About everything around finding and using free HR software.

Free HR software

HR software is indispensable in any professional organization. Of course, you can still do a lot manually, but if you strive for even a little efficiency, look further. You then soon find out that the search for appropriate HR software is complicated.

1. There are lots of different providers of HR systems. From total solutions for all your HR issues, to specialist HR systems that support specific HR themes. 
2. There are many different types of software. Some examples are Open Source vs Closed Source and SaaS vs On Premise software. The average HR manager is strong in his or her HR field. Knowledge of software is generally not a field of expertise. 
3. And then with that comes the different costs and fee structures. You also come across opportunities for free software.

Free software is obviously attractive and will appeal to you initially. But nothing goes for free. The question of what snag is there might come to mind. We therefore give you more insight into the background and pitfalls of free HR software. We are happy to help you take the first, firm steps into the quagmire that HR software can be at first glance.

HR systems: total solution vs. specialist support

Before we take you through the different types of software and the pros and cons of free software, we recommend that you consider the purpose of your HR software. What problem have you solved when you start working with the HR software? What wishes for the future can you identify now and include in your choice?

In HR systems, you can roughly distinguish between: 

1. Total solutions: these HR systems can be seen as a digital personnel file with which you can manage all your administrative and legal matters. Think of payroll, absenteeism, leave, payroll management and contractual matters. Sometimes these HR systems also offer support on more specific HR themes such as recruitment, personal development and the HR interview cycle. As a rule, however, these systems fall short on those specific themes, compared to the specialist HR systems.
2. Specialist HR systems: these systems support you with specific HR themes. Some examples of those HR themes are performance management, talent development, employee satisfaction and engagement. These systems offer functionalities that allow you to offer significantly more depth on these HR themes to your people. In addition, the analytics provide valuable insights for HR and management. Incidentally, it is good to know that these specialized HR systems can often be linked to the more general HR total solutions. This allows you to bypass time-consuming, duplicated administrative actions and log-in issues while still offering substantive depth and practical support per theme.

Are you still in a strong orientation phase and don't have a good idea of the kind of HR system you want? Then read the step-by-step plan that will help you choose one.

If you do have a clearer idea of the purpose the HR software should serve, then the next question is which type of software is best for you. Understanding the differences is important because it has implications for your budget.

What types of HR software are there?

For most of us, software is "a system that provides you with digital programs. And that's right. Just as a "car" to many of us is simply a means of transportation with four wheels and a steering wheel. But the more knowledgeable you are about cars, the better you can make your choice. Also in relation to the cost aspect. Not only price plays a role, but also motor vehicle taxes, maintenance and repairs. You'll also pay attention to any warranties. And maybe leasing a car is the best solution. Especially if you don't want to worry about it any further.

You'll also encounter more options when choosing software. Without getting too technical, we will take you through the main considerations you will encounter. We also highlight the sometimes hidden costs involved. And we will discuss the advantages and disadvantages of free software.

Open Source HR Software

Open Source HR software is software whose source code is released. The source code in software can be compared to a (often complicated) recipe when cooking a dish. Without a recipe, you cannot make the dish. Nor can you build the specific software without source code. 

The source code is public and available to everyone. That doesn't mean it's always free. Often, though, you just pay for the license. The advantage of Open Source is that everyone can contribute to optimizing the software. Contributions from an entire community will also make any hiccups come to light sooner. An additional advantage for the individual user is that the software can be completely customized to his or her needs.

One drawback is that you must have solid software knowledge to work with this software. You can, of course, hire an expert partner to do this. So a consideration will be whether you have that expertise in-house, what the labor costs involve or what hiring an outside partner will cost.

Open Source HR software is used under license, defining what is and is not allowed in relation to the source code. The license also defines the extent to which disclosure of your use of the source code is required. To make the comparison with the recipe again: you are given the recipe and allowed to add your own ingredients, adjust proportions and so on. Depending on the license with the chef, you may or may not have to disclose your own version of the recipe.

Some examples of Open Source HR software systems are:

• Odoo (HR total solution) 
• Orange HRM (HR total solution)
• WordPress HRM plugins (WordPress is a widely used Open Source website builder with lots of additional options: plugins. If you have a WordPress website, please explore it).

HR Software Closed Source

With Closed Source software, the source code (the recipe) is not released. Ownership and responsibility lie with the organization developing the software. The advantage is that you don't have to concern yourself with fixing hiccups and developing functionality. That lies with the owner. You make price agreements in advance and your budget thus remains predictable and manageable. 

An additional advantage is that the software was developed with a target audience in mind and already provides solutions to your issue. The downside is that you may not find the software meets your needs 100%.

Examples of Closed Source HR software systems are:

• Treams (Specialist HR software)
• Dialog (Specialist HR software)
• Learned (Specialist HR software)

To make it easier for you, we have fixed a comparison of these three suppliers, among others.

Software as a Service (SaaS)

Another distinction you're going to encounter is Software as a Service (Saas) on the one hand and Software on Premise on the other. 

A SaaS solution is software that you purchase as a service. That is, you purchase the use of the software. So the software is not on your own server. All you need to use SaaS is, of course, an Internet connection and a device to access it, such as a laptop. A big advantage is that you are not responsible for the entire IT infrastructure involved with the software. None of that lies with you, but with the provider of the SaaS solution. Thus, the cost of using a SaaS license is predictable and manageable.

One drawback can be that you are dependent on the security rules and compliance of the SaaS vendor. Therefore, make sure you work with an ISO 27001 certified party and check their Service Level Agreement for Privacy and Security.

The above examples of Closed Source HR Software, namely Treams, Dialog and Learned, are all three SaaS solutions.

Software on Premise

Software on Premise is downloadable software installed at a company's own premises. Management of the software lies with the company itself. The software runs on its own servers. So using this software requires a high degree of expertise. Often this is not a practical solution for smaller organizations. Management and maintenance costs are relatively high.

So from a cost perspective and the required IT expertise, Software on Premise seems suitable only for large organizations. But if you work internationally, you will also need to employ IT people who can immediately solve downtime problems 24/7. Enough arguments to carefully consider the choice for On Premise.

Whereas On Premise was the most common software until about 20 years ago, it has now been overtaken considerably by SaaS.

Cost considerations in summary

You now know a little more about the types of HR software you may encounter in your search. In summary, you have given yourself answers to the following questions:

• Do I want a total HR solution or a specialized HR system?
• Do I want links between systems?
• Do I want an Open Source or a Closed Source solution?
• Do I want a SaaS solution or an On Premise solution?

You will have noticed that in answering these questions, your budget plays an important role. This may even be one of the most important criteria in determining your choice. You are now aware that you should not only compare the prices of different HR software systems, but also consider the additional costs of maintaining and managing the software. Consider the cost of recruitment, selection and salaries of an IT department, labor time for maintenance and management, possibly with external hiring, the cost of inactivity in case of downtime (you cannot work if the system is down).

Free HR software

Earlier we mentioned that you are going to come across free software in your search. This seems very attractive. And maybe it is to you. But to prevent cheap from ultimately becoming expensive, we'd like to take you through the pitfalls.

Free alternatives to HR Software

Existing templates

Some alternatives you may have already considered. Examples of existing templates include Notion Templates, Jotform Templates and Etsy Templates. What you accomplish with these templates is that you digitize the hard copy forms you may be working with now. For scheduling or administrative accounting matters, perhaps somewhat adequate. But realize that this is not HR software for solid, substantive and secure support of your HR policies.

Word, Excel and Google documents

Although not really completely free, you can also think of Word or Excel documents to support your operational HR business. You're already paying for your Google or Microsoft license. With that, you have access to various supporting documents and templates. You can use existing templates for Payroll, online calculators, roster planning and so on. You can read more about the possibilities on Vertex42.

With Excel or Google sheets, you can also build your own templates to suit you. Almost everyone has experience working with them. So the learning curve is relatively flat. To build a good template you do need an Excel wizard. Also realize that you become dependent on that person's expertise. During vacations, or when that person leaves, that can cause problems.

Pitfalls:

• Working with Excel or Google sheets is error-prone. A human error is easily made. If you work with a lot of formulas, links or filters, for example, it is often difficult to identify and fix the error.
• If you want to make modifications to the template, you must do so in the source file. It soon happens that people make their own adjustments in their own versions. You lose the overview and the data are no longer correct.
• Excel files can be emailed and therefore security is not always guaranteed.
• As your organization grows or you need more functionality, you run into the limits of Excel. On the one hand, Excel seems very simple (and it is), but if you want something more, the complexity increases exponentially.
• Excel is a file in which you enter data. And as useful as that can sometimes be, that is also its limitation. HR software, on the other hand, is a leading system with which you can do much more. Think of AI functionality, the active activation of processes, linking data to create new insights, high degree of interactivity, central storage of different data, email notifications and so on.
• You cannot assign specific job roles in Excel, or similar file. The needs of an HR manager, operations manager, coach, employee or administrator are specific and have different permissions. In HR software this can often be arranged.
• You cannot automatically link Excel files to other HR software systems. This means you have to make adjustments to your personnel file twice in all systems.
• Consider what signal you want to send to your employees. Excel can sometimes be a bit wooden. With it, you are sending a signal to your people. If you work with professional HR software, then by doing so you are simultaneously signaling how important you think it is.

Is free really free?

Have you come to the conclusion that you want to work with HR software, but you have a limited, or no, budget? There are free versions of HR systems. By the way, these systems are not specialized HR software for performance management and talent development like Treams is. But they might meet your specific needs. We list a few:

• Share (for payroll, HR administrative and compliance)
• Remote (free version for HR administrative tasks)
• Monday (HR project management)

Free, of course, is attractive. But again, nothing comes for free. Therefore, keep in mind the following pitfalls.

Pitfalls:

• You get free access to a limited number of features. In practice, you find that you need more. You have already entered your data and invested your time in it. For more functionality you have to pay (often heavily). 
• You get free access for a limited number of employees. If you want to expand the team, you start paying (often heavily). The more people using your HR software within your organization, the greater the ease of use you'll have from it. After all, you have all the data centrally and can start using analytics. So realize that you will end up paying a lot more for it.
• Data is the new gold. If an HR system is really free, look very carefully at GDPR and security. Is your data secure? What other parties are your data shared with? Is the company ISO 27001 certified? All things to keep a close eye on.
• Is the software properly maintained? What is stipulated about this in the vendor's Service Level Agreement? 
• Are ads shown? Some free software has as a revenue model showing ads. Realize carefully whether you want that for your people. And also ask yourself how the targeting of the ads is determined. In other words, what are you revealing of your data?

All in all, plenty of reasons not to rush into free software.

Free trial

Finally, there are free trial versions of HR software. These allow you to get a first impression of the look and feel, ease of use and functionalities. To take Treams as an example, during a trial period you can, among other things, sniff out the AI functionality when setting goals or working with feedback. You may not yet have experience with these kinds of options. It offers a sea of possibilities. They are concrete solutions to issues you may be running into now.

So a free trial can offer you valuable insights. Just realize that you are often working in an empty environment, whereas the software usually works optimally when enough data has been entered. So a free trial is really a tip of the iceberg and no more than that.

In many cases, a free trial environment can be converted into an actual environment for your organization. You will then have access to all the functionality that matches the license you have chosen. Before you start a trial, check if this is how it works with the vendor in question. This will prevent you from working with a contaminated trial in which you have to do remedial work.

By the way, a trial period is also a time when you get to know the supplier better yourself. In a lasting partnership, the match with the organization you are working with is also important. Do you fit together? What does an implementation process look like? What other services does the vendor offer besides just the software? Factor this into your choice as well. 

This webpage was written by Iris Zonneveldt. The founder of Treams. This article was last updated Feb. 1, 2025. The following sources were consulted in the creation of this web page: SourceForge, Capterra, Vertex42, People managing People. Do you have questions about this content? If so, please contact us on 040 744 08 88 or send an email to info@treams.nl.