HR and payroll are closely linked, yet many businesses still manage them using separate systems. This often leads to duplicated work, inconsistent data, and errors that can easily be avoided when using the right HR and payroll software that combines both functions in a single platform.. When payroll is connected directly to HR, employee information only needs to be entered once, the changes are updated automatically, and the risk of mistakes is much lower.
While some providers offer HR and payroll as separate products, integrated platforms tend to deliver better results, especially as organisations grow and processes become more complex. With many options available in 2026, choosing the right solution can be challenging. To make the decision easier, we have reviewed and ranked six of the best HR and payroll software solutions. This list compares their features, strengths, pricing, and ideal use cases, helping you find the right fit for your business.
What Is HR and Payroll Software?
HR and payroll software is a digital system that helps businesses manage employee information, pay staff correctly, and stay compliant with employment and tax laws. Instead of relying on spreadsheets or disconnected tools, this software brings key HR and payroll tasks into one structured platform.
At its core, payroll software handles wage calculations, tax deductions, pensions, and payslip generation. HR software focuses on employee records, contracts, leave management, and performance data. When these two systems are connected, they work more efficiently. Employee details such as salary changes, promotions, or time off are updated automatically across both HR and payroll, reducing the risk of errors and duplicated work.
Some providers offer HR and payroll as a fully integrated solution, while others sell them as separate modules that can be added as needed. While both options can work, businesses often see better results when HR and payroll are linked. A connected system means fewer manual updates, more accurate payroll runs, and clearer reporting.
Another key advantage is centralised access to information. Employers can manage workforce data, payroll costs, and compliance requirements from one dashboard. Employees can log in to view payslips, update personal details, request leave, and access important documents without contacting HR. This improves transparency and saves time for everyone involved.
In short, HR and payroll software simplifies people management. When both functions are connected, businesses gain better control, improved accuracy, and a smoother experience for both HR teams and employees.
Why Invest in HR and Payroll Software?
Investing in HR and payroll software helps businesses run more smoothly and with fewer errors. As teams grow and regulations become more complex, managing payroll and HR tasks manually takes more time and increases the risk of mistakes. A dedicated system brings structure and consistency to these processes.
One of the biggest reasons to invest is time and cost savings. Automation reduces the need for manual data entry, calculations, and repeated checks. Payroll runs are faster, HR tasks are easier to manage, and fewer resources are spent fixing errors. Over time, this can lead to lower administrative costs and better use of staff time.
Accuracy is another major benefit. HR and payroll software uses set rules to calculate pay, deductions, and leave, helping ensure employees are paid correctly every time. When payroll is connected to HR, updates such as salary changes or approved leave are reflected automatically in pay runs. This reduces discrepancies and builds trust with employees.
The software also improves organisation and data management. Employee information is stored securely in one place, making it easier to access records, generate reports, and stay compliant. Instead of switching between systems, HR and finance teams can work from a single source of truth.
Employees benefit as well. Most platforms include self-service features that allow staff to view payslips, track leave, and update personal details online. This gives employees more control over their information and reduces routine questions for HR teams.
Finally, HR and payroll software supports compliance with tax, employment, and data protection regulations. Many systems are designed with UK and Ireland requirements in mind, helping businesses meet deadlines and avoid penalties. For employers, this provides peace of mind and a more reliable payroll process.
How to Choose the Best HR and Payroll Software
Selecting the right HR and payroll software is not about picking the platform with the most features. It is about finding a solution that fits your business now, while still allowing for growth in the future. The right software should simplify payroll, streamline HR tasks, and make life easier for both your team and your employees.
Before evaluating platforms, start by understanding your current challenges. Are you spending too much time on manual payroll calculations? Are HR processes slow or error-prone? Knowing your pain points helps you focus on the features that will make the biggest difference.
Another key consideration is whether you want HR and payroll combined or separate. While standalone payroll or HR software can work for some businesses, most companies benefit from a connected system. Linking HR and payroll reduces duplicated data entry, ensures updates are applied automatically across the system, and improves reporting accuracy.
When comparing platforms, look at two main areas: features and practical factors.
Key Features to Look for in HR and Payroll Software
The right software should have the following features:
- Automation: Automatic calculations for salaries, taxes, pensions, and overtime save time and reduce errors.
- Tax compliance: Built-in compliance for UK and Ireland regulations ensures accurate reporting and submissions to authorities.
- Leave and absence management: Easily track holiday, sick leave, and other absences while linking them to payroll.
- Self-service portals: Employees can access payslips, leave balances, and personal information without contacting HR.
- Reporting and analytics: Generate insights on payroll costs, headcount, and workforce trends to make better decisions.
Factors to Consider When Making Your Choice
- Company size: Some platforms suit small businesses, while others are built for large organisations with complex payroll structures.
- Budget: Pricing varies. Consider the total cost, including setup, monthly fees, and add-on features.
- Scalability: Choose software that can grow with your business, adding employees, locations, or advanced HR tools as needed.
- Integration: Check if the platform works with existing tools such as accounting or time-tracking systems.
- Support: Reliable onboarding and customer support are essential to help your team use the software effectively.
Choosing the right platform requires balancing these features and factors with your current needs and long-term goals. A system that connects HR and payroll will often deliver the smoothest experience and the most reliable results.
Top 6 HR and Payroll Software for UK & Ireland Employers in 2026
Choosing the right HR and payroll software can make a big difference to how smoothly your business runs. Below we examine six of the leading platforms available in 2026, highlighting what they do, the key features they offer, and the types of companies they suit best.
1. Factorial
Overview: Factorial is a unified HR and payroll management software built with small and medium‑sized businesses in mind. It provides a central place to manage HR data, payroll processing, absence tracking and documents all in one system. Because HR and payroll are connected, updates made in one area are reflected across the system automatically, reducing duplicated effort and errors.
Key features:
- Automatic payroll calculations and payslip distribution
- Central employee database with secure document storage
- Time off and absence management
- Reports on payroll costs, headcount and expenses
- Employee self‑service portal
Benefits: Factorial’s strength is its ease of use and focus on automation. Payroll and HR workflows work together, so approved leave or changes to salary update payroll without manual steps. Its reporting tools help small business owners understand their workforce costs more clearly.
Best suited for: Small and medium enterprises that want a single platform for core HR and payroll needs.
Pricing: Starts from an all‑in‑one plan that includes HR tools from around £35 per month for a small number of users, with payroll added as part of the package.
2. ADP Workforce Now
Overview: ADP Workforce Now is one of the most widely used HR and payroll platforms, especially by medium to large companies. It combines payroll processing with HR records, benefits administration, compliance tools and reporting. ADP is known for its reliability and support for tax and legal obligations.
Key features:
- Comprehensive payroll automation and tax filing
- Benefits and time tracking modules
- HR record management and onboarding support
- Built‑in compliance and reporting tools
- Employee self‑service access
Benefits: Where ADP stands out is in payroll accuracy and compliance support. It handles complex pay structures and statutory reporting, which makes it suitable for companies that operate across multiple regions or have detailed reporting requirements.
Best suited for: Mid‑sized to large businesses that need robust payroll and compliance tools alongside core HR functions.
Pricing: Pricing is typically quoted per employee per month and can vary based on modules chosen. Third‑party estimates suggest a range from about £19 to £28 per employee per month for the combined system, with tailored quotes common.
3. Sage HR & Payroll
Overview: Sage offers HR and payroll solutions designed for small and mid‑sized businesses. Its payroll system is often bundled with Sage’s accounting software, making it a familiar choice for UK companies already using Sage products for finance.
Key features:
- Core payroll processing with statutory compliance
- Basic HR functions such as leave and absence tracking
- Timesheets and rota management
- Simple reporting and dashboard
Benefits: Sage is straightforward and reliable for businesses wanting essential HR and payroll functions without heavy complexity. For many small companies, it strikes a balance between capability and ease of use, and its integration with accounting tools can reduce administrative work.
Best suited for: Small and medium businesses with straightforward payroll and HR needs.
Pricing: Plans can start from around £3.50 per employee per month, though this can vary with chosen modules and features.
4. Paycor HCM
Overview: Paycor HCM is a full Human Capital Management suite that unifies HR and payroll with talent acquisition, performance management and analytics. It is designed to help HR teams with both operational tasks and people strategy.
Key features:
- Payroll automation and tax compliance
- Applicant tracking and onboarding
- Time and attendance tracking
- Workforce reporting and analytics
- Integration platform for connecting data easily
Benefits: Paycor’s strength is its breadth. Similarly to Factorial, it links HR functions such as hiring and performance with payroll and workforce analytics. By keeping data in one place, businesses can make better decisions based on real‑time insights. Its integration platform also allows easier connection with other systems.
Best suited for: Growing mid‑sized companies that want HR, payroll and talent functions in one system.
Pricing: Typically requires a custom quote based on business size and chosen modules.
5. UKG Pro
Overview: UKG Pro is an enterprise‑level HR and payroll platform with deep functionality across talent management, payroll processing, workforce planning, and analytics. It is widely used by larger organisations that need extensive employee lifecycle support.
Key features:
- Full HR management including recruitment and performance
- Payroll processing and compliance management
- Workforce analytics and planning tools
- Mobile employee access and self‑service
Benefits: UKG Pro is best suited to businesses with complex HR and payroll needs. Its analytics dashboards and planning tools help HR leaders make strategic choices. Employee self‑service and mobile access also improve engagement and reduce administrative requests.
Best suited for: Large enterprises and organisations with broad HR requirements.
Pricing: Custom pricing is common and typically discussed after consultation.
6. BambooHR
Overview: BambooHR is a well‑known HR platform that includes payroll either as an add‑on or via integration, depending on the region. It is popular for its user‑friendly interface and strong HR functionality.
Key features:
- Employee record keeping and onboarding
- Time‑off and leave tracking
- Performance and employee engagement tools
- Payroll via integration or add‑on where available
- Many third‑party integrations
Benefits: BambooHR excels in HR management. Its interface and self‑service portals help staff and managers complete tasks quickly. Payroll capabilities are available as extra modules or through connected partners, making it flexible for companies that prioritise HR first.
Best suited for: Small to mid‑sized firms that want strong HR tools with optional payroll features.
Pricing: Core HR plans typically start from around £4.50–£6 per employee per month, with payroll add‑ons costing extra.
Comparing the Best HR and Payroll Software
| Platform | Strengths | Best Feature | Price (per employee/month) | Best For |
| Factorial | All-in-one HR + payroll, easy to use, automation | Integrated HR and payroll | From £5.40 | Small & medium businesses |
| ADP Workforce Now | Comprehensive payroll & compliance, scalable | Payroll & tax accuracy | Custom pricing | Medium & large businesses |
| Sage HR & Payroll | Budget-friendly, integrates with accounting tools | Payroll basics + accounting integration | From £3.50 | Small & medium businesses |
| Paycor HCM | Full HCM suite, analytics, talent management | Linked HR, payroll & recruitment | Custom pricing | Growing mid-sized companies |
| UKG Pro | Enterprise-level HR & payroll, workforce analytics | Strategic HR insights & reporting | Custom pricing | Large organisations with complex HR needs |
| BambooHR | User-friendly HR, self-service portals | HR management with optional payroll | From £4.50–£6 + payroll add-on | Small to mid-sized companies |
Factorial: The Right Software for Your Team
Choosing the right HR and payroll software is an important decision for any business. The right platform saves time, reduces errors, and improves both employee and employer experience. When HR and payroll are connected, you eliminate duplicated work, keep data consistent, and gain better insight into workforce costs and performance.
Factorial stands out as a solution that combines HR and payroll in a single platform. By keeping everything in one place, it allows teams to:
- Automate payroll calculations and payslip generation
- Track time off, leave, and absences without manual updates
- Store employee records and important documents securely
- Give employees access to their own information via a self-service portal
- Generate reports and analytics to make better decisions about your workforce
For small and medium-sized businesses, Factorial reduces administrative burdens while providing a clear, centralised view of all HR and payroll data. This not only saves time but also helps employees feel valued because their payroll is accurate, up to date, and easily accessible.
Investing in the right HR and payroll software also prepares your business for growth. A connected system can scale with your workforce, integrate with other tools you may use, and provide reliable support when needed. Businesses that adopt platforms like Factorial often find they spend less time on manual processes, avoid payroll errors, and improve overall employee satisfaction.
In summary, HR and payroll software is no longer just a back-office tool. It is a key part of running an efficient, organised, and employee-focused business. Factorial, with its fully integrated HR and payroll capabilities, offers an excellent option for companies that want a unified, automated, and easy-to-use system. By choosing the right software for your team, you can save costs, improve accuracy, and ensure a smoother HR and payroll experience for everyone.
Disclaimer:
The information presented on this page is based on publicly available sources. The comparisons between Factorial and other providers are intended solely for the illustration of the respective software features, pricing and functionalities. All information regarding features, prices, and integrations may be subject to change without prior notice. Factorial assumes no liability for the accuracy, completeness, or timeliness of the information presented. We recommend contacting the respective providers directly to obtain the most accurate and up-to-date information. All legal regulations regarding Spanish fair advertising and competition law are fully observed by us; if you have any concerns, please reach out to us. The comparisons presented do not constitute a final evaluation or recommendation for any provider, but serve solely as an informational source.
