The Best HR Software for Restaurants

There are many moving parts when it comes to running a restaurant, one of which is managing your staff. Instead of manually managing HR functions such as employee onboarding, payroll and workforce analytics, restaurants can simplify their human resources with HR software. The best HR software helps streamline HR processes, pay employees on time and, ultimately, recruit and retain great workers. To help you find the best HR software for your restaurant, we evaluated the top HR solutions on the market, comparing their features, pricing, ease of use, functionality and more.

The overall cost of HR software will vary based on your restaurant’s size, the number of employees and the specific HR features you need. Most restaurant HR software is priced on a per-employee basis, with an average rate of $5 to $20 per employee per month. Payroll, employee benefits administration and performance management services can often be added to your plan for an extra fee. Although it’s less common, some HR software providers also charge a setup fee and/or a monthly base fee ranging from $40 to $100 per month.

Actual costs for your restaurant will vary, so it’s best to get quotes from several HR software providers before you select a vendor.

Contract Lengths

Contract length also varies by vendor. While many HR software solutions are available month to month, others require annual contracts (and some offer both). If you’re opening a new restaurant or aren’t sure how long you will need HR software, it may be a good idea to choose a month-to-month solution to start. However, if you’re confident that you will be using HR software for the long term, an annual contract will often save you money.

Free Trials and Demos

Only some HR software companies offer free trials, but most companies at least offer some sort of demo to give you a firsthand look at the platform and its features. This is a great way to see if a particular HR software solution is a good fit for your restaurant before you purchase it.

HR software can come with a wide range of features, some of which are especially useful for restaurants. Here are five essential restaurant HR software features to consider in your research.

Employee Onboarding

Restaurants tend to have a lot more employee turnover than other industries, especially during seasonal changes, like the beginning and end of summer. This means employee recruitment and onboarding are ongoing. However, manually managing these processes can take up a lot of management’s valuable time. HR software helps ease this burden by automating some of the process.

HR software can include tools to help you recruit new employees through online job postings, offer letter templates with e-signature capabilities, and secure document storage. With workflow automations, you can automatically send new employees their new-hire packets and onboarding checklists to ensure they go through all of the necessary (and sometimes legally required) onboarding steps. As front- and back-of-house workers train, your HR software can track their progress.

Time Tracking

Most restaurant workers are hourly employees, which makes accurate time tracking essential. Popular HR software platforms are cloud-based, which makes it easy for employees to clock in and out from kiosks, tablets and other mobile devices. HR software can often integrate with point-of-sale (POS) systems as well, further streamlining your employee management capabilities.

Because restaurant workers sometimes work odd hours or have shifts that change each week, HR software helps ensure that your staff members are correctly scheduled and don’t violate overtime laws. HR software can also help you manage paid time off (PTO) and other types of leave.

Payroll and Taxes

Payroll can be one of the most considerable HR headaches for restaurants, but HR software simplifies the process. In addition to ensuring that you track employee hours properly, this software often has built-in payroll features to automate the employee payment process. With multiple pay rates, pay schedules (e.g., weekly, biweekly, monthly) and pay types (e.g., direct deposit, paychecks, pay cards), you can accommodate a wide variety of employee types and wages.

In addition, HR software can often take care of payroll tax responsibilities, such as payroll tax withholdings and W-2 preparation and delivery. Most HR software integrates with popular third-party payroll providers and top accounting software.

Employee Benefits Administration

In years past, employee benefits were often reserved for management, but many restaurants are now providing comprehensive benefits to all employees as a way to recruit and retain workers. Medical, dental and vision insurance; PTO; and 401(k) plans are no longer unusual in the restaurant industry.

HR software typically integrates with popular employee benefits administrators, and some have their own internal platforms to help you administer and manage employee benefits directly. The best platforms even have employee self-service features that can walk staff through the enrollment process for you.

Analytics and Reporting

A somewhat underrated HR software feature that can have a major impact on restaurants is its ability to provide analytics. Most HR software provides a range of reporting and analytics that can be used to improve your restaurant. For example, there are reports that can help you evaluate and improve your recruitment process, as well as reports that provide insight into employee productivity, labor costs, employee satisfaction, turnover rates and absenteeism rates. You can use this data to improve your processes and employee retention.

The biggest factor in choosing the right HR software for a restaurant is determining the specific functions you need. Here is an easy four-step process for choosing the right restaurant HR software.

1. Determine which features you need.

Some restaurants want simple software to track employee hours and process payroll, while others need a comprehensive solution that streamlines recruitment, manages employee performance, tracks productivity and mitigates legal risks. If you’re not sure where to start, take a look at the features mentioned in the section above.

Don’t forget to consider which features and integration capabilities you might need as your restaurant grows. Do you plan on hiring more workers or opening a second location? These are things you will want your HR software to support as you expand.

2. Consider functionality and ease of use.

Evaluate how easy the software is to learn and implement. What is the average learning capacity of your workers? Will they have time to learn a complex platform with extensive features, or do you need easy-to-use software that is quick to pick up?

Most HR software has employee self-service features that are rather intuitive. However, the initial implementation for some software can take a while. Keep this in mind when you’re comparing restaurant HR software.

3. Evaluate customer support.

First, how important is customer support to you? For some restaurateurs, it’s not a big deal; for others, it can be a dealbreaker. If you’re like most restaurant owners, you might want to look for a software provider that can offer support on the weekends.

4. Compare pricing and contracts.

Once you have an employee headcount and an HR features list, it will be easier to get a side-by-side look at the cost of each HR software platform you are considering. Find adequate software that fits within your budget. One pricing feature you may want to prioritize is a month-to-month contract. Food service is a volatile industry, especially if you’re opening a restaurant for the first time, so it can be intimidating to be locked into an annual contract. Most popular HR software vendors offer month-to-month contracts.

HR software can bring numerous benefits to restaurants by streamlining and enhancing various aspects of HR management.

Here are 10 key benefits:

1. Employee onboarding: Restaurant HR software can facilitate employee onboarding by providing a platform for training materials, policy documents and other essential resources. This helps new hires get up to speed faster.
2. Employee management: HR software allows restaurants to maintain a centralized database of employee information, making it easy to manage employee profiles, contact details, work schedules and job roles. Restaurants can also create and manage employee schedules more efficiently, which helps to streamline communication, lower the risk of errors associated with manual data entry, ensure adequate staffing during peak hours and reduce scheduling conflicts.
3. Employee engagement: HR software can help improve employee engagement through features such as performance recognition, feedback mechanisms and opportunities for professional development.
4. Reduced administrative burden: By automating repetitive HR tasks, such as manual data entry and paperwork, HR software frees up HR staff to focus on more strategic activities.
5. Accurate time tracking and payroll processing: Automated time and attendance tracking helps restaurants accurately monitor employee work hours, breaks and overtime. It also simplifies payroll processing by automating calculations, tax deductions and direct deposit. This reduces the administrative burden, minimizes the risk of payroll errors, and ensures compliance with labor laws.
6. Seamless benefits administration: Restaurants often offer benefits such as health insurance, PTO and employee discounts. HR software helps you manage these benefits efficiently, making it easier for employees to access and utilize them.
7. Internal communication and collaboration: HR software often includes communication tools, which can improve teamwork, coordination and overall efficiency among restaurant staff.
8. Regulation compliance: Restaurants must adhere to various labor laws and regulations. HR software helps ensure compliance with these regulations by providing features such as automated wage calculations, overtime tracking and leave accruals.
9. Data-driven decision-making: HR software generates various reports and analytics related to employee attendance, performance, turnover rates and more. These insights help restaurant managers make informed decisions about staffing and operations.
10. Employee self-service: Many HR software solutions offer self-service portals for employees to access their own information, request time off, view pay stubs and update personal details. This empowers employees and reduces the administrative workload for HR staff.

Overall, HR software for restaurants can significantly enhance operational efficiency, compliance and employee satisfaction, leading to improved customer service and business success.