Published: April 2025

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For small and medium enterprises (SMEs) in Australia, managing human resources efficiently is critical to scaling operations while maintaining compliance and controlling costs. This article explores selected HR tools—Employment Hero, BambooHR, Rippling, Workable, Revolut People, and Xero Payroll—focusing on their recruitment, Employer of Record (EOR), HRIS, and payroll functionalities. We include use cases, such as a fintech startup with 100 employees and a marketing agency with 30 employees to illustrate their impact.

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Understanding Key HR Functionalities

Here’s a breakdown of the core functionalities covered:

• HRIS (Human Resources Information System): A centralised platform for managing employee data, onboarding, performance reviews, and compliance. It streamlines tasks like storing contracts or tracking leave.
• Payroll: Automates salary calculations, tax deductions, superannuation, and compliance with Australia’s Single Touch Payroll (STP). It minimises errors and saves time on pay runs.
• Recruitment: Tools to source, screen, and onboard candidates, often including Applicant Tracking Systems (ATS), job board integrations, and AI-driven candidate matching.
• Employer of Record (EOR): A service enabling companies to hire internationally without a local entity. The EOR handles payroll, taxes, benefits, and compliance, acting as the legal employer.

Each tool below offers only some, or a mix of these features, tailored to SME needs which can vary.

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HR Tools for SMEs: Features and Providers

1. Employment Hero

Overview: Employment Hero is Australia’s leading homegrown all-in-one HR platform, servicing over 320,000 businesses globally, with a strong SME focus. It integrates with Xero for accounting and payroll.

Key Functionalities:

• HRIS: Manages employee records, onboarding, leave requests, and performance reviews. The “Work app” enables mobile self-service for tasks like leave requests.
• Payroll: Automates pay runs, ensures ATO compliance with STP Phase 2, and supports over 50 modern awards, syncing timesheets and leave data.
• Recruitment: Features SmartMatch, an AI tool that matches candidates to roles based on skills and experience, reducing reliance on job boards. It supports job postings and applicant tracking.
• EOR: Offers global hiring support through its Global Teams feature, acting as an EOR to manage international payroll and compliance in select markets.

Market Share and Users: Employment Hero is a market leader in Australia, estimated to be used by over 20% of private businesses, with 1 million employees globally. It’s popular in retail, hospitality, and fintech.

Use Case: A Sydney-based fintech startup with 100 employees uses Employment Hero to streamline recruitment and payroll. SmartMatch sources candidates from a talent pool, maybe cutting time-to-hire by 25%. Payroll automation ensures STP Phase 2 compliance, which could save say 10 hours per pay cycle.
Right Time to Move: When your SME exceeds 20 employees and needs integrated recruitment and payroll, especially in compliance-heavy sectors like fintech.

Customer Rating: 4.5/5 (Capterra, based on 200+ reviews).

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2. BambooHR

Overview: BambooHR is a cloud-based HRIS for SMEs with 10–1,000 employees, serving over 26,000 organisations globally. It’s known for its intuitive interface and Australian integrations.

Key Functionalities:

• HRIS: Centralises employee data, onboarding, time-off tracking, and performance reviews. Employees can update details via a self-service portal.
• Payroll: No native Australian payroll but integrates with Xero Payroll for STP-compliant pay runs, syncing employee data.
• Recruitment: Includes an Applicant Tracking System (ATS) for job postings, candidate screening, and onboarding workflows. Integrates with Workable for advanced hiring.
• EOR: No direct EOR services, but integrations with Deel or Rippling enable global hiring support.

Market Share and Users: BambooHR has 1.6 million employee users globally, with strong adoption in Australia’s professional services and tech sectors.

Use Case: A Melbourne marketing agency with 30 employees uses BambooHR for onboarding and recruitment. The ATS streamlines hiring for creative roles, potentially reducing onboarding time by 2 days. Xero integration ensures accurate payroll, saving up to 10 hours monthly.

Right Time to Move: Ideal for SMEs with 10–50 employees needing a simple HRIS and basic recruitment without complex payroll.

Customer Rating: 4.6/5 (G2, based on 1,800+ reviews).

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3. Rippling

Overview: Rippling is an all-in-one HR, payroll, and IT platform, supporting over 10,000 businesses in 140+ countries. In Australia, it has a smaller footprint but growing, with localisation and 600+ app integrations.

Key Functionalities:

• HRIS: Manages onboarding, employee records, time tracking, and compliance. Single-sign-on simplifies app access.
• Payroll: Automates Australian payroll, superannuation, and STP compliance, syncing with time and leave data.
• Recruitment: Provides job postings, candidate tracking, and onboarding automation. AI-driven tools suggest candidates and streamline workflows.
• EOR: Supports hiring in 19 new countries (e.g., Belgium, Italy), with 5-day payroll lead times. It handles taxes, benefits, and compliance.

Market Share and Users: Rippling is gaining traction in Australia, particularly among tech SMEs. Its EOR capabilities lead in global hiring.

Use Case: A Brisbane healthtech startup with 60 employees uses Rippling for EOR and recruitment. The EOR service hires developers in Europe, ensuring compliance in 5 days. Recruitment tools post to LinkedIn, filling roles up to 20% faster.

Right Time to Move: Best for SMEs with 20+ employees planning international expansion or rapid hiring.

Customer Rating: 4.8/5 (G2, based on 3,000+ reviews).

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4. Workable

Overview: Workable is a recruitment-focused platform used by over 30,000 companies across 100+ countries, including Australian SMEs. It integrates with HRIS tools for broader functionality.

Key Functionalities:

• HRIS: Limited HRIS, focusing on onboarding and employee data. Integrates with BambooHR or Rippling for full HRIS.
• Payroll: No native payroll but syncs with Xero or ADP Workforce Now for pay runs.
• Recruitment: AI-driven candidate sourcing from 400 million profiles, job board syndication (1,000+ boards), and applicant tracking. Named Forbes’ Best AI-Powered Recruiting Platform 2024.
• EOR: No EOR services, but integrations with Deel or Rippling enable global hiring.

Market Share and Users: Workable is a global leader in recruitment software, widely used in Australia’s retail and professional services sectors.

Use Case: A Perth marketing agency with 30 employees uses Workable to hire digital marketers. AI sourcing and job board integrations reduce time-to-hire by up to 30%.

Right Time to Move: When your SME faces high recruitment volumes or needs efficient hiring for seasonal or rapid growth.

Customer Rating: 4.4/5 (Capterra, based on 400+ reviews).

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5. Xero Payroll

Overview: Xero Payroll, part of Xero’s accounting suite, serves 3.8 million subscribers globally, with 1.2 million in Australia. It integrates with HR tools like Employment Hero.

Key Functionalities:

• HRIS: Limited HRIS, focusing on payroll-related employee data. Integrates with enableHR or Employment Hero for full HRIS.
• Payroll: Automates pay runs, STP Phase 2 reporting, superannuation, and leave. Xero Me app enables employee self-service.
• Recruitment: No native recruitment; relies on integrations with Workable or Employment Hero for hiring.
• EOR: No EOR services; global hiring requires third-party tools like Rippling.

Market Share and Users: Xero dominates Australia’s payroll market, used across industries like construction and retail, but it is only a payroll tool.

Use Case: An Adelaide fintech startup with 100 employees uses Xero Payroll with RosterElf integration to automate pay runs and timesheets, saving up to 8 hours per cycle.

Right Time to Move: When your SME needs robust payroll with accounting integration, ideal for 5–50 employees.

Customer Rating: 4.3/5 (Capterra, based on 2,800+ reviews).

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6. Revolut People

Overview: Revolut People is Revolut’s HR platform, currently operating in Europe only. It’s unavailable in Australia currently, but may launch in the near future on Australian shores. We are featuring this due to Revolut's impressive work to date, and is certainly one to keep in mind from the Fintech behemoth if you are looking to roll our your HR tools next year instead.

Key Functionalities:

• HRIS: Manages employee data, onboarding, and performance reviews, integrated with Revolut’s financial tools. Specifically designed to manage employee performance end-to-end to help teams build a high performing workforce.
• Payroll: No Australian support yet. Potential Xero integration upon launch.
• Recruitment: Includes job postings and candidate tracking, tailored for tech-driven firms, and built off Revolut's existing talent sourcing framework.
• EOR: No EOR services currently; future Australian rollout may include global hiring support.

Market Share and Users: No users in Australia currently.

Right Time to Move: Await Australian rollout, suitable for fintech SMEs with 20–200 employees.

Customer Rating: None

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When to Move to HR Tools: Key Triggers for SMEs

Adopt HR tools based on your SME’s size, industry, and challenges:

• 20+ Employees with Manual HR: Employment Hero or BambooHR automate onboarding and leave, which could save 10–15 hours monthly.
• Complex Payroll Needs: Fintech SMEs benefit from Employment Hero or Xero Payroll for STP compliance and award management.
• International Hiring: Rippling’s EOR and recruitment tools suit SMEs expanding globally, ensuring compliance in around 5–12 days.
• High Recruitment Volumes: Workable streamlines hiring for marketing agencies, which can cut time-to-hire by up to 30%.

If processes are working well and efficeintly without these tools which sharp inhouse processes, then there is no rush to move! It is all about making a sensible ROI decision for your business if there are clear tangible benefits for this.

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Market Insights and Recent Developments

• Employment Hero: Enhanced SmartMatch AI and global EOR capabilities in 2025, targeting Asia-Pacific expansion.
• BambooHR: Added Xero and Slack integrations in 2024, improving Australian SME compatibility.
• Rippling: Expanded EOR to 19 countries and added QuotaPath integration for commission payments in 2024. Its Australian presence is growing but less mature than competitors.
• Workable: Launched AI-driven candidate matching in 2025, boosting hiring efficiency.
• Revolut People: Online discussions suggest a possible 2026 Australian launch, potentially with Xero integration.
• Xero Payroll: Strengthened STP Phase 2 and mobile app features in 2024, maintaining market leadership.

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Fee Structures and Approximate Costs

Below is a broad overview of fee structures and approximate costs for these tools, based on publicly available data as of April 2025. Costs vary by employee count, features, and add-ons:

• Employment Hero: Per-employee-per-month (PEPM) pricing, typically $8–$12 per employee for HRIS and payroll. Recruitment and EOR add-ons increase costs. Example: $800–$1,200/month for 100 employees.
• BambooHR: PEPM model, around $6–$10 per employee for HRIS and ATS. Payroll via Xero adds $4–$6 per employee. Example: $600–$1,000/month for 30 employees.
• Rippling: PEPM pricing, $8–$15 per employee for HRIS, payroll, and recruitment. EOR services add $50–$100 per international employee. Example: $800–$1,500/month for 100 employees, plus EOR fees.
• Workable: Flat subscription for recruitment, starting at $129/month for basic plans, up to $599/month for advanced ATS features. Example: $129–$599/month for 30 employees.
• Xero Payroll: PEPM model, $5–$10 per employee, often bundled with Xero Accounting ($20–$60/month). Example: $500–$1,000/month for 100 employees.

Costs are indicative and exclude setup fees, add-ons, or discounts for annual billing. SMEs should request quotes for precise pricing.

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Conclusion

Tools like Employment Hero, BambooHR, Rippling, Workable, Xero Payroll empower Australian SMEs to streamline HR and scale efficiently. Whether you need recruitment (Workable), EOR (Employment Hero), or payroll (Xero), there’s a solution for every growth stage. Evaluate your SME’s needs, employee count, and budget to choose the right tool.