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Which is better for small UK businesses: CharlieHR or Shapes? If you’re building a small business in the UK and want a better way to handle core HR, CharlieHR is the right choice. If you have global expansion plans and prefer AI-powered HR, Shapes is the better option.
As a product manager at Charlie, part of my job involves deep product research and developing an understanding of the different options for UK businesses. Instead of sharing a basic comparison table or simple list, I wanted to give you a more in-depth insight into how these HR tools really compare for small teams. That way, you can make an informed choice about the best HR software for your business.
Feature
CharlieHR
Shapes
Core HR and employee docs
✅
✅
UK compliance
✅
✅
Onboarding and offboarding
✅
✅
Time-off management
✅
✅
Performance reviews
✅
☑️ Optional paid add-on
Employee surveys
✅
☑️ Optional paid add-on
Perks & discounts
✅
❌
Templates and custom reports
✅
✅
Employee self-service
✅
✅
Integrations
✅
✅
Applicant tracking system (ATS)
☑️ Optional paid add-on with Charlie Recruit
☑️ Optional paid add-on
HR advice
☑️ Only with Charlie Grow
❌
Support options
✅ UK-based live human chat, email
✅ Support available, but options aren’t publicly listed
AI features
📅 AskCharlie coming soon
✅ Agentic platform with AI built into every layer
Average implementation timeline
7 days
7 days
Ease of setup
Easy
Medium
Minimum team size
1
Not listed
Pricing model
Bracket pricing, billed monthly
Per-seat pricing, billed annually
Pricing
From £21 per month for a team of 1-4 people
From £6 per seat per month for the Core plan
Free trial
✅ 7 day trial
❌ Demo available
Best for
Small teams looking for efficient and affordable core HR
Scaling businesses looking for a customisable, AI-heavy system for HR
Key:
✅ Available in all plans
☑️ Requires additional product module
❌ Not available
We’ve created these comparison guides to help you find the best fit for your needs, goals, company size, and budget. Research sources include real user reviews on sites like G2 and Trustpilot, product research, and customer interviews. Product and pricing information is sourced directly from the vendor’s website, or from information supplied to third parties like G2 or Capterra.
This guide was last updated in September 2026.
Get to know the essentials and both platforms’ core strengths.
CharlieHR is an all-in-one HR platform designed for UK small businesses, including micro teams. It includes all the features founders and office managers need to take care of HR effectively, efficiently, and compliantly — without needing to make an HR hire.
Here’s where Charlie stands out:
Shapes is promoted as an agentic HR platform where AI agents, rather than automated workflows or HR teams, take care of the manual admin work. HR teams can also build custom tools, workflows, or dashboards from plain language commands.
Here’s where Shapes stands out:
Charlie is purpose-built for UK small businesses, with only the features and AI assistance that your team actually benefits from. If you want to manage core HR for small teams, Charlie is an excellent fit.
With Charlie you can get started in minutes, not days (or weeks). CharlieHR’s average onboarding time is less than 7 days, and the platform is so easy to use that you won’t need to invest time learning how to take care of everyday HR.
Charlie customers enjoy:
👉 Shapes has a help centre with useful resources, but it’s not clear which support options are available and whether they’re AI or human powered. Users on the Pro plan can access priority support.
CharlieHR is designed for founders, managing directors, and office managers who want to take care of core HR efficiently from one place. All Charlie plans come with the features you need to manage time off, onboarding, employee docs, and performance reviews — without having to add expensive modules or integrate with other tools.
Charlie’s features include:
Charlie customers also have the option to upgrade to Charlie Grow (which includes HR advice) or add Charlie Recruit (applicant tracking system) to their plan.
👉 Shapes customers have the option to add surveys, performance, compensation, or goals & OKR modules, but these aren’t included with the standard plan.
Charlie’s small business focus doesn’t stop at the features and user experience — it also includes the cost. Charlie’s pricing is affordable for even the smallest of teams, so there’s no barrier for founders that want to support their team from the start.
Charlie customers benefit from:
👉 Shapes offers two plans — Core and Plus, which adds a sandbox environment and enhanced security and access features.
CharlieHR has been providing UK small businesses with affordable HR software since 2016. The company is based in the UK, has a UK-based customer support and HR advice team, and is well equipped to support UK compliance.
CharlieHR users have access to:
Charlie Grow customers also have access to an HR advice service, supported by CIPD-backed advisors with a wealth of experience in HR requirements and best practices in the UK.
👉 Shapes is relatively new to the market, compared to CharlieHR’s long tenure and established reputation. Shapes was established in Israel, and serves a global audience.
Shapes also covers core HR, but it’s only part of the offer. Shapes’ agentic platform introduces new opportunities for scaling teams that want to rely on AI, but this isn’t the focus for a lot of small business teams.
Shapes gives HR teams access to a wider range of features than CharlieHR, although these are typically available through optional apps rather than as part of the core plan. With more features available, founders can streamline processes and reduce the number of HR tools in use — instead of adding to the HR tech stack.
Shapes’ extra features include:
👉 CharlieHR doesn’t offer these advanced features, but customers can use integrations to connect Charlie with tools like Figures, Pave, and Qlearsite. Charlie includes basic HR analytics and reporting.
Shapes markets itself as the only HR platform built on top of AI, and agents feature heavily across features and workflows. For teams that want to explore using AI to save time and reduce HR workload at scale, Shapes makes this possible.
Shape’s AI features include:
👉 CharlieHR is built on a foundation of effective HR for small businesses, rather than AI. AskCharlie AI is launching soon for users on the Charlie Grow plan.
As Shapes is designed for businesses beyond the micro or small stage, it comes with the ability to add enhanced access and security controls. This is especially important if you plan to scale quickly and want a system that can help you set strong boundaries around access to data.
Users on Shapes’ Plus plan have access to:
👉 CharlieHR customers can enable Google or Microsoft SSO for user accounts and set access permissions, but the options are more limited than with Shapes. Charlie offers integrations with AccessOwl for access and Secfix for security and compliance.
CharlieHR and Shapes are both all-in-one HR tools, but how do they compare on price?
CharlieHR
Shapes
4 team members
Basic: £5*
Charlie Grow: £200
Recruitment add-on: + from £55
*Special offer applies
Core: £24
Plus: £36
10 team members
Basic: £47
Charlie Grow: £346
Recruitment add-on: + from £55
Core: £60
Plus: £90
30 team members
Basic: £185
Charlie Grow: £484
Recruitment add-on: + from £55
Core: £180
Plus: £270
50 team members
Basic: £323
Charlie Grow: £622
Recruitment add-on: + from £55
Core: £300
Plus: £450
*Small teams can enjoy a special discount to save money with Charlie. Teams with between 1-4 people benefit from an introductory offer of 75% off for the first 6 months, bringing the pricing down to £5 per month.
Charlie is designed for founders and office managers that want to handle HR, reduce manual work, and stay compliant — without the need to hire a dedicated HR manager. It’s also built for growing teams, so there’s no need to switch software just because you’ve increased your headcount.
When it’s time to grow, consider adding:
CharlieHR is best for: Small businesses with no HR system that want to be able to grow without switching software.
👉 Shapes enables teams to scale through broader features, more in-depth analytics, and the ability to hand over HR tasks to the platform’s agents.
Shapes is best for: Startups and growing businesses focused on expanding beyond the UK and using AI to power HR.
Canvas switched to Charlie after previously using BambooHR as their HR information system (HRIS). CEO Sascha Michel wanted software that was affordable and easy to use, rather than a system built for bigger businesses.
Company size: 5 (12 with freelancers)
Goal with Charlie: Introduce simple, self-serve HR that’s easy for the team to use.
How Charlie helps Canvas achieve their goal:
Where they are now:
👉 Shapes doesn’t have a page dedicated to customers or case studies, but you can read reviews from real users over on G2 →
CharlieHR and Shapes are both potential options for UK businesses, but Charlie is best suited to small businesses while Shapes is a better fit for fast-growing global teams.
Charlie’s advantages for small businesses include:

Yes, it’s easy to switch from Shapes to CharlieHR. Follow Shapes’ process to download or export your HR data, then use Charlie’s simple workflow to import your data into the platform.
Charlie is designed to be easy to use, with no learning curve, so it’s more approachable for every team member — including those that have never used HR software before. Employees can use the software to save time when asking for time off, check on goals or past performance reviews, and find documents and policies.
CharlieHR offers a simple and modern interface built for efficiency. Real user reviews praise the system for being intuitive and thoughtfully designed without being overly complicated:
CharlieHR and Shapes both conform to standards like ISO 27001 and GDPR. CharlieHR is also Cyber Essentials certified. Both companies publish detailed information about their approach to security: see Charlie’s security by design page and Shapes’ trust centre.
Whether Shapes’ AI features save HR teams time or not depends on how each individual user and organisation approaches the platform. There’s not enough evidence from user reviews and case studies to provide a definitive figure on the impact of Shapes’ agentic platform on time spent on HR.
The HR software that scales best for a small business depends on your goals and starting headcount. For small teams that plan to expand in the UK and would appreciate the benefit of a built-in ATS and HR advice service, CharlieHR is the best choice. For fast-growing businesses that want a presence beyond the UK and want to hand over tasks to AI, Shapes is the better choice.
For small UK businesses, CharlieHR is the best Shapes alternative. Other options for medium-sized businesses include HiBob, Employment Hero, and Personio. The best alternative is the one that’s a closest match for your headcount, priorities, budget, and internal structure.