. 20-30 employees: Upgrade to Gusto Plus, add an ATS
3. 50 employees: Evaluate Rippling vs staying on Gusto + adding BambooHR
4. 100+ employees: Most are on Rippling or BambooHR + payroll integration
5. 200+ employees: Enterprise evaluation begins (Workday, HiBob)

The key is choosing platforms that migrate cleanly. Gusto to Rippling is straightforward. Rippling to enterprise tools is documented. Avoid locking yourself into niche platforms that will be painful to leave.

The Bottom Line