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When we first started out back in 2016, there weren’t many viable alternatives for small businesses that didn’t want to use spreadsheets for HR. There were the big names and international players, but neither felt like the right match for the real needs of UK small businesses.
That’s why we built Charlie — a simple, reliable, and intentional tool for small businesses that wanted to manage HR in an easy yet compliant way.
In this guide, we’ll explore the HR software vs spreadsheets debate: what are the pros and cons of both, and how HR software can support your small business now and as it grows.
HR software helps busy HR teams (and small business leaders) simplify everyday tasks like employee data management, onboarding, time-off management, performance reviews, and employee engagement. Small businesses can use HR software to streamline workflows, save time, and improve compliance, among many other benefits.
Spreadsheets are often the go-to for small business owners just starting out, and they continue to stay with the business as they grow. A simple spreadsheet can act as a temporary home for basic HR admin, but let’s see how they compare to all-in-one HR software:
HR software
Spreadsheets
One single source of truth for all things employee data and HR
✅
❌
Handles core HR functions like onboarding, time-off management, performance management, and employee engagement
✅
❌
Automatically calculate leave
✅
❌ not without writing a formula
Automated workflows and processes
✅
❌ limited, unless customised
Support compliance with GDPR and other legislation
✅
❌
Customisable access controls
✅
❌
Simple overview of HR data and trends, including customisable reports
✅
❌
Scalable as your team grows
✅
❌
Easy integrations with other tools you use and love
✅
❌
Dedicated support team with experience of HR in the UK
✅
❌
Designed for UK small businesses and built for HR
✅
❌
As you’d expect, we’re big fans of using purpose-built software for HR. Small business HR software allows you to create secure, repeatable workflows that make everything feel more professional, and gives you time back to spend on strategy and growth.
HR software is a worthwhile investment, but many business owners still see the advantages in spreadsheets. Let’s explore some of the most common pros and cons of using spreadsheets for HR admin.
When you compare the pros and cons, it’s clear that spreadsheets aren’t a realistic option for small businesses that care about efficiency or compliance. But what does introducing HR software look like in reality? Here’s how the right HR tools can solve common small business HR headaches.
The challenge: Most small business owners or HR managers spend too long on time-consuming, complicated, and boring manual HR tasks like managing time off requests, calculating holiday allowances, and sending out requests for feedback.
How HR software helps: The right small business HR software helps you automate as much as possible, so you can focus your time and attention on the areas that need you most — like HR strategy, finding the right talent, or business growth.
The challenge: HR data is stored in so many different documents, spreadsheets, and standalone tools — leading to a fragmented HR stack. It takes you forever to find what you’re looking for, and even then it might not be the most up-to-date information.
How HR software helps: All your data is stored together in one place, so there’s no need to check multiple file locations or documents. All your records are updated automatically, so data syncs seamlessly — including with any other tools or apps you integrate.
The challenge: Any task is open to human error, but it’s especially easy to make mistakes when updating spreadsheets. One typo can create a massive change in a calculation or pre-payroll information.
How HR software helps: HR software heavily reduces the opportunity for human error by automating tasks which are simple and repeatable, and automatically running calculations on hours, pay, holiday, and more.
The challenge: UK businesses need to make sure data is stored securely and in line with GDPR and the Data Protection Act, which is extremely difficult if your data is scattered and stored in spreadsheets with limited or no access controls.
How HR software helps: Employee data is securely stored in one location and locked down with restrictions that limit access only to those that need it. Choosing a platform that’s GDPR-compliant (like Charlie) also gives you peace of mind that your software choices support your wider compliance goals.
The challenge: Small teams might run simply on spreadsheets and docs, but those manual processes fall apart fast as your business grows. Documents get duplicated, workflows get ignored or changed, and there’s no way to guarantee that everyone has the same employee experience.
How HR software helps: Processes are designed, documented, and rolled out in a uniform way across the company according to your policies. Customise settings so that they work for you, then make sure everyone can enjoy a smooth onboarding, performance review, or recruitment process. You can also sign up for Charlie Recruit or Charlie Advice to add more functionality and support as you grow.
The challenge: Cobbled-together HR spreadsheets can be offputting for potential new hires and existing employees, as they signal that you’re not as organised or professional as other businesses.
How HR software helps: The right software gives your HR operations a professional feel, while still providing plenty of flexibility to adapt to your processes and ways of working. Current employees and potential talent can see that they’ll be treated well throughout their employee journey.
Switching from spreadsheets to HR software can feel like a big move, especially if you’ve been working this way for a long time. As you weigh up the pros and cons of making the switch, here are the main things to know about key decision factors like ease of use, compliance risk, and cost.
HR software
Spreadsheets
Ease of use
Ranges from easy to more challenging, depending on the software you choose
Simple to use, but becomes more complicated as the amount of data grows
Admin workload
Low, thanks to automation and employee self-service
High, as users are required to manually update fields
Risk of errors
Low, as there’s limited manual data entry and more guardrails
High, as it’s easy to accidentally input the wrong information
Flexibility and customisation
Medium to high, depending on the platform you choose
Medium, as customisation is limited to visuals rather than the way your HR processes work
Access controls
Good, allowing you to assign the right level of access to each type of user
Poor, as there are limited ways to customise access levels
Audit trails
Good, as every action taken is recorded in an audit log
Poor, with no real way to know who changed a field or formula and when
Data security and compliance
High, especially if you choose a software that’s GDPR compliant and designed for the UK
Low, thanks to the reliance on manual processes for compliance
Employee experience
Good, if you use HR software that has engagement features like surveys, polls, and praise
Poor, as it’s difficult to create engaging experiences with spreadsheets alone
Cost
Starting at £5 for a small team, ranging all the way up to £1000s per year
Free, but hidden costs might include paying for a template or ongoing support
Suitability for HR work
High, as it’s designed exclusively for this purpose
Low, as spreadsheets aren’t built for handling HR
Choose if:
You want to formalise your HR operations with simple software that improves compliance and employee experience
You want a free option for a small team and aren’t ready to move to a dedicated platform yet
Spreadsheets aren’t the way forward, but how do you find the best HR software for your small business?
We’d like to introduce you to
Charlie, the UK-based platform that’s ideal for first-time HR software users. It has all the essential features you’re looking for, including onboarding, time-off management, performance management, employee engagement, and perks and benefits.
Charlie is ideal for small business owners and wearers-of-many-hats that want all the core HR features inside a clean, easy-to-use HR platform. Get the benefits of a central source of truth, workflow automation, and UK compliance, all within a system designed for small businesses.
Book a demo with our team to find out more about how Charlie helps small teams do great HR.
It’s time to switch to HR software when you realise that using spreadsheets is taking too much time, introducing too many mistakes, and creating more problems than it solves. If you’re spending an increasing amount of time on HR tasks and have a team of more than 20 people, it’s worth considering a tool with small business HR support.
Yes, it’s possible to run HR for a small team with spreadsheets. Many small businesses with up to 30 people use Google Sheets or Excel to store employee details, manage time off, and create onboarding plans. Spreadsheets might work fine at first, but over time they become difficult to manage.
Storing HR data in spreadsheets means that it’s more vulnerable to errors, security issues, and compliance violations. It’s easy for someone to copy data or an entire spreadsheet, make changes, or even send the data to someone outside the company. Apart from security concerns, using spreadsheets for HR data means you’re limited in terms of automatic calculations, data analysis, and integrating with your other software tools.
Yes, we think HR software is worth it — even for a small team. Switching to HR software early on means you avoid many of the issues that small businesses face when it comes to data entry errors, poor data flow, compliance issues, and lack of flexibility.
Charlie is the best HR software for people with no HR experience. It was designed to be simple and easy to use, with a range of features that support CEOs, founders, and managers to take care of tasks without having to hire a dedicated HR manager.
The best HR software for small businesses is the one that most closely matches your needs. If you’re a business with under 50 employees and want a streamlined way to manage everyday HR, try Charlie.
It’s easy to switch from spreadsheets and a manual system across to CharlieHR. Gather all the data you have, then use our bulk upload feature to add or update team member information. Learn more about why you should leave spreadsheets for CharlieHR.
Yes, Charlie is so easy to set up that neither you nor your team will require any training. After your demo and free trial period, complete the full signup process. From there you can begin customising your platform, uploading employee data, and customising workflows. When you’re ready, invite everyone to start using Charlie with you.
If you’re responsible for HR but need buy-in from a CEO or founder, direct them to our advice for CEOs, founders, and managing directors and how Charlie can help in practice. They’ll quickly understand why HR should be off their plate (and yours) and how Charlie can help. Share some of our customer stories with them too, so they can see how other small businesses have experienced real change.
The number of hours CharlieHR can save you per month on HR admin will vary, as it depends on your business, your company size, and the tasks you focus on.
Rather than shout from the rooftops or overpromise, we collect feedback from our customers so that you can decide if your time savings might be similar.
One founder and CEO reported saving ”about 50 hours on HR admin every month”. You can read how they did that in their customer success story.
We built Charlie for small businesses, so our aim is for affordable and transparent pricing.
Charlie starts at just £5 per month for teams of up to four for our all-in-one plan (total cost per month, not per person), and increases incrementally as your business grows.
Whatever your team size, you have the option to add on other Charlie services like Charlie Recruit or Charlie Advice — more about them on our Pricing page.
In addition to our HR software, we offer bespoke services and products for small businesses in the form of Charlie add-ons:
Charlie is highly-rated for ease of use and customer support and offers great value for money, especially when you compare it with other HR software for UK businesses. Explore our comparison hub for transparent guides on how Charlie compares to other HR platforms like BambooHR, Breathe, HiBob, and Personio.
