What is the best HR Software for UK SMEs in 2025?

Which HR System is the best fit for your business?

Here we provide the MJV Consulting, comparison review, of Breathe and Employment Hero for Small Businesses in Sussex, Surrey and London.

As a specialist HR consultancy based in South-East England, the most frequently asked question by our small business clients is: “we are a small business and we’re not sure which HR software actually fits our needs, can you help?”

In today’s digital world, getting your HRIS choice right is a cornerstone decision: it impacts compliance, efficiency, engagement and above all else, business growth. Drawing on years of hands-on implementation experience, here’s our candid comparison to help guide UK SME owners and managers with practical, real-world insight.

Published September 2025 | 10-minute read

Understanding your Options: Breathe HR vs Employment Hero

Both Breathe HR and Employment Hero are highly reputable HRIS solutions regularly chosen by UK businesses, each with a very strong presence in the UK market.

However, each targets a slightly different audience and set of needs. Below, we break down how each platform serves small and growing businesses in the UK market, focusing on what genuinely matters for owner-managers and in-house HR teams.

Breathe HR: Built for UK SMEs

Breathe HR was created with UK small and medium businesses at the forefront of everything the product and brand stand for. Its defining strengths are without question its simplicity, rapid deployment and a feature offering closely mapped to UK business and legislative realities.

Key competencies include:

• Employee Data Management: Centralised employee files, absence tracking, and essential documents are all stored securely on UK servers with comprehensive role-based permissions and audit trails.
• Onboarding and Compliance: Customisable digital checklists streamline onboarding, while integrated e-signature keeps everything paperless and auditable. You’ll find holiday calendars pre-configured for UK statutory rules and automated alerting to prevent compliance slip-ups.
• Performance and Wellbeing: Unlike many competitors, Breathe provides performance management functionality, nice e-learning module on UK-mandated topics, burnout monitoring and even a Kudos recognition system. Most of which is available through the Core HR package at entry price points.
• Payroll Flexibility: Rather than forcing bundled payroll, Breathe integrates seamlessly with UK providers like Xero, with its integration to Xero Payroll. This lets businesses retain their preferred payroll provider while digitising their HR needs, rather than overhauling critical finance processes.
• Self-Service and Efficiency: Staff can book holidays, submit expenses and update records via web and/or mobile app, reducing manager/HR admin load significantly. With the Xero Payroll Integration, employee payslips will be drawn to their individual Breathe record for ease.
• Transparent, Scalable Pricing: With clear monthly pricing, billed via a HR Consultancy like MJV Consulting and four additional modules (chargeable), no hidden extras and a free trial, Breathe’s pricing is as straightforward as its design.
• HR Support from MJV Consulting: MJV Consulting provide first-hand support for all of our clients using Breathe including for urgent HR and compliance queries. Please reach out if you have any Breathe support questions.

Employment Hero: A Global platform with growing UK credentials

Employment Hero, can support multi-jurisdictional SMEs and aspires to be an end-to-end, global HR, payroll, benefits and wellbeing platform.

Core capabilities:

• Integrated HR, Payroll & Benefits: Full HR suite tightly coupled with built-in (not third-party) payroll engine, auto enrolment, benefit management and even employee discounts, all under one roof.
• Automation and Custom Workflows: Designed for scaling or complex businesses, Employment Hero excels in workflow flexibility, custom processes, and system integrations.
• Mobile and Remote Friendly: Employee self-service, internal comms, and document management are fully mobile-enabled which is ideal for remote-first or geographically-dispersed teams.
• International Expansion: Built with multi-country employers in mind, offering employer-of-record services, country-by-country payroll, and ongoing roadmap expansion for global compliance.
• Employee Engagement: A substantial library of wellbeing resources, recognition tools, and even perks marketplaces is included in some plans.

However, UK legacy and legal nuances are still evolving. Users often require more setup and customisation to match UK holiday rules, statutory leave, contracts and payroll compliance exactly. Pricing is by custom quote, not fixed rate and UK support can be less localised than Breathe.

A HR Consultant’s View: Feature-by-Feature Breakdown

Core HR and Admin

• Breathe HR: As a purpose-built UK SME tool, tasks such as sick/holiday tracking, document management and performance management are easy for all users, not just HR pros. Everything operates within familiar UK frameworks (GDPR, bank holidays, right-to-work documentation) as you would expect from a well-established software provider.
• Employment Hero: Offers a more robust set of communication tools, custom templates and international settings. However, the learning curve is steeper, and SMEs may not use some of the advanced features.

Payroll and Finance

• Breathe HR integrates with leading UK payroll packages, allowing businesses to keep using trusted finance partners. The Expense management module, as an add-on is simple and affordable, where employees can upload and submit expenses through the mobile app.
• Employment Hero features a built-in payroll engine that is expanding UK compliance. It is ideal for businesses requiring payroll and HR in one but may add complexity or cost for those with established UK payroll processes.

Compliance & Security

• Both platforms are GDPR aligned and ISO 27001 certified with Breathe’s UK-first approach making compliance intuitive for smaller businesses, including built-in audit trails and user permissions suitable for owner-managers.
• Employment Hero’s compliance suite is powerful but may require configuring to UK needs, especially for statutory leave or employment contracts.

Support & Implementation

• Breathe HR: UK-based, award-winning support, plus certified partners-MJV Consulting who can run tailored training, migration projects and policy alignment for a smooth go-live.
• Employment Hero: Growing UK team, but intensive support or rapid implementation may incur additional fees for smaller users.

Pricing, Value, and Transparency

• Breathe HR pricing is openly published, transparent and scales by headcount with clear add-on modules. There are no forced feature bundles, and all plans include core HR, compliance and performance at no extra charge.
• Employment Hero pricing is available online with the exception of their Enterprise plans; feature access will depend on chosen plan. Payroll and benefits, will be an additional monthly charge to the standard plan. UK-specific features are still being refined, which may mean additional configuration costs or admin support for smaller teams.
• Real-world feedback from our clients suggests the all-in-one price of Employment Hero can be competitive for larger or rapidly-scaling companies and for most UK SMEs, Breathe HR presents a lower total cost of ownership (TCO), especially for businesses with less than 100 employees who have no plans for global expansion.

Table: At-a-Glance Comparison

Which HRIS is Best for UK SMEs? The MJV Consulting Verdict

Both platforms are best-in-class which is why we have chosen them for this weeks blog, with the right choice hinging on business profile and ambition.

Choose Breathe HR if:

• The goal is rapid, low-risk digitalisation of HR with minimal admin overhead
• The team is under 150 employees, UK-base, and doesn’t require any in-platform payroll functionality
• You value clear pricing, UK-tailored support and a HR system that is genuinely easy to use
• You want performance management, and compliance tools built-in, not locked behind upgrades or custom quotes
• Local implementation support from MJV Consulting for launching and training your key personnel and wider team

Choose Employment Hero If:

• There’s a pressing need for global payroll, benefits or employee-of-record services
• Advanced workflow automation, centralised multi-site management, or in-depth reporting are mission critical
• The business plans international expansion or already manages dispersed teams
• Employee perks and engagement resources (beyond basic compliance) are a key retention tool

Why Partner with a HR Consultancy such as MJV Consulting?

Selecting any HRIS is a long-term decision. Working with a HR consultancy, such as MJV Consulting brings benefits: expert scoping and needs assessment, hands-on configuration, best practice HR process mapping, live training for users and ongoing support. We help translate technology into ROI for your business.

Final Thoughts

For most UK-based SMEs, especially those in Sussex, Surrey and London with less than 50 employees we feel that Breathe HR is the most effective and scalable starting point. It’s GDPR-ready, supported locally via MJV Consulting and quick to deploy whilst remaining incredibly highly cost-effective. Larger or scaling international teams can unlock new value with Employment Hero, provided there’s internal bandwidth to support a more complex rollout.

As ever, every business is unique. If you would like an in-depth HRIS needs assessment, a demo to understand what an HRIS looks like, or turnkey implementation, our team would be delighted to advise and support you every step of the way.

Want expert help choosing and implementing the best HR software for your SME?

Book a Free HR Consultation with our team today

FAQ (for readers)

1. Which HR software is best for SMEs under 100 staff?
   It depends on your priorities. Breathe HR is simple and intuitive, Employment Hero combines HR and payroll with customisable workflows.
2. Can these systems integrate with payroll?
   Employment Hero includes payroll. Breathe HR integrates with compatible UK payroll providers.
3. Do I need HR consultancy if I have software?
   If you haven’t got any form of in-house HR function we would recommend that you at least have a conversation with an outsourced HR consultancy, the software automates admin but a HR Consultancy like MJV Consulting ensures correct setup, compliance, and support for complex HR issues.
4. How do I know which system fits my business?
   We advise SMEs across Sussex, Surrey and London based on team size, required features, growth plans and workflows, helping you choose the system that aligns with your HR strategy.

Ready to elevate your HR for the good of your team? Contact us for a confidential consultation about how we can support your business through the challenges ahead.

If you’d like to discuss your HR challenges or explore how we can support your business, contact us at MJV Consulting on 01403 916727 or email us at info@mjvconsulting.co.uk. We’re here to help small businesses across Sussex, Surrey and London build teams that thrive.