Best HR Software 2025: Expert Guide for Australian Businesses

Navigating the world of human resources (HR) software can be tricky.

Choose the right solution? Employee management becomes easier, recruitment processes speed up and your HR team’s admin time gets slashed, freeing them to have important conversations with employees, engage in strategic project work and drive initiatives that move the needle. Pick the wrong one? Your HR team is 10 paces behind where they started, bogged down in clunky systems and data duplication, while employees chase their basic needs.

That’s why we’ve compiled a guide to the best HR software on the market in 2025. We’ve broken down the pros, cons and prices of our most trusted picks, outlining how well they support Australian businesses.

What Is HR Software?

Human resources software is any tool that helps you manage people processes—anything from your recruitment software to employee onboarding platforms, all the way to exit interview apps.

HR software can be broken down into four main types of systems:

• Human resources information systems (HRIS): These include any employee data management tools, such as digital time card creators, diversity, equity and inclusion (DEI) dashboards, and annual leave trackers.
• Human resources management systems (HRMS): These cover people management tools, such as applicant tracker systems (ATS) and employee engagement platforms.
• Human capital management (HCM) tools: These include tools that help you enhance your human capital—e.g. performance management tools, communication apps and compensation benchmarkers.
• Payroll management tools: These handle everything from calculating salaries, superannuation and tax to automating payslips and staying compliant with Fair Work and Australian Taxation Office (ATO) requirements.

Why Your Business Needs HR Software

HR software can offer several significant benefits to both your employees and your business as a whole:

• Enhances your people operations: From hire to retire, HR software can streamline and support the entire employee lifecycle, reducing the need for manual processes and preventing errors.
• Improves the employee experience: Employee self-service functionality (through self-service portals or other features) means teams can own their data, make updates when it suits them and won’t need to ask managers about the status of their annual leave. This frees managers’ time to focus on coaching and development, supporting their team’s growth, and increasing employee satisfaction and engagement.
• Saves time: Done with letter writing and manual payroll calculations? HR software automates routine tasks, such as generating contracts, sending onboarding documents and processing payslips. This slashes admin time and enables your HR admins to do more important work.
• Streamlines key functions: HR software can streamline tasks like annual leave calculations, issuing offer letters, performing workforce analytics and managing performance reviews. They still need a human touch, of course, but these tools can do the heavy lifting for you, taking care of the admin, calculations and reminders so you can focus on the conversations that matter.
• Reduces errors: Keying errors and typos are responsible for many payroll mistakes and compliance issues. Automated data entry and built-in calculations mitigate the risk of human error, ensuring more accurate people processes.
• Improves compliance: Compliance is a key aspect of HR operations. Secure document stores, automated audit trails and data security, in line with Australian Privacy Principles (APPs), help ensure your organisation meets legal obligations and avoids costly breaches.
• Builds manager capability: Allowing managers to own their team’s HR processes, supported with automatic reminders and self-service tools, gives them the confidence and structure they need to lead effectively.

Selection Criteria: What to Look For

The right software for you largely depends on your business needs and size. However, some universal features make a big difference, regardless of industry or headcount.

Here’s what to look out for when picking a tool:

• Ease of use: Software that requires a degree in computer science to navigate is no use to anyone. Look for a clean user interface (UI) that makes features easy to find and use. Total beginners should also look out for YouTube guides or onboarding support to help them get up to speed.
• Core functionality: HR software should cover the basics: annual leave, sick leave, long service leave management, employee data storage, award and entitlement management, and robust Australian payroll integration (for single touch payroll compliance). Tools that don’t offer these features are an automatic no.
• Compliance and security: Look for cloud-based HR software that complies with the APPs, the Fair Work Act and Work Health and Safety (WHS) principles. Your software should also support data residency in Australia and offer robust security protocols, like two-factor authentication (2FA) and role-based permissions.
• Reporting and analytics: The best tools offer custom reporting capabilities so you can gain meaningful insights into your team’s performance and make data-driven decisions. However, if you’re a beginner, you might want to look for a tool with built-in data dashboards that surface key insights automatically.
• Pricing and support: Transparent pricing structures, responsive customer care (in your time zone) and clearly communicated local support hours are all must-haves in any HR software solution.

Top HR Software Providers in 2025

Here are our top four Australian HR software providers in 2025. Read on to learn more about their pros, cons and prices, and what made them stand out to us.

Workday

Best for: Large businesses and multinational enterprises (MNEs) looking for AI functionality.

Key features:

• AI-enabled agents
• Compliance support
• Custom API tools
• Over 600 pre-built integrations
• Absence management dashboard
• Advanced workforce planning

Workday is an advanced and intuitive HRMS. With custom API capabilities, AI-enabled agents and over 600 pre-built integrations, it’s a great choice for businesses seeking deeper insight into their workforce. While it’s not ideal for those new to HRMS, if you have a little experience under your belt, it can take your HR processes to the next level.

Pricing: Workday’s pricing structure is tailored to your business size and needs. However, it offers a 30-day free trial to see whether the system works for you. Reach out to the sales department to learn more.

BambooHR

Best for: Small to medium-sized businesses looking to formalise HR processes.

Key features:

• Customisable onboarding checklists
• Integrated payroll and benefits tools
• Performance management features
• Pre-built people data dashboards
• AI-enabled HR assistant
• Hiring and onboarding tracker

Businesses looking to track and manage their HR processes should consider BambooHR. A popular and user-friendly option, this software has all the features a small and growing business might need. Although based in the US and Canada, BambooHR offers dedicated Australian support and a wide range of localised features, including leave tracking and reporting aligned with Fair Work standards.

Pricing: You’ll need to reach out to BambooHR for a custom price based on your company’s needs.

Employment Hero

Best for: Those new to HR processes looking for dedicated Australian HR support.

Key features:

• A comprehensive HR advisory service
• ATO-recognised payroll system
• Custom data dashboards
• Employee engagement features
• Time and attendance tracking
• Automated timesheets

Employment Hero’s all-in-one approach is great for businesses wanting to stay vigilant about compliance. It offers dedicated HR advisory services tailored to support Australian employment law, meaning you don’t need to be an employee relations expert to get it right. Plus, Employment Hero’s team of experts offer jargon-free advice in dedicated Australian time zones, making it easy to pick up the phone and get the support you need.

Pricing: Contact Employment Hero for a custom price.

HiBob

Best for: Mid-sized organisations looking to implement fast growth

Key features:

• Clean, clear interface
• Customisable data dashboard
• Simple time and attendance tracking
• Customisable HR workflows
• Organisation chart and team structure functionality
• Employee engagement tools

HiBob’s clear layout and customisable HR workflows make it great for businesses that want to scale business operations—and quickly. The custom HR workflows allow you to automate key processes like onboarding, promotions and offboarding, so nothing slips through the cracks as your team grows.

Pricing: HiBob’s pricing packages are tailored to your business needs. Reach out to its pricing team for more info.

Comparative Feature Table

Choosing the Right Solution for Your Business

• Micro-businesses (one to 10 people) would benefit from Employment Hero’s free trial and dedicated HR support.
• SMEs (11 to 100 people) should try HiBob if they’re looking to scale or BambooHR for a user-friendly HR solution.
• Larger Australian enterprises would benefit from the automation power of Workday, alongside its global payroll solution and deep customisation options.

Where possible, take advantage of free trials and free plans. For example, Employment Hero’s 14-day free trial or Workday’s 30-day free trial. It’s a great, hands-on way to see what tools you gel with and which you don’t.

Future of HR Tech and Trends

Let’s take a look at what could be in store in HR tech:

• AI in HR: Artificial intelligence in HR tools will take care of mundane tasks, like data entry or routine letter writing. However, HR professionals need to be aware of risks, such as bias in the AI algorithm or an over-dependence on automation. A human eye will always be necessary in human resources tasks.
• Mobile-first solutions: The rise in remote and hybrid working means mobile-accessible HR platforms are a necessity. Employees can request their annual leave on the bus, respond to their boss’s message from the canteen or even complete onboarding tasks from the couch. However, this ‘anywhere, anytime’ mentality may cause issues for employees’ work-life balance. It can also cause security issues in instances where phones are lost or stolen, giving hackers potential access to sensitive company and personal data.
• Personalised employee journeys: Gen Z are much more forthcoming about their specific needs, preferences and expectations from an employer than previous generations. As a result, a more holistic onboarding solution may be required.

Pick The Best HR Solution Today

The right HR solution can be a game-changer for your HR teams. Manual tasks like data entry, leave approvals and compliance checks are time-consuming, eating into their work day and taking them away from what really matters: your people.

Finding the right choice for you is simple. Consider the size of your business, your long-term goals and where you’re at in your HR journey. Would you benefit from a more hands-off solution, or do you need the extra support and guidance? Once you’ve shortlisted, try a few trials or sign up for some demos and see what feels right.

Need help comparing? Expert Market compiles free quotes from different Australian vendors, making it easy for you to weigh up your options.