HR Software for Small Businesses in NZ: Complete 2025 Guide
As your New Zealand business grows beyond 10-15 employees, managing HR with spreadsheets and email becomes unsustainable. HR software centralizes employee data, streamlines compliance, and automates time-consuming admin tasks. This guide compares the best HR software for NZ small businesses in 2025.
Quick Recommendation
For most NZ small businesses (10-100 employees): Employment Hero ($5-$9 per employee/month) offers the best combination of features, NZ compliance, and local support. For international teams, BambooHR ($8-$12 per employee/month) excels.
Why Small Businesses Need HR Software
Once you reach 10-15 employees, HR administration becomes a significant time burden. Email threads about leave requests, spreadsheets tracking employee details, paper-based performance reviews, and manual compliance checks consume hours every week. Here's why HR software becomes essential:
Centralized Employee Database
Store all employee information in one secure system: contact details, emergency contacts, employment contracts, qualifications, performance reviews, and documents. No more hunting through email or filing cabinets.
Leave Management Automation
Employees request leave via self-service portal, managers approve with one click, calendars update automatically. Accruals calculated correctly based on NZ Holidays Act requirements. Saves 5-10 hours per month.
Compliance & Documentation
Track employment agreements, health & safety training, performance improvement plans, disciplinary processes. Automated reminders for contract renewals, probation reviews, and mandatory training. Critical for Employment Relations Authority disputes.
Performance Management
Structured performance review cycles, goal setting, 360-degree feedback, and development plans. Digital records replace scattered Word documents and handwritten notes.
Cost vs. Benefit: HR software costs $50-$900/month for a 10-100 person team. Compare this to the cost of one HR/admin person spending 10-15 hours per week on manual processes ($15,000-$25,000 per year). ROI is typically achieved within 3-6 months.
Essential HR Software Features for NZ Businesses
Not all HR software is created equal. For New Zealand small businesses, these features are essential:
1. Employee Database & Self-Service
Centralized employee records with self-service portal where employees can update personal details, view payslips, access company policies, and download documents. Mobile app access is increasingly important.
2. Leave Management (NZ Holidays Act Compliant)
Track annual leave (4 weeks minimum), sick leave (10 days after 6 months), bereavement leave (3 days), public holidays, and alternative holidays. Must calculate leave correctly for varying hours/pay employees. Critical compliance requirement.
3. Document Management
Store employment agreements, job descriptions, signed policies, performance reviews, disciplinary records, and training certificates. Version control and audit trails are essential for compliance.
4. Onboarding Workflows
Automated checklists for new hires: send employment agreement, collect IRD number, assign training, set up IT access, schedule induction. Ensures consistent, compliant onboarding every time.
5. Performance Reviews & Goal Setting
Structured review cycles (probation, annual reviews, quarterly check-ins), goal tracking (OKRs or KPIs), manager feedback, and development planning. Replaces scattered spreadsheets and Word documents.
6. Reporting & Analytics
Headcount reports, turnover analysis, leave liability, diversity metrics, and compliance dashboards. Essential for strategic workforce planning and board reporting.
7. Integration with Payroll
Two-way sync with payroll software (PaySauce, SmartPayroll, iPayroll, Xero) to eliminate double data entry. Leave balances, new starters, and terminated employees sync automatically.
NZ Employment Law Compliance Requirements
New Zealand has strong employment protections. HR software helps you stay compliant with:
Employment Relations Act 2000
Requirement: Written employment agreements for all employees, clearly stating terms and conditions, notice periods, and dispute resolution processes.
How HR Software Helps: Template employment agreements, digital signing, version control, automated reminders for agreement renewals and probation reviews.
Holidays Act 2003
Requirement: Correct calculation of annual leave, sick leave, public holidays, bereavement leave, and alternative holidays. Complex calculations for variable hours/pay.
How HR Software Helps: Automated leave accrual calculations, accurate leave pay calculations, audit trails showing how leave was calculated.
Health & Safety at Work Act 2015
Requirement: Officer due diligence, documented hazard registers, incident reporting, worker training records, and regular reviews.
How HR Software Helps: Training tracking, incident logging, health & safety document storage, automated training reminders.
Human Rights Act 1993 & Privacy Act 2020
Requirement: Non-discriminatory recruitment, secure handling of personal information, employee consent for data collection, data breach protocols.
How HR Software Helps: Structured recruitment processes, secure data storage (encryption), access controls, audit logs, GDPR/privacy compliance features.
Minimum Wage & Employment Standards
Requirement: Compliance with minimum wage ($23.15/hour for adults as of April 2024), rest and meal breaks, maximum trial periods (90 days for businesses under 20 employees).
How HR Software Helps: Alerts for minimum wage changes, automatic calculation of trial period end dates, break compliance tracking.
Compliance Warning: Employment Relations Authority (ERA) cases often hinge on documentation. "If it's not documented, it didn't happen" is the rule. HR software provides the paper trail needed to defend your business in disputes.
Top HR Software for NZ Small Businesses 2025
1. Employment Hero
Best for NZ Small to Medium Businesses
$5-$9
per employee/month
Australian-founded but with strong NZ presence, Employment Hero is the most popular HR software for ANZ small businesses. Comprehensive features, excellent NZ compliance focus, and integrated payroll option. Over 10,000 NZ businesses use Employment Hero.
Strengths
- • NZ Holidays Act compliant leave management
- • Excellent employee self-service mobile app
- • Integrated payroll option (replaces separate payroll software)
- • Comprehensive onboarding workflows
- • Performance reviews with goal setting
- • Document management with e-signatures
- • Time & attendance tracking
- • Strong NZ support team (local phone support)
- • Integrates with Xero, MYOB, other accounting software
Limitations
- • Can feel overwhelming with features (complexity)
- • Reporting less customizable than BambooHR
- • Some features feel geared toward Australia
- • Integrated payroll costs extra ($8-12 per employee/month)
Best for: Growing NZ businesses (10-200 employees) in any industry. Particularly good for retail, hospitality, and trades who need time tracking and rostering alongside HR.
2. BambooHR
Best for International Teams & Advanced Features
$8-$12
per employee/month
US-based global leader in HR software. Beautiful, intuitive interface, comprehensive features, and excellent for NZ businesses with international employees or aspirations to expand globally. Strong analytics and reporting capabilities.
Strengths
- • Most user-friendly interface (best UX)
- • Excellent reporting & analytics (custom reports)
- • Applicant tracking system (ATS) for recruitment
- • Employee satisfaction surveys & engagement tools
- • Performance management with 360 feedback
- • Global compliance (works for multi-country teams)
- • Best mobile app experience
- • Comprehensive training resources
Limitations
- • Higher cost than Employment Hero
- • NZ leave calculations less refined (US-centric)
- • Support team based in US (time zone challenges)
- • No integrated payroll for NZ (requires separate system)
- • Some compliance features not NZ-specific
Best for: Tech companies, professional services, businesses with international teams (NZ + Australia/US/UK), companies prioritizing employee experience and analytics over local compliance depth.
3. HR Partner
Best Budget Option for NZ Businesses
$3-$6
per employee/month
New Zealand-built HR software specifically designed for Kiwi businesses. Most affordable option, strong NZ compliance focus, and excellent for businesses wanting core HR features without overwhelming complexity. Popular with 10-50 person teams.
Strengths
- • Most affordable ($3-6 per employee)
- • 100% NZ-built and NZ-focused
- • Excellent NZ Holidays Act compliance
- • Simple, uncluttered interface
- • NZ-based support team (understand local context)
- • Good document management
- • Onboarding and offboarding workflows
- • Leave management with manager approvals
Limitations
- • Less feature-rich than Employment Hero/BambooHR
- • Basic performance review functionality
- • No integrated payroll
- • Limited reporting/analytics
- • Smaller integration ecosystem
- • Mobile app less polished
Best for: Budget-conscious NZ businesses (10-50 employees) who need core HR features (leave management, document storage, onboarding) without bells and whistles.
4. Breathe HR
Good Alternative for Small Teams
$4-$8
per employee/month
UK-based HR software with growing NZ presence. Clean interface, good core features, and reasonable pricing. Works well for small teams (5-50 employees) who want something more polished than HR Partner but more affordable than BambooHR.
Strengths
- • Clean, modern interface
- • Good employee self-service
- • Reasonable pricing for small teams
- • Performance reviews and objective setting
- • Document management with reminders
- • Onboarding workflows
Limitations
- • UK-centric (NZ leave compliance is basic)
- • Support team in UK (time zone issues)
- • Limited NZ payroll integrations
- • Smaller user base in NZ
- • Less comprehensive than Employment Hero
Best for: Small professional services firms (5-30 employees) who want modern UX but don't need deep NZ compliance features.
Detailed Feature Comparison
| Feature | Employment Hero | BambooHR | HR Partner |
|---|---|---|---|
| NZ Holidays Act Compliance | Excellent | Good (basic) | Excellent |
| Employee Self-Service | Excellent (Mobile App) | Excellent (Best UX) | Good |
| Onboarding Workflows | Very Good | Excellent | Good |
| Performance Reviews | Good | Excellent (360 feedback) | Basic |
| Reporting & Analytics | Good | Excellent (Custom Reports) | Basic |
| Payroll Integration | Integrated option available | Via API (separate payroll) | Limited integrations |
| Time & Attendance | Yes (geofencing, rostering) | Via integration | No |
| Recruitment/ATS | Basic | Excellent (Full ATS) | No |
| Mobile App Quality | Very Good | Excellent | Basic |
| NZ Support Quality | Excellent (NZ team) | Good (US-based) | Excellent (NZ team) |
| Best For Team Size | 10-200 employees | 20-500 employees | 10-50 employees |
Pricing Comparison 2025
HR software pricing varies by employee count and features required. Here's what you can expect:
Employment Hero
$5-$9 Core HR: $5 per employee/month (minimum $50/month)
Core HR + Payroll: $13-17 per employee/month (combined)
Enterprise (100+): Custom pricing with volume discounts
Example: 20 employees on Core HR = $100/month. Add integrated payroll = $340/month total.
BambooHR
$8-$12 Essentials: $8 per employee/month (core HR features)
Advantage: $12 per employee/month (adds performance, ATS, reporting)
Minimum $150/month (roughly 12-15 employees minimum)
Example: 30 employees on Advantage plan = $360/month. Requires separate payroll solution.
HR Partner
$3-$6 Small Business: $6 per employee/month (1-20 employees)
Medium Business: $5 per employee/month (21-50 employees)
Large Business: $3 per employee/month (50+ employees)
Example: 25 employees = $125/month. Most cost-effective option for core HR needs.
Breathe HR
$4-$8 Starter: $8 per employee/month (1-10 employees)
Standard: $6 per employee/month (11-50 employees)
Plus: $4 per employee/month (50+ employees)
Example: 15 employees = $90/month. Good value for small teams.
Total Cost Comparison for 30 Employees (HR + Payroll):
Employment Hero (integrated): $510/month (HR + payroll in one system)
BambooHR ($360) + PaySauce ($300): $660/month (separate systems)
HR Partner ($150) + SmartPayroll ($240): $390/month (most affordable combination)
Best HR Software by Business Size
5-15 Employees: HR Partner or Employment Hero Core
Recommended: HR Partner ($30-90/month) for budget, Employment Hero ($50-75/month) for growth
At this size, you need core HR features (leave management, document storage, basic onboarding) without complexity. HR Partner is most cost-effective. Employment Hero if you anticipate rapid growth and want to avoid switching later.
15-50 Employees: Employment Hero
Recommended: Employment Hero ($75-250/month)
Sweet spot for Employment Hero. You need robust features (performance reviews, time tracking, comprehensive leave management) and NZ compliance depth. Consider the integrated payroll option to consolidate systems.
50-100 Employees: Employment Hero or BambooHR
Recommended: Employment Hero for NZ focus, BambooHR for analytics/global teams
At 50+ employees, you likely have dedicated HR staff. Choose Employment Hero ($250-450/month) if you're NZ-only and want integrated payroll. Choose BambooHR ($400-600/month) if you need advanced analytics, recruitment tools, or have international employees.
100-200 Employees: BambooHR or Employment Hero Enterprise
Recommended: BambooHR Advantage ($1,200-1,500/month)
At this scale, you need sophisticated reporting, recruitment (ATS), performance management, and employee engagement tools. BambooHR excels here. Employment Hero Enterprise is viable if integrated payroll and NZ-specific features are priorities.
200+ Employees: Consider Enterprise HR Systems
Recommended: BambooHR, or evaluate enterprise options (Workday, SAP SuccessFactors, Oracle HCM)
Very large businesses need enterprise-grade HR systems with workforce planning, succession planning, learning management, and advanced analytics. BambooHR can scale to 500+ employees, but at 200+ consider whether you need enterprise HR platforms.
Implementation Guide: Setting Up HR Software
Implementing HR software typically takes 2-6 weeks depending on business size and data cleanliness. Here's how to do it right:
Phase 1: Planning (Week 1-2)
- 1. Define your requirements (must-have vs. nice-to-have features)
- 2. Get buy-in from leadership and communicate change to team
- 3. Assign an implementation lead (HR manager or office manager)
- 4. Clean up existing employee data (spreadsheets, files, email)
- 5. Gather all employment agreements, policies, and HR documents
- 6. Calculate accurate leave balances for all employees
Phase 2: Setup (Week 2-4)
- 1. Configure company settings (business details, leave policies, public holidays)
- 2. Set up organizational structure (departments, teams, reporting lines)
- 3. Create employee records (import via CSV or manual entry)
- 4. Upload employment agreements and HR documents
- 5. Configure leave types and accrual rules (annual, sick, bereavement)
- 6. Set up approval workflows (who approves leave requests, expenses, timesheets)
- 7. Create onboarding templates and checklists
- 8. Configure integrations (payroll software, accounting, Slack, etc.)
Phase 3: Testing & Training (Week 4-5)
- 1. Test all workflows (leave requests, onboarding, document upload)
- 2. Verify leave balance calculations are accurate
- 3. Test payroll integration (new starters, terminators, leave syncs)
- 4. Train managers on approvals and reporting
- 5. Create employee user guides or record video tutorials
- 6. Run pilot with small group (5-10 employees) to iron out issues
Phase 4: Launch (Week 5-6)
- 1. Announce launch to all employees (email, team meeting)
- 2. Send employee login credentials and onboarding guide
- 3. Host employee Q&A session or training webinar
- 4. Set up support channel (Slack channel, email, phone)
- 5. Monitor usage and address issues quickly
- 6. Gather feedback after first month
DO: Invest Time in Data Quality
Garbage in, garbage out. Spend time cleaning employee data before import. Accurate leave balances, correct employment dates, and up-to-date contact details are critical for successful launch.
DO: Get Implementation Support
Most HR software vendors offer paid implementation support ($500-$2,000). For businesses with 20+ employees, this is money well spent. You'll avoid common mistakes and go live faster.
DO: Start Simple, Add Features Later
Don't try to implement every feature on day one. Start with core features (employee database, leave management, document storage), then gradually add performance reviews, time tracking, recruitment over 3-6 months.
DON'T: Underestimate Change Management
Employees resistant to change will undermine adoption. Communicate benefits clearly (easier leave requests, access to payslips anytime, self-service), provide training, and address concerns proactively.
DON'T: Ignore Mobile Access
Many employees (especially retail, hospitality, trades) don't sit at desks. Ensure they know how to download the mobile app and access HR features on their phones. Test mobile experience thoroughly.
Ready to Streamline Your HR?
Compare quotes from NZ HR software providers and get personalized recommendations for your business size and industry.
Get Free Quotes from HR Software Providers