Best HR Software for Small Businesses: Breathe vs Hibob vs Sense HR

Choosing the right HR software can transform how a small business manages people, processes, and performance. But with so many platforms on the market, how do you know which one fits your stage of growth? In this guide, we compare three of the best HR systems for 2025—Breathe HR, HiBob, and Sense HR (AI Package) —highlighting their features, pricing, and ideal use cases.

Whether you’re a startup needing simple absence tracking or a scale-up looking to automate onboarding and performance reviews, this article will help you decide which HR platform is right for your business.

Breathe – Best for Micro & Small Businesses

In our opinion, Breathe HR is an excellent choice for small businesses and start-ups looking for a straightforward, easy-to-use HR system. Designed with micro-businesses in mind, Breathe offers essential HR functions such as absence tracking, document storage, and performance management at an affordable price point.

Key Benefits:

• Affordable and simple to implement

• Quick and easy to set up

• Ideal for companies with fewer than 50 employees

• Straightforward time-off management and document storage

• No unnecessary complexity for smaller teams

• Pricing is based on headcount brackets, making it a compelling option for cost-conscious businesses

However, as businesses scale, they may outgrow Breathe’s capabilities, particularly when it comes to automation and integrations with more advanced systems. Additionally, it is not as customisable as Hibob or Sense HR.

HiBob – Ideal for Mid-Sized Growing Businesses

In our opinion, Hibob is a powerful HR platform that truly comes into its own when a company reaches around 50 employees or more. It offers a highly customisable experience, rich analytics, and automation that can significantly reduce administrative burdens.

Key Benefits:

• Advanced automation for onboarding, workflows, and approvals

• Strong employee engagement tools such as surveys and performance tracking

• Comprehensive reporting and analytics with automated report generation

• Scalable with integrations into wider business systems

• Unlimited electronic signing capabilities that speed up the turnaround of signed documents

• Unlimited and customisable’ workflows for automating routine activities

Hibob’s pricing model is based on a price per head per month, which means costs can add up quickly, particularly for businesses with a high number of casual workers who interact with the system infrequently.

Sense HR (AI Package) – The Future-Ready Solution

Sense HR, with its AI-driven functionality, is designed to streamline HR operations for businesses looking to embrace automation and efficiency at scale. In our opinion, like Hibob, Sense HR is particularly valuable for companies with 50+ employees, offering automation that reduces manual workloads and supports strategic HR initiatives.

Key Benefits:

• AI-powered features that improve efficiency and decision-making

• Strong workflow automation and self-service capabilities

• Adaptable to businesses with complex HR needs

• Smart integrations with payroll and other business tools

• Unlimited electronic signing capabilities that speed up the turnaround of signed documents

• Pre-built workflows for automating routine activities (with an option to request new ones for an additional fee)

• Ability to build reports and automate them

Sense HR also follows a price per head per month model, making it more expensive than Breathe HR, particularly for businesses with casual or infrequent system users.

While Sense HR is an advanced system, its AI-driven approach may not be necessary for businesses in the early stages of growth. However, for those seeking a more intelligent and proactive HR solution, in our opinion, it’s a strong contender.

Which One is Right for Your Business?

In our opinion, all three of these systems are great, but the best HR software for your business depends on several factors:

• Business Size: Breathe HR is ideal for micro-businesses, while Hibob and Sense HR start delivering significant value at around 50 employees.

• Automation Needs: If reducing admin time through automation is a priority, Hibob and Sense HR are better suited.

• Workforce Type: Businesses with a high number of casual or seasonal workers may find per-employee pricing models less cost-effective.

• Additional Features: If your business needs integrated time and attendance, payroll connectivity, or advanced reporting, the more sophisticated platforms offer these features.

Ultimately, in our opinion, all three systems are excellent choices depending on where your business is in its growth journey, your HR setup and budget.

Investing in the right HR system at the right time can help streamline operations, support employee engagement, and free up HR teams to focus on strategic initiatives.

Not sure which system is the right fit for your business? We can help. Whether you're looking for ongoing HR support or a one-off implementation project, we’ll guide you through the decision-making process and get the right tech in place—quickly and painlessly.

Get in touch to chat through your options.