The 8 Best HR Softwares for Medium-Sized Businesses

With these softwares, you professionalize your HR processes in small and medium-sized enterprises.

Table of contents
  1. These are the best HR software for SMEs (KMU)
  2. Conclusion: Finding the right HR solution for SMEs
HR managers hold a key position when it comes to a company's success. Their main tasks are recruiting, retention, workforce planning and staff deployment to achieve business goals. SMEs quickly hit their limits in terms of both time and budget. This is exactly where HR software for medium-sized companies comes in. It is designed to save time and money and to free up room for business development.
The Most Important Points in Brief
  • HR software helps SMEs efficiently digitalize HR processes and minimize administrative tasks.
  • Tools like Clockodo, clockin, ZEP, and Clockodo offer intuitive time tracking solutions for various areas of application.
  • With solutions like HR WORKS or coveto, recruiting, payroll, and travel expenses can be managed holistically.
  • Hrmony and fiverr offer complementary functions for employee retention and project-based talent acquisition.
  • Through centralized data and automation, SMEs improve their decision-making and legal compliance.

These are the best HR software for SMEs (KMU)

Best-of
Looking for a tool that users truly love? In the "Best-of," we create a leader board based on the OMR Score and compare the top tools in a category for you.

Tool namePriceHighlight / USPBest for
HR WORKSOn requestMost-used HR software in the German SME's, with five WirtschaftsWoche awards.SMEs and mid-market
HoorayHRFrom €7.50 / user / monthAll-in-one HR tool with a strong focus on people development and transparent self-service structures.SMEs
PersonioIndividual quoteHolistic platform that automates all core tasks, including full payroll.Companies of all sizes
HELIXOn requestModular suite with deep functionality in training and event management.Modern HR management
HRlabFrom €6.00 / user / monthGerman software focused on flexibility and 100% GDPR-compliant hosting in Germany.Mid-sized companies
FactorialFrom €8.00 / user / monthAll-in-one platform with unicorn status and an especially strong mobile app for on the go.Mid-sized companies
Tellent HRFrom €103.00 / monthFast rollout within a few hours with no implementation costs.Small and mid-sized companies
Rexx SystemsOn requestHighly scalable suite with cutting-edge AI integration "Rai" and strong talent management.Mid-market and enterprises
Highlight Box

The selection of tools is based on our OMR Score. The ranking is determined by the average rating and the number of ratings up to a specific point in time. The more positive votes, the better the result reflects general satisfaction. This score is intended to help you with your decision-making.

1. HR WORKS

The HR software HR WORKS is one of the most widely used HR solutions in the German SME's and digitizes all HR processes in a single platform. The tool combines personnel administration, time management, travel expense accounting, people development and payroll, and offers seamless interfaces to leading systems such as DATEV and ADDISON. The software is also ISO 27001-certified and fully GDPR-compliant.
Why this tool?

HR WORKS stands out from other systems through its combination of comprehensive functionality, the highest security standards (audited by Bitkom) and a multi-award-winning customer service recognized as the best mid-market service provider.

Features
  • Digital personnel file and HR documents
  • Travel expense accounting and expense management
  • Time tracking and absence management
  • Preparatory payroll accounting with DATEV interfaces
  • Applicant management and employee reviews
Ideal for: Mid-sized companies and SMEs looking for secure, intuitive and scalable HR software "Made in Germany" to reduce manual errors.
Not ideal for: Large enterprises that need highly specialized, deeply differentiated international modules outside the DACH region.
HR WORKS pricing: Prices are available on request from the provider. The basic package covers core HR functions, while the "HR WORKS Pro" package includes additional functions for strategic HR work such as 360° feedback and goal management.
StrengthsWeaknesses
Comprehensive suite including travel expenses and time trackingThe admin interface is sometimes perceived as less intuitive
Excellent customer support with a 95% ratingOccasional performance issues and load times with large data volumes
Seamless integration and interfaces to DATEV and ADDISONLimited customization options for individual workflows
High transparency and relief through Employee Self ServiceReporting could be made more flexible
HRworks gives me all the functions I need to handle administrative processes quickly and securely and to always keep an overview of all employees. As an admin, I have extensive reporting options at my disposal. - Susanne, cognitivo AG

2. HoorayHR

The all-in-one HR software HoorayHR enables small and mid-sized companies to manage all HR processes simply and centrally. The platform brings together digital personnel files, leave and absence management, time tracking and contract management in one place. A particular focus is on people development to actively support employees.
Why this tool?

Compared with others, HoorayHR stands out for its fair and flexible pricing model with no minimum purchase or long contract terms, paired with high ease of use and a dedicated self-service app.
Features
  • Digital personnel file and contract management
  • Leave and absence management
  • Task management and automated onboarding workflows
  • 360-degree feedback and team/individual OKRs
  • Expense and travel cost management with multi-currency support
Ideal for: Small and mid-sized companies that want to establish structured leave planning and time tracking without major training effort.
Not ideal for: Complex organizational structures that require fully granular customization of field sets by role or location.
HoorayHR pricing: The Core package starts at €7.50 per user per month for optimized HR processes, while the Plus package at €9.25 per user per month offers extended functions such as API access, SSO and 360-degree feedback.
StrengthsWeaknesses
Outstanding ease of use (94%) and setup (95%)Time tracking does not yet fully cover legal requirements in Germany
Flexible pricing model with no minimum term or minimum number of usersLimited templates for complex workflows
Very responsive and personal customer support (98%)Some settings and workflows are somewhat rigid
Strong preboarding feature for self-data entryOptions for specific user roles are partly limited
I recently started using HoorayHR and I am thoroughly impressed with its user-friendly interface and robust features. The platform makes HR tasks a breeze with its intuitive design and efficient functionalities. - Bryan, StudioBri

3. Personio

The HR software Personio covers all core HR tasks, from personnel administration through recruiting to payroll. The tool aims to eliminate process delays and create cross-departmental, automated workflows. Numerous interfaces via the Personio Marketplace integrate external business tools seamlessly.
Why this tool?

Personio stands out as a powerful all-in-one solution that, through the optional "Personio Payroll" module, completely eliminates the need to communicate directly with external tax advisors.
Features
  • Holistic absence and working-time management
  • Integrated recruiting and workflow building for job postings
  • Digital file with custom fields and access rights
  • Preparatory and fully integrated payroll accounting (DATEV integration)
  • Performance & development including 360 reviews and goal agreements
Ideal for: Fast-growing start-ups and mid-sized businesses that want to digitize their HR processes holistically and eliminate Excel spreadsheets.
Not ideal for: Companies looking for an in-depth mobile app for managers, as the mobile functions are heavily limited.
Personio pricing: Prices are calculated as an individual quote for the "Core" package and the add-on "Apps" such as Payroll, Recruiting or Surveys.
StrengthsWeaknesses
Complete mapping of the employee life cycle in one systemOccasional performance issues and longer load times
Strong degree of automation in recruiting and onboardingMobile app functions are reduced to the bare minimum
Flexible role and rights management for employeesThe DATEV connection is described by some users as insufficient
Clear calendar view of all team absencesTasks cannot be marked as done in bulk in the dashboard
From recruiting and onboarding all the way to generating references — there's a function for everything. The most important thing for us, however, is that all information is finally stored in one place, accessible to both the employee and the people manager. - Steffen, rapidmail

4. HELIX

The modular HR suite HELIX by Perbility is an all-in-one platform for modern HR management. It combines personnel administration, applicant management, time tracking, learning management and feedback processes in a single, web-based solution to sustainably avoid media disruptions.
Why this tool?

HELIX differentiates itself through its clear focus on specialized modules such as training management and event management, which map the organization of seminars, training plans and assessments in a structured way.
Features
  • Workforce planning and integrated analytics
  • Central applicant management and job-posting control
  • Time tracking and absence management (also mobile via phone)
  • "My Learning World" module for digital learning content
  • Digital event and seminar planning
Ideal for: Mid-sized companies (e.g. in the banking sector) that want to relieve their people development teams and bundle processes via predefined approval workflows.
Not ideal for: Teams looking for ready-to-use software without any initial configuration and onboarding effort.
HELIX pricing: Pricing is available on request from the provider via individual quotes for the respective modules.
StrengthsWeaknesses
Enormous time savings through the interlinking of all modulesInitial configuration takes a lot of time
Excellent suitability for training and event managementThe menu structure can become confusing with many modules
Practical development with good handling and a modern layoutCertain settings are not immediately intuitive to find
Fast and competent support during setupLack of integrated upfront workshops for individual optimization
We use Helix specifically for training management and event management. In training in particular, we benefit from the clear structure: training plans can be presented clearly, assessments can be documented, and communication with trainees is noticeably more transparent. - Christin, Sparkasse

5. HRlab

The German HR software HRlab focuses on relieving mid-sized HR departments through the targeted automation of routine tasks. As a single source of truth, the tool consolidates all master and transactional data and offers an intuitive Employee Self Service.
Why this tool?

HRlab stands out through its uncompromising orientation toward German legal standards and 100% GDPR-compliant hosting in Germany, combined with highly praised personal and practical customer support.
Features
  • Digital personnel file and master data management
  • Comprehensive absence and sick-leave management
  • Automatic retrieval of electronic incapacity-to-work certificates (eAUs)
  • Workflow and task management for on- and offboarding
  • Preparatory payroll with one-click export to DATEV (LODAS)
Ideal for: Mid-sized companies and agencies with high demands on labor and social-security law that are looking for a flexible and affordable all-round solution.
Not ideal for: Large enterprises that need to map extremely complex, international large-scale projects and therefore require high-priced software.
HRlab pricing: Prices for the Core package start at €6.00 per user per month. A free trial is available for 14 days.
StrengthsWeaknesses
Convincing price-performance ratio and flexible workflowsComplex initial setup and a help function that takes getting used to
Highest legal certainty through a focus on German standardsSome areas of the user interface look visually inconsistent
Convenient DATEV export and automatic eAU retrievalRecruiting functions are designed in a rather centralized way
Excellent onboarding tailored to individual needsOccasional delays in implementing announced features
When we were looking for HR management software around six years ago, HRlab quickly became the most convincing partner for us — and it still is today! HRlab GmbH holds itself to the highest standards of practically integrating all tax, social-security and labor-law aspects into comprehensive yet flexible software. - Susanne, exito GmbH & Co. KG

6. Factorial

The customizable all-in-one platform Factorial supports mid-sized companies in managing HR, talent, finance and IT. In addition to core functions such as absence tracking and the digital personnel file, the platform stands out through its far-reaching automations and the unicorn status it reached in 2022.
Why this tool?

Compared with competitors, Factorial shines with its outstanding mobile app, which makes legally mandated time tracking and employee leave requests extremely easy to handle on the go.
Features
  • Employee database with individual roles and permissions
  • Unlimited documents including legally valid e-signature
  • Time tracking (in the Enterprise package with geolocation and geofencing)
  • Complaint channel and integrated whistleblowing module
  • Historical data tracking with audit log
Ideal for: SMEs and modern remote teams that want to cut down administrative paperwork and digitize document flows and shift planning.
Not ideal for: Companies that absolutely depend on fast and consistently reachable German-language phone support.
Factorial pricing: The Business package starts at €8.00 per user per month, while the Enterprise package at €10.50 per user per month offers extended security and tracking features.
StrengthsWeaknesses
Tidy, clear and well-thought-out dashboardSupport availability is described by users as having significantly declined
Efficient digitization through a practical bulk-send functionTime tracking and overtime balance calculation are sometimes inaccurate
Fast, digital document access and integrated e-signatureLimited customization options for the user interface
Simple and uncomplicated leave requestsThe tool's load times can occasionally be long
We've been using Factorial for two years now and are absolutely thrilled with the wide range of options and the software's ease of use. The platform has hugely simplified our HR processes and saved us a lot of time. - Jan-H., Stacvalley GmbH

7. Tellent HR

The Germany-based HRIS system Tellent HR (formerly KiwiHR) offers solutions for all everyday HR processes. The application digitizes core HR processes such as time tracking, leave management, preparatory payroll and expense management, and provides advanced checklists for employee journeys.
Why this tool?

Tellent HR stands out for its extremely fast go-live. After the trial phase, the system can be used productively within a few hours and entirely without implementation costs.
Features
  • Central employee database and digital org chart
  • Absence management and mobile time tracking
  • Creation of workflows and advanced checklists for onboarding
  • Performance reviews (1:1 and team) as well as talent matrices
  • Integrated AI Writer to analyze and summarize results
Ideal for: Small teams and start-ups looking for an affordable, intuitive entry-level solution into the digital HR world that want to replace several stand-alone tools.
Not ideal for: Companies that require highly complex, fully automated and deeply nested rights management at the individual employee level.
Tellent HR pricing: The "Tellent HR | Manage" and "Tellent HR | Grow" packages each start at €103.00 per month. A free trial is available for 18 days.
StrengthsWeaknesses
Excellent ease of use (94%) and easy setup (92%)No direct automated interface to DATEV in the standard so far
High flexibility in creating custom absence categoriesDisplay on split screens or small monitors is sometimes faulty
Very clear timeline for team absencesThe automatic break rule leads to duplicates when entered manually
Scalable system with a fair entry priceThe search function for settings is heavily nested
kiwiHR is intuitive to use and can be adopted by the team immediately without much onboarding. For us, kiwiHR is a great entry point into the HR world. Since we're still a small team, we only need a few functions and kept an eye on the budget. - Nils, Personal Branding Rebels

8. Rexx Systems

The all-in-one solution Rexx Systems combines recruiting, human resources and talent management in a highly modular platform. With a global presence in more than 30 countries, the ISO 27001-certified system supports companies in fully digitizing the employee life cycle.
Why this tool?

Rexx Systems sets itself apart through its technological depth. With the integrated AI assistant Rai (AI Hiring), its own data warehouse for complex reporting and a dedicated connectivity department for tailor-made customer APIs, the tool is extremely powerful.
Features
  • Digital personnel file and fully automated document creation
  • Rexx Recruiting with job-portal configurator and WhatsApp application
  • Integrated CV parsing and multiposting to up to 1,000 job boards
  • Talent management with 360° feedback and performance-potential matrix
  • Inventory management including room and desk booking
Ideal for: Upper mid-market companies and enterprises looking for a highly flexible, leading system to feed downstream IT infrastructure.
Not ideal for: Small trade businesses or micro-enterprises that cannot provide internal HR resources for the continuous maintenance of the system.
Rexx Systems pricing: Prices for the "Rexx Suite", "Rexx Recruiting", "Rexx HR" and "Rexx Talent Management" modules are available exclusively on request from the provider.
StrengthsWeaknesses
Logical and thoroughly designed linking of all HR modulesThe user interface and UI sometimes look outdated
Enormous time savings through automated form letters and templatesThe text editor is technically outdated and makes adjustments harder
Stable single source of truth for the entire employee life cycleSupport sometimes reacts slowly and runs purely via a ticketing system
Integrated reminder functions, follow-ups and remindersThe permission structure is highly complex and maintenance-intensive
What's most convincing to me is the broad range of functions in rexx HR and the ability to map nearly all HR processes in a single system. Although setup and configuration require some effort at first, the result is a stable environment with no system breaks and a clear single source of truth. - Lars, CHEPLAPHARM Arzneimittel GmbH

Which tool is right for you?

  • HR WORKS is ideal for mid-sized companies in Germany looking for established software with a strong focus on integrated travel expense accounting and payroll interfaces.
  • HoorayHR is a good fit for smaller teams that value maximum flexibility in contract terms and transparent leave and people-development planning.
  • Personio is ideal for companies that want to automate their HR processes entirely holistically and aim to handle payroll directly within the tool.
  • HELIX is excellent for businesses with a strong focus on structured training management and the organization of internal seminars or events.
  • HRlab is ideal for data-protection-sensitive SMEs that prefer software hosted in Germany with excellent, personal support and automatic eAU retrieval.
  • Factorial suits mid-sized businesses whose employees primarily record working hours on the go and need to sign documents digitally.
  • Tellent HR is ideal for small teams that want an extremely fast, uncomplicated and cost-effective entry into digital HR administration without implementation fees.
  • Rexx Systems is perfect for larger mid-market companies and enterprises that need complex talent-management structures, AI-supported recruiting and deep system integrations.
Is your tool not yet listed on OMR Reviews? You can submit your request here.

Recommended HR Tools & Software Solutions

You can find other recommended HR software providers on our comparison platform OMR Reviews. There we have listed over 500 HR software solutions for small and medium-sized companies, start-ups and large corporations that support you in all areas of human resource management. So take a look and compare the software with the help of authentic and verified user reviews:

Conclusion: Finding the right HR solution for SMEs

For SME's, there is no one-size-fits-all solution, but rather specialized tools depending on the focus. Companies looking for holistic HR administration including travel expenses will find a strong partner in HR WORKS. When it's primarily about efficient time tracking and payroll preparation, clockin, ZEP and Clockodo offer intuitive solutions with different focuses on trades or services.
For creative project work and agency management, awork is the leading choice, while coveto optimizes the recruiting process for SMEs. Those who want to strengthen employee retention through benefits turn to Hrmony, and for ad-hoc expert support, fiverr remains the first port of call. All the tools presented enable a significant reduction in manual effort and increase transparency in everyday SME life.
Disclaimer: All prices and features are based on publicly available information from the respective product pages (as of June 2026). Changes by the providers are possible.
Note on Translations: User quotes included in this article have been translated from their original German versions for clarity and consistency.
Katharina-Maria Röder

Diese Autorin ist seit 2019 freiberufliche Texterin und Text-Trainerin und unterstĂ¼tzt Unternehmen dabei, ihren Blog-Content zu optimieren und mehr Reichweite zu generieren. Zuvor war sie als Produktmanagerin im E-Commerce bei Bechtle Logistik & Service GmbH tätig und koordinierte Marketingaktivitäten sowie Produktsupport. AuĂŸerdem sammelte sie Erfahrung als Project & Support Coordinator im Bereich Digital Learning bei der Haufe Akademie, wo sie Kundenprojekte im E-Learning betreute.

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